Northbrook, IL 60062 -- (SBWire) -- 03/25/2022 --The SCADA market size is expected to reach USD 13.2 billion by 2026 from USD 9.2 billion in 2021, at a CAGR of 7.6% during the forecast period.
The growth of the market is majorly driven by increased adoption of Industry 4.0 solutions using SCADA systems, high demand for industrial mobility solutions for efficient management of process industry, and use of software platforms such as IoT and artificial intelligence.
RTU segment expected to lead the SCADA market in 2021
The RTU component is expected to account for the largest share of the SCADA market during the forecast period. An RTU in a SCADA system is an electronic device and one of its core components. It is used for collecting data, coding it into a transmittable format, and then transferring it to the main system. Several RTUs are equipped in a SCADA system for this purpose. Deep-sea exploration and extraction, along with shale gas, also contribute to the rising demand for RTUs, as oil & gas is the major end-user industry of SCADA systems.
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SCADA market in APAC contributed the largest share in 2020
APAC is the production hub for automation technologies due to the presence of major companies such as Yokogawa Electric, Mitsubishi Electric, and OMRON. Renewable energy, smart grids, water & wastewater, and transportation sectors are expected to drive the growth of the SCADA market in APAC. Automation is increasing in APAC because of the rising necessity for high-quality products, along with increased production rates.
The rising importance of real-time data to perform process analysis and predictive maintenance in industrial environments and the growing demand for industrial robots are the major factors that drive the adoption of Industry 4.0. With Industry 4.0, most industrial processes and systems can be automated, allowing production units to operate round the clock. It also eliminates the human errors associated with production processes. Industry 4.0 is an integration of cyber-physical systems, IoT, and cloud computing. It consists of automation infrastructure, such as SCADA or IoT, which enables an operator to carry out manufacturing processes remotely, and real-time information is collected resourcefully to ensure optimum operations.
Oil and gas prices have been declining globally since 2011. With this decline, oil and gas companies have experienced a dip in revenue, profits, and operating margins. This has led to a decline in capital investments toward infrastructure projects. Process automation is a part of infrastructure projects such as new pipeline construction, exploration of hydrocarbons, or development of new refineries. Hence, the decline in capital investments affects the overall process automation and instrumentation ecosystem. The volatility in the prices of oil is likely to affect infrastructure investments because it lowers investment returns. This factor has a high impact on the SCADA market. The fluctuation in oil prices is hindering the growth of market because the oil & gas industry is a major end-user of SCADA systems.
Opportunities and Challenges in the SCADA Market