Market Definition
The Internet of Things (IoT) in the oil & gas industry is beneficial for creating a network of physical objects connected to the Internet. With the help of IoT, these objects can communicate and manage data with other connected devices.
Market Insights
The Global Internet of Things (IoT) in Oil and Gas Market is projected to grow at a CAGR of around 23% during the forecast period, i.e., 2023-28. The market growth attributes to the surging demand of IoT in enhancing the operational efficiency of the oil & gas industry to accomplish energy requirements. 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. Further, the mounting requirement of oil and gas companies to access real-time information across all locations leads to an increase in the demand for integrating IoT in oil & gas industries, thereby boosting the market growth.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 23% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy, Spain | |
| Asia-Pacific: China, India, Japan, South Korea, Australia | |
| South America: Brazil, and Argentina | |
| Middle East & Africa: GCC, Africa | |
| Key Companies Profiled | Intel Corporation, Amazon Web Services, Inc., IBM Corporation, Microsoft Corporation, Alphabet Inc., Cognizant, Siemens AG, Rockwell Automation Inc., General Electric Company, Wipro Limited, SAP SE, Cisco Systems, Inc., HCL Technologies Ltd., Telit Communications PLC, PTC Inc. |
| Unit Denominations | USD Million/Billion |
Moreover, during the COVID-19 outbreak and even after the pandemic, the demand for integrating IoT in oil & gas industries witnessed tremendous augmented in order to achieve operational efficiency. Further, the spread of the pandemic 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. Furthermore, the concept of smart industries, resulting in efficient functioning, has necessitated innovative and technically advanced devices and solutions. These include real-time monitoring, digital oil-field infrastructure, and reduced power consumption employed in the oil and gas industries, thereby, encouraging market expansion in the coming years.
Market Segmentation
Based on Application,
Among all, Asset Management acquired the largest share in the Global IoT in the Oil and Gas Market in the previous few years. It is predominantly attributable to the IoT-enabled asset management solution that is beneficial for integrating every asset with all process & workflows into a single platform, which, in turn, offer a central & consolidated tracking system. Asset management includes asset maintenance that further helps regulate the operations of assets and achieves an organizational strategic plan. Thus, these factors boost the segment growth, cites MarkNtel Advisors in their research report, “Global Internet of Things (IoT) in Oil and Gas Market Analysis, 2023.
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Based on Solution,
Amongst the above, Data Management captured a substantial share of the Global IoT in the Oil and Gas Market in the historical period and is likely to prevail in the same trend in the forecast period. It is primarily because data management through IoT enables users to refine massive data into essential information. It also allows the user to track, monitor, and manage the devices efficiently, resulting in the broad adoption of IoT-enabled devices, which, in turn, emerges as a prominent booster to the market growth in the forthcoming years. Another vital aspect of data management in the Internet of Things (IoT) is Location-based identification, enabling efficient retrieval of data from various IoT devices and making entities of the same kind to be uniquely identified. The wide adoption of location-based identification projected by the oil and gas industry has accelerated the market growth in recent years and is likely to maximize revenue growth in the forecast period.
Regional Projection
Geographically, the Global Internet of Things (IoT) in Oil and Gas Market expands across:
Geographically, North America attained a sizable share of the Global IoT in the Oil and Gas Market in the historical period due to a rapid surge in the production rate of unconventional energy sources, including oil and gas. In fact, developed countries like the United States, possessing several oil wells and reservoirs, hint at the expansive capacity of the IoT in the industry. Further, the exploding demand for sensor-based tank monitoring that roughly eliminates the safety risks involved in the operation of oil and gas pieces of machinery has called for more product variants. Moreover, increased internet penetration and wide exploitation of cloud-based services aiding in the functioning of equipment, devices, and recording data, have called for more technical advances in the category for the past few years. In addition, the rapid expansion of offshore shipping for oil transportation in the region further propels the market growth.
Recent Developments in the Global Internet of Things (IoT) in Oil and Gas Market
Market Dynamics
Growth Opportunities: Introduction of DDS (Data Distribution Service) For Remote Access
Companies working with IoT devices are required to choose a storage solution for remote access. The proposed DDS (Data Distribution Service) is capable of handling massive amounts of data from many sources. It can be used to store data from a remote location and has the ability to deal with historical data. The storage can be designed to support various data kinds and offer various storage levels. Additionally, it manages high-rate data streams from a variety of IoT objects. By calling particular data flow processing within the DDS, it may adjust to this high-velocity input. Thus, organizations must develop their data management plan in order to fully benefit from cloud-based data storage. While some data may need to be preserved for regulatory considerations, some data needs to be kept locally. Backed by the unparalleled benefits, the industry players are largely leaning towards these solutions.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Internet of Things (IoT) in Oil and Gas Market is projected to grow at a CAGR of around 23% during 2023-28.
A. Surging demand of IoT in enhancing the operational efficiency of the oil & gas industry to accomplish energy requirements drives the Internet of Things (IoT) in Oil and Gas Market during 2023-28.
A. The leading players in the market are Intel Corporation, Amazon Web Services, Inc., IBM Corporation, Microsoft Corporation, Alphabet Inc., Cognizant, Siemens AG, Rockwell Automation Inc., General Electric Company, Wipro Limited, SAP SE, Cisco Systems, Inc., HCL Technologies Ltd., Telit Communications PLC, PTC Inc., Others.
A. Asset Management is anticipated to emerge as an area of remunerative opportunities for the leading players in the Internet of Things (IoT) in Oil and Gas Market during the forecast period.
A. Globally, North America would provide lucrative prospects for the Internet of Things (IoT) in Oil and Gas Market in the years ahead.
A. Introduction of proposed DDS (Data Distribution Service) for remote access emerge as an opportunity for the market players through 2028.
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