IoT in Oil and Gas Market by Solution (Sensing, Communication, Cloud Computing, Data Management) by Application (Fleet and Asset Management, Pipeline Monitoring, Preventive Maintenance, Others)- Growth, Future Prospects And Competitive Analysis, 2016 - 2028
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.
Interesting Facts about IoT in Oil and Gas Industry
IoT in Oil and Gas helps monitor wells in remote areas
Average IoT in Oil and Gas costs around USD 50 K to USD 100 K
IoT can provide accurate real-time data for making decisions
IoT automation in O&G decreases machinery malfunction and reduces stoppage
IoT eradicates an excessive number of risks and mistakes, often caused by the human factor
IoT in Oil & Gas Helps to Overcome Scarcity of Professionals
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.
Increase Operational Efficiency and Margins
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.
Improve Logistics Processes
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.
Streamline Activities
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.
Implementation of IoT Involves Significant Challenges
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.
