Main Automation Contractor (MAC) In Oil & Gas Industry Market Size

Oil & Gas Main Automation Contractor Market Analysis

The Main Automation Contractor In Oil & Gas Industry is expected to grow from USD 1.16 billion in 2024 to USD 1.52 billion by 2029, at a CAGR of 6.28% during the forecast period (2024-2029).

• The growing demand for oil and gas across various end-user industries has significantly enhanced the rate of mechanization and the adoption of automation solutions, along with the demand for a higher process and operational efficiency, which positively influences the studied market's growth.
• With the increasing scope of automation in today's information-driven oil production environment, handling more information processing close to the production site is critical. Suitable production and operational data should flow smoothly between oil production and business systems. MAC's responsibility is to design, engineer, and deliver all automation-related equipment and procedures and ensure that these systems are integrated safely and securely and supported by necessary services.
• In the oil and gas industry, the penetration of automation solutions has been touching new heights in recent years, which is fueling the demand for MAC services. For instance, downstream, midstream, and upstream firms have integrated machine learning into their operations in many ways, which may continue to grow. Although, the industry needs to adopt new ways of operating. However, recent trends recognize the immense potential of technologies such as automation, artificial intelligence (AI), and machine learning (ML) can have on the industry.
• Considering such trends, vendors are increasingly entering into partnerships with oil & gas companies to offer MAC services. For instance, in June 2022, ABB partnered with Think Gas, a city gas distribution company, to automate operations across Think Gas’ gas network, including many remote terminals spread across multiple locations. ABB created a system to monitor, integrate, and control operations across the company, automating workflows to support operators in improving safety.
• Furthermore, large oil and gas companies are focusing on leveraging MAC as a means of undertaking full project responsibility and delivering satisfactory results by facilitating proper management, automation/instrumentation, manufacture, selection of execution engineers, installation of equipment, commissioning equipment, and after-sales support as MAC implementation has demonstrated significant results in long-term, across various industries.
• However, the cost of implementation of the main automation contractor (MAC) continues to remain among the major challenging factors for the growth of the studied market. Furthermore, the lack of standardization of MAC and related solutions are also among the major restraining factors for the growth of the studied market.
• During the initial outbreak of COVID-19, companies were forced to coordinate their efforts due to the significant changes caused by the pandemic in the MAC supply chain and the growing movement to switch to cleaner, more dependable, and more sustainable energy sources. However, with automation solution proving their supremacy during the COVID period, a significant number of vendors operating in the oil & gas industry are anticipated to increase their investment in advanced automation solutions, creating opportunities in the studied market during the forecast period.