• Refining Industry Automation and Software Market is expanding as oil and gas refineries increasingly adopt digital control systems, advanced analytics and automation software to optimize operations and ensure process safety.

• Rising focus on energy efficiency, emissions reduction, and asset integrity management is driving demand for intelligent automation platforms and predictive maintenance tools.

• Integration of Industrial Internet of Things (IIoT), artificial intelligence (AI) and machine learning (ML) technologies is enabling real-time process monitoring, data-driven decision-making, and autonomous plant operations.

• Adoption of distributed control systems (DCS), supervisory control and data acquisition (SCADA) and manufacturing execution systems (MES) is transforming refinery workflows and improving production consistency.

• The cloud-based deployment model is gaining traction as refineries move toward remote monitoring, centralized control and scalable software-as-a-service (SaaS) architectures.

• Regional growth is led by the Middle East, North America and Asia-Pacific, where modernization of aging refineries and new capacity expansions are fueling automation investments.

• Leading automation companies are forming strategic partnerships with refinery operators to develop integrated digital twins, cybersecurity solutions and AI-powered control systems that enhance operational resilience and profitability.

• In March 2024, Emerson Electric announced the launch of its enhanced automation platform for the refining industry, featuring advanced process control, AI-powered predictive maintenance, and cloud-based data analytics to improve operational efficiency and safety.

• In October 2023, Honeywell entered into a strategic partnership with a leading software company to co-develop next-generation refinery automation solutions, integrating digital twins and real-time optimization tools to enhance productivity and reduce downtime.

In this report, Refining Industry Automation and Software Market has been segmented by Application, Software Type, Deployment Type, End User and Geography. The segmentation emphasizes rising investment in digital refinery transformation, real-time process optimization and integrated software ecosystems necessary to improve efficiency, reduce downtime and maintain compliance in a volatile energy landscape.

Refining Industry Automation and Software Market, Segmentation by Application

The segmentation by Application underscores the critical role of automation and software across refining operations—from process control and asset management to supply chain and laboratory operations. With rising cost pressures and regulatory demands, integrated software applications are increasingly essential to operational intelligence and strategic agility.

Process Control

Process control applications dominate, contributing roughly 30–35% of market value, as refiners invest in DCS upgrades, real-time monitoring and advanced process optimization to maintain throughput, reduce variability and support shutdown prevention.

Supply Chain Management

Supply chain management accounts for approximately 15–20%, driven by the need for logistics integration, inventory visibility and product tracking across feedstock procurement, intermediate storage and delivery networks in refining operations.

Asset Management

Asset management contributes nearly 15–18%, enabling refiners to enhance equipment health monitoring, predictive maintenance and lifecycle optimization. Software-driven asset analytics support ~$10% reductions in unplanned downtime on average.

Production Planning

Production planning supports around 12–15% of adoption, as refiners leverage software to optimize unit scheduling, product mix adjustments and yield metrics in response to changing feedstock economics and market demand.

Laboratory Automation

Laboratory automation comprises roughly 10–12%, where refiners deploy LIMS, sample tracking and automated analysis to strengthen quality assurance, regulatory compliance and environmental reporting.

Refining Industry Automation and Software Market, Segmentation by Software Type

Segmentation by Software Type illustrates the layered architecture of the digital refinery. Manufacturing execution systems (MES) and distributed control systems (DCS) are central, but enterprise resource planning (ERP), process safety and field instrumentation software jointly contribute to overall value proposition.

Manufacturing Execution System

MES accounts for around 25–30% of software adoption, providing a critical bridge between enterprise systems and plant operations through workshop scheduling, performance analytics and execution control.

Distributed Control System

DCS continues to represent approximately 30–35%, as refiners upgrade legacy control platforms to enable higher availability, tighter process integration and support for Industry 4.0 initiatives.

Enterprise Resource Planning

ERP systems contribute around 15–18%, facilitating financial tracking, material management and risk compliance. Integration of ERP with plant systems supports decision-making at executive levels.

Process Safety Management

Process safety software represents ~12–15%, focusing on hazard modeling, incident investigation and compliance workflows. As regulatory scrutiny intensifies, refiners increasingly deploy such systems to mitigate safety and environmental risks.

Field Instrumentation Software

Field instrumentation software accounts for about 8–10%, supporting sensor diagnostics, calibration tracking and asset linkage for remote and automated instrumentation ecosystems in refining plants.

Refining Industry Automation and Software Market, Segmentation by Deployment Type

The Deployment Type segmentation indicates how refiners adopt software: on‑premises remains significant due to legacy integration and security needs, while cloud and hybrid models are gaining traction for scalability and remote operations. Hybrid deployments are rising fastest among the three.

On‑Premises

On‑premises software deployments currently represent about 50–55%, favored in large-scale refining operations requiring high-security environments, extensive local connectivity and closed‑loop control systems.

Cloud‑Based

Cloud-based deployments account for roughly 20–25%, driven by demand for remote access, centralized monitoring of distributed assets and scalable software-as-a-service (SaaS) models enabling agile access and subscription-based service models.

Hybrid

Hybrid deployments represent approximately 25–30%, combining the reliability of on‑premise systems with cloud flexibility. Many refiners adopt hybrid models to enable digital twin analytics, edge-cloud orchestration and incremental platform modernization without full‑scale migration.

Refining Industry Automation and Software Market, Segmentation by End User

Segmentation by End User focuses on the refining, petrochemical and chemical processing footprint. Refineries dominate due to high automation intensity, but demand from petrochemical and chemical plants is growing as feedstock integration, process complexity and digital transformation intensify.

Refineries

Refineries account for approximately 45–50% of the market, driven by upgrades in control systems, integration of analytics and deployment of automation platforms to improve yield, reduce hazards and support decarbonization strategies.

Petrochemical Plants

Petrochemical plants contribute around 30–35%, adopting software solutions for monomer tracking, unit optimization and supply‑chain integration as they interface more closely with refining feedstock streams.

Chemical Processing Plants

Chemical processing plants represent roughly 15–20% and are increasingly deploying automation frameworks to control complex reactions, ensure regulatory compliance and manage high‑value specialty chemical production with real‑time monitoring and asset reliability improvements.

Refining Industry Automation and Software Market, Segmentation by Geography

Geographic segmentation shows different adoption maturity across regions. North America and Europe lead in established deployments and digital upgrades, while Asia Pacific is the fastest growing due to new refinery builds and modernization programs. Middle East & Africa and Latin America offer strong room for growth as companies invest in digitalization to extend asset life and improve operational efficiency.

North America

North America holds approximately 30–35% of the global market share, supported by heavy investment in digital refining solutions, strong regulatory frameworks and major automation vendors headquartered in the region. The emphasis on asset reliability, real‑time analytics and refinery decarbonization continues to drive region‑specific software and service adoption.

Europe

Europe contributes about 25–30%, reflecting a mature market with strong uptake of automation in refining and petrochemical operations. European refiners emphasize process safety management, digital twin applications and cross‑plant supply‑chain integration, strengthening demand for advanced software solutions.

Asia Pacific

Asia Pacific is the fastest‑growing region with a projected share of around 20–25% and above‑average growth rates. Rapid expansion of refining capacity, increasing process complexity and rising automation budgets in countries like China, India and Southeast Asia drive high growth. Cloud‑based solutions and hybrid deployments are gaining traction.

Middle East & Africa

The Middle East & Africa region accounts for roughly 10–12% of demand, propelled by large refining complexes, petrochemical expansions and investments in operational excellence. Focus areas include asset uptime, digital control systems and supply‑chain visibility across remote sites.

Latin America

Latin America contributes about 8–10%, with growing interest in modernization of legacy refineries, adoption of advanced control systems and improvement of compliance frameworks. Regional players increasingly deploy software for laboratory automation, yield optimization and production planning.

This report provides an in depth analysis of various factors that impact the dynamics of Refining Industry Automation and Software Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rising demand for operational efficiency
• Strict safety and emission compliance regulations
• Growing adoption of Industry 4.0 technologies

• Need for predictive maintenance and monitoring - The growing need for predictive maintenance and monitoring is a crucial driver of growth in the refining industry automation and software market. Refineries are increasingly adopting advanced analytics and automation solutions to anticipate equipment failures and reduce unplanned downtime. Predictive tools help operators monitor real-time equipment performance, identify anomalies early, and implement corrective actions before costly breakdowns occur.

  By deploying IoT sensors, machine learning algorithms, and AI-powered diagnostic platforms, operators gain critical insights into asset health. This enables more accurate forecasting of equipment degradation and allows for condition-based maintenance scheduling. These systems significantly improve asset life span and optimize maintenance cycles, reducing both labor and material costs.

  Predictive maintenance solutions also support regulatory compliance by minimizing the risks of accidents and environmental violations caused by unexpected equipment failures. With increasingly stringent safety standards, refining companies must ensure uninterrupted operation and system integrity. Automation software provides the required visibility and control to meet these goals while maintaining operational efficiency.

  The adoption of predictive monitoring technologies is accelerating as refineries seek to transform into smart, data-driven enterprises. Vendors offering integrated systems that support predictive analytics, machine data interpretation, and actionable maintenance recommendations are well-positioned to benefit from this ongoing shift.

Restraints

• High cost of automation deployment
• Integration challenges with legacy infrastructure
• Cybersecurity risks in connected systems

• Shortage of skilled technical workforce - A major restraint in the refining industry automation and software market is the persistent shortage of skilled technical workforce. As automation systems become more complex and AI-driven, there is a growing demand for professionals with advanced programming, analytics, and engineering skills. However, many refineries struggle to find qualified talent capable of managing, deploying, and maintaining these sophisticated solutions.

  This skills gap is particularly pronounced in regions undergoing rapid industrial transformation. Legacy workforce models focused on manual operations make it difficult to transition seamlessly into digitized, fully automated environments. Lack of in-house expertise delays implementation timelines and increases dependence on third-party service providers, raising operational costs and slowing innovation adoption.

  Current training and certification programs often do not keep pace with the evolving technology stack required for refinery automation. Workers may lack exposure to industrial control systems, data science tools, and cybersecurity protocols, all of which are essential in modern refining operations. This leads to operational inefficiencies and reduced return on investment.

  Bridging this gap requires coordinated efforts between industry stakeholders, educational institutions, and technology vendors to create upskilling pathways, hands-on training programs, and certification standards. Without these measures, the labor shortage will remain a major barrier to unlocking the full potential of automation in the refining sector.

Opportunities

• Advancement in AI and machine learning
• Digital twin adoption in refinery operations
• Emergence of cloud-based automation platforms

• Expansion in developing refining markets - The expansion of refining infrastructure in developing markets presents a compelling opportunity for automation and software providers. Countries in Asia-Pacific, Africa, and Latin America are investing in new refineries to meet growing energy demands, reduce import dependency, and improve fuel quality. These greenfield projects are ideal candidates for integrated automation and control systems that ensure operational excellence from day one.

  Emerging economies are increasingly aware of the benefits of deploying smart automation platforms to drive efficiency, safety, and environmental performance. With fewer legacy systems to manage, new facilities have greater flexibility in adopting next-generation process control, SCADA, and digital asset management systems. This opens doors for vendors to offer end-to-end digital solutions tailored to modern operating environments.

  Government-backed initiatives, foreign direct investments, and strategic partnerships with global energy companies are further fueling the development of refining capacity in these regions. These projects often include provisions for automation integration, remote monitoring, and data-driven optimization, making them fertile ground for software and service adoption.

  As demand for refined products continues to surge in developing regions, the opportunity for vendors lies in offering scalable, cost-effective, and localized automation systems. By aligning offerings with regional requirements, vendors can capture a significant share of the market and establish long-term service relationships in high-growth geographies.

Refining Industry Automation and Software Market is characterized by intense competition, where leading companies emphasize advanced strategies, collaborative partnerships, and product innovation. With more than 60% of market share concentrated among key players, the industry is experiencing accelerated growth driven by technological progress and increasing adoption of intelligent software platforms.

Market Structure and Concentration

The competitive environment reflects a moderately consolidated structure, with the top companies accounting for nearly 55% of the total share. This concentration highlights strategic mergers and collaboration across major players, enhancing product offerings and creating value through integrated automation systems. Expansion strategies continue to shape long-term growth in this market.

Brand and Channel Strategies

Prominent vendors deploy diverse strategies to strengthen their brand positioning, supported by multi-channel distribution networks. Over 45% of competitive advantage stems from strong channel partnerships and customer engagement. By leveraging digital platforms, companies create consistent growth and enhance service delivery through tailored approaches that support industrial expansion.

Innovation Drivers and Technological Advancements

More than 65% of industry transformation is driven by technological advancements and continuous innovation. Leading enterprises prioritize automation solutions integrating AI and IoT, supported by strategic collaboration with technology partners. This focus ensures sustained growth and reinforces competitive positions through cutting-edge digital automation and software integration.

Regional Momentum and Expansion

Regional leaders account for nearly 50% of total market share, supported by strong industrial expansion and government-backed modernization programs. Collaborative strategies within regional clusters promote efficient adoption of automation platforms. Key partnerships with local integrators enhance competitive strengths while driving technological growth across refining hubs.

Future Outlook

Looking ahead, the industry is expected to maintain over 70% focus on digital innovation, automation software, and strategic partnerships. Continuous growth will be supported by evolving strategies such as mergers and collaborative development. Long-term prospects remain positive, emphasizing sustainable industrial expansion and increasing adoption of advanced automation frameworks.

Key players in Refining Industry Automation and Software Market include:

• Honeywell
• ABB Limited
• Siemens
• Emerson Electric
• Schneider Electric
• Aspen Technology
• Yokogawa Electric Corporation
• Rockwell Automation
• Oracle Corporation
• KBR (Kellogg Brown & Root)
• OMRON Corporation
• HollySys Automation
• Mitsubishi Heavy Industries
• General Electric
• Invensys

In this report, the profile of each market player provides following information:

• Market Share Analysis
• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis