Global Oil & Gas Analytics Market: Adoption of Innovative Offerings to Boost Returns on Investment for Energy Companies, notes TMR
The global oil and gas analytics market is fairly fragmented as the top three players accounted for a combined share of around 23% in 2014, finds Transparency Market Research (TMR). These companies are IBM Analytics, SAP SE, and Oracle Corporation. The leading companies are mainly focusing on providing innovative software services to consolidate their shares in major regions. The market is characterized by the presence of several small- and medium scale players competing against each other. The key differentiating factors for the players in this market are technological expertise in the oil and gas industry and better engineering of systems, observes TMR.
A large number of component providers are oriented toward providing cost-effective and affordable analytics components for applications in various end-use industries in order to gain a competitive edge over others. In recent years, an upsurge in software sales has shaped the competitive dynamics across major regions. The oil and gas analytics market is anticipated to rise at a CAGR of 19.3% during 2016-2020.
Upstream Applications to Continue to Hold Leading Position
Regionally, the major markets for oil and gas analytics are North America, Asia Pacific, Europe, the Middle East and Africa (MEA), South and Central America. Of these, North America dominated the global market for oil and gas analytics and the U.S. accounted for a major share in 2015 due to extensive exploration and production activities in the country. The growth of this regional market is mainly driven by a soaring demand for upstream analytics and surge in production of unconventional shale gas. The North America market is anticipated to reach a revenue of US$16536.8 mn by the end of 2024.
Based on application, the global oil and gas analytics market is segmented into upstream, midstream, and downstream; among these, the upstream application segment is poised to expand at the highest CAGR of 19.9% from 2016 to 2024. The growth is mainly attributed to the increasing significance of risk management associated with the core functions of the oil & gas industry.
Innovations in Analytics and Delivery of Customized Services to Drive Market Value
The global oil and gas analytics market is primarily driven by the demand for big data and analytics among numerous oil and gas producers to improve their plant performance and optimize oil field operations. Declining crude oil and natural gas prices have hit hard on the profit margins of a large number of companies in the oil and gas industry. The sustained adoption of advanced analytics solutions among energy companies has helped them reduce their capital expenditure, contain all operational expenses, and significantly improve production. This is a key factor bolstering the uptake of oil and gas analytics.
Spiraling exploration and production activities worldwide, especially in unconventional production of oil and gas, have led to an extensive demand for big data and advanced analytics capabilities. Furthermore, the pressing need for managing risks in oil and gas production through real-time monitoring is expected to fuel the oil and gas analytics market.
However, poor quality of data and marked resistance toward data integration efforts among some players are factors hindering the adoption of oil and gas analytics solutions. Nevertheless, the market is rife with opportunities attributed to the advent of customized offerings that enable seamless integration with the already existing production and exploration processes. In addition, several vendors have increased their investment in bringing innovations to their offerings that include data monitoring equipment, data storage, and servers. This has unlocked ample opportunities for players in the global oil and gas analytics market.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Oil & Gas Analytics Market (Application - Upstream, Midstream, Downstream) - Global Industry Analysis, Size, Share, Growth Trends and Forecast 2016-2024”.
The global oil and gas analytics market is segmented based on:
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
- South & Central America
- Rest of South & Central America
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