The current trend of low rate of demand of crude oil as compared to supply rate has resulted in a considerable decline in the price of crude oil since 2014. Since the lifting of global sanctions from Iran, the supply of crude oil has increased significantly. The demand for electric vehicles has increased over the last few years in lieu of the impending climate change, thus, the demand for crude oil has decreased drastically, especially in China, and the increased production of shale oil in the U.S. are collectively affecting the prices of crude oil, which is not expected to gain momentum in the coming years.
This scenario has affected the global revenue of the top five oil and gas companies and has pushed them, along with others, to improve their operational efficiency, cost cutting on unnecessary labor involvement and improve their asset portfolio to survive in the competition. The Internet of Things (IoT) has been accepted as the solution to meet these challenges by the oil and gas companies. In addition to the use of Supervisory Control and Data Acquisition (SCADA) in their IT infrastructure, these companies have also included numerous sensors for various uses and new advanced drilling technologies such as hydraulic fracturing. This phenomenon has created piles of data which has to be managed effectively and analytically for improved communication and actionable insights in order to achieve maximum efficiency, and IoT enters here as the savior.
Several oil and gas companies have started investing in IoT products, solutions and services, such as Predix and SAP HANA, owing to the noticeable benefits of the IoT solutions namely increased rig time and high production of oil, etc. The global IoT in oil and gas market is expected to reach $30.57 billion by 2026, growing at a rapid rate. The increasing threat of cyber-attacks, lack of skilled labor, old infrastructure, and the impending need to improve efficiency are collectively driving the market towards significant growth in the future.
Among different IoT solutions and services used by the market players, the analytics accounted for a major share of the market in 2016 with 76% of the total revenue. Since there has been an increase in the use of sensors and devices, the need for device management and data analytics has risen, which is a significant stimulator for the growth of analytics and platform in IoT, which are expected to grow at the highest rate in the coming years. Furthermore, the use of advanced technologies during exploration and drilling, such as hydraulic manufacturing and 3D seismic technologies, will help in the growth of upstream application, which held a major market share in 2016, in terms of value.
BIS Research has conducted an extensive market research on ‘Global Internet of Things (IoT) in Oil and Gas (O&G) Market- Analysis and Forecast: 2017-2026 ‘. The market intelligence report aims at providing an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.