Growth of the process instrumentation and automation (PIA) markets in the U.S. and Canada is expected to slow over the next five years to 3.1% during 2015-2020 from compound annual growth rates (CAGR) of 5.1% during 2003-08 and 5.5% during 2009-14, according to the Measurement, Control & Automation Association's annual market forecast for 2016.
The PIA market in the U.S. grew in 2015, but only by 0.3% from $11.1 billion in 2014 to $11.6 billion in 2015. Lack of growth was attributed to a decline in oil prices, as well as a downturn in mining and mineral spending due to falling commodity prices. Another factor was surplus capacity in the metals, cement, and pulp and paper sectors that's suppressing demand for those products. A strong dollar and weaker economies in China, Russia and Brazil also reduced U.S. domestic demand for PI&A products and services.
Five industries in the U.S. are expected to experience above average growth for the 2015-20 period: electric utilities, pharmaceuticals, chemicals, refining, and food and beverage. These industries will account for $7.8 billion in 2015, expanding to $9.4 billion in 2020.
[javascriptSnippet]
In Canada, process industries will grow slightly slower than in the U.S. Mining and oil production comprise nearly 20% of the Canadian economy. The drop in oil, gas, mining and minerals spending resulted in a 4-percentage-point drop in the PI&A growth rate for 2015. Canadian process industries are positioned for growth over the forecast period. Metals, cement, water/wastewater and chemicals are all expected to profit from increased government spending on infrastructure.
