Middle East & Africa Distributed Control Systems Market Forecast to 2030 - Regional Analysis by Component and Industry

The Middle East & Africa distributed control systems market was valued at US$ 980.99 million in 2022 and is expected to reach US$ 1.32 billion by 2030; it is estimated to register at a CAGR of 3.8% from 2022 to 2030.

Increasing Demand from Oil & Gas Industry Bolsters Middle East & Africa Distributed Control Systems Market

With the increasing industrialization and economic development, the demand for electricity is growing at an impressive pace. Electricity is one of the fastest-growing sources of energy worldwide, and during the forecast period, it is expected to dominate the overall energy demand worldwide. The power sector is one of the most promising sectors, especially in developing and underdeveloped regions. It is attracting more investments, majorly due to power infrastructure development, upgrade of aging infrastructure, change in energy requirements, clean energy initiatives, and urbanization. Moreover, per the International Energy Agency (IEA), renewable capacity will meet 35% of global power generation by 2025.

It also predicts that renewable energy sources such as wind and solar power, together with nuclear, are likely to, on average, meet more than 90% of the rise in global demand by 2025. In addition, the growing demand for cooling and heating applications in both industrial and residential sectors is another factor fueling the electricity demand worldwide. All these factors are expected to drive the demand for electricity, which is further rising the need to install distributed control systems, as it help to centralize control, real-time monitoring of all the operations, and ensure efficient and safety, boosting the market growth.

Middle East & Africa Distributed Control Systems Market Overview

The Middle East & Africa (MEA) regional analysis on the distributed control systems market has been conducted by gathering insights from countries such as Saudi Arabia, the UAE, South Africa, and the Rest of MEA. The countries mentioned are witnessing growth in terms of new technology adoption, power generation and distribution, and oil & gas volume, among others. The continuous growth curve in the parameters is foreseen to drive the distributed control systems market in the region over the years.

Further, many foreign companies are investing in power generation projects in the region. For instance, in June 2022, Korea Electric Power Corporation, Samsung C&T Corporation, and Korea Western Power, alongside Petrolyn Chemie, started building a US$ 1 billion Green H2 project in the UAE with a capacity to make 200,000 metric ton of green ammonia per year.

In August 2022, South African power utility Eskom announced that 343 MW of battery storage projects would be developed in remote locations in the country, in proximity to large-scale renewables. In addition, in June 2022, Japan's ENEOS and Mitsui signed an agreement with the UAE's Abu Dhabi National Oil Company to launch a joint study to evaluate the development of a large commercial 200,000 mt/year clean hydrogen supply chain between the UAE and Japan. The increase in the number of power generation projects will require DCS to control the operation precisely.

According to AsiaPower, the electricity demand in the Middle East increased by 2.6% in 2022, driven by the increase in population, the demand for cooling water and desalination, and the growth of energy-intensive industries. In addition, according to the International Energy Agency, the energy consumption in the region will grow 2% annually from 2023 to 2025. With an objective to meet the growing demand for electricity and to shift to renewable sources, the governments of the UAE, Saudi Arabia, and Qatar, among others, are seeking to implement DCS.

This would benefit the governments in gathering information on customer usage patterns, controlling the electricity flow, preventing theft, fraud, and other illegal activities from mitigating loss, and also abiding by the norms set by the authorities in the respective countries. This factor is foreseen to impact the growth of the distributed control systems market positively.

Middle East & Africa Distributed Control Systems Market Segmentation

• The Middle East & Africa distributed control systems market is segmented based on component, industry, and country.
• Based on component, the Middle East & Africa distributed control systems market is segmented into hardware, software, and services. The hardware segment held the largest share in 2022.
• In terms of industry, the Middle East & Africa distributed control systems market is segmented into power generation, oil and gas, pharmaceutical, food and beverages, chemicals, and others. The oil and gas segment held the largest share in 2022.
• Based on country, the Middle East & Africa distributed control systems market is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The UAE dominated the Middle East & Africa distributed control systems market in 2022.
• Honeywell International Inc, General Electric Co, ABB Ltd, Yokogawa Electric Corp, Toshiba Corp, Siemens AG, Emerson Electric Co, NovaTech LLC, Schneider Electric SE, and Rockwell Automation Inc are some of the leading companies operating in the Middle East & Africa distributed control systems market.

Market Highlights

• By adopting modular and open architectures, DCS can be easily adapted to various applications and scaled up or down depending on specific needs. This flexibility caters to a wider range of customer demands and fosters market growth. Modern architectures promoting seamless integration with different devices and systems (e.g., PLCs, SCADA) create a more collaborative and data-driven control environment. This improved interoperability attracts customers seeking integrated solutions for complex processes, expanding the market potential. Further, integrating edge computing capabilities into DCS architecture allows for localized data processing and decision-making. This reduces network traffic, improves response times, and opens doors for applications such as real-time control and optimization, attracting customers seeking improved efficiency and performance.
• The DCS is often a mission-critical system for industrial users. Moreover, it is a heavy investment; hence, replacing them every time a new technology comes along, that could have a profoundly beneficial impact on the user's business, is not practical or affordable. The future DCS will solve this obstacle by being more digital, more flexible. The aim is to enable a more innovative architecture that gives users the capability to improve the DCS without disrupting the process, effectively separating the core functions of the DCS from those that are less time- or process-critical. Thus, architectural development in DCS is expected to provide significant opportunities for the distributed control system market.
• On the contrary, vulnerability to cyberattacks hampers the growth of Middle East & Africa distributed control systems market.
• The hardware segment held 43.2% share of the Middle East & Africa distributed control systems market in 2022, amassing US$ 423.86 million. It is projected to garner US$ 543.26 million by 2030 to expand at 3.2% CAGR during 2022-2030.
• In terms of industry, the Middle East & Africa distributed control systems market is segmented into power generation, oil and gas, pharmaceutical, food and beverages, chemicals, and others. The oil and gas segment held 31.9% share of the Middle East & Africa distributed control systems market in 2022, amassing US$ 312.78 million. It is estimated to garner US$ 374.19 million by 2030 to expand at 2.3% CAGR during 2022-2030.
• The UAE held 36.2% share of Middle East & Africa distributed control systems market in 2022, amassing US$ 355.22 million. It is projected to garner US$ 511.12 million by 2030 to expand at 4.7% CAGR during 2022-2030.

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