Instrumentation services are the services required to indicate, measure, and record physical quantities in primary processes, including the calibration, maintenance, and repair of measuring instruments as well as the testing and commissioning of instrumentation required in processes. Other services include consultancy for resolving complex problems regarding process automation and training and maintenance,both online and on-site.
The global instrumentation services market is pegged to reach a value of USD 10,016.4 million by 2027, with a CAGR of 7.99% during the forecast period, 2020–2027. From a regional perspective, Asia-Pacific is pegged to be the most significant growth contributor, where the instrumentation services market is expected to grow at a CAGR of 9.51% during the forecast period. In terms of value share, North America accounts for the largest share of the pie, closely followed by Europe.
Digital Transformation to Fuel Demand for Instrumentation Services
With the changing market dynamics, today, numerous players are constantly trying to blend technology with process instrumentation. It has become easy to connect systems from the factory to the enterprise through IoT. Apart from this, IoThelps in integrating control, automation, and related software for building an efficient data analysis platform. It also enables technicians to monitor and take corrective action for regulating production as per demand. For instance, Schneider Electric, in August 2018, launched an IoT enabled application, EcoStruxure Field Device Expert, which can automate the detection, configuration, commission, and testing of instrumentation devices. It is expected to reduce 70% of the time required to configure commissioning, and once the application is installed, it helps in conditioning and monitoring throughout the plant lifecycle.
Increasing Automation in the Oil and Gas IndustryDrives the Demand for Instrumentation Services
Currently, the oil and gas industry is observing volatility in prices, despite which several new entrants are planning to enter the market. After the discovery of shale gas and subsequent development, market players have started investing significantly in new technologies to fully exploit the potential of shale gas. The oil and gas industry uses process instrumentation to monitor emission levels and flammable gases in manufacturing areas and measure flow levels in delivery systems. Gas analytics equipment and pressure instruments are a few of the key instruments used in the sector for different processes,wherein process instrumentations play an important role in the efficient functioning and safety of plants. Therefore, the demand for instrumentation services, such as calibrations, testing, maintenance, and maintenance,is on the rise.
Automation in the oil and gas industry has become a critical factor in improving efficiency and reducing carbon emission. Also, several market players are opting for automation to maximize profit as oil price volatility is at its peak. In line with this, oil and gas companies are using data analytics and IoT to monitor data gathered using field instruments. These instruments are used in severe conditions, which further drives the demand for instrumentation services. Nowadays, companies are using remote assistance and maintenance for configuration and maintenance, where various advanced technologies such as 3D modeling and augmented reality are used.
Volatility in Different Scenarios around the Globe
Various socio-economic and environmental factors, such as the U.S.-China trade war, currency fluctuations, oil price volatility, natural calamities, and the recent coronavirus outbreak, may hamper the market growth to some extent as these events can cripple the demand, creating a non-conducive scenario for the market. Moreover, political instability in an economy can jeopardize international trade relations with other trading partners, affecting 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 and beverage, oil and gas, and chemical, among others. As per the American Chemistry Council, the U.S. imports over 1,500 chemicals from China, which is the sole producer of these chemicals, and the ongoing U.S.-China trade war is likely to affect the import of chemicals 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 years to come.
Calibration Services Segment Dominates the Market by Type
Calibration services detect and correct incorrectness in measuring instruments, such as deviations or inaccuracies in the dimensional standards. These services are crucial wherever an instrument deals with measurements as it ensures the findings or readings are correct. Usually, calibration services include checking the instruments at the service provider's facility or in a calibration laboratory. Handheld calibration devices, fixed calibration instruments, and portable devices are the key machinery used to carry out different types of calibration, such as scale calibration, multimeter calibration, pressure calibration, and temperature calibration, among others. Several organizations in the market are opting for regular calibration services to reduce the maintenance costs of machines since these services reduce the chances of equipment malfunction and failure.
Food and Beverages Sector: The Largest Consumer of Instrumentation Services
The food and beverage segment was valued at USD 947.8 in 2019 and is expected to reach a value of USD 1,633.9 by 2027. The industry must comply with stringent government regulations regarding food safety and standards, and players engaged in the industry have to address several technical and process aspects while handling any instrument because an issue or failure during work can impact the entire process, increasing downtime and compromising food quality. Concentration, temperature, pH, mass flow, dissolved oxygen, density, level, and pressure are a few of the key parameters that need to be monitored as per the set standards.
In order to get the desired result, different process instruments—such as flow meters to measure the flow of the dispensing fluids, temperature measurement instruments to measure the critical temperatures of food processing, pressure indicators, and machine safety instruments, among others— must work efficiently. In line with this, the demand for instrumentation services such as calibration, maintenance and repair, and consultancy, among others, is observing significant growth,and this trend is likely to continue throughout the forecast period.
North America: The Largest Value Shareholder in the Global Instrumentation Services Market
North America is one of the key manufacturers and consumers of process instruments. The regional aviation market is expected to see healthy growth in the coming years due to the increasing procurement of business jets, passenger aircraft, turboprops, and defense aircraft, among others. As per the Airlines for America, the airlines industry creates around USD 1.7 trillion in economic activities in the U.S. and more than 10 million jobs. In June 2019, Delta Air Lines, a key 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 growing demand for process instruments used in airplanes to operate quality management systems, maintain cabin pressure, display information of various systems running, and monitor temperature changes, as well as maintain, repair, and calibrate these process instruments.
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 FY2020, which is 1.4% higher than FY2019. Furthermore, NASA, in July 2019, announced plans to commercialize the International Space Station (ISS), a move that is likely to generate more revenue and drive the demand for instrumentation services such as calibration and maintenance. Moreover, growing investments by the government and private firms, such as The Boeing Company, Lockheed Martin Corporation, and SpaceX in space missions, are expected to upsurge the use of process instruments as well as instrumentation services. For instance, space equity investment tallied around USD 18 billion from 2009 to 2018, of which USD 3 billion was invested in 2018.
- Agilent Technologies
- Charnwood Instrumentation Services Ltd
- ABB Group
- 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.
- Yokogawa Electric Corporation
Instrumentation Services Market: Segmentation
- Calibration Services
- Diagnostics and Repair Services
- Testing and Commissioning Services
- Training Services
- Consultancy Services
- Food and Beverage
- Life Science
- Oil and Gas
- Water and Wastewater
- Power and Energy
- Primaries and Metal
- The U.K.
- The Rest of Europe
- South Korea
- The Rest of Asia-Pacific
- The Rest of Latin America
The Middle East
- The UAE
- Saudi Arabia
- The Rest of the Middle East
- South Africa
- The Rest of Africa