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Leading offshore IoT oil and gas companies

Internet of Things (IoT) describes the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it.  

IoT is also an umbrella term referring to the ability of everyday physical objects (such as fridges, watches or cars) to connect with other devices over the internet, enabling them to send and receive data.  

Technology related to IoT will impact every industry, including the global oil and gas sector while opening a range of new opportunities as well as potential new threats.  

It will enable the oil and gas industry to measurably reduce costs, assist in predictive maintenance, detect potential risks in oil pipelines, and detect asset behaviour anomalies quickly.  

Relevant use cases include automated homes, connected cars, wearable technology, smart cities and more.  

GlobalData forecasts the global IoT market to reach $1.1tn in revenue by 2024.  

While pervasive IoT is still some years away, our team is keeping a close eye on the use of IoT in oil and gas and its evolution. 

Leaders and disruptors in IoT offshore companies

Our GlobalData leader and disruptor lists for each theme are based on our analysts’ in-depth knowledge of the theme and the predominant players involved in that theme.  

These are based on subjective opinions supported by research and analysis, all carefully examined by our experts.  

Leader lists consider global market share, position in the value chain and ability to react to emerging, disruptive trends.  

Disruptor lists consider funding, strategic partnerships, and the track record of the management team. 

Major adopters of IoT technologies in oil and gas 

These companies include BP, Equinor, ExxonMobil, Shell and, TotalEnergies.

Leading offshore IoT companies and specialist vendors  

Companies including Alphabet, Emerson, IBM, Microsoft, Siemens, ABB, Baker Hughes, Halliburton, Honeywell, Schlumberger.

Challenges for IoT oil and gas companies 

According to GlobalData forecasts, global IoT revenue in the energy sector will reach $59bn by 2025, up from $34bn in 2019.  

The declining cost of IoT hardware makes digitalisation an attractive option.  

The oil and gas industry is becoming a more enthusiastic adopter of digital technology as it struggles to cope with several significant trends.  

These include fluctuating oil prices, expanding sources of supply, and increasing regulatory requirements. Many oil and gas companies are reducing capital expenditure to focus on their core business.  

As a result, they must weigh up the cost of adopting IoT technology with what many perceive as an unnecessary risk of overspending.  

However, IoT use cases in the sector show how instrumental digitalisation is to the oil and gas sector. 

Value chain for IoT oil and gas companies 

Our GlobalData analysts have categorised the value chain for IoT in the oil and gas industry into five layers: devices, connectivity, data, apps, and services.  

While these layers are logically discrete, large-scale IoT solutions will see a considerable degree of blurring of these logical boundaries.  

For example, while there will continue to be a clearly identifiable data layer towards the top of the stack, a growing proportion of the data processing will take place within and at the edge of the network. 

From the point of view of IoT adopters, it is also crucial to note that value is only realized by IoT adopters in the application layer.  

All the data that an IoT network collects is ultimately worthless until action is taken because of it, whether that is in the form of an instruction to an irrigation unit, or an alarm sent to a maintenance engineer, or an emergency call made to a doctor. 

For an in-depth look at the value chain for IoT oil and gas companies, including infrastructure, network, and data layers, our dedicated GlobalData page can be found here.  

Market forecasts for IoT oil and gas companies

The global IoT market was worth $622bn in 2020, up from $586bn in 2019, and will grow to reach $1,077bn by 2024, with a compound annual growth rate (CAGR) of 13% over the period, according to GlobalData forecasts.  

The enterprise IoT dominates the overall IoT market, generating 76% of total revenue in 2020.  

This dominance of the enterprise IoT will continue for the foreseeable future. GlobalData expects this segment to still occupy 73% of the overall IoT market in 2024.  

The enterprise IoT market will grow at a CAGR of 12.4%, and consumer IoT revenue will increase at a CAGR of 14.6% between 2019 and 2024. 

The global IoT market will generate a staggering $1,077bn in revenue by 2024, up from $622bn in 2020.

Enterprise IoT accounted for 76% of the market in 2020.

Consumer IoT revenues will increase from 24% of the total in 2020 to 27% by 2024, with much of the growth coming from wearables.

In 2020, the overall IoT market saw sluggish growth as Covid-19 interrupted IoT deployments. In the consumer IoT domain, the connected car market declined by 10%, and the automated home segment saw just 1% growth in 2020.

The top performer during the year was the wearables market, which saw 16% revenue growth.

Within enterprise IoT, smart cities and Industrial Internet saw moderate yearly increases of 8% and 7%, respectively.

Digital landscape for IoT oil and gas companies

IoT can be the backbone of digital transformation in the oil and gas sector. Connected devices drive more sophisticated use of other technologies, namely artificial intelligence (AI), in the automation process.

It creates a tech ecosystem that eases the difficulties of working in remote, dangerous conditions and working with ageing, precarious assets through cross-functional collaboration.

The rise of the IoT has come about through improvements in the individual technologies within the IoT ecosystems designed by, and specifically for oil and gas companies.

With internet connectivity being available on a larger scale and the hardware costs decreasing, the technology is a more attractive prospect for oil and gas companies.

Deals activity in IoT oil and gas companies 

GlobalData’s IoT deal tracker in the oil and gas sector monitors deals involving IoT or similar technologies over the past nine quarters.

IoT-driven innovation in offshore IoT companies

To best track the emergence and use of IoT in oil and gas, GlobalData tracks patent filings and grants as well as companies that hold most patents in the field of IoT. 

IoT patents in the oil and gas sector 

Our IoT patent tracker in the oil and gas sector monitors the patents filings and grants over the past two decades.

IoT job insights in the oil and gas sector

GlobalData monitors live oil and gas company jobs postings mentioning Internet of Things (IoT) or those requiring similar technical skills. 

We monitor job postings by oil and gas companies mentioning IoT.

Our GlobalData IoT jobs tracker in the oil and gas sector observes jobs posted, closed, and active in the sector.

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