Companies such as British Petroleum (BP), Apache Corporation, and Saudi Aramco have started leveraging on IoT solutions, viz. platforms and analytics. Recent 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.
It has been witnessed that owing to the benefits of the Internet of Things (IoT) solutions such as increased rig time and high production of oil among others, many oil and gas industries have started investing in IoT products, solutions and services. Oil and gas companies such as British Petroleum (BP) and Shell among others have reported in their annual reports that they plan to invest in big data and automation in the upcoming years. Companies have recognized the importance of analytics and it will be a major opportunity for analytics solution providers to tap the industry. Analytics software is anticipated to be a major solution in oil and gas industry wherein investors are expected to actively invest in the upcoming years.
Currently, in terms of evolution, use of IoT solutions in O&G industry is at a nascent stage. IoT adoption in oil and gas industry is expected to grow mainly because of the focus on achieving operational excellence, owing to low crude oil price environment. Moreover, increasing cyber-attacks over the past few years have raised concerns over the data security which can be tackled by using security solutions. In addition to that, with approximately half of the global workforce retiring from oil and gas industry in next 3-5 years, their absence of experience and domain knowledge will create a huge gap for information in order to operate efficiently. This can further drive the demand for IoT solutions in order to fill the missing information gap.
Increased use of IoT solutions will drive the growth of software, IT infrastructure and hardware equipment in oil and gas industry. This has raised concerns over the data privacy and security as there has been an increase in the number of cyber-attacks recently. It has been witnessed that approximately 80% of the oil and gas companies had faced at least one successful cyber-attack in 2015. The oil and gas sector is the backbone of the economy for any country, and with increasing cyber-attack threats being reported, oil and gas companies may not be too willing to invest in IoT solutions owing to data security concerns.
According to a new market report by BIS Research, titled ‘Global Internet of Things (IoT) in Oil and Gas (O&G) Market- Analysis and Forecast: 2017-2026', the global IoT in oil and gas market is expected to reach a market size of $30.57 billion by 2026. Urgent requirements to meet operational excellence, maintaining aging asset portfolio, and increasing use of sensors among others are some of the key factors which act as major drivers for the growth of this market.
Few Companies Mentioned in the Report:
- ABB Ltd
- AGT International
- C3 IoT
- Carriots S.L.
- Cisco Systems
- Davra Networks
- Eurotech SpA
- General Electric Company
- Honeywell International Inc.
- International Business Machines Corporation
- Intel Corporation
- Kore Telematics
- Microsoft Corporation
- Numerex Corp.
- Parametric Technology (PTC)
- Pertex Management and Technology Consulting LLC
- SAP SE
- Schneider Electric
- Siemens AG
- Wind River
Key questions addressed in the report:
- What is the size, in terms of revenue, of IoT in O&G market in 2016, and growth rate during the forecast period, 2017-2026?
- What are different types of IoT solutions used in oil and gas industry globally and their sub segments?
- What is the market value of IoT for different applications of oil and gas in 2016, on the basis of upstream, midstream and downstream?
- What is the market size of IoT solutions in oil and gas industry on the basis of different geographical regions?
- What are the key trends opportunities in global IoT in O&G market, pertaining to different applications?
- What are the major driving forces that tend to increase the demand of IoT in O&G during the forecast period?
- What are the major challenges inhibiting the growth of the global IoT in oil and gas market?
- What is the percentage market share of IoT players in oil and gas industry for 2016?
- What kind of new strategies is being adopted by existing market players to make a mark in the industry?
- Which segment of the value chain has a high opportunity where investors can invest and make significant profit margins?
- How attractive is the market for different stakeholders present in the market by using Porter’s Five Forces model?
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