Adoption of IIOT in oil and gas accelerating

The adoption of Industrial Internet of Things (IIOT) is accelerating throughout the value chain in the oil and gas sector, says intelligence platform GlobalData

GlobalData’s Strategic Intelligence report, “Industrial Internet in Oil & Gas,” reveals that artificial intelligence (AI) and digital twins will revolutionise the Industrial Internet in oil and gas, powering smarter connected assets across exploration, drilling, and production. This technology shift enables autonomous operations, predictive maintenance, enhanced efficiency, and the agility crucial for navigating volatile markets.

The upstream segment is at the forefront of Industrial Internet adoption, according to the report. Projects are increasingly capital intensive and geographically remote, facing new subsurface challenges and rising environmental, social, and governance (ESG) scrutiny. As a result, real-time monitoring and modelling can make a big difference to outcomes. Digital twins, AI-driven drilling optimization, and field-wide

IoT networks enable operators to simulate outcomes, remotely manage wells, predict equipment failures, and integrate new production more rapidly.

In the midstream segment, sensors on pipelines and tanks provide real-time data on pressure, flow, and integrity, enabling faster leak detection and improved responses to anomalies.

In the downsteam operations, real-time data collection and advanced process automation now underpin production optimisation, emissions control, and energy management. Digital twins are enabling continuous process modelling, rapid scenario testing, and proactive troubleshooting.

Ravindra Puranik, Oil and Gas Analyst at GlobalData, commented, “The oil and gas industry in 2026 faces unprecedented external pressures: high and volatile prices, supply uncertainty, climate change concerns, rising consumption of cleaner energy, and realigning global energy trade routes. Besides these, companies are facing significant operational challenges driven by factors such as US tariffs, the Iran conflict, sanctions, and protectionist policies. To secure future growth and resilience, operators are embracing the Industrial Internet across their businesses.

Puranik added, “Autonomous operations are rapidly becoming standard in digitally advanced oilfields, particularly in offshore environments such as fixed platforms and FPSOs, where remote and reliable management is both a logistical necessity and a cost imperative. Also, cloud-based analytics and AI systems connect the dots from raw input to final distribution, improving the accuracy of demand forecasting and inventory management even in volatile markets.”

According to Globaldata, the global Industrial Internet market is expanding rapidly, and is forecast to grow at a compound annual growth rate (CAGR) of 16% from 2024 to 2029, to reach US$552.7bn in revenue by 2029, of which the energy sector is expected to generate US$79bn.