In light of the growing automation capabilities of several sectors, the global market for instrumentation services is expected to witness considerable growth. Devices used for flow measurement, level measurement, and temperature measurement require services for calibration, testing and commissioning. Integrating automation into the process is a challenging task, requiring in-depth knowledge that instrumentation industry consultants are well-versed with. Also, services such as technical support and training of personnel has beginning to gain importance. Remote services are playing a vital role in assisting in instrumentation services.
The market has been demanding highly efficient, cost-effective, reliable, and safe instruments across every sector nowadays. Organizations are striving to minimize the workforce by incorporating cloud-based applications in order to develop efficient process technology. The instrument and system functions used to be discrete in the earlier days. However, organizational needs have evolved with time, and several enterprises are mandating integrated solutions for process control in the form of tools. This can automatically assist in choosing the correct field device and analogous technology. The application and validation tool (AVT) is one such cloud-based service that aids in selecting and configuring appropriate devices.
Honeywell International Inc. has launched the Smartline application and validation tool that helps in real-time assistance and downscales documentation work. It also offers a platform for beginners who require additional consultancy in terms of process fluids and materials. The market is foreseen to witness a significant rise in the product lifecycle as a slew of organizations are relying less on calibration services. On the other hand, the calibration services have evolved from being periodic to predictive on the grounds of constant monitoring and diagnostics.
Market dynamics are compelling players in the market to continually blend technology with process instrumentation. IoT has made connecting systems from the factory to the enterprise level easy. Besides, it helps in integrating control, automation, and associated software for building an efficient data analysis platform. IoT enables technicians to monitor and take corrective measures to regulate production in accordance with the demand. Schneider Electric, in August 2018, launched an IoT enabled application called the EcoStruxure Field Device Expert, which can automate the detection, configuration, commission, and testing of instrumentation devices. This application is presumed to reduce 70% of the time required to configure commissioning. Once the application is installed, it helps in conditioning and monitoring throughout the plant lifecycle.
Volatility in Different Global Scenarios to Influence the Market Growth
Several socio-economic and environmental factors such as the trade war between the U.S. and China, fluctuations in currency and oil prices, Australian bush fire, and the recent outbreak of coronavirus may hamper the market growth to some extent. These events can cripple the demand, creating a non-conducive scenario for the market. On the other hand, political instability in an economy can jeopardize international trade relations with other trading partners, impacting the overall trade balance since it can discourage potential investors.
The instrumentation services market is dependent on the demand for instrumentation devices required for industrial automation, which is directly connected to the performance of different sectors such as food & beverage, oil & gas, chemical, among others. As per the American Chemistry Council, the U.S. imports roughly 1,500 chemicals from China, which is the sole producer of these chemicals. However, the ongoing U.S.–China trade war is predicted to affect the imports of such chemical worth around USD 26,500 million. Therefore, protectionist trade policies, constant changes in the government regime, and environmental crises are projected to continue hampering the market growth in the years to come.
North America’s Aviation Industry to Aid the Instrumentation Services Market
The North America instrumentation services market is projected to reach a value of USD 3,182.1 million by 2027 up from USD 1,585.8 million in 2017, at a promising CAGR of 6.52%. North America is one of the key manufacturers and consumers of process instrumentation. The regional aviation market is expected to see a healthy growth rate in the coming years, owing to the increasing procurement of business jets, passenger aircraft, turboprops, defense aircraft, among others. As per the Airlines of America, the Airline industry contributes around USD 1.7 trillion in terms of economic activities in the U.S. and helps create more than 10 million jobs.
In June 2019, Delta Air Lines, a prominent player in North America, placed an order for five additional A220-100 aircraft and has a total of 95 aircraft on order. This highlights the escalating demand for process instruments used in the airplanes to operate the quality management systems, maintain the cabin pressure, display information of the various system running, and monitor temperature changes.
Every year, NASA spends the highest amount on space research among all other countries across the globe. It is planning to spend around USD 21 billion for fiscal year (FY) 2020, roughly 1.4% higher than FY 2019. Furthermore, NASA, in July 2019, announced its plans to commercialize the International Space Station (ISS), a move that is likely to generate more revenue. Moreover, growing investments by the government and private firms, such as The Boeing Company, Lockheed Martin Corporation, and SpaceX in space missions is expected to upsurge the use of process instruments as well as instrumentation services. For instance, space equity investment reckoned around USD 18 billion from 2009 to 2018, out of which USD 3 billion was invested in 2018.
The Europe instrumentation services market generated revenue of USD 1,234.7 million in 2018 and is expected to register a value of USD 2,335.6. Asia-Pacific’s economic outlook continues to be strong and dynamic. As per our analysis, the Asia-Pacific instrumentation services market is expected to reach a value of USD 3,264.9 million by 2027 at a CAGR of 9.08%
As per Oxford Economics, the chemicals industry contributed around USD 2.6 trillion to Asia-Pacific’s GDP. The chemicals industry houses more than 20 sub-categories, which has helped the chemical industry to diversify its portfolio and meet the evolving market demands. As per the UNCTAD, Asia received 31% of the total Foreign Direct Investment globally. Process instruments are extensively used in the chemical industry to measure the flow, density, temperature, and other critical parameters. Therefore, it becomes imperative that these instruments work with utmost precision and accuracy. Instrumentation services such as calibration, maintenance, and repairs are required periodically to ensure that the chemical plants work smoothly and avoid any downtime that could lead to high monetary losses.
Asia-Pacific to Register Highest CAGR by Dint of its Chemical Industry
Europe is working hard to tackle the climate crisis and aligning its rules and regulations as per the goals of the ‘Paris Climate Change Treaty’. The Paris Agreement stipulates that countries must cut their carbon footprints and strive to scale down the adverse impacts of global warming. This agreement has prompted several governments and private players to initiate and invest in efficient technologies that use less electricity and work on cleaner fuels. This scenario has paved the way for the development of new process instruments and systems that are less carbon-emitting and equipped with the Internet of things (IoT), consuming minimal power while delivering high efficiency.
Agilent Technologies, Charnwood Instrumentation Services Ltd, TRESCAL, ABB Group, KROHNE, Utilities Instrumentation Service, Inc., Schneider Electric, Siemens AG, Honeywell International Inc, Miraj Instrumentation Services (I) Pvt. Ltd, Endress+Hauser Group Services AG, Emerson Electric Co, Rockwell Automation, Inc and Rockwell Automation, Inc, among others.
Instrumentation Services Market Segmentation
Central, South America, and the Caribbean
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