Likewise other industries, COVID 19 also taken a toll on IoT in Oil and Gas market with around 7.56% decline in its revenue in 2020 as compare to 2019
IoT in the oil and gas market is expected to increase briskly in the coming decade. This is due to several factors. First, technologies currently being used in the oil and gas sector are diverse. Also, several technologies will be implemented shortly. These include software for monitoring industrial facilities, sensor networks for automating processes, and automatic control systems, to name a few.
IoT in the oil and gas market is not something new. All algorithms have been used for various purposes like monitoring equipment, maintaining equipment, improving quality standards, and optimizing production.
Global IoT in the Oil and Gas market is expected to witness a CAGR of 19.65% during the forecast period. As a result, the revenue generated by the global IoT in the Oil and Gas market in 2021 was over USD 23,489 million and is expected to generate revenue worth USD 86,263 million in 2028.
Developing IoT in the oil and gas industry has its fair share of challenges and formidable tasks that must be remediated to be adopted. Among these challenges are the stringent standards for quality as well as safety. In addition, the shortage of experts in the field will have an adverse effect on the IoT in the oil and gas market. Sensing, Communication, Cloud Computing, and Data Management are some of the significant solutions segments of IoT in the Oil and Gas industry. Sensing & communication are the most comprehensive solutions for IoT in Oil and Gas.
Downstream companies can benefit from higher profit margins if they manage to sell gas and oil products at optimal rates. Hence, they must apply IoT in oil and gas to track inventory and manage it efficiently so that overheads and associated costs can go down, increasing profits. Hence, IoT in oil and gas directly affects the profitability of downstream companies, which will prove to be one of the driving factors for its adoption. IoT in Oil and Gas is applied in Fleet and Asset Management, Pipeline Monitoring, Preventive Maintenance, and others. Fleet management and asset management is the leading application area of IoT in Oil and Gas.
Midstream companies are also focusing on IoT in oil and gas. They are mainly concerned with optimizing their logistics processes and following strict standards for quality and safety. In particular, they must maintain their transportation assets to facilitate logistics. This is made possible using IoT equipment to help these midstream companies keep track of all their logistics equipment and units. This will prevent breakdowns and facilitate the uninterrupted supply of oil and gas. Hence, this will be one factor driving IoT's growth in the oil and gas market.
Upstream companies have to invest a lot of money in equipment for exploration and drilling. They have to find new raw materials supplies and boost their existing processes' efficiency. Many of these companies are focusing on using remote methods for monitoring oil exploration projects. Here again, IoT equipment can help upstream companies to realize these objectives.
However, designing IoT equipment for such an environment has technical challenges. Thus, IoT equipment must be capable of dealing with the elements, withstanding extreme temperatures and rugged working conditions. This can hinder the growth of IoT in the oil and gas market. IoT solutions designed for the oil and gas sector are mainly concerned with remote monitoring. Information can control various key processes to expedite production and boost efficiency.
HCL Technologies Ltd., Honeywell International Inc., Amazon Web Services, Inc., C3 IoT, Inc., CISCO Systems Inc., Analog Device, Inc., ENGIE, Eaton Corporation Plc, Emerson Electric Co., Equinor ASA, BP p.l.c., Broadcom Inc., ABB Ltd., Alphabet Inc., General Electric, Cognizant, IBM Corporation, and Infineon Technologies AG are some of the major companies provide IoT in Oil & Gas solutions.
Likewise other industries, COVID 19 also taken a toll on IoT in Oil and Gas market with around 7.56% decline in its revenue in 2020 as compare to 2019
North America is the largest regional market with highest share in the total revenue of IoT in Oil and Gas consumed in 2021
Need to increase operation efficiency and overcome the scarcity of professionals is driving demand for IoT in Oil and Gas
Sensing & Communication segment dominated the IoT in Oil and Gas market in 2021 with over 55% share
Fleet & Asset Management segment was the largest application of IoT in Oil and Gas in 2021 with over 40% share
Report Attribute | Details |
---|---|
Market Value in 2021 | USD 23,489 million |
Market Value in 2028 | USD 86,263 million |
CAGR | 19.68% between 2021 and 2028 |
Benchmarking Year | 2021 |
Past data | 2016 – 2021 |
Forecast period | 2022 – 2028 |