The oilfield communication consists of the technologies that are used by the oil & gas industry for the healthy communication network. This communication network helps oil and gas businesses that needs sophisticated technology for automation, reporting, and tracking. Oilfield communications requires an effective and reliable wireless network that operates under rough weather and over lengthy distances. For instance, to increase oil production, many oil exploration companies are looking for oilfields in harsh environments that represent different operational challenges. Such challenges significantly pushed the demand for high bandwidth communication solutions.
The market for oilfield communication is expected to reach rise at a CAGR of 8.3 percent during the forecast period. The rising demand for high-speed and reliable communications technology in offshore and onshore locations mainly fuels the growth of the oilfield communication market.
Introduction and the adoption of new communication technologies along with the challenging topographical areas force digital communication for oilfield productivity and recovery. In addition to this, increasing investments by the oil exploration companies to enhance network infrastructure and rise in demand from oil & gas operators to scale the production of oilfields fuels growth of the market. Moreover, oil companies are increasingly adopting the cloud-based services, which has compelled them to use oil field communication. Furthermore, surge in demand for high bandwidth communication solutions coupled with the rising inclination of the oil industry and their efforts to improve upstream assets is projected to boost the market growth during the forecasted period.
However, the current issues associated with cyber-attacks has led to the severe threat to oil & gas industry, which is expected to hamper growth of the market to some extent during forecast period. In addition, stringent regulatory norms, hampers the market growth. On the other hand, emergence of technologies such as video conferencing, cyber security, and cloud services increased the necessity for reliable and fast communication infrastructure on sites; thus, creating lucrative growth opportunities for the market.
Throughout the forecast period, services will continue to hold a dominant share of the global market, based on component. This is due to increasing demand for managed services as well as professional services in the oil companies to ensure enhanced operation of the oilfield communication solutions. Professional services providers focus on each detail of the project starting from idea to project planning, and to final implementation. However, the solutions segment is anticipated to witness highest growth rate during the forecast period.
According to the flied site, the onshore communications segment is expected to hold a dominant global market share. This is due to rising demand for oil and gas companies to improve field operations and recovery, without increasing costs, through automation, aggregation, and optimized lift functionality. Consequently, the segment is also projected to grow at highest growth rate, which in turn propels the oilfield communication market in the upcoming years.
OILFIELD COMMUNICATION MARKET SEGMENTATION:
- Managed Services
- Professional Services
- Pipeline Supervisory Control and Data Acquisition
- 2Asset Performance Communications
- Unified Communications
- VoIP Solutions
- Oilfield to Control Center Data Communication
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
North America dominated the global oilfield communication market in 2019, and likely to be the most profitable region throughout forecast period. In this region, the oil and gas industry is actively seeking advanced digital communication solutions for offshore and onshore and field operations. In addition to this, several prominent players in the market are headquartered in the U.S. Moreover, rapidly growing exploration and production activities, further propelling growth of the market. For instance, as per the June 2019 US Energy Information Administration Statistics, annual U.S. crude oil production touched a record of about 11.0 million barrels per day in 2018. Furthermore, huge demand as well as usage of oilfield communication technologies in large oilfields and offshore sites fuels growth of the market.
Further, Asia-Pacific region is expected to witness highest growth rate during the forecast period. This is attributed to rapid expansion of oilfield excavation activities across the region, especially in major economies such as India and China. The oil & gas industry across the Asia-Pacific is continuously growing due to rising demand and investment activities, which enables the region to witness a surge in the number of oil & gas projects. Furthermore, the Middle East & Africa region is expected to observe a significant growth rate during the forecast period due to the surge in the number of oil refineries and the numerous oil exploration activities across the region.
FEW KEY PLAYERS IN OILFIELD COMMUNICATION MARKET:
- Siemens AG
- Alcatel Lucent SA
- Speedcast International Limited
- Ceragon Networks Ltd.
- Rignet Inc.
- Huawei Technologies Co. Ltd.
- Rad Data Communications Inc.
- ABB Ltd.
- Commscope Inc.
- Other Players
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