Global Underground Gas Storage Automation Market Overview
As per MRFR analysis, the Underground Gas Storage Automation Market Size was estimated at 1.81 (USD Billion) in 2022. The Underground Gas Storage Automation Market is expected to grow from 1.88 (USD Billion) in 2023 to 2.7 (USD Billion) by 2032. The Underground Gas Storage Automation Market CAGR (growth rate) is expected to be around 4.11% during the forecast period (2024 - 2032).
Key Underground Gas Storage Automation Market Trends Highlighted
The Underground Gas Storage Automation Market is poised for significant growth due to several key market drivers. The increasing demand for reliable and efficient gas storage solutions, coupled with government initiatives to reduce greenhouse gas emissions, is driving the adoption of automation technologies in the underground gas storage industry.
Opportunities for growth in the market lie in the development of advanced automation systems that can optimize gas storage operations, improve safety and security, and reduce environmental impact. Additionally, the integration of artificial intelligence (AI) and machine learning (ML) into automation systems is expected to enhance efficiency and performance further.
Recent trends in the market include the adoption of cloud-based automation systems that offer greater flexibility, scalability, and cost-effectiveness. Furthermore, the demand for remote monitoring and control capabilities is growing, as it allows operators to manage gas storage facilities from anywhere with an internet connection. These trends are shaping the market landscape and creating opportunities for companies that can provide innovative and comprehensive automation solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Underground Gas Storage Automation Market Drivers
Increasing Need for Efficient Gas Storage and Distribution
The growing demand for natural gas as a cleaner and more efficient fuel source has led to a surge in the construction of underground gas storage facilities. These facilities play a crucial role in ensuring a reliable and secure supply of gas to consumers, especially during peak demand periods. Automation technologies play a vital role in optimizing the operation and maintenance of these storage facilities, enabling real-time monitoring, control, and data analysis.
By implementing automation solutions, gas storage operators can enhance the efficiency and reliability of their operations, minimize downtime, and reduce maintenance costs. The integration of advanced technologies, such as remote monitoring, predictive analytics, and automated control systems, allows for proactive management of storage operations, leading to improved asset utilization and reduced operating expenses.
Government Regulations and Safety Standards
Stringent government regulations and safety standards are driving the adoption of automation technologies in the Underground Gas Storage Automation Market. Regulatory bodies worldwide are implementing strict guidelines to ensure the safe and environmentally responsible operation of underground gas storage facilities. Automation systems provide real-time monitoring and control capabilities, enabling operators to comply with regulatory requirements and minimize the risk of accidents.
Advanced automation technologies, such as leak detection and prevention systems, remote monitoring systems, and automated safety shutoff valves, play a crucial role in enhancing safety and reducing the environmental impact of gas storage operations.
Technological Advancements and Digitalization
Rapid technological advancements and the increasing digitalization of the energy sector are driving innovation in the Underground Gas Storage Automation Market. The integration of Internet of Things (IoT) devices, cloud computing, and artificial intelligence (AI) is transforming the way gas storage facilities are operated and managed. These technologies enable real-time data collection, analysis, and visualization, providing valuable insights into the performance and efficiency of storage operations.
By leveraging digitalization, gas storage operators can optimize decision-making, improve predictive maintenance, and enhance overall operational efficiency.
Underground Gas Storage Automation Market Segment Insights
Underground Gas Storage Automation Market Storage Type Insights
The Underground Gas Storage Automation Market is segmented by storage type into cushion gas storage, aquifer storage, salt cavern storage, depleted oil and gas reservoir storage, and leaching cavern storage. Among these, cushion gas storage is expected to hold the largest market share in the coming years. Cushion gas storage involves the use of non-combustible gas, such as nitrogen or carbon dioxide, to maintain the pressure in the storage reservoir. This method is widely used due to its flexibility and cost-effectiveness. Aquifer storage, on the other hand, involves storing gas in underground aquifers, which are layers of rock or soil that contain water.
This method is gaining popularity due to its ability to store large volumes of gas and its low environmental impact. Salt cavern storage involves creating underground caverns in salt formations by dissolving the salt with water. These caverns are then used to store gas. This method is suitable for long-term storage due to the stability of salt formations. Depleted oil and gas reservoir storage utilizes depleted oil and gas reservoirs to store gas. This method is cost-effective as it leverages existing infrastructure. Finally, leaching cavern storage involves creating underground caverns by dissolving limestone or dolomite formations with water.
These caverns are then used to store gas. The Underground Gas Storage Automation Market is expected to grow significantly in the coming years, driven by the increasing demand for natural gas and the need for efficient and reliable storage solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Underground Gas Storage Automation Market Automation Level Insights
The Underground Gas Storage Automation Market is segmented by Automation Level into Basic Automation, Semi-Automated, and Fully Automated. The Fully Automated segment is expected to hold the largest market share in 2023 and is projected to continue to dominate the market throughout the forecast period (2023-2032), owing to the increasing adoption of advanced automation technologies in underground gas storage facilities. Semi-Automated segment is expected to witness a steady growth rate during the forecast period. The Basic Automation segment is expected to account for a smaller market share compared to the other two segments.
Overall, the market for Underground Gas Storage Automation is expected to Register a CAGR of 4.11% from 2023 to 2032, reaching a total market valuation of USD 2.7 billion by 2032.
Underground Gas Storage Automation Market Application Insights
The application segment is crucial in understanding the market dynamics of the Underground Gas Storage Automation Market. Gas storage facility management is a key application, accounting for a significant portion of the market share. It involves automating the processes associated with gas storage, such as inventory control, injection and withdrawal scheduling, and equipment monitoring. Gas injection and withdrawal operations are other important applications, focusing on the automation of gas injection and withdrawal processes to ensure efficient and safe operations.
Safety and emergency management are crucial for ensuring the safety of personnel and equipment in underground gas storage facilities. Remote monitoring and control enable real-time monitoring and control of gas storage operations from remote locations, improving efficiency and response times. Data analytics and optimization help optimize gas storage operations by analyzing data and identifying areas for improvement, leading to increased efficiency and cost savings. The Underground Gas Storage Automation Market is expected to witness significant growth in the coming years, driven by the increasing demand for automation solutions to improve efficiency, safety, and cost-effectiveness in underground gas storage operations.
Underground Gas Storage Automation Market Component Insights
The Underground Gas Storage Automation Market is segmented into components such as sensors, actuators, controllers, software, and communication networks. The growing demand for real-time monitoring and control of underground gas storage facilities is driving the growth of the sensors segment. Sensors are used to measure various parameters such as pressure, temperature, flow rate, and gas composition. These sensors provide real-time data to the control system, which helps in optimizing the operation of the gas storage facility. The increasing adoption of wireless sensors and the development of new sensor technologies are further contributing to the growth of this segment.
The actuators segment is also expected to witness significant growth during the forecast period. Actuators are used to control the flow of gas in and out of the storage facility. The growing need for automated control of gas flow is driving the growth of this segment. Controllers, software, and communication networks are other important components of underground gas storage automation systems. Controllers are used to manage the overall operation of the system, while software provides the necessary functionality for data acquisition, analysis, and control.
Communication networks are used to connect the various components of the system and enable remote monitoring and control. Overall, the Underground Gas Storage Automation Market is expected to grow at a steady pace in the coming years, driven by the increasing need for efficient and reliable gas storage solutions.
Underground Gas Storage Automation Market End User Insights
The End User segment comprises various entities that utilize underground gas storage automation systems to enhance their operations. Gas Storage Companies: These companies own and operate underground gas storage facilities, using automation systems to optimize gas storage and retrieval processes, ensuring reliable gas supply and meeting peak demand. Gas Transmission and Distribution Companies: These entities transport and distribute gas through pipelines, leveraging automation systems to monitor and control gas flow, ensuring efficient delivery to end consumers.
Industrial Gas Users: Large-scale industrial consumers, such as manufacturing facilities and power plants, rely on underground gas storage automation systems to manage their gas consumption, optimizing costs and ensuring uninterrupted supply. Utilities: Utility companies utilize underground gas storage automation systems to enhance their gas distribution networks, ensuring reliable and efficient delivery of gas to residential, commercial, and industrial customers. Government Agencies (for Strategic Gas Reserves): Governments maintain strategic gas reserves for emergency situations and national security purposes, using automation systems to monitor and manage these reserves effectively.
Underground Gas Storage Automation Market Regional Insights
Regionally, the Middle East and Africa held the largest market share in 2023, owing to the presence of a well-established oil and gas industry and stringent environmental regulations. Europe is anticipated to exhibit significant growth over the forecast period due to the rising adoption of automation solutions to enhance operational efficiency and reduce costs.
North America is projected to witness a steady growth rate, driven by increasing investments in gas storage infrastructure and the growing demand for natural gas in countries such as China and India. South America and APAC are expected to experience moderate growth, owing to the presence of significant natural gas reserves and the need for efficient storage solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Underground Gas Storage Automation Market Key Players and Competitive Insights
Major players in the Underground Gas Storage Automation Market are focusing on developing innovative technologies to enhance the efficiency and reliability of underground gas storage operations. Leading Underground Gas Storage Automation Market players are investing in research and development to introduce advanced solutions that can optimize gas storage processes, reduce operational costs, and improve safety. The Underground Gas Storage Automation Market is expected to witness significant growth in the coming years due to the increasing demand for efficient and reliable gas storage solutions. The competitive landscape of the Underground Gas Storage Automation Market is characterized by the presence of both established and emerging players.
A prominent player in the Underground Gas Storage Automation Market is Emerson Electric Co., which offers a comprehensive suite of automation solutions for underground gas storage facilities. The company's portfolio includes gas storage management systems, pipeline monitoring and control systems, and compressor control systems. Emerson Electric Co. has a strong global presence and a wide customer base, which gives it a competitive edge in the market. Another key player in the Underground Gas Storage Automation Market is Siemens AG, which provides a range of automation solutions for the oil and gas industry. The company's offerings include distributed control systems, programmable logic controllers, and gas turbine control systems. Siemens AG has a strong track record in delivering innovative automation solutions and has a significant market share in the Underground Gas Storage Automation Market.
Yokogawa Electric Corporation is another major player in the Underground Gas Storage Automation Market. The company offers a wide range of automation solutions for the oil and gas industry, including gas storage management systems, process control systems, and safety systems. Yokogawa Electric Corporation has a strong focus on research and development and is continuously investing in developing innovative automation technologies. The company has a global presence and a wide customer base, which gives it a competitive edge in the Underground Gas Storage Automation Market.
Key Companies in the Underground Gas Storage Automation Market Include
- Emerson Electric
- Mitsubishi Electric
- Honeywell International
- Schneider Electric
- Eaton
- EDF
- Siemens
- Rockwell Automation
- General Electric
- Veolia Environment
- EnerSys
- SUEZ
- ENGIE
- ABB
- Yokogawa Electric
Underground Gas Storage Automation Market Developments
Increasing demand for natural gas, coupled with the need to enhance storage capacity and improve operational efficiency, is driving market growth. Technological advancements, such as the deployment of sensors, remote monitoring systems, and data analytics, are further contributing to market expansion. Key market players are focusing on strategic partnerships, acquisitions, and product innovations to gain a competitive edge.
Underground Gas Storage Automation Market Segmentation Insights
-
Underground Gas Storage Automation Market Storage Type Outlook
- Cushion Gas Storage
- Aquifer Storage
- Salt Cavern Storage
- Depleted Oil and Gas Reservoirs Storage
- Leaching Cavern Storage
-
Underground Gas Storage Automation Market Automation Level Outlook
- Basic Automation
- Semi-Automated
- Fully Automated
-
Underground Gas Storage Automation Market Application Outlook
- Gas Storage Facility Management
- Gas Injection and Withdrawal Operations
- Safety and Emergency Management
- Remote Monitoring and Control
- Data Analytics and Optimization
-
Underground Gas Storage Automation Market Component Outlook
- Sensors
- Actuators
- Controllers
- Software
- Communication Networks
-
Underground Gas Storage Automation Market End User Outlook
- Gas Storage Companies
- Gas Transmission and Distribution Companies
- Industrial Gas Users
- Utilities
- Government Agencies (for Strategic Gas Reserves)
-
Underground Gas Storage Automation Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.81 (USD Billion) |
| Market Size 2023 |
1.88 (USD Billion) |
| Market Size 2032 |
2.7 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.11% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Emerson Electric, Mitsubishi Electric, Honeywell International, Schneider Electric, Eaton, EDF, Siemens, Rockwell Automation, General Electric, Veolia Environment, EnerSys, SUEZ, ENGIE, ABB, Yokogawa Electric |
| Segments Covered |
Storage Type, Automation Level, Application, Component, End User, Regional |
| Key Market Opportunities |
1 Digitalization and Connectivity 2 Predictive Maintenance and Analytics 3 Cybersecurity Enhancements 4 CloudBased Solutions 5 Remote Monitoring and Control |
| Key Market Dynamics |
1 Growing demand for reliable gas supply 2 Increasing need for efficient storage operations 3 Adoption of advanced technologies for automation 4 Government incentives for gas storage development 5 Strategic partnerships and collaborations in the industry |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Underground Gas Storage Automation Market size was valued at USD 1.88 billion in 2023 and is projected to expand at a CAGR of 4.11% to reach USD 2.7 billion by 2032.
The growth of the Underground Gas Storage Automation Market is primarily driven by the increasing demand for efficient and reliable gas storage solutions, coupled with the need for improved safety and operational efficiency in underground gas storage facilities.
The Middle East and Africa is expected to hold the largest market share in the Underground Gas Storage Automation Market due to the presence of a well-established oil and gas industry, coupled with stringent regulations and standards for gas storage operations.
Some of the key competitors in the Underground Gas Storage Automation Market include Emerson Electric Co., Honeywell International Inc., Schneider Electric SE, Siemens AG, and Yokogawa Electric Corporation.
The major applications of the Underground Gas Storage Automation Market include gas storage level monitoring, gas flow control, gas quality monitoring, and safety and security systems.
The Underground Gas Storage Automation Market faces challenges such as the high cost of implementation and maintenance, the need for skilled professionals, and the stringent regulatory environment.
The latest trends in the Underground Gas Storage Automation Market include the adoption of digital technologies, the integration of artificial intelligence and machine learning, and the increasing focus on cybersecurity.
The Underground Gas Storage Automation Market is expected to Register a CAGR of 4.11% from 2024 to 2032.
The key factors that will shape the future of the Underground Gas Storage Automation Market include the increasing demand for gas storage capacity, the adoption of smart technologies, and the growing focus on sustainability.
The opportunities for growth in the Underground Gas Storage Automation Market include the expansion of gas storage facilities, the increasing adoption of automation and digital technologies, and the growing need for safety and security systems.
