Oil and gas automation market to see growth with digitalization: report
Maryam FaragEnvironment Industry Energy Mining & Resources asset management automation editor pick engineering environment industrial machinery maintenance manufacturing oil and gas operations
Frost & Sullivan’s recent analysis of the global oil and gas automation market finds that digital transformation is occurring on a “massive scale due to the need for increased efficiency, safety and sustainability.”
New disruptive technologies, including artificial intelligence (AI) and the Internet of Things (IoT), are expected to play a bigger role as the industry recovers from COVID-19. From a revenue perspective, the total oil and gas automation market is expected to reach $24.63 billion by 2025, up from $17.17 billion in 2020, and growing at a compound annual growth rate of 7.5 per cent.
“Environmental regulations and agreements are compelling the industry to become more sustainable, and participants are recognizing that one of the easiest ways to achieve higher process efficiencies is automation,” said Agustina DeSarriera, Research Analyst, Energy and Environment, Frost & Sullivan. “With the pandemic causing a resource shortage, it is imperative that oil & gas companies tap automation to reduce human exposure and perform rote tasks that were previously performed by humans.”
As the industry feels the pressure to become more sustainable and less labour-intensive, there will be greater growth opportunities for technology providers of:
- AI: Vendors need to highlight the use of AI to automate drilling operations and their ability to eventually decrease the number of wells needed for oil & gas operations. AI can also help avoid incidents and improve environmental performance by predicting leakages and identifying them in real-time.
- Robotics: Vendors can help clients overcome their technology shyness by assigning robots to departments where they can demonstrate maximum value.
- IoT: By showcasing the technology’s adaptability and ability to complement other technologies such as AI and OT, IoT providers will find it easier to get buy-in from clients. They can also partner with technology companies that provide OT solutions such as sensors and transmitters and help them transform into smarter tools.