IoT in Oil and Gas Market Analysis | 2023-2029

"The global IoT in oil and gas market is expected to grow from USD 11.34 billion in 2022 to USD 22.24 billion by 2029 at a CAGR of 10.1% during the forecast period."

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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.

Recent Development 

• 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.

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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Key Players

The following are the key players in the IoT in Oil and Gas Market (arranged alphabetically)

• 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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Report Features

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

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Research Methodology

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 the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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