|Study Period:||2018 - 2028|
|Fastest Growing Market:||Middle-East and Africa|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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The Oil & Gas Engineering Services Market is expected to register a CAGR of approximately 7.1% during the forecast period. The significant adoption of automation technologies in the Oil & Gas industry is the primary factor driving the engineering services adoption in the industry.
- Due to the industry's dynamic nature, the need to maximize efficiency and productivity, maximize uptime and return on assets. At the same time, minimizing costs is expected to drive engineering services adoption in the industry.
- Moreover, the oil & gas industry faces several challenges, such as declining oil prices, increasing penetration of renewable energy, electric vehicles, strict carbon footprint regulations, and new hydrocarbon sources. Hence, the companies are adopting strategic Industry 4.0 strategies to overcome these challenges.
- Advanced technologies application, such as analytics, machine learning, and many more, is expected to assist oil and gas companies in analyzing big data sets and providing meaningful insights. Hence, the engineering services adoption in the industry is expected to rise during the forecast period.
- The market is witnessing strategic collaboration amongst the players as a lucrative path toward expansion. For instance, Equinor, a Norwegian energy firm, awarded a contract to the Italian oilfield service company, Saipem, to provide engineering services globally. The agreement covers feasibility and conceptual studies, front-end engineering and design (FEED) work, detailed engineering and follow-on work, and R&D support. Through the partnership, Saipem will assist Equinor with its upcoming energy-related projects in the offshore, onshore, and floating wind sectors.
- Gas demand decreased by 5 to 10% compared to pre-crisis growth predictions due to the epidemic. The COVID-19 pandemic and its economic implications are receiving intense government attention, which diverts attention from the energy transition. Both the current crisis's short and long-term effects will significantly impact the sector. When and how drastically the oil and gas ecosystem will change will rely on supply-demand trends and other stakeholders' activities, including regulators, governments, and investors.
Scope of the Report
The scope of the study includes oil & gas-based engineering service providers that offer asset and automation-based services throughout the entire oil & gas supply chain ranging from design to operation and maintenance-based services.
The Oil & Gas Engineering Services Market is segmented by type (downstream, midstream, upstream) and geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).
The market sizes and forecasts are provided in value (USD million) for all the above segments.
|Middle East & Africa|
Key Market Trends
Downstream Segment to Exhibit Significant Growth
- The Downstream sector of the Oil & Gas Industry includes the operations that occur after the production phase until the point of sale. Certain downstream operations include refining, processing, transportation, and selling petroleum products. The increasing demand for safe and reliable operations while minimizing the total cost of operations is expected to drive the industry's adoption of downstream oil and gas services.
- Downstream oil and gas services play an essential role in maximizing the refining process while impacting the desirability and marketability of the finished product. The downstream supply chain involves significant operations such as effective database management, marketing by-products, and effective management of distribution.
- Downstream oil and gas services include asset integrity management, industrial technical inspection, petroleum testing, refining and distribution, hazardous location equipment testing, and database software solutions. Some include Enterprise Asset Management (EAM) solutions, which address core Asset Information Management and Plant Asset Maintenance Management applications.
- At least temporarily, the Russia-Ukraine conflict hampered the possibilities of a COVID-19 pandemic-related global economic rebound. Economic sanctions on several nations, a rise in commodity prices, and disruptions in the supply chain due to the conflict between these two nations have all impacted numerous international markets.
- Recent years have seen a sharp rise in the world's energy consumption, which is expected to continue. Renewable energy consumption is predicted to rise and reach 24/7 exajoules by 2050. According to BP, the total amount of renewable energy used in 2000 was 42 exajoules.
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North America Expected to Dominate the Market
- North America is expected to dominate the Oil and Gas Engineering Services Market due to the increasing number of oil & gas projects in countries such as the United States and Canada. According to US Energy Information and Administration, US crude oil production in their forecast averages 11.7 million b/d in the last year and 12.4 million b/d in the current year.
- The country is witnessing a significant number of strategic collaborations as a lucrative path to grab the opportunities provided by the oil and gas industry in the region. For instance, in July last year, the Geothermal Energy from Oil and Gas Demonstrated Engineering Funding Opportunity Announcement (FOA), which will award up to USD 165 million to expand US geothermal energy deployment by utilizing technologies and labor from the oil and gas industry, was announced by the US Department of Energy (DOE). Using technology and best practices from the oil and gas sector, this initial FOA is anticipated to offer USD 10 million to establish a consortium that will provide a roadmap for overcoming geothermal energy's technological and knowledge gaps.
- In October last year, India and the US announced the creation of a new energy task force to facilitate the extensive integration of renewable energy required to support the clean energy transition. The declaration will elevate the India-US partnership's strength in the vital energy sector. The declaration was made following a bilateral meeting between US Energy Secretary Jennifer Granholm and Union Minister of Petroleum and Natural Gas Hardeep Singh Puri.
- Also, Canada is one of the largest oil and gas producers globally, as the industry plays an essential role in the country's economy. As per the Canadian Association of Petroleum Producers (CAPP), the oil production in the country is expected to reach 5.4 billion bbl/d in 2030, and oil sands are expected to account for 70.7% of the total production.
- In October last year, as Imperial advances, its ambitions to build a top-notch renewable diesel complex at its Strathcona refinery outside of Edmonton, Alberta, Canada, Fluor Corporation was given a contract for reimbursable front-end engineering and comprehensive design, engineering, and procurement services. The new complex will generate about 20,000 barrels of renewable diesel per day from locally sourced feedstocks, making it the largest renewable diesel production facility in Canada.
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The competitive landscape of the Oil & Gas Engineering Services Market is expected to be moderately fragmented, owing to the presence of several global players, coupled with the emergence of new market players. The market players, such as Stress Engineering Services Inc., Toyo Engineering Corporation, and Element Materials Technology, are aiming to form strategic partnerships and collaborations with various oil and gas companies globally to boost the adoption of engineering services in the industry. It will enhance their market presence and strengthen their global footprint.
- May 2022 - The West White Rose Project offshore of Newfoundland and Labrador will resume after a hiatus of more than two years, with the first oil from the platform expected in the first half of 2026, according to Canada's Cenovus Energy and its partners. Following the Covid-19 pandemic, the project's construction was put on hold in March 2020 to stop the virus from spreading. Husky Energy, which at the time ran the project, amalgamated with Cenovus Energy in January 2021. By the end of 2029, the project is anticipated to produce at its highest level of about 80,000 barrels per day (bbls/d), or 45,000 bbls/d net to Cenovus.
Stress Engineering Services Inc.
Toyo Engineering Corporation
Element Materials Technology
L&T Technology Services Limited
*Disclaimer: Major Players sorted in no particular order
- November 2022: Megha Engineering & Infrastructures Limited (MEIL) will build the first oil refinery in Mongolia. According to the company, MEIL will spend USD 790 million to construct EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and EPC-3 (Captive Power Plants). The nations of China and Russia border Mongolia. The nation is building its first greenfield oil refinery to reduce its reliance on Russian oil imports.
- April 2022: Indian Oil Corporation Ltd., the nation's top refiner and fuel retailer, Larsen & Toubro (L&T), India's leading engineering & construction conglomerate, and ReNew Power, India's leading renewable energy company, announced the signing of a binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India. It is all part of an effort to support India's decarbonization push. These trio companies have a strong track record of designing, carrying out, and delivering EPC projects. Indian Oil includes a strong presence across the energy spectrum and a well-established track record of petroleum refining. ReNew includes a strong track record of developing utility-scale renewable energy solutions.
Oil & Gas Engineering Services Market Report - Table of Contents
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Adoption of Automation in the Oil & Gas Industry to Aid Growth of Design and Engineering Services
4.2.2 Ongoing Efforts to Enhance Cost & Operational Efficiency in the Oil & Gas Industry
4.2.3 Industry 4.0 Practices Such as Extended Reality & BIM 4D to Reduce TTM
4.3 Market Restraints
4.3.1 The Market is Susceptible to Fluctuations in the Oil & Gas Prices as Well as Other Macro-economic Changes
4.3.2 Operational and Compliance-related Challenges
4.4 Industry Stakeholder and Business Model Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Comparative Analysis of In-house and Outsourced Engineering Services Industry
4.7 Cost Breakdown Analysis
4.8 Comparative Analysis of the Adoption Trends Between Oil & Gas and Other Major Process Industries
4.9 Impact of COVID-19 on the Engineering Services Industry
5. MARKET SEGMENTATION
5.1 By Type
5.2.1 North America
5.2.4 Latin America
5.2.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Stress Engineering Services Inc.
6.1.2 Toyo Engineering Corporation
6.1.3 Element Materials Technology
6.1.4 L&T Technology Services Limited
6.1.5 Arseal Technologies
6.1.6 Citec Group Oy Ab
6.1.7 WSP Global Inc.
6.1.8 Wood PLC
6.1.9 Tetra Tech, Inc.
6.1.10 Mannvit Consulting Engineers
6.1.11 QuEST Global Services Pte. Ltd.
6.1.13 Hatch Ltd.
6.1.14 Lloyd's Register Group Services Limited
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Oil & Gas Engineering Services Market Research FAQs
What is the study period of this market?
The Oil & Gas Engineering Services Market is studied from 2018 - 2028.
What is the growth rate of Oil & Gas Engineering Services Market?
The Oil & Gas Engineering Services Market is growing at a CAGR of 7.1% over the next 5 years.
Which region has highest growth rate in Oil & Gas Engineering Services Market?
Middle-East and Africa is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Oil & Gas Engineering Services Market?
North America holds highest share in 2022.
Who are the key players in Oil & Gas Engineering Services Market?
Stress Engineering Services Inc., Toyo Engineering Corporation, Element Materials Technology, L&T Technology Services Limited, Arseal Technologies are the major companies operating in Oil & Gas Engineering Services Market.
Oil & Gas Engineering Services Industry Reports
In-depth industry statistics and market share insights of the Oil & Gas Engineering Services sector for 2020, 2021, and 2022. The Oil & Gas Engineering Services research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Oil & Gas Engineering Services report PDF.