Oil and gas companies are moving through a phase that could prove to be highly beneficial to the global oil and gas analytics market. With the current oil prices slump showing very few signs of relief, crude extractors and refineries are looking to resolve their cost issues through optimizing their processes and increasing their production efficiencies.
The global oil and gas analytics companies can help crude players do just that; the companies can improve their ROI though making decisions and strategies based on these analytics, says Transparency Market Research.
TMR’s new study reveals that the key players in the global oil and gas analytics market are highly oriented towards providing software services. This can be concluded through the fact that software sales are increasing and have brought about major growth spurts in the global oil and gas analytics market over the recent past. The top three players – IBM Analytics, Oracle Corporation, and SAP SE – have collectively held around 23% of the market in 2014.
The research provided by seasoned TMR analysts can help shed a brighter light on the global oil and gas analytics market and all its current dynamics, with the oil prices slump in view.
Upstream Applications Will Continue Oil and Gas Analytics Dominance
“High risk has always been a part and parcel of oil and gas core functions,” stated a TMR analyst. “The priority that risk-management holds in the oil and gas exploration and production’s core functions has consistently made upstream oil and gas analytics exceptionally important.” The report also discusses how and why the upstream applications segment – with the highest market value of roughly US$2.89 bn in 2014 – will be the fastest-growing segment in the global oil and gas analytics market for the report’s forecast period from 2016 to 2024.
This is a segment that includes key functions such as asset maintenance, risk assessment, drilling optimization, and production optimization. All the above factors are in high demand in the crude industry, enabling this segment as a whole to progress at a rapid rate.
Analytics Innovations and Customized Services are What Oil and Gas Companies are Looking For
The key players in the global oil and gas analytics market are all highly capable of not only providing the best in software, hardware, and services, but are also providers of patented software programs to third party service providers on the basis of lease and licensing. As a result, these companies are able to nudge their growth rates further than most new entrants.
At the same time, the clients from the oil and gas sector have begun looking for new levels of innovations for high-quality analytics. They are also looking for customizations that might allow the new services or hardware to integrate seamlessly with their processes. Players who look deeper into these latent needs of the client are expected to show bigger margins.
For instance, the April 2016 release of Solution Print by Deloitte Development LLC, along with its rapid rate of integrating the IoT structure to oil and gas analytics, have been causing many clients prefer this company’s services or look for similar services in the market.
Although software sales are at an all-time high in the global oil and gas analytics market, no importance is taken away from the installation and implementation of new hardware. The most commonly used hardware for oil and gas analytics include data monitoring equipment, data storage, and servers. Each sub-segment of hardware is showing a great deal of innovativeness when it comes to optimizing systems specifically for oil and gas analytics.
Scope of Development as Important as Market Share Size for Analytics Services Providers
From a regional perspective, a whopping 45% of the revenue in the global oil and gas analytics market was held by North America, for 2015. The U.S. was responsible for a large part of this revenue generated, followed by Canada and Mexico. Most of the key players in the region are also key players in the global market, allowing their growth and development to be a direct boost to the North America oil and gas analytics market.
The North America analytics scenario for oil and gas has been a consistently positive one. It held a market value of US$3.1 bn in 2015 and, according to the TMR report, is showing a 19.5% CAGR from 2016 to 2024.
Additionally, many of these established analytics companies are already looking at regions such as Asia Pacific for further development. A major reason for this is the readiness of the Asia Pacific oil and gas industry to adopt the newer software and hardware in oil and gas analytics. This is good news for global players who are looking to expand their horizons beyond their primary region of operations.