Oil and Gas Industry Innovation Tracker: Automation, 2025

Dynamic Companies Driving Innovation in Artificial Intelligence, Machine Learning, Analytics, Internet of Things, and Digitalization

The oil and gas (O&G) sector is experiencing a significant technological and digital transformation. Companies are shifting their focus from traditional operational technologies (OTs) used for automating O&G processes to newer, more advanced technologies, including AI, IoT, and robotics.

O&G companies have significantly increased their adoption of automation technologies for upstream activities, particularly for offshore automation. The most sought-after automation technologies include sensors, transmitters, controllers, SCADA systems, PLCs, and DCSs. However, strong digitalization trends have driven the demand for predictive maintenance, ML, and IoT-driven monitoring technologies. Moreover, pressing concerns have emerged in the O&G sector, including the need to increase workplace safety and boost production efficiency and sustainability. Automation technologies offer a direct solution to these challenges. As pressing regulations and digitalization trends advance, the sector will continue to evolve and become more autonomous.

This study analyzes 10 dynamic firms driving meaningful progress in the digitalization and automation landscape in the O&G sector.

Revenue Forecast

Revenue estimate for the base year 2024 is $20.86 billion with a CAGR of 7.4% for the study period 2024-2030.

The Impact of the Top 3 Strategic Imperatives on the O&G Automation Industry

Transformative Megatrends

• Why:
• The transport industry accounts for 30% of the global energy demand, of which 90% comprises oil products.
• Carbon dioxide (CO2) emissions from the transport sector amount to about 8 gigatons a year, about one-seventh of global emissions.
• Mandates on using low-carbon fuels, such as biofuels, biogas, and e-fuels, are changing globally, with the support of government policies and legislation to achieve net-zero targets.
• Frost Perspective:
• As governments develop blending mandates for alternative fuels, the demand for fuels such as biodiesel, renewable diesel, bio-liquefied natural gas (LNG), and e-fuels will double by 2030.
• Technological advancements in processes and new feedstocks will increase the adoption rate during the next 3-5 years.
• Renewable diesel, or hydrotreated vegetable oil (HVO), has the same chemical and physical properties as conventional diesel but a low carbon content.

Disruptive Technologies

• Why:
• Sustainability trends, such as reducing carbon emissions and deploying electrifying processes, are gaining importance globally.
• New disruptive technologies, such as AI, IoT, and robotics, are revolutionizing O&G operations.
• These technologies will complement human labor and enable O&G companies to increase safety, efficiency, and productivity in their fuel transformation activities.
• Frost Perspective:
• Technological advances and economies of scale make renewable energy production and electrolyzer capital and operational costs more competitive.
• Research and development (R&D) activities enhance renewable fuels cost and energy efficiency, thereby increasing their competitiveness and adoption.

Industry Convergence

• Why:
• Alternative fuels find applications in all industries where greenhouse gases (GHGs) are evident and difficult to abate. Achieving climate goals is impossible without cross-industry support.
• The increased adoption of alternative fuels is achievable by sharing the lessons various industries have learned throughout their pilot phases.
• This will provide technology developers and service providers opportunities to explore new avenues and industries, offering a broader operational space.
• Frost Perspective:
• Cross-industry convergence is inevitable in the alternative fuels market, with many O&G companies already collaborating with airline companies to develop a sustainable aviation fuel (SAF) market.
• Airline companies are collaborating with technology developers to design and develop engines for low-carbon fuels.
• The automotive sector is polar testing synthetic fuels from Shell and ExxonMobil using green hydrogen and captured CO2.

Competitive Environment

Number of Competitors

• 150

Competitive Factors

• Cost, performance, schedule, support, technology, reliability, contractor relationships, customer relationships

Key End-user Industry Verticals

• Upstream O&G

Leading Competitors

• Siemens, Baker Hughes, Honeywell, Emerson, SLB

Revenue Share of Top 5 Competitors, 2024

• 58.0%

Other Notable Competitors

• Rockwell Automation, ABB, Halliburton, Weatherford, C3 AI

Notable Mergers and Acquisitions

• SLB partnered with Nauticus Robotics, Halliburton acquired Resoptima

Key Competitors

Global

• EMERSON
• SIEMENS
• ABB
• BAKER HUGHES
• HONEYWELL
• SCHNEIDER ELECTRIC
• GENERAL ELECTRIC
• ROCKWELL AUTOMATION
• SLB
• HALLIBURTON
• WEATHERFORD

North America

• EATON
• C3AI
• FORTIVE
• AMETEK EIG
• CHAMPIONX
• TELEDYNE INSTRUMENTS
• NAM AUTOMATION

Europe

• SAIPEM
• HAAS COMPANY
• SYSCOM
• ZYFRA
• EXROBOTICS
• COGNITE
• OILASOFT
• ENDRESS + HAUSER
• 1C COMPANY
• PHOENIX CONTACT

APAC

• PROTIVITI
• ADVANTECH
• YOKOGAWA ELECTRIC
• MITSUBISHI ELECTRIC

LATAM

• INTEROP LATINOAMERICA
• LATINOAMERICA AUTOMATION

MEA

• VISTA AUTOMATION
• AUTOMATION TECHNOLOGY LLC