GlobalData’s latest thematic report, ‘Internet of Things in Oil & Gas’ provides a comprehensive review of the expanding role of the Internet of Things and its applications across the oil and gas industry.
According to GlobalData forecasts, global Internet of Things (IoT) revenue in the energy sector will reach $59 billion by 2025, up from $34 billion in 2019. The declining cost of IoT hardware makes digitisation an attractive option. The oil and gas (O&G) 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.
IoT can be the backbone of digital transformation in the O&G sector. Connected devices facilitate 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 IoT also helps to collate and manage vast quantities of data. This is instrumental to improving predictive maintenance, monitoring emissions and the surrounding environment, and providing safer working conditions. Failure to embrace these new technologies can lead to costly mistakes, with unforeseen closures and costs running into millions of dollars.
IoT Patents in Oil & Gas, by Country and by Company, 2019-2021
The rise of the IoT has come about through improvements in the individual technologies within the IoT ecosystem. With internet connectivity being available on a larger scale and the hardware costs decreasing, the technology is a more attractive prospect for O&G companies. Ultimately, O&G companies cannot afford to bypass digitisation, with IoT being a key technology in this process.