The global oilfield communications market size grew from US$3.4bn in 2020 to US$4.5bn by 2025, at a Compound Annual Growth Rate (CAGR) of 5.5% during the forecast period
Various factors such as increasing investments in enhancing network infrastructure, growing demand from oil and gas operators to scale the production of mature oilfields, and rising technological advancements for communication across oilfields are expected to drive the oilfield communications market’s adoption.
Businesses providing oilfield communications solutions and services are expected to witness a significant decline in their growth for a short span of time. The oil and gas industry is also facing a crisis due to an oil price war.
The pandemic might result in inefficient companies facing liquidity crisis situations, healthier companies diversifying their businesses and changing their business models, and companies facing the shortage of skilled workforce when the market rebounds due to layoffs during the lockdown.
The services segment to grow at a higher CAGR during the forecast period
The oilfield communications market is segmented on the basis of component, such as solutions and services. The services segment is expected to grow at a rapid pace during the forecast period. The growth can be attributed to the growing need for oil and gas companies to save time and money during exploration, drilling, and production operations.
The microwave communication network segment to grow at the highest CAGR during the forecast period
The oilfield communications market by communication network has been segmented into VSAT communication network, TETRA network, cellular communication network, fibre optic-based communication network, and microwave communication network. The microwave communication network segment is expected to grow at a rapid pace during the forecast period. The growth can be attributed to its ability to operate without any fibre-optic infrastructure and the relative ease of setting up a wireless network.
The midstream application segment to grow at the highest CAGR during the forecast period
The oilfield communications market is segmented on the basis of application into upstream, midstream, and downstream. As onshore sites need periodic inspections to obtain early detection of events that might cause pipeline failure or create hazardous conditions, it is important to protect those pipelines from leaks and corrosion to protect the environment and keep the public safe from the occurrence of any hazardous condition. This leads to the adoption of oilfield communications solutions for onshore field sites.
Among field site, the offshore segment to grow at a higher CAGR during the forecast period
The oilfield communications market is segmented on the basis of field site into onshore and offshore. With the global lockdown and work-from-home practice picking up as need of the hour, companies are moving to the cloud-based infrastructure for managing and monitoring customer data and analysing the supply chain process. There will be continuous growth in the demand for offshore infrastructure services and spending on specialised software, communications equipment, and telecom services.
Among regions, Middle East and Africa (MEA) to grow at the highest CAGR during the forecast period
MEA has witnessed the advanced and dynamic adoption of new technologies and is expected to record the highest CAGR during the forecast period. The growth can be attributed to the increasing number of oil refineries and numerous exploration activities across the region.
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