Global IoT in O&G market is anticipated to grow to $30.57 billion by 2026
It is expected to be mainly driven by shortage of skilled labor, increasing number of cyber-attacks, aging infrastructure, and need to increase operational efficiency, which will act as key drivers for the growth of this market.
Prices of crude oil and gas are fluctuating constantly owing to which, the oil and gas industry is currently facing a challenging environment. To predict their future business plan precisely and improve profitability, O&G companies need to improve their operational efficiencies across all the different segments of value chain. This has led to the adoption of IoT solutions by oil and gas industry. In addition to that, factors such as aging infrastructure and manpower will also be a major contributor to the increase in IoT use.
Companies such as British Petroleum (BP), Apache Corporation, and Saudi Aramco among others have started leveraging on IoT solutions such as platforms and analytics. Recent numerous partnerships between IoT and O&G companies along with several product launches of IoT solutions for oil and gas industries is a clear indicator that there will be an increase in demand for IoT solutions by O&G industry.
Analytics accounted for a major market share in comparison to other IoT solution platform in terms of value. It accounted for approximately 76% share in total IoT in O&G market for 2016. Analytics and platforms are expected to witness a high growth rate owing to increase in use of sensors and devices will drive the need for device management and data analytics among others, the oil and gas industry being asset intensive industry with more than half of the infrastructure is aging, and increase in use of new advanced technologies for exploration, among others.
Upstream application held a major share in terms of market value in 2016 among all the mentioned application types. In the coming future, upstream application is expected to grow owing to the use of advanced technologies during exploration and drilling phase such as hydraulic manufacturing and 3D seismic technologies among others, boom in the U.S. for shale oil production, reduction of capital expenditures on new projects for exploration and drilling and increasing rig uptime among others.
North America dominated the global IoT in O&G market in 2016 and accounted for approximately 38% of the global IoT in O&G market. Furthermore, owing to various factors such as growth in production rate of unconventional energy sources such as shale oil and tight oil, among others, recent announcement for expansion of pipelines and offshore shipping to transport oil is expected to drive the midstream market in the U.S., and high level of awareness, knowledge coupled with technical advancements in the region among others.
Key Topics Covered:
1 Research Scope and Methodology
2 Market Dynamics
3 Competitive Insights
4 Industry Attractiveness
5 Industry Analysis
7 Global IoT in oil and gas Industry by Solutions
8 Global IoT in oil and gas Industry by Application