IoT in Oil and Gas Market Analysis | 2023-2029

Market Insights

The IoT in oil and gas market was estimated at USD 11.34 billion in 2022 and is likely to grow at a CAGR of 10.1% during 2023-2029 to reach USD 22.24 billion in 2029.

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Market Dynamics

Introduction

IoT (Internet of Things) in the oil and gas industry refers to the integration of advanced technologies, such as sensors, smart devices, and data analytics, to create a network of interconnected devices that can collect, analyze, and share data in real-time. The IoT in oil and gas helps optimize the oil and gas production and consumption process, reduce oil and gas wastage, and enhance oil and gas efficiency.

By utilizing IoT solutions, oil and gas companies can monitor and control their assets, such as power plants, wind turbines, and pipelines, remotely from anywhere in the world. Moreover, IoT enables oil and gas companies to improve their operational efficiency, reduce downtime, and achieve cost savings by reducing oil and gas consumption, maintenance costs, and unplanned outages.

The IoT in oil and gas also enables better demand response, as it allows oil and gas companies to monitor and respond to oil and gas demands in real-time. Overall, IoT in oil and gas has the potential to transform the oil and gas industry by enabling it to become more sustainable, efficient, and responsive to the evolving needs of consumers and the environment.

Market Drivers 

The IoT in oil and gas market is poised for growth, driven by several key factors. One of the main drivers is the ability of IoT technology to enhance business productivity in the oil and gas sector. Additionally, IoT-based systems offer greater flexibility and agility, enabling companies to respond more quickly to changes in the market. Another factor contributing to the growth of the IoT in oil and gas market is the increasing prevalence of cyberattacks, which have prompted companies to invest in more secure IoT solutions.

The emergence of IoT in the oil and gas sector is expected to address some of the challenges faced by the industry and facilitate its evolution. By leveraging IoT technology, companies can improve efficiency, generate revenue, and conserve resources. The IoT in oil and gas market has already experienced significant growth in recent years and is expected to continue expanding in the future.

The COVID-19 pandemic also highlighted the value of IoT in the oil and gas sector. From monitoring room temperatures to remotely controlling oil and gas usage, IoT sensors and systems have helped companies reduce costs while promoting sustainable development. Overall, the adoption of IoT technology in the oil and gas sector is poised to have a significant impact on the industry, driving growth and innovation.

Furthermore, numerous IoT platforms facilitate the use of renewable oil and gas sources, reducing reliance on non-renewable resources and minimizing pollution. This has allowed companies to continue operating even during lockdowns imposed by governments to ensure employee safety. The IoT has enabled remote work for many tasks in the oil and gas industry during the COVID-19 pandemic.

The oil and gas industry is facing significant challenges related to environmental sustainability and increasing demand. However, with the greater adoption of IoT technology, both individuals and organizations can take steps to protect the environment through the use of these devices and data analytics.

One of the key benefits of IoT technology is its ability to reduce wastage and improve system efficiency. By deploying IoT devices in commercial and residential buildings, for example, oil and gas consumption can be monitored and controlled, leading to a reduction in overall oil and gas demand and improved efficiency.

Organizations can also leverage IoT-based sensors in buildings to collect real-time data for analysis. This data can be used to monitor tools and devices such as air conditioning systems, machinery, lighting systems, and heating systems, and to identify areas where efficiency can be increased. IoT systems also allow for remote control and regulation of oil and gas production systems, helping to establish maximum oil and gas production efficiency.

Overall, the adoption of IoT technology in the oil and gas industry holds great potential for addressing key challenges related to environmental sustainability and increasing demand. By leveraging these technologies, organizations and individuals can work towards a more efficient and sustainable oil and gas future.

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Key Players

The following are the key players in the IoT in oil and gas market:

• Alphabet Inc.
• Amazon Web Services, Inc.
• Cognizant
• Cisco Systems, Inc.
• General Electric Company
• HCL Technologies Ltd.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• PTC Inc.
• Rockwell Automation Inc.
• Siemens AG
• SAP SE
• Telit Communications PLC
• Wipro Limited

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Industry Stream Type

"Downstream segment to hold the largest market share over the forecast period"

Among industry streams,  the downstream segment to hold the largest market share over the forecast period. In 2022, the IoT in oil and gas market is being led by the downstream segment, which is also the most capital-intensive segment. Companies in the oil and gas refining and distribution sectors require significant capital to cover their operational costs. In order to remain competitive, oil and gas companies are continuously making technological advancements and process improvements.

The adoption of IoT solutions is expected to increase the operational efficiency of the oil and gas industry and help companies sustain the drop in oil prices. IoT solutions can be utilized for remote monitoring of oil rigs and maintaining pipeline integrity, which can help detect and prevent potential accidents. IoT-enabled sensors and devices allow for remote monitoring of operations and improved end-to-end processes in oil and gas facilities.

Regional Analysis

"Asia Pacific to account for the largest market share during the forecast period"

Among regions, Asia Pacific to account for the largest market share during the forecast period. The IoT in oil and gas market is experiencing growth in the Asia Pacific region due to various contributing factors, including the adoption of smart grid architecture, technology upgrades, oil and gas management, and regulatory mandates.

China, being the largest economy in the region, also serves as the biggest importer and producer of oil, with an output of 3.8 million barrels per day. The Asia Pacific region accounts for 36% of the world's oil consumption, which amounts to a total of 36 million barrels per day. In addition, the increasing use of smart meters in countries such as China, Japan, Australia, and South Korea has further driven the growth of the IoT in oil and gas market in the region.

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Recent Developments

• In February 2023, GE and Infosys entered into a strategic collaboration to accelerate grid transformation in utilities for their new and existing clients.
• In June 2022, Siemens launched new IoT-enabled products and solutions that strengthen its fire safety portfolio.
• In May 2022, SAP and HCL Technologies partnered to accelerate Industry 4.0-driven smart IoT technologies.
• In March 2022, Sensia, a joint venture owned by Rockwell Automation and Schlumberger,  acquired Swinton Technology, a leading provider of metering supervisory systems for the oil and gas industry.
• In January 2022, Intel introduced 12th Gen Intel Core processors to accelerate Internet of Things (IoT) application innovation. The new processors offer manufacturing, healthcare, retail, and digital safety customers increased core counts and advanced graphics, media, display, and AI capabilities, with a wide range of price, performance, and power.

Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s functional IoT in oil and gas market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The IoT in oil and gas market is segmented into the following categories:

By Solution Type 

• Sensing
• Communication
• Cloud and Edge Computing
• Data Management

By Industry Stream Type 

• Upstream 
• Midstream
• Downstream 

By Application Type 

• Fleet and Asset Management
• Preventive Maintenance
• Pipeline Monitoring
• Security Management 

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com