Oil and Gas Security Market Size

Oil & Gas Security Market Analysis

The Oil and Gas Security market is expected to grow at a CAGR of 4.65% over the forecast period. The growth in the digitization of the oil and gas industry has made it prone to cyber-attacks, such as denial of service, malware, and phishing. Moreover, cyber-attacks in the sector have caused significant disruptions to the entire network, including upstream, midstream, and downstream processes.

• Cyber-attacks, such as insider misuse, web application attacks, and physical risk/loss of property, have affected the oil and gas industry. Therefore, several companies are implementing effective cybersecurity solutions to combat them.
• An increase in the expenditure by oil and gas companies on network and operational technology security and an increased trend of security and vulnerability management have bolstered the growth of the oil and gas security market. Moreover, the growing trend of bringing your device (BYOD) into the industry poses further challenges for the security infrastructure.
• The rising energy demand and depletion of energy resources in recent years have put pressure on companies and governments to develop plans for oil and gas security system measures.
• Adopting new technology has significantly improved efficiency and brought concerns for securing these critical infrastructures essential for building a nation. The pipeline networks of the oil and gas industry extend to a vast area, and it is not economically viable in the current competitive market to use human resources to safeguard it. It has driven the economic surveillance system's demand and created opportunities for the players. Additionally, the products and machinery components installed within the core industry must adhere to flame and explosion-proof standards.
• Securing the resources is a paramount necessity through the totality of the product lifecycle, i.e., from the exploration, upstream, and downstream processes to the final product marketing. It is essential as they are dangerous to handle and prone to fire and other accidents. Web-based mobile surveillance units in such scenarios enable remote surveillance from a centralized or designated location and help streamline security. Aging infrastructure pushes the need for leadership for safety reasons.
• Owing to the operation ease brought about by network-driven communication in the industry, the security features are expected to be agile as network-driven communication systems also bring in vulnerability. Harsh weather conditions, extreme operating temperatures, hazardous processes, etc., make the market challenging. It requires compliance with multiple industry and safety standards for the products used in the industry and impacts the market landscape. All these factors have been critical for the demand and are expected to drive it over the forecast period.
• For oil, gas, and chemical businesses, the impact of COVID-19 and the oil price war is proving to be a two-pronged problem. Oil prices are falling due to failed production-cut agreements, and demand for chemicals and refined goods is slowing due to industrial slowdowns and travel restrictions in the aftermath of the global pandemic. Oil and Gas security is maintained by stringent physical and network security measures to ensure operational efficiency and minimize losses associated with security breaches. The shortfall of workers and expert security management personnel, mostly due to travel restrictions, illness, and social distancing norms, presents the Oil and Gas companies with another challenge in securing their Oil supplies and assets.