The tech and asset-heavy oil and gas industry has been at the receiving end of the COVID-19 pandemic. With massive supply disruption, the industry is also struggling to solve existing issues of safety and efficiency in its system. The persistent digital upgrades with Internet of Things (IoT) and artificial intelligence (AI) have definitely transformed the industry in many ways. This makes the role of digital transformation in the oil and gas industry crucial in solving various challenges such as efficiency, cost, performance, and safety.
In past few years, the growing need for automation and rising demand for operational efficiency in the oil and gas sector has created space for applying augmented and virtual reality for training workforce and remote monitoring through drones.
Moreover, oil & gas companies across the globe are focusing on making the production and exploration processes more effective and optimized with the adoption of digital technologies. Ability to locate the exact location for drilling through IoT devices that allow clarity about subsurface geology has tremendously helped the upstream companies.
Initiatives that meet the present and future organizational growth objectives are being gladly welcomed with Industry 4.0 technologies. Government’s initiatives and encourage to adoption of digital technologies are expected to fuel the market in the coming decade.
The global Connected Solutions for Oil & Gas market is expected to witness a CAGR of 16.3% during the forecast period (2020-2030).
Key Takeaways of Connected Solutions for Oil & Gas Market Study
- The software and services segment is expected to witness high growth during the forecast period as various companies are investing heavily in latest technologies and related solutions such as Internet of Things (IoT) and artificial intelligence to prepare for remote operations on a long-term basis
- The upstream segment is captured the largest market share in 2019, as companies are investing in industry 4.0 from exploration for efficient production
- South Asia & Pacific is estimated to grow at a higher CAGR in the Connected Solutions for Oil & Gas market owing to the strong growth in oil and gas demand from countries in the region
“The oil & gas sector has always been pressure driven to deliver topnotch performance. The recent demand-supply disruptions and shrinking margins have coaxed companies to invest in Industry 4.0. Companies are looking at ways to improve unmanned drilling operations with better technology. Additionally, predicting maintenance needs to avoid massive lead times is also expected to up the adoption of Connected Solutions for Oil & Gas solutions.” Says the FMI Analyst
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COVID-19 Impact Analysis on Connected Solutions for Oil & Gas Market
The outbreak of COVID-19 highlighted the need for businesses to adapt. Ensuring continuity is must for businesses to survive through the pandemic. With overnight lockdowns, business leaders had to enable their workforces to work remotely. The connected oil and gas industry will have to set safety precedent for its workforce with remote training and better insights.
Adopting machine learning-based tools to avoid time-consuming processes and cost will be a key part of building a future. Unmanned vehicles and drones for aerial surveillance will prove to be integral to gathering information remotely.
Moreover, slow supply, supply chain disruptions, and contracting demand are the key challenges impacting the growth of the connected oil and gas market as exploration and production has come to a grinding halt. The market for connected oil and gas grew around 20% Y-o-Y in the past two years (2019 and 2020). However, COVID-19 is expected to hamper the market, postponing its recovery to Q3 2021.
In the long-term, the outlook of Connected Solutions for Oil & Gas market remains positive as the demand for energy will return to normalcy. Analysts believe this will translate to a soaring demand for automation at plants to prevent downtime or spread of diseases in the future, pushing the connected oil and gas market in the upward direction.
Competition Landscape – Driving Growth through Innovation
Growing customer expectations and intense competition are creating a storm in the global Connected Solutions for Oil & Gas market, which is compelling solution providers to innovate and improve customer engagement. Various Connected Solutions for Oil & Gas solution providers are focusing on offering digital solutions with advanced technologies to cater the changing customer needs and expectations.
Some of the key players in the Connected Solutions for Oil & Gas market are Cisco Systems, Inc., Intel Corporation, Sierra Wireless, General Electric, Honeywell International, Telit, Schneider Electric, Siemens AG, and Robert Bosch GmbH
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More Valuable Insights on Connected Solutions for Oil & Gas Market
FMI’s report on the Connected Solutions for Oil & Gas market is segmented into four major sections which are component (hardware, software, and services), value chain (upstream, midstream, and downstream), application (asset tracking and monitoring, predictive and preventive maintenance, supply chain management, leak detection, fleet management, and others), and region(North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa) to help readers understand and lucrative evaluate opportunities in the Connected Solutions for Oil & Gas market.
About Electronics, Semiconductor and ICT Division at Future Market Insights
Expert analysis, strategic recommendations and actionable insights- the electronics, semiconductors, and ICT team at Future Market Insights helps clients from all over the globe with their unique business intelligence needs. With a repository of over 500 reports on electronics, semiconductors, & ICT, of which 100+ reports are specifically on digital payment technology, the team provides end-to-end research and analysis on regional trends, drivers for market growth, and research development efforts in the electronics, semiconductors, and ICT industry.
About Technology Division at Future Market Insights
The technology team at Future Market Insights offers expert analysis, time efficient research, and strategic recommendations with an objective to provide authentic insights and accurate results to help clients worldwide. With a repertoire of over 100+ reports and 1 million+ data points, the team has been analyzing the industry lucidly in 50+ countries for over a decade. The team provides a brief analysis on key trends including competitive landscape, profit margin, and research development efforts.