Digital Oil Rigs Market: Increase in Demand for IoT Solutions in Energy Industry
- Rise in demand for energy across the globe has driven huge investments in energy production, and transmission & distribution sectors. This has resulted in high growth of the energy industry over the past few years, especially the renewables sector due to their ability to provide clean energy. Moreover, this trend is anticipated to continue in the near future.
- The energy industry is plagued with low efficiency and high operational energy loss due to poor resource management leading to slow decision-making process and increased operating costs
- The energy industry is implementing IoT (Internet of Things) solutions across the value chain to enhance resource management and operational efficiency, enable faster decision making, and control and reduce operational costs
- Industrial IoT is enabling implementation of advanced energy production and distribution technology, management, and services, while leveraging existing investments in infrastructure and operations
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Key Drivers of Digital Oil Rigs Market
- Volatility in crude oil prices is a major driver for the growth of global digital oil rigs market. Demand & supply scenario and geopolitical instability has driven oil prices in the past. Moreover, decline in oil prices are a result of low demand and high supply of crude oil. For instance, increased crude oil output from the U.S., along with geopolitical issues among OPEC countries, Iran, Russia, and the U.S. led to decline in crude oil prices from US$ 110 per barrel to US$ 26 per barrel in early 2014.
- Low prices of crude oil results in high losses for the crude oil industry, as their exploration and production requires huge CAPEX and OPEX investment, which is recovered if minimum oil prices are US$ 50 per barrel or above. However, these prices have driven the industry to optimize its resources. This has resulted in the adoption of IoT in the industry in all its operations to provide real-time data for analysis and data modelling for faster decision-making and optimum utilization of resources. Thus, volatility in oil prices is expected to fuel the adoption and implementation of digital oil rigs during the forecast period.
- Process and environment safety is also a key driver for the growth of the global digital oil rigs market during the forecast period. Processes in oil & gas drilling are critical and thus, a small human error can lead to loss of property and life, along with damage to the environment. For instance, the British Petroleum oil spill in the Gulf of Mexico caused damage to the equipment and the marine ecosystem. Oil companies have to pay huge compensations and penalties for any such accidents, which not only effect their profitability, but also deteriorate their creditability. However, adoption of digital oil rigs can help avert these situations by eliminating the human factor in the process, resulting in safer and low-cost operations. Moreover, IoT also improves a company’s creditability.
Security Concerns Related to IoT to Restrain Global Market
- Security concerns related to the IoT are expected to restrain the global oil rigs market growth. Technology is vulnerable to hacks and viruses that disrupt operations and result in losses for companies. Companies are investing in conventional security measures for servers, workstations, and smartphones. However, with technological upgrades, these measures are unable to provide full security to the network. Threats of cyber attack and their impact on industrial operations are anticipated to restrain the growth of the digital oil rigs market during the forecast period.
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North America Likely to Lead Global Digital Oil Rigs Market
- North America is expected to lead the global digital oil rigs market during the forecast period, followed by Middle East & Africa. The growth of this market in North America can be attributed to increase in investment in IoT in the region, especially in the U.S. The country is anticipated to hold a major share of the North America digital oil rigs market in 2018.
- In Middle East & Africa, the growth of the oil & gas industry, along with rise in investment in digital oilfields is anticipated to drive the digital oil rigs market in the region during the forecast period
- The digital oil rigs market in Europe is likely to witness slow growth during the forecast period, as the region is shifting its focus from fossil fuels to renewable sources to meet its energy demands. This may result in a decline in investments in the oil & gas industry in the region.
- China is anticipated to hold a major share of the digital oil rigs market in Asia Pacific
Key Players in Global Digital Oil Rigs Market
Prominent players operating in the digital oil rigs market include:
- Hughes Network Systems LLC
- General Electric
- Schlumberger Limited
- HONEYWELL INTERNATIONAL INC.
- Baker Hughes, a GE company
- C3.ai, Inc.
Global Digital Oil Rigs Market: Research Scope
Global Digital Oil Rigs Market, by Solution
Global Digital Oil Rigs Market, by Application
Global Digital Oil Rigs Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
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