Oil and gas is an important global market, providing around 60% of the world’s energy needs and raw materials used to manufacture products that are essential to our modern lives. In the short term, this market is currently experiencing challenging dynamics caused by an unprecedented over-supply of oil.
The knock on effects of this oversupply has been felt in the prolonged low price of oil, resulting in the implementation of cost cutting programmes by upstream companies and reduced investment in offshore exploration and production.
Over the next couple of years, there will be a gradual increase in oil price as the supply and demand balance is restored. Until then AVEVA will continue to be a key player in helping our customers reduce cost in these turbulent times. By leading with our integrated Laser, AVEVA E3D and AVEVA Net™ story we will demonstrate how we seamlessly integrate with our design solutions, to offer our customers the best, fastest and most cost-effective platform for brownfield projects.
The Power sector continues to experience increasing demand driven by both economic expansion and population growth. From the period 2015 to 2040, $20 trillion will be invested in power generation and infrastructure.
The worlds power generation mix will change, dependence on coal as a fuel will decrease and the share of low carbon power generation will increase due growth in non-hydro renewables and a stable share of nuclear and hydropower.
AVEVA is already a preferred supplier to the world’s Nuclear industry and the leading technology provider to the other power generation markets. We expect growth in all these markets over the long term, especially in high growth economies such as India, China and North America. For these fast growing countries, AVEVA will continue to invest in customer service and support infrastructure.
The Marine industry is the lifeblood of the world’s economies, transportation via the sea remains the most cost effective method for transporting large quantities of commodities, raw materials and products around the world.
Shipping, like many industries, is highly cyclical and is currently experiencing a period of subdued activity due to overcapacity stemming from a period of over-ordering prior to the global recession. For this reason, the marine market is expected to stay flat over the medium term, as the overcapacity continues to stifle new orders.
AVEVA is the market leading supplier of software to the shipbuilding industries, our technology provides the greatest productivity advantage of any product on the market.
AVEVA’s technology is being used on other large scale projects in close adjacent markets where scale and execution complexity are key challenges. Our global presence and expertise provide us with the flexibility and know how to respond to, and provide solutions for, the challenges faced by these related adjacent markets, which are similar to those encountered within the energy markets.
The Architecture Engineering Construction (AEC) sector, which has been quick to embrace new technologies, will see construction companies delivering a physical building and a ‘digital twin’ (the equivalent of AVEVA’s Digital Asset).