U.S. Oil and Gas Analytics Market in 2018 will reach over USD 825 million and is anticipated to grow over 14.5% by 2025. Growing adoption of IoT and Big data platforms along with rising demand for analysis of large data repositories will foster the demand for advanced analytical tools.
Some major findings of the U.S. oil and gas analytics market report include:
- Growing upstream oil and gas investment is driving the business growth
- Rapid deployment of data gathering tools including IIoT, IoT and sensors are facilitating need for smart analytical platforms
- Robust investment toward infrastructure including pipelines, refineries and storage terminals will stimulate the product demand
- Growing stringency in cyber security regulations will demand more agile analytical software
- Major players operating in the U.S. oil and gas analytics market are Microsoft corporation, Accenture, IBM, Cognizant and others
- Companies are seeking strategic collaborations with technology providers for product innovation and gain competitive edge
The U.S. oil and gas analytics market is set to grow on account of increasing adoption of data gathering devices and growing awareness toward importance of data. Increasing requirement of production optimization and risk assessment platforms in the current unpredictable industry scenario will stimulate the demand for advanced AI and analytical tools. The industry players are focusing toward managing their respective O&M cost that has been significantly improved by using new data analytics software.
The abundant availability of proven O&G reserves accompanied by focus on the exploration of unconventional reserves will positively influence the business growth. As per the U.S. Department of Energy, in 2019, the proven gas reserves surged by 85%, which was over 450 Tcf. In addition, the growing need for production optimization coupled with the ongoing deployment of IoT and IIoT across drilling and production assets will complement the industry landscape.
Surging O&G infrastructure spending will significantly increase the adoption of analytics across various divisions. Rising volumes of oil and gas supplies has instigated the need for additional infrastructure requirement across the U.S. with Northeast and Southwest regions contributing over 19% and 36% of the total infrastructure investments. As per API, in 2017, the gathering & processing and refining divisions accounted to about 4.9 billion and USD 5.2 billion respectively.
Need for additional crude oil network to facilitate the transport of increased supplies from West Texas to refineries along with requirement of gas pipelines to transport the incremental capacity will continue to expand investments across the industry. In addition, ongoing concentration of LNG export terminals along with robust construction of oil tank farms will complement the business landscape.
The technological advancement has enabled the companies to generate real time information from production platforms and reservoirs that has helped them to make early prediction regarding equipment failures. The requirement of data analytics has further escalated with improvement in cloud computing capabilities, enhanced network security, cost saving and unlimited storage.
The industry has witnessed a shift from on-premise applications to hosted owing to key benefits including easy data sharing & integration, automatic system updates and reduced cost. The on-premise deployments require high maintenance with associated upgradation cost while the chances of hardware deterioration and permanent data loss have further restricted their adoption. However, enhanced network security and easy collaborations have facilitated the demand for hosted applications.
Ongoing business collaborations to attain a leading position in the industry is a key growth initiative followed by the companies. Continuous spending toward technology innovations will bring advanced analytical solutions that will complement the industry landscape. The companies are following mergers & acquisitions to gain technological excellence coupled with continuous spending in research and development will continue to bring innovations in the industry.