The global oil & gas asset integrity management services market is expected to grow at a CAGR of more than 8.67% during the forecast period. The oil demand is expected to grow at an average of 1.2 mb/d per year during 2020-2025, oil demand is expected to reach 104.7 mb/d by 2023, up by 6.9 mb/d from 2018. India and China, together, are expected to contribute around 50% of the global oil demand by 2025. Assets of the oil & gas industry, such as the offshore platforms, rigs, and pipelines, have been used by the industry beyond their design life. With the continued increase in the demand for production, a majority of the assets are expected to be further used during the forecast period. Moreover, offshore oil and gas platforms are subjected to severe ocean currents, corrosive salt water, and frequent hurricanes. Unlike drilling rigs, which are mobile, platforms cannot be brought to shore for repairs. Many of the platforms are very old or have changed hands several times; the maintenance records are either missing or unreliable. With the aging infrastructure, the demand for asset integrity management services in the oil & gas sector is expected to grow in order to prolong the life of these assets. However, lower oil & gas prices has led to a cut down in CAPEX as well OPEX spending by several major operators across the globe, which is likely to cripple the market in a short term.

  • Downstream sector is likely to dominate the oil & gas asset integrity management services during forecast period.
  • Aging oil & gas infrastructure in Asia-Pacific region is expected to create business opportunities for companies involved in asset integrity management services in the region.
  • North America is expected to continue being a dominant market due to aging infrastructure, mainly in upstream and midstream sector.



Key Market Trends

Downstream Sector to Dominate the Market

  • Asset integrity management (AIM) services are deployed in the oil and gas refinery sector and other process plants, to help track asset performance carry out inspections and improve equipment reliability, plant safety, and profitability.
  • The global refining sector is witnessing significant growth in demand, on account of increasing demand for refined products from the chemical and petrochemical industry. Higher margins have propelled the crack spread, which is a crucial factor for oil refiners’ profitability, and encouraged investment in new projects.
  • Capacity upgrades may lead the way, as industry players invest in infrastructure that can handle more crude oil. In addition, the structure and the design of plants are becoming complex day-by-day.
  • Further, in the past two decades, many major accidents were witnessed in the process plants, across the world, owing to following factors, like delay in handing equipment for inspection, overstretching equipment run, improper maintenance practices, not undertaking proper inspection upon repair, and others,
  • As a result of above mentioned factors, the refining businesses and companies are now actively investing in asset integrity management services, to increase their productivity and reduce costs. Hence, the downstream sector is expected to dominate the market during the forecast period.



North America to Dominate the Market

  • North America has one of the oldest midstream infrastructures, with many oil and gas pipelines older than 40 years. The upstream infrastructure in the country is also aging. Most of the active platforms in the Gulf of Mexico are older than 25 years.
  • Apart from that, existing upstream and midstream infrastructure in the region is vast in nature. The US has about 2.5 million kilometres of oil and gas pipeline, while Canada has about 800,000 km of pipeline. As a result of large and aging infrastructure, North America is expected to lead the oil & gas asset integrity management services market during the forecast period.
  • Further, after the Deepwater Horizon explosion incident in the Gulf of Mexico, the United States reassessed and strengthened the safety requirements for offshore drilling, exploration, and production.
  • Furthermore, approximately 2,996 active production platforms exist on the US Outer Continental Shelf, with more than 40% of these facilities older than 25 year.
  • The US government had recently put forward several proposals for offering new offshore territories for drilling activities. These programs, once approved, are expected to attract companies to invest in the offshore development projects, which, in turn, may provide enormous opportunities for the market studied, during the forecast period.



Competitive Landscape

The global oil & gas asset integrity management services market is fragmented. Some of the major companies include Aker Solutions ASA, Bureau Veritas S A, Fluor Corporation, and Technip FMC.

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