According to a new market intelligence report by BIS Research, titled 'Global IoT in Oil and Gas Market - Analysis and Forecast (2018 - 2023)', the Global IoT in oil and gas market is expected to reach US$39.40 billion by 2023, rising at a CAGR of 24.17% from 2018 to 2023. Deployment of automation, control and sensing systems to steer the application of IoT in oil and gas industry is expected to augment the growth of the market.
The new era of lower oil prices is taking a strong hold in the oil and gas industry which is pushing the indebted oil and gas companies toward the credit-rating agencies, watchlists and derailing their capital expenditure and distribution plans. This action in the industry requires more than just the financial adjustments, it requires a change in the industry's perspective from using operational technologies to locate and exploit complex resources, to using IoT to make hydrocarbon extraction and every stage across the value chain more efficient and revenue generating.
Companies operating in the oil and gas industry can obtain significant value by developing integrated IoT strategies with the focus on transforming the business. The increasing use of IoT for data capturing and further analysis can help companies save millions of dollars by reducing the company's pipeline/well and equipment failure and further improving the output. The use of IoT solutions in the oil and gas industry can also help in influencing the global GDP. As per the data by the Oxford Economics, the industry-wide adoption of IoT technology could increase global GDP by as much as 0.8%, or US$816 billion during the next decade.
Deployment of IoT solutions does not inevitably create economic value. To do so companies must link IoT technology deployment, with specific business priorities, which can be described under categories of increasing scope. First, companies must focus to minimise the risks to health, safety, and environment by reducing disturbances. Second, the focus of the companies is to improve the cost and capital efficiency of operations by increasing productivity and optimising the supply chain. Lastly, the companies should focus on exploring new sources of revenue and competitive advantage that can help add more value to the business.
Apart from investing in IoT solutions, the companies also need to closely monitor the number of IoT deployments, in order to keep the application on track, in the initial years. The effects of the use of IoT solutions is expected to have a positive impact on the entire oil and gas industry supply chain. The industry is in a prime position to make the most of the next industrial revolution. With the right support and investment, this could be a real turning point for the oil and gas sector.
“In 2023, the fleet and asset management application is expected to dominate the global IoT in oil and gas market (by application). The use of IoT in oil and gas fleet management will help the companies in getting real-time monitoring of oil tankers which will enable them to gain complete visibility of their tankers. IoT enclosed fleet monitoring system helps in reducing the accidents and eliminates the unscheduled downtime. Also, as per a research conducted by Royal Dutch Shell, with the use of IoT in a proper manner, the fleet industry will be transformed in an unimaginable manner by the year 2040”, says Sonal Rawat, an Analyst at BIS Research.
During the forecast period, application areas, such as preventive maintenance and pipeline monitoring are also expected to display growth, owing to maximum possibilities of value addition in these application areas.
Oil and gas industry has been spending millions of dollars for the maintenance and development of their assets and to track the real-time management of an entire plant. The use of IoT technology in the oil and gas industry has helped the operators to analyse a set of data collected from sensors planted in the equipment. The oil and gas industry has adapted IoT technology to not only improve the operational performance but to also ensure a secure working environment for workers. An IoT enabled fleet and asset monitoring solution provides visibility across the functioning of the equipment, which further helps in investigating the performance of the equipment.
This report is a meticulous compilation of research on more than 30 key players in the global IoT in oil and gas ecosystem and draws upon the insights from in-depth interviews with the key opinion leaders of more than 20 leading companies, market participants, and vendors. The rising interest in IoT amongst the IoT solution providers such as CISCO Systems, IBM and Microsoft has been a major trend in the market. Moreover, players including oil and gas giants, such as Royal Dutch Shell, Schlumberger and Engie, among others, are also focusing on incorporating data analytics and IoT based systems in their product offerings. The major IoT automation and power management vendors are Schneider Electric, Siemens AG, ABB Ltd., Honeywell International and General Electric Company, among others.
Read the article online at: https://www.worldpipelines.com/business-news/11012019/global-iot-in-oil-and-gas-market-is-on-the-rise/