Energy decarbonization developments to awaken global oil & gas analytical instrumentation industry
Stricter environmental rules to expedite post-COVID-19 revival and uncover new growth opportunities in the market, says Frost & Sullivan
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, Environmental and Safety Mandates Driving the Global Oil & Gas Analytical Instrumentation Market, 2020–2026, forecasts that demand for analytical instrumentation in the oil & gas industry will rebound in 2022, with market revenue expected to increase by 4.7% compared to 2021.
Additionally, the expansion of oil and gas production is expected in North America and APAC, further driving the demand for analytical instrumentation.
“A decline in oil prices due to the COVID-19-induced slowdown caused the oil and natural gas markets to crash in 2020. However, there will be a demand for chromatographs and natural gas analyzers to optimize production and allow budget cuts in oil and gas production,” said Janani Balasundar, industrial research analyst for Frost & Sullivan, in a prepared statement. “New sources of gases, including biogas, hydrogen, and synthetic methane, are being introduced to domestic and commercial energy systems to decarbonize gas consumption, while a lower carbon shift is being realized in the midstream and downstream sectors.”
Balasundar added: “North America will dominate the market in terms of oil and gas production and expansion. The production of shale gas in the region is expected to be strong, driving the demand for process analyzers. In the United States, non-conventional sources of fuel used in the production of natural gas are expected to increase significantly in the coming years, driving the requirement for analyzers to monitor gases efficiently. Further demand will be driven by the Asia-Pacific region, where many new oil and gas projects are expected to start operations over the next eight years. Market growth for the oil and gas sector in Europe is forecast to be sluggish, owing to the impact of COVID-19 and stricter environmental regulations, which will result in suppressed demand for analytical instruments.”
For more revenue opportunities, Frost & Sullivan believes that market participants should: