Oil & Gas Asset Integrity Management Services Industry Overview
|Study Period:||2019 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Oil & Gas Asset Integrity Management Services Market Analysis
The oil and gas asset integrity management services market is expected to register a CAGR of about 7.74% during the forecast period, 2022-2027, reaching a value of USD 30 billion by 2027 from USD 17.81 billion in 2020. With the COVID-19 outbreak globally, in 2020, the oil and gas industry was severely impacted on account of the drop in crude oil prices due to lower oil demand in regions like Asia-Pacific. With restrictions and lockdowns imposed, a drop in fuel demand was witnessed majorly in sectors like transportation and aviation. Factors such as maturing assets in the oil and gas industry and rising investments in gas infrastructure are expected to drive the market during the forecast period. However, the high volatility of oil and gas prices is expected to hinder the market growth during the forecast period.
- The downstream sector is expected to dominate the oil and gas asset integrity management services market during the forecast period.
- The aging oil and gas infrastructure in the Asia-Pacific region is expected to create business opportunities for the companies involved in the asset integrity management services market soon.
- North America is expected to continue to be a dominant market, due to the aging infrastructure, mainly in the upstream and midstream sectors.
Oil & Gas Asset Integrity Management Services Industry Segments
The oil and gas asset integrity management services market report includes:
|Location of Deployment|
|Middle-East and Africa|
Oil & Gas Asset Integrity Management Services Market Trends
This section covers the major market trends shaping the Oil & Gas Asset Integrity Management Services Market according to our research experts:
Downstream Sector to Dominate the Market
- Asset integrity management (AIM) services are deployed in the oil and gas refinery sector and other process plants in order to help track the performance of assets, carry out inspections, and improve the reliability of equipment, plant safety, and profitability.
- The global refining sector is witnessing an increased demand for refined products from the chemical and petrochemical industry. The higher margins have propelled the crack spread, which is a crucial factor for the profitability of oil refiners. This factor also encouraged investments in new projects.
- The global crude oil refining capacity in 2020 was 101,947 Thousand Barrels per day (TBPD), which rose by 7.25% from 95,054 TBPD in 2011. Also, with the increase in natural gas usage in the energy sector to generate electricity, the refining or processing capacity for gases is expected to increase during the forecast period, thus expanding the downstream sector for asset integrity management.
- Capacity upgrades may lead the way as industry players invest in infrastructure that can handle more crude oil. The structure and the design of plants are becoming complex day by day.
- In the past two decades, many major accidents have been witnessed in the process plants worldwide, owing to factors like delay in handing equipment for inspection, overstretching equipment run, improper maintenance practices, not undertaking proper inspection upon repair, etc.
- Over the last decade, many major players in the downstream industry have made it a part of their strategies to expand their existing assets rather than build a new ones to maximize their profits over time due to several fluctuations in oil and gas prices. These already existing assets before any expansion or redevelopments require exhaustive asset evaluations. For instance, in January 2021, John Wood Group PLC secured a contract of USD 120 million with Sinopec Hainan Refining and Chemical Limited Company (Sinopec) to provide engineering, procurement, and construction (EPC) services to expand its refinery development in the Hainan Free Trade Zone (FTZ) in South China. Several such expansion projects are expected to support the growth of the asset integrity management market in the downstream sector during the forecast period.
- Due to the aforementioned factors, the refining businesses and companies are now actively investing in asset integrity management services in order to increase their productivity and reduce costs. Hence, the downstream sector is expected to dominate during the forecast period.
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North America to Dominate the Market
- North America has one of the oldest midstream infrastructures, with many oil and gas pipelines older than 40 years. The upstream infrastructure in the region is also aging. Most of the active platforms in the Gulf of Mexico are older than 25 years.
- Apart from that, the existing upstream and midstream infrastructure in the region is vast in nature. The United States has about 2.5 million km of oil and gas pipeline, while Canada has about 800,000 km of pipeline. As a result of the large and aging infrastructure, North America is expected to lead the oil and gas asset integrity management services market during the forecast period.
- On the upstream front, offshore structures are a major attraction for asset integrity management service providers due to their operation in a much harsher environment than their onshore counterparts in the region. Offshore oil and gas platforms require intrinsic asset integrity management services due to safety factors and the harsh environment they are exposed to. Underwater oil and gas pipelines, production systems, gathering systems, and offshore platforms have to go through some of the harshest rules and regulations due to safety factors and hence require elaborate and vast asset integrity management services, especially during the latter part of their operating period.
- Furthermore, after the explosion of the Deepwater Horizon in the Gulf of Mexico, the United States reassessed and strengthened the safety requirements for offshore drilling, exploration, and production.
- Moreover, as of 2020, Mexico had six refineries with a total combined refining capacity of nearly 1.6 million barrels of oil per day. The majority of the country's oil refineries were commissioned before the 1980s. Due to the old age of refineries, asset integrity management services become necessary to maintain safe and continuous operations. The country's refineries are already running under utilization due to decreased domestic crude oil production and repeated fire incidents, which in turn is expected to drive the market during the period studied.
- Hence, owing to the above points, North America is likely to dominate the oil and gas asset integrity management services market during the forecast period.
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Oil & Gas Asset Integrity Management Services Market Competitor Analysis
The global oil and gas asset integrity management services market is moderately fragmented. Some of the major companies include Aker Solutions ASA, Bureau Veritas SA, Fluor Corporation, Oceaneering International Inc., and Technip FMC PLC.
Oil & Gas Asset Integrity Management Services Market Top Players
Aker Solutions ASA
Bureau Veritas S A
Oceaneering International Inc
Technip FMC plc
*Disclaimer: Major Players sorted in no particular order
Oil & Gas Asset Integrity Management Services Market Recent Developments
- In January 2021, contracts regarding integrity management and fabric maintenance were announced by Neptune Energy for its operated gas production platform, Cygnus, to Oceaneering and Stork companies, which were valued at approximately USD 6.5 million. Oceaneering is likely to supply integrity management services covering pressure systems, structural, pipeline, erosion management, and offshore inspection services. Moreover, Oceaneering works closely with Stork, which delivers fabric maintenance and scaffolding services for Cygnus, located in the UK Southern North Sea.
Oil & Gas Asset Integrity Management Services Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Onshore CAPEX Forecast in USD billion, till 2027
4.4 Offshore CAPEX Forecast in USD billion, by Region, till 2027
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.8 Supply Chain Analysis
4.9 Industry Attractiveness - Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Location of Deployment
5.3.1 North America
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Aker Solutions ASA
6.3.2 Bureau Veritas SA
6.3.3 Penspen Ltd
6.3.4 Intertek Group PLC
6.3.5 Oceaneering International Inc.
6.3.6 Fluor Corporation
6.3.7 Technip FMC PLC
6.3.8 Applus Services SA
6.3.9 ABS Group
6.3.10 EMI Group
6.3.11 GE Digital
6.3.12 Worley Parson Limited
6.3.13 FLYABILITY SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Oil & Gas Asset Integrity Management Services Market Research FAQs
What is the study period of this market?
The Oil and Gas Asset Integrity Management Services Market is studied from 2019 - 2028.
What is the growth rate of Oil and Gas Asset Integrity Management Services Market?
The Oil and Gas Asset Integrity Management Services Market is growing at a CAGR of 7.74% over the next 5 years.
What is Oil and Gas Asset Integrity Management Services Market size in 2019?
The Oil and Gas Asset Integrity Management Services Market is valued at 17 Billion USD in 2019.
What is Oil and Gas Asset Integrity Management Services Market size in 2028?
The Oil and Gas Asset Integrity Management Services Market is valued at 30 Billion USD in 2028.
Which region has highest growth rate in Oil and Gas Asset Integrity Management Services Market?
Asia-Pacific is growing at the highest CAGR over 2019 - 2028.
Which region has largest share in Oil and Gas Asset Integrity Management Services Market?
North America holds highest share in 2021.
Who are the key players in Oil and Gas Asset Integrity Management Services Market?
Aker Solutions ASA, Bureau Veritas S A, Fluor Corporation, Oceaneering International Inc, Technip FMC plc are the major companies operating in Oil and Gas Asset Integrity Management Services Market.
Oil and Gas Asset Integrity Management Services Industry Reports
In-depth industry statistics and market share insights of the Oil and Gas Asset Integrity Management Services sector for 2020, 2021, and 2022. The Oil and Gas Asset Integrity Management 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 and Gas Asset Integrity Management Services report PDF.