The oil & gas electrification market is primed to grow massively by 2030 owing to the rising electricity demand across the globe. In addition, rapid urbanization, along with growing demand for sustainable electricity solutions, are likely to accelerate market growth through the analysis timeline.
Recently, government emphasis on sustainability and modern infrastructure has aided product outreach. For instance, in February 2022, the U.S. government, stated that electricity generation has grown significantly over the years. Between 2000 and 2021, electricity generation from wind energy has gone up from 6 billion kilowatts to 380 billion kilowatts. In 2021, this segment held around 9.2% of the total electricity production.
Effective innovations and rigorous R&D activities for better connectivity is anticipated to augment market growth over the forthcoming years. To cite an instance, in October 2021, Department of Electronic and Electrical Engineering, University of Strathclyde, published a study on various power architectures to enable oil & gas electrification.
The study aimed to benefit the existing offshore wind power plants in the UK to fulfil the requirement of burgeoning electricity connectivity. This would not only reduce the cost but is slated to provide a sustainable solution for the future.
Yet another notable instance, in May 2022, Geophysical Institute, a master’s thesis published under the University of Bergen titled, Offshore wind power and hydrogen for oil and gas platform electrification focused on providing a solution to use offshore wind power to transform electrify oil & gas platform. In the study, it was concluded that if a natural gas turbine is used for peak power shaving, the requirement for hydrogen is reduced significantly.
Furthermore, in February 2022, a study titled, Electrification potential of U.S. industrial boilers and assessment of the GHG emissions impact, explained the electrification potential of the U.S industrial boilers and the greenhouse gas long-term effects. It was found that GHG emission from boiler electrification was higher in the current grid as compared to the future grid infrastructure. It concluded that decarbonized grids are likely to be more effective and produce low GHG emission.
The oil & gas electrification market has been bifurcated based on application, technology, and region.
In regional landscapes, the Middle East & Africa oil & gas electrification industry is set to register a significant market size and grow at around 5% CAGR through the assessment period.
Meanwhile, the oil & gas electrification market in Latin America was valued at more than $200 million in terms of revenue in 2021.