- Internet of Things (IoT), as a system integrator, helps in accumulating the complete oil and gas value chain within a single operating platform
- The oil and gas value chain of IoT solutions consists of sensors, communication, cloud, and edge computing, and data management
The global IoT in the oil and gas market is expected to reach $43.48 billion by 2024 as per a report by ResearchAndMarkets. It also said that the market will grow at a CAGR of 21.86 per cent from 2019 to 2024.
The report said that Internet of Things (IoT), as a system integrator, helps in accumulating the complete oil and gas value chain within a single operating platform, working on specific client-centric challenges with an improvement in overall performance. The oil and gas value chain of IoT solutions consists of sensors, communication, cloud, and edge computing, and data management. It said that the continuous monitoring and control of extraction, production, and transportation operations with accuracy is raising the degree of acceptance for IoT solutions amongst the oil and gas companies. Access to real-time information across remote locations is a key demand from the oil and gas companies. This has been made possible with the help of smart sensors.
As per the report, “The rapid market penetration of the IoT technology has led to the enhancement of the operational productivity by minimizing manual labor and providing an efficient platform for proper data management of production inputs with a specific focus on oil and gas industry applications such as fleet and asset management, preventive maintenance, pipeline monitoring, and security management, among others.”
It also said that the widespread implementation of cloud-based analytics and software systems embedded with security management software have also helped in the market growth by reducing security risks. The software systems assist in increasing the overall production capacities by the identification of underground oil and gas resources said the report.
total investment and funding in IoT in oil and gas was $284.0 million in 2019
Since 2017, the IoT in the oil and gas market has witnessed a significant increase in market developments, technology advancements, and capital investments. The report said that the growing awareness in the market regarding the opportunities in enhancing the exploration and production activities, asset management, and remote monitoring using IoT has stimulated large-scale investments in the sector.
The total investment and funding in IoT in oil and gas were $284.0 million in 2019. There was a strong focus on developing IoT analytics platforms and cloud services for the oil and gas applications across the supply chain.