Oilfield Integrity Management Market Size, Share & COVID-19 Impact Analysis, By Management Type (Monitoring System, Data Management, Corrosion Management, Planning, and Predictive Maintenance & Inspection), By Component Type (Hardware, Software, and Services), By Application (Onshore and Offshore Aerospace) and Regional Forecast, 2020-2032

The global oilfield integrity management market size was valued at over USD 13.87 billion in 2019 and is projected to reach USD 34.46 billion by 2032, exhibiting a CAGR of 8.12% during the forecast period. The Oilfield Integrity Management market in the U.S. is projected to grow significantly, reaching an estimated value of USD 11.14 billion by 2032, driven by the increasing emphasis on regulatory compliance across industry and rising oil & gas activities.

Oilfield integrity management services help to track the performance of assets, carry out inspections, and improve the reliability of equipment, plant safety, and profitability. It incorporates services such as predictive maintenance and fleet management by enabling technologies such as big data analytics, low-cost sensors, and cloud computing. Key players operating in the oil and gas sector are responding to low oil and gas prices with a renewed focus on improving efficiencies and cutting costs.

Unavailability of Financial Assistance amid COVID-19 to Affect Market Growth

The ongoing outbreak of the COVID-19 pandemic has impacted the oil industry significantly across the globe. Due to the current scenario, various oil companies worldwide have shut down their manufacturing facilities and services owing to the suspension of operations globally. The spread of Covid-19 poses a significant threat to the market owing to lockdown in transportation, industrial and commercial operation, and a halt in upcoming exploration projects. The companies across regions have also suspended major oil projects. Furthermore, the COVID-19 pandemic has also dramatically impacted crude oil prices, well drilling, production activities, and the oil supply chain.

As per the International Energy Agency, the oil demand decreased by 29 million barrels per day (bpd) in April 2020 and 23.1 million bpd in the second quarter of 2020. Amid the global pandemic, several industries such as automotive, aviation, power, manufacturing, and transportation are experiencing a negative impact on their business owing to limited financial assistance to continue operations.

LATEST TRENDS

Growing Emphasis on Digitalization in the Oil and Gas Sector to Surge Demand

Fluctuating oil prices, the increasing demand for oil, and high costs of exploration and production activities are some of the factors that are affecting the profitability of the companies. Therefore, several companies are adopting oilfield integrity management services to reduce cost, operational risks, and improve assets availability to tackle such situations.

The oilfield integrity management tools help the companies to develop new techniques resulting in greater efficiency, less unplanned downtime, less operational risk, better yields, and increased flexibility of production. Additionally, it ensures the safety of employees, mostly isolated workers, by giving them access to the information they require. Thus, the introduction of digital trends has helped in optimizing the upstream process and making effective decisions. This factor is anticipated to drive the global market during the forecast period.

DRIVING FACTORS

Increasing Focus on Automation And Process Optimization to Propel Market Growth

The oil & gas sector is widely engaged in converting its old business models into a new one with smarter operations to increase industry players and focus on remote monitoring of oil fields. Remote monitoring reduces the need for human intervention, which consequently decreases the overall cost and chances of manual errors. It assists operators to monitor real-time data, thereby improving the overall productivity and reliability of an oilfield. According to the World Petroleum Council, the demand for oil is expected to increase by 1.2 mb/d mainly in South East Asia Countries such as India, Indonesia will account for around 30% of the global oil demand by 2025.

The oil and gas industry faces several challenges, such as low oil prices, schedule overrun, and climate change. In addition to this, the aging of structure and design of the oil plants is leading to rising overhead costs. Therefore, digital transformation and process automation help to overcome these challenges and provide benefits to the company. They further help in reducing downtime, controlling operations from a centralized place, and increase productivity. With all these factors, the refining businesses and companies are now actively investing in oilfield integrity management services to increase their profit margins. This is likely to favor the market growth in the forthcoming years.

Increasing Production and Exploration Activities to Accelerate Growth

Exploration activities in reserves and oilfields have surged the demand for oilfield integrity management services globally. The major exploration discoveries include Alpine high in West Texas, Alaska in the U.S., Golan Heights in Israel, gas discoveries in the Kara Sea off the northwestern part of West Siberia's Yamal Peninsula - Dinkov and Nyarmeyskoye, Yellowtail (oil) and Haimara (gas-condensate), an offshore gas discovery with the Lang Lebah-1RDR2 exploration well, and others. It is projected that oil prices are likely to increase in the forthcoming years that is expected to encourage the oil field operators and independent exploration companies to invest in oil & gas discoveries and exploration activities.

RESTRAINING FACTORS

Volatility in Oil Prices to Hamper Market Growth

Oil prices constantly fluctuate across the globe. According to the U.S. Energy Information Administration (EIA) Short-Term Energy Outlook, the price of crude oil settled at USD 40.93 per barrel in October 2020, a decrease of USD 4.65/b from September 1, 2020. Significant growth in alternative energy generation technology such as solar, wind, and hydro will reduce the dependency on oil & gas, which is likely to affect the oilfield services industry. Hence, volatility in oil prices and growth in alternative energy generation technologies is expected to restrain the market growth during the forecast period.

SEGMENTATION

By Management Type Analysis

Monitoring System Segment Accounted For The Largest Share In The Market

Based on the management type, the global market is classified into a monitoring system, data management, corrosion management, planning, and type planning predictive maintenance & inspection.

The monitoring system segment accounted for the major oilfield integrity management market share in 2019. The monitoring system segment consists of machinery and equipment such as wireless sensors, analyzers, flow meters, smart well systems, SCADA systems, and DCS systems.

In the oil and gas sector, oilfield integrity management and monitoring systems are widely used for corrosion management, as this system helps to determine the corrosion susceptibility of production equipment, preventing significant production losses.

By Component Type Analysis

Hardware Segment Is Anticipated To Grow At The Fastest Rate During The Forecast Period

Based on component type, the market is characterized by hardware, software, and services.

The hardware segment accounted for the highest market share owing to the adoption of digital technologies for collecting significant volumes of data. Hardware is responsible for data transfer and surveillance in both onshore and offshore fields.

By Application Analysis

The Onshore Segment Is Expected To Be The Largest Contributor During The Forecast Period

Based on the application, the global market is classified into onshore and offshore.

The onshore segment accounted for the highest market share in 2019 and is anticipated to maintain its dominance during the forecast period. The onshore wells are widely drilled across the world with more oil & gas production potential from regions such as the Middle East, North America, Africa, and Asia Pacific. Furthermore, the cost incurred in onshore oilfield activities is less compared to the offshore application.

In offshore oil production, oilfield integrity management software is used for maintaining the operation of drilling rigs and floating platforms structures, process equipment, instrumentation control and safety systems. This is expected to lead to segment growth during the forecast period.

REGIONAL INSIGHTS

The market has been analyzed across five key regions, comprising North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America. 

North America stood at USD 6.88 billion in 2019. Around 3.3 Million Km of pipeline and 2,996 active production platforms exist on the U.S. Outer Continental Shelf that is likely to contribute to the growth of the market in the region. Additionally, the presence of major oilfield integrity management companies such as Schlumberger, Ltd., Halliburton, and Baker Hughes Company, who are focusing on investments in developing an innovative solution for the oil & gas industry is expected to drive the market in the region.

Europe is estimated to grow at a faster pace during the forecast period owing to countries such as Norway and the U.K. investing in exploring new offshore hydrocarbons reserves to increase domestic production.

Asia Pacific is expected to hold the second-largest market share for oilfield integrity management owing to the growing investment in onshore and offshore exploration and production activities to increase crude oil production to secure future energy demand.

Latin American countries are constantly focusing on rising offshore exploration activities to fulfill their growing oil demand. Brazil and Argentina are expected to dominate the regional market on account of the high investments in the oil & gas exploration activities.

The Middle East & Africa is the fastest-growing market of the global oilfield integrity management market during the forecast period. This is attributable to the presence of major oil & gas producing countries such as Iraq, Iran, Saudi Arabia, the UAE, and Kuwait, which have some of the largest petroleum reserves in the world. These countries export most of their production to neighboring Asian countries such as China and India that have high energy demand. Furthermore, the growth of the market in the region is due to the increasing number of drilling activities and the inspection and monitoring systems required to optimize production from mature fields.

KEY INDUSTRY PLAYERS

Schlumberger is Focused on Expanding its Product Line and Utilize its Channels to Market New Products

The market has witnessed many small and large players delivering products for numerous applications shaping the competitive landscape. These participants are significantly operating at the country and regional levels, limiting them to cater to overseas needs effectively. However, some of the company profiles for established organizations such as Baker Hughes Company, Schlumberger Limited, Halliburton, and Oceaneering International, Inc., among others, possess a significant integration with local sales partners to hold a substantial presence globally.

Schlumberger is the leading technology provider for reservoir characterization, drilling, production, and processing in the oil and gas industry. The company’s offices and service centers are located in more than 120 countries. It provides various products and services from exploration through production to integrated pore-to-pipeline solutions, which optimize hydrocarbon recovery to deliver reservoir performance. On July 23, 2019, Schlumberger signed a contract with Chevron U.S.A. Inc. for subsea development projects in the Gulf of Mexico. Combining this master contract with a pre-approved catalog of standard subsea equipment will enable Chevron to decrease operating costs in its subsea projects.

LIST OF KEY COMPANIES PROFILED:

• Baker Hughes Company (Texas, US)


• Schlumberger Limited (Texas, US)


• Halliburton (Texas, US)


• John Wood Group PLC (Aberdeen, United Kingdom)


• Aker Solutions (Fornebu, Norway)


• SGS SA (Geneva, Switzerland)


• Oceaneering International, Inc. (Texas, US)


• TechnipFMC plc (London, United Kingdom)


• Emerson Electric Co. (Missouri, US)


• Saipem (Milan, Italy)


• Weatherford (Texas, US)


• National Oilwell Varco (Texas, US)

KEY INDUSTRY DEVELOPMENTS:

• May 2020 – Emerson announced its investment worth USD 100 million in Boulder, Colorado, to significantly expand its manufacturing facility. Additionally, it will be launching an innovation center focused on research, new product development, and industry training for its advanced flow measurement products.


• June 2019 – Baker Hughes, a GE company, and C3.ai signed an agreement that brings together BHGE’s full stream oil and gas expertise with C3.ai’s unique AI software suite. Together, they will deliver digital transformation technologies to facilitate new levels of productivity for the oil and gas industry.

REPORT COVERAGE

The market report presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis and information as per market segments, including market by management types, component types, applications, and regions, helping our readers to get a comprehensive overview of the global industry.

REPORT SCOPE & SEGMENTATION