The Middle-East and Africa oil & gas drone market is expected to grow at a CAGR of over 65% during the forecast period of 2020 - 2025. Factors such as cost-effectiveness and efficient inspection and monitoring methods are expected to help drive the market for drone services in the region. However, the security risk associated with the use of the drone for attacks on oil and gas infrastructure has pushed back the government approval for the use of drones in various countries and is expected to restrain the growth of the market during the forecast period.
- Low cost and increasing application of drone services in the oil & gas industry are expected to be the major driving force for the market being studied in the forecast period.
- The United Arab Emirates is expected to dominate the market, owing to the increase in demand for oil and gas drone services in the country for the surveillance, inspection, and monitoring of the oil and gas platform.
- The demand for oil and gas production has always been on the increase, but due to volatility of oil & gas prices the companies are forced to look for alternative cost and time-efficient methods of inspection, surveillance, etc. this, in turn, is expected to help grow the market in the forecasted period.
Key Market Trends
Low Cost and Increasing Application to Drive the Market
- The market for drones in the oil & gas industry saw a growth slowdown owing to the volatile oil prices in recent years, but with the oil prices becoming stable, the market is expected to show significant growth in the forecasted period.
- The drones have existed for long, but the high cost and the lack of technology have restricted the use of drones in the oil and gas industry. However, with technological advancement, the drones have come a long way and now are more reliable and provide cost-effective solutions to the oil and gas operators.
- A drone provides a cost-effective and safe solution in existing and new onshore and offshore sites. In particular, the drones can help oil and gas companies to ease out the aerial, underground, and undersea inspection activities. In addition to providing visual images, they can carry out other functions, such as creating 3D maps of prospective sites and surrounding and water sampling.
- By providing regular, inexpensive, and fast inspections, the drones improve efficiency and productivity. The drone application can also help identify existing and potential faults, thus enabling maintenance teams to rectify them in good time.
- As the crude oil prices are increasing, investment in the oil & gas industry is expected to grow significantly and bring several projects online, thereby driving the drone market.
United Arab Emirates to Dominate the Market
- The United Arab Emirates is expected to maintain its dominance in the region in the forecast period, the increased pressure on oil & gas companies to do more in limited money and become more cost-efficient has been driving the market.
- Abu Dhabi National Oil Company (ADNOC), in collaboration with Total, started deploying drones and UAVs for oil and gas exploration from November 2019. Drones are being used to deploy thousands of seismic sensors, and 3D seismic data is gathered by Total's Multiphysics Exploration technologies Integrated System (METIS).
- Azur Drones and Etimad Holding entered a collaboration aimed at the deployment of autonomous surveillance drones in Abu Dhabi. This collaboration may strengthen the security of assets in the oil and gas industry, among other uses.
- The new market conditions forced the industry to cut costs and improve operational efficiency, which, in turn, made several unprofitable projects feasible. This trend is expected to increase the demand for oil and gas drone services in the country for the surveillance, inspection, and monitoring of the oil and gas platform.
The Middle-East and Africa oil & gas drone market is partially fragmented with a number of small and big players in the market. Some of the major companies are Cyberhawk Innovations Limited, Total SA, Terra Drone Corporation, Sky-Futures Limited, and Roav7, among others.
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