Oilfield Communications Market Forecast (2024-2031)
The oilfield communications market size is projected to reach US$ 5.04 billion by 2031 from US$ 3.28 billion in 2023. The market is expected to register a CAGR of 5.5 % in 2023–2031. The oilfield communications market is growing due to increased investments in network infrastructure, increased demand from oil and gas operators to scale production, and advancements in communication technology.
Oilfield Communications Market Analysis
Rising technical improvements in oilfield communication are expected to drive market growth in the future years. Furthermore, an increase in demand for high-bandwidth communication solutions, as well as the industry's desire and efforts to improve upstream assets, are expected to drive the market throughout the projection period. Increasing demand for cloud-based services, combined with a growing emphasis on the adoption of effective communication technology, will aggravate the demand for oil field communications. Rising investments in network infrastructure, as well as the growth and expansion of the oil and gas industry, will open up more attractive growth potential for the oil field communications market.
Oilfield Communications Market Overview
Oilfield communication refers to communication systems that are implemented with the primary goal of providing support or assistance to various oil and gas companies that may require information for oil exploration, production processes, reporting technology, automation, and other processes. The oilfield communication market is being driven by the exponential growth and widespread acceptance of cutting-edge technologies such as artificial intelligence, machine learning, cognitive intelligence, and cloud, as well as increased investment in network infrastructure, as dependable hardware is required for mission-critical activities in the oilfields that rely on consistent communication.
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Oilfield Communications Market: Strategic Insights
Market Size Value in US$ 4111.4 Million in 2019 Market Size Value by US$ 6812.8 Million by 2026 Growth rate CAGR of 8.74% from 2020-2026 Forecast Period 2020-2026 Base Year 2020
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Oilfield Communications Market: Strategic Insights
| Market Size Value in | US$ 4111.4 Million in 2019 |
| Market Size Value by | US$ 6812.8 Million by 2026 |
| Growth rate | CAGR of 8.74% from 2020-2026 |
| Forecast Period | 2020-2026 |
| Base Year | 2020 |
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Oilfield Communications Market Drivers and Opportunities
Increased Investment in Improving Network Infrastructure to Favor the Market
For decades, the oil and gas industry has used its own telecommunications networks. These privately owned and managed networks oversee daily operations and coordinate emergency services during crises. Modern mission-critical networks face two challenges. First, there is a need for modernization. Real-time data, sophisticated control and monitoring, and high-level security require infrastructure that exceeds the capabilities of narrowband networks. Second, there is a requirement to ensure quality communication. Oil and gas field communications require high-capacity wireless networks that can function in harsh environments.
5G plays a crucial role in the digitalization of oilfield communications.
The oil and gas Industry can benefit from private Long-Term Evolution (LTE) and 5G networks due to the fast acceptance of 4G wireless technology and evolving 5G standards for industrial use cases. The oil and gas industry's ambitions for 5G adoption remain uncertain. 5G technology is expected to provide a significant competitive edge for oil and gas companies in the future. Oil E&P companies are prioritizing efficiency and agility, leading to ambitious digital efforts. 5G offers benefits in the oil and gas industry, including Ultra-Reliable latency communication (URLLC) and Machine Type Communication (MMTC).
Oilfield Communications Market Report Segmentation Analysis
Key segments that contributed to the derivation of the oilfield communications market analysis are service, communication network technology, field sit, and solution.
- Based on service, the oilfield communications market is segmented into managed services and professional services.
- Based on communication network technology, the oilfield communications market is segmented into tetra network, fiber-optic based communication network, microwave communication network, cellular communication network, and VSAT communication network.
- Based on field sit, the oilfield communications market is segmented into onshore communications and offshore communications.
- In terms of solutions, the market is segmented into midstream communication solutions, downstream communication solutions, and upstream communication solutions.
Oilfield Communications Market Share Analysis by Geography
The geographic scope of the oilfield communications market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America firms are looking for cutting-edge digital communication solutions for their onshore and offshore fields. Many oil-producing enterprises have their headquarters in the US. Most businesses test new services in their own country before launching them internationally. This country's rapid adoption of new technologies, as well as its expanding emphasis on worldwide communication, propel the market forward.
Oilfield Communications Market Report Scope
Oilfield Communications Market News and Recent Developments
The oilfield communications market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- In May 2022, Ericsson and Tampnet collaborated to handle IoT connections for offshore businesses. Modern sensors and remote monitoring technologies may be installed on people and objects in a variety of remote offshore use cases and connected in real-time thanks to the Ericsson IoT Accelerator's management capabilities.
(Source: Ericsson, Company Website, 2022)
- In December 2022, DeepOcean and Akvaplan-Niva worked together to assess the environmental impact of offshore wind and oil and gas developments using remotely operated vehicles (ROVs) and uncrewed glider vehicles (USVs).
(Source: DeepOcean, Company Website, 2023)
Oilfield Communications Market Report Coverage and Deliverables
The "Oilfield Communications Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Service ; Communication Network Technology ; Field Sit ; and Solution
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
The global oilfield communications market is expected to reach US$ 5.04 billion by 2031.
The key players holding the majority of shares in the global oilfield communications market are ABB Ltd., Airspan Networks Inc., Baker Huges Incorporated, Ceragon Networks Ltd., and Commscope Holding Company, Inc.
Adoption of cloud based services to play a significant role in the global oilfield communications market in the coming years.
Increased investment in improving network infrastructure is the major factors that propel the global oilfield communications market.
The global oilfield communications market was estimated to be US$ 3.28 billion in 2023 and is expected to grow at a CAGR of 5.5% during the forecast period 2023 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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