Market Size of Oil & Gas Automation Industry
|2019 - 2029
|Base Year For Estimation
|Fastest Growing Market
|Middle East and Africa
*Disclaimer: Major Players sorted in no particular order
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Oil & Gas Automation Market Analysis
The Oil & Gas automation market is expected to register a CAGR of 5.9% over the forecast period. Despite fluctuating oil prices, there has been a steady demand for Oil & Gas. Nevertheless, energy usage worldwide is gradually rising, which is expected to further fuel market expansion.
- The Oil & Gas industry began the move toward digitization with more sensors accumulating data from rigs worldwide. Adopting digital technologies can improve internal communication and simplify plans by allowing engineering teams to work more efficiently with Oil & Gas companies to manage data and project requirements. Automation in the Oil & Gas industry can improve efficiency and reduce costs.
- Automation and digitalization are advancing quickly in the oil industry. Instead of being reactive, machine monitoring is now proactive. Businesses are putting money into digital platforms, basing judgments on data, and building a cutting-edge virtual workspace focused on a good worker experience. Baker Hughes, an industrial innovation company, and AQI, the Abu Dhabi National Oil Company's (ADNOC) combined partnership with Group 42 (G42), signed a strategic partnership deal in November 2021 to develop advanced analytics services for the worldwide Oil & Gas sector.
- Increasing global Oil & Gas demand is expected to boost the demand for automation to compete in the market. The International Energy Agency said that by 2040, the world's demand for oil will go up by 21%, making it the source of 35% of all energy, and the demand for natural gas will go up by 31%, making it the source of 17% of all energy.
- The Oil & Gas sector may be able to apply automation technology at reduced prices in order to increase production and get rid of any potential bottlenecks in the business model. The Oil & Gas sector is benefiting from the deployment of Internet of Things (IoT) solutions, from downhole monitors to surface-control valves broadcasting real-time information into boardrooms for analysis. This enhances operations and makes the entire oilfield a safer place to work.
The COVID-19 outbreak boosted the demand for automation in the Oil & Gas industries due to a shortage of resources. The Oil & Gas automation industry was anticipated to be severely impacted in the post-COVID situation as the government's limitations were entirely abolished and output and explorations were conducted at maximum capacity. Furthermore, increasing government regulations in the Oil & Gas industry have also contributed to the adoption of automation solutions.