Market Trends of Oilfield Communications Industry
Growing Adoption of Cloud-based Services to Drive the Market Growth
- With the growing adoption of cloud-based services, oil companies are compelled to use oil field communication. This keeps their offshore sites connected with the inshore site about production stats, which helps in better supply chain management. The smooth flow of materials is very important for oil companies as their profitability is highly dependent upon the turnover, and downtime needs to be avoided.
- For instance, over the past two and a half years, GE Oil & Gas, the service provider to oil and gas companies, has shifted 350 of its applications to Amazon's cloud offering, AWS. GE found that the total cost of ownership of running its enterprise applications on the cloud systems provided a saving of 52% on average. This is the dominant trend in the sector's most progressive companies.
- According to Siemens AG, data-based solutions will lead to huge gains in terms of efficiency gains and cost savings. According to Siemens, digitization can reduce Brent price cost per barrel by 45% while reducing the upstream capital cost index and operations cost index by 25% and 18%, respectively.
- Cloud technology has effectively addressed security concerns that previously restrained its adoption, thereby rewarding pioneering companies with the transparency to revolutionize their outdated on-premise systems.
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North America to Account for a Major Share
- North America is the pioneer in this market and is expected to hold a significant share as it is the largest oil and gas producer, with companies seeking advanced digital communication solutions for their onshore and offshore field operations.
- Many oil-producing companies are headquartered in the United States. Most companies pilot new services in the country before global launches and deployment.
- This country's fast adoption of new technology and the growing focus on global communication push the market forward.
- Moreover, with newfound shale resources and rapidly increasing exploration and production activities due to the Outer Continental Shelf Leasing Program approved by OCS, the region is expected to be one of the fastest-growing markets for oilfield communications over the forecast period.
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