IoT in Oil & Gas Market: Current Analysis and Forecast (2020-2030)

IoT in oil and gas industry caters to considerable demand across the globe and is expected to have an influential market growth in the forecasted period. It is mainly owing to the factors such as the Internet of Things (IoT), as a system integrator, helps in accumulating the complete oil and gas value chain within a single operating platform, addressing specific client-centric challenges, along with an improvement in overall performance.

In addition to this, the increasing threat of cyber-attacks and the decline in the availability of skilled labor in the oil and gas industry are other major factors fueling the market growth. Moreover, the implementation of IoT devices increases operational productivity, hence reducing operation risk and improving intelligence, and developing higher yield in labor and time-effective manner.

Based on the solution, the IoT in oil and gas market is segmented into sensing, communication, cloud and edge computing, and data management. The data management segment catered to the significant demand for IoT in oil and gas market. Data management through IoT enables users to refine massive data into essential information and helps the user track, monitor, and manage the devices efficiently, thereby augmenting segment growth.

Based on the industry stream, the IoT in oil and gas market is classified into upstream, midstream, and downstream. The upstream segment holds a considerable market share in IoT in oil and gas market. IoT technologies in the upstream sector simplify and make many processes more controllable within companies, as well as increase the level of security of enterprises.

Based on application, the IoT in oil and gas market is segmented into fleet and asset management, preventive maintenance, pipeline monitoring, security management, and others. The fleet and asset segment hold an extensive market share in IoT in the oil and gas market. Asset management requires accurate day-to-day operational process insights in the oil and gas industry and machinery connected with IoT devices to predict when they require maintenance, so the repairs can be scheduled long before their breakdowns to prevent long downtimes and ensure the safety of the employees.

For a better understanding of the market adoption of IoT in oil and gas the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and Rest of North America), Europe (Germany, UK, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, India, Australia, Japan, Rest of APAC), and Rest of World. North America holds an extensive market share in IoT oil and gas market. It is mainly owing to the surging production rate of unconventional energy sources, including oil and gas. In addition, the changing physical infrastructure transformation, and supportive government policies towards a safe, smart, and efficient path forward to utilize energy resources are positively influencing the market demand. Further, the spread of the pandemic during 2020 resulted in a declining number of working staff. Hence, the demand for IoT in oil and gas increased significantly to manage communication between physical objects of the industry and improve their efficiency.

Some of the major players operating in the market include: ABB Ltd., Alphabet Inc., Amazon Web Services, Inc., Analog Device, Inc., BP p.l.c., Broadcom Inc., C3 IoT, Inc., CISCO Systems Inc., Cognizant, ENGIE.