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5G in Oil & Gas Market - Global Outlook & Forecast 2023-2030

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    Report

  • 267 Pages
  • January 2023
  • Region: Global
  • Arizton
  • ID: 5714641
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The global 5G in oil & gas market is expected to grow at a CAGR of 25.81% during 2023-2030. 5G is amongst the key technologies that are gaining significant importance in the oil & gas sector. The oil & gas market includes operational activities conducted under extreme weather conditions and severe environmental challenges. Operation in these conditions face challenges such as low latency network connectivity, cybersecurity issues, and managing the network at remote locations. These things mandate the use of strong communication technology. 5G is one of the prominent technologies that effectively moderates these issues, as it offers ultra-high speed coupled with low latency communication between production sites and vessels. Increased use of 5G-enabled systems such as drones, robotics, and artificial intelligence (AI) enhances operational efficiency, thus, driving adoption in the oil & gas sector, further propelling the growth of the 5G in oil & gas market.

Key Advantages of 5G:

  • Streamlining growing complexity in the operational activities.
  • Managing the increasing competition from renewable resources.
  • Supports improving margins by minimizing cost.
  • Helps in timely maintenance and prevents equipment failure.
  • Increases operational efficiency by employing decreasing unmanned downtime.
The 5G network provides robust connectivity and smooth communication essential for daily operational activities.

MARKET TRENDS & OPPORTUNITIES

Industry 4.0 To Boost 5G in Oil & Gas Market

Industry 4.0 is currently essential for all entities engaged in the production and manufacturing processes. Evolution in the utility sector mandates the incorporation of Industry 4.0 in day-to-day activities. The utility sector is an integral part of the new industrial revolution era. Transformations such as process automation, integrating machines for predictive diagnostics and maintenance, equipment health tracking, and digitizing other operational parameters require the integration of Industry 4.0 in the energy sector. Oil & gas companies across the globe are also mandating incorporation of Industry 4.0 in daily operational activities. Oil & gas companies, especially in the upstream sector, are incorporating the advantages of industry 4.0 to enhance their overall operations. This is also required to remain relevant in the market due to the rising competition from the increasing demand for renewable energy, electric vehicle, and new hydrocarbon sources. Industry 4.0 also enables unmanned drilling operations, forecast maintenance needs, and enable asset management. Modernizing services and solution offerings in tandem with the improvising industry practices is set to be the key to growth over the next few years.

Growing Adoption of Digitization in Oilfield

Oil & gas companies are proactively implementing digital transformation techniques in their operations, which can contribute towards the 5G in oil & gas market growth. The advancement in automation processes, sensing technologies, and data analytics drives these developments. Digitization in the oilfield or digital oilfield is the concept that integrates business processes with digital technologies such as IoT, AI, augmented reality, VR, digital twin, and cloud systems. This process supports companies by collecting real-time data from sensors, pressure and temperature meters, tank-level sensors, and others. Assimilation of such advanced technologies increases any oil or gas field's operational efficiency.

Helps In:

  • Enabling smooth decision-making regarding drilling in remote areas,
  • Minimizes the unplanned shutdown of equipment as well as others,
  • Enables the oil & gas companies to achieve maximum productivity by automation and monitoring of oilfields through live video feeds for visual monitoring and evaluation.

INDUSTRY CHALLENGES

Shift Towards Renewable & Alternate Energy Sources

In the last decade, the evolution of renewable energy has been enormous. Production and the installed capacity of renewable technologies have increased substantially, driven by encouraging global government policies. In addition, increasing climate catastrophes such as floods, extreme rain, wildfires, and others have mandated the increased use of renewables as electricity sources. Renewable energy technologies improve energy security and mitigate the adverse effects of climate change. They also provide direct and indirect economic advantages, thus gradually reducing the dependency on fossil fuels. Reduced reliance on oil & gas and sustainability initiatives are expected to result in decreased oil & gas activities which are expected to eventually impact the adoption of 5 G-related digital technologies in the oil & gas sector. Such factors can eventually hamper the growth of the 5G in oil & gas market.

SEGMENTATION INSIGHTS

INSIGHTS BY APPLICATION

Based on application, the 5G in oil & gas market is divided into three segments: downstream, upstream, and midstream. The upstream industry accounted for the highest share of the global 5G in oil & gas market and is expected to reach USD 13.50 billion by 2030. This segment involves carrying out the most crucial activities, such as initial surveying and exploration of new fields and extraction and pre-processing crude oil and gas. Systems such as downhole drilling motors, oil platform tensioner systems, exploration stacks, and digital technologies such as IoT, AI, Big Data, and cloud computing have been integrated with almost all stages of oil & gas development.

Midstream oil & gas industry is one of the three major stages of the overall oil & gas industry. The prime activities at this stage include processing, storing, and transporting oil & natural gas. The global midstream 5G in oil & gas market is expected to reach USD 0.88 billion in 2023. The use of digital technologies in the midstream segment enables companies to transport oil & gas products safely as sensor track the location of the truck, prevent incidents and reduce unnecessary manual checks of the systems.

Segmentation by Application:

  • Upstream
  • Midstream
  • Downstream

INSIGHTS BY SPECTRUM

The mid-band segment in the 5G in oil & gas market is the largest segment by spectrum and accounts for a share of 64.00%. Mid-band spectrum is appropriate for ultra-high-speed applications which require low latency. This spectrum dominates the market owing to its advantages, such as transmitting vast amounts of data across significant distances. It is essential to bridge the gap between rural and urban areas by offering good broadband speed and connectivity. In addition, evolving technologies such as the Multiple Input, Multiple Output technique (MIMO), Advanced Antenna Systems (AAS), and state-of-the-art beamforming technology support the use of the mid-band spectrum.

Segmentation by Spectrum:

  • High-Band
  • Low-Band
  • Mid-Band

GEOGRAPHICAL ANALYSIS

China holds the most significant 5G in oil & gas market share globally and is growing at a CAGR of 24.39% during the forecast period. The country is amongst the top economies boosting the adoption and establishment of 5G technologies globally. Digital transformation is becoming necessary for organizations to remain competitive in the market. Various oil & gas companies in the country are adopting the latest technologies, such as AI-based solutions, predictive maintenance, and others, to gain a competitive edge and drive revenue growth. China is among the global leaders in 5G technology, with around 86,500 5G base stations. Furthermore, robust support from the government to promote digitization across rural and urban areas and in the industry is also expected to support market growth.

Following China, the US is expected to lead the global 5G in oil & gas market at second position with a share of 22.00% by revenue in 2023. The growth is supported by the high penetration of highly skilled labor, high technology, and the presence of many oil & gas companies such as ExxonMobil, Shell, Chevron Corporation, and others. These companies embracing digital technology across its operation are the significant elements expected to support market growth in the US during the forecast period. However, the strong control of the FCC over the 5G network for providing licenses and spectrum allocation is leading to the slow adoption of the 5G network.

Segmentation by Geography:

  • US
  • Europe
  • UK
  • Norway
  • Russia
  • Italy
  • China
  • Vietnam
  • Middle East & North Africa
  • Tunisia
  • Algeria
  • Egypt
  • Morocco
  • Libya
  • Sudan
  • Turkey
  • Saudi Arabia
  • Rest of the World
  • Canada
  • India
  • Brazil
  • Mexico
  • Venezuela

COMPANY AND STRATEGIES

Major companies in the global 5G in oil & gas market are Huawei (China), Hitachi Energy (Switzerland), Nokia (Finland), and Ericsson (Sweden), among others. These companies serve the global industry with 5G, routing, and other technologies. These players have adopted strategies such as expansion, acquisitions, new product development, joint ventures, and others to increase their revenues in the 5G in oil & gas market. However, limited vendors are offering 5G services across the oil & gas industry, giving opportunities for the local and regional telecommunication and network technology firms to leverage their 5G network across the oil & gas industry.

Further, the competitive scenario in the global 5G in oil & gas market is deepening, and the fast-changing technological environment can adversely affect the companies as customers expect continual innovations and upgrades. The market is consolidated, with few players providing 5G networks in the oil & gas industry with high functionality. The 5G in oil & gas market structure is in an oligopoly state, characterized by a few top players who have significant influence in the market. Vendors are now focusing on developing their portfolios to drive growth. Vendors are actively investing in R&D and collaborating with stakeholders for better insights and revenue growth.

Key Vendors

  • Athonet
  • Cisco
  • Ericsson
  • Hitachi Energy
  • Huawei
  • Niral Network
  • Nokia
  • Sierra Wireless

Other Prominent Vendors

  • Alibaba Cloud
  • Fuze
  • Google (Google Cloud)
  • Intrado
  • Microsoft (Microsoft Azure)
  • NTT
  • Qualcomm
  • Samsung
  • Sateliot
  • Verizon
  • Windstream
  • ZTE

KEY QUESTIONS ANSWERED

1. How big is the 5G in oil & gas market?
2. Which region dominates the global 5G in oil & gas market?
3. Who are the key players in the global 5G in oil & gas market?
4. What is the growth rate of the global 5G in oil & gas market?
5. What are the key driving factors in the 5G in oil & gas market?
Frequently Asked Questions about the 5G in Oil & Gas Market

What is the estimated value of the 5G in Oil & Gas Market?

The 5G in Oil & Gas Market was estimated to be valued at $4.38 Billion in 2023.

What is the growth rate of the 5G in Oil & Gas Market?

The growth rate of the 5G in Oil & Gas Market is 30.0%, with an estimated value of $27.48 Billion by 2030.

What is the forecasted size of the 5G in Oil & Gas Market?

The 5G in Oil & Gas Market is estimated to be worth $27.48 Billion by 2030.

Who are the key companies in the 5G in Oil & Gas Market?

Key companies in the 5G in Oil & Gas Market include Athonet, Cisco, Ericsson, Hitachi Energy, Huawei, Niral Network, Nokia, Sierra Wireless and Fuze.

Table of Contents

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of the Study
4.3.1 Market Segmentation by Geography

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Premium Insights
6.1 Introduction
6.2 Market Synopsis
6.2.1 Drivers
6.2.2 Opportunities
6.2.3 Challenges
6.3 Segment Review
6.3.1 Application
6.3.2 Spectrum
6.3.3 Geography
6.4 Companies & Strategies

7 Market at a Glance
8 Introduction
8.1 Overview
8.2 Network Scenario
8.2.1 Private Network
8.2.2 Public Network

9 5G Outlook
9.1 Overview
9.1.1 Route to 5G Deployment
9.1.2 Drivers & Challenges of 5G Network Technology
9.1.3 Probable Opportunities for 5G
9.2 Adoption of 5G Technology Across Countries
9.2.1 Russia
9.2.2 Gulf States
9.2.3 South Korea
9.3 Development/ Deployment of 5G Network
9.3.1 North America
9.3.2 Latin America
9.3.3 Apac
9.3.4 Middle East & Africa
9.3.5 Europe
9.4 5G Ecosystem Cycle
9.4.1 Infrastructure
9.4.2 Spectrum
9.4.3 Devices
9.4.4 Impact

10 Case Study Analysis
10.1 Case I: Requirement for High-Capacity Broadband in the Gulf of Mexico
10.1.1 Business Need:
10.1.2 Solution
10.1.3 Outcome
10.2 Case Ii: Digitization of Operations
10.2.1 Business Need
10.2.2 Solution
10.2.3 Outcome
10.3 Case Iii: Need for Mobile Phone Connectivity at Sea
10.3.1 Business Need
10.3.2 Solution
10.3.3 Outcome
10.4 Use Cases in Oil & Gas Industry
10.4.1 Multi-Vision Smart Surveillance (Mvss)
10.4.2 3D Ar/Vr for Maintenance & Troubleshooting
10.4.3 Body-Worn Camera
10.4.4 Real-Time Vehicle Surveillance Camera
10.5 5G Technology Network Providers
10.5.1 5G Explorers
10.5.2 5G Potentials
10.5.3 5G Aspirational
10.5.4 5G Pacesetters
10.6 History of Cellular Wireless Networks
10.6.1 1G
10.6.2 2G
10.6.3 3G
10.6.4 4G
10.6.5 5G
10.7 Global Oil & Gas Industry
10.7.1 Overview
10.7.2 Crude Oil
10.7.3 Natural Gas
10.7.4 Current & Future Trends

11 Market Opportunities & Trends
11.1 Recent Developments in 5G Technology
11.1.1 Recent Launches/ Developments in the 5G Oil & Gas Market
11.2 Digitization of Oilfields
11.3 Integration of Ai in Oil & Gas Industry
11.4 Adoption of Enhanced Oil Recovery Technique

12 Market Growth Enablers
12.1 Expansion of Upstream Production Activity
12.2 Adoption of Digital Twin
12.3 Industry 4.0 Implementation in Oil & Gas Industry
12.4 Increased Penetration of 5G Network & Sd-Wan

13 Market Restraints
13.1 Security Concerns
13.2 5G Adoption Barriers
13.3 Shift Toward Renewable & Alternate Energy Sources

14 Market Landscape
14.1 Market Overview
14.2 Regulations
14.2.1 3Gpp
14.2.2 5G Alliance for Connected Industries and Automation (5G-Acia)
14.2.3 European Telecommunication Standard Institute
14.3 Survey Response: Digitization in Oilfield
14.3.1 Accelerators of IoT & Digitization in Oil & Gas
14.3.2 Options to Develop or Procure New Technologies
14.3.3 Obstacles in Digital Oilfields
14.4 Market Size & Forecast
14.5 Five Forces Analysis
14.5.1 Threat of New Entrants
14.5.2 Bargaining Power of Suppliers
14.5.3 Bargaining Power of Buyers
14.5.4 Threat of Substitutes
14.5.5 Competitive Rivalry

15 Application
15.1 Market Snapshot & Growth Engine
15.2 Market Overview
15.3 IoT Deployment in Oil & Gas Industry
15.3.1 Shell
15.3.2 Exxonmobil
15.3.3 Chevron
15.3.4 Saudi Aramco
15.3.5 Halliburton
15.4 Upstream
15.4.1 Market Overview
15.4.2 Market Size & Forecast
15.4.3 Market by Geography
15.5 Midstream
15.5.1 Market Overview
15.5.2 Market Size & Forecast
15.5.3 Market by Geography
15.6 Downstream
15.6.1 Market Overview
15.6.2 Market Size & Forecast
15.6.3 Market by Geography

16 Spectrum
16.1 Market Snapshot & Growth Engine
16.2 Market Overview
16.3 Process of Spectrum Allocation
16.4 High-Band
16.4.1 Market Overview
16.4.2 Market Size & Forecast
16.4.3 Market by Geography
16.5 Mid-Band
16.5.1 Market Overview
16.5.2 Market Size & Forecast
16.5.3 Market by Geography
16.6 Low-Band
16.6.1 Market Overview
16.6.2 Market Size & Forecast
16.6.3 Market by Geography

17 Geography
17.1 Market Snapshot & Growth Engine
17.2 Geographic Overview
17.3 Mena Countries
17.3.1 5G Outlook in Tunisia
17.3.2 5G Outlook in Algeria, Egypt, Morocco, and Turkey
17.3.3 5G Outlook in Libya and Sudan
17.4 Vietnam

18 US
18.1 Market Overview
18.1.1 Fcc Regulation:
18.1.2 Oil & Gas Statistics: US
18.1.3 5G in Oil & Gas
18.2 Market Size & Forecast
18.3 Application
18.4 Spectrum

19 China
19.1 Market Overview
19.1.1 Recent Developments/ Investments in 5G Network
19.1.2 Oil & Gas Statistics: China
19.2 Market Size & Forecast
19.3 Application
19.4 Spectrum

20 Europe
20.1 Market Overview
20.1.1 Oil & Gas Statistics: Europe
20.2 UK
20.3 Norway
20.4 Russia
20.5 Italy
20.6 Market Size & Forecast
20.7 Application
20.8 Spectrum

21 Saudi Arabia
21.1 Market Overview
21.1.1 Oil & Gas Statistics: Saudi Arabia
21.2 Market Size & Forecast
21.3 Application
21.4 Spectrum

22 Rest of the World
22.1 Canada
22.1.1 Oil & Gas Statistics
22.2 India
22.2.1 Oil & Gas Statistics
22.3 Brazil
22.3.1 Oil & Gas Statistics
22.4 Mexico
22.4.1 Oil & Gas: Statistics
22.5 Venezuela
22.5.1 Oil & Gas Statistics

23 Competitive Landscape
23.1 Competition Overview
23.1.1 Key Players in 5G Ecosystem
23.1.2 Offerings by Startups

24 Key Company Profiles
24.1 Athonet
24.1.1 Business Overview
24.1.2 Product & Service Offerings
24.1.3 Key Strategies
24.1.4 Key Strengths
24.1.5 Key Opportunities
24.2 Cisco
24.2.1 Business Overview
24.2.2 Financial Overview
24.2.3 Product & Service Offerings
24.2.4 Key Strategies
24.2.5 Key Strengths
24.2.6 Key Opportunities
24.3 Telefonaktiebolaget Lm Ericsson
24.3.1 Business Overview
24.3.2 Financial Overview
24.3.3 Telefonaktiebolaget Lm Ericsson
24.3.4 Product & Service Offerings
24.3.5 Key Strategies
24.3.6 Key Strengths
24.3.7 Key Opportunities
24.4 Hitachi Energy
24.4.1 Business Overview
24.4.2 Financial Overview
24.4.3 Hitachi Energy in 5G in Oil & Gas Market
24.4.4 Product & Service Offerings
24.4.5 Key Strategies
24.4.6 Key Strengths
24.4.7 Key Opportunities
24.5 Huawei
24.5.1 Business Overview
24.5.2 Financial Overview
24.5.3 Huawei in 5G in Oil & Gas Market
24.5.4 Product & Service Offerings
24.5.5 Key Strategies
24.5.6 Key Strengths
24.5.7 Key Opportunities
24.6 Niral Networks
24.6.1 Business Overview
24.6.2 Product & Service Offerings
24.6.3 Key Strategies
24.6.4 Key Strengths
24.6.5 Key Opportunities
24.7 Nokia
24.7.1 Business Overview
24.7.2 Financial Overview
24.7.3 Nokia in 5G in Oil & Gas Market
24.7.4 Product & Service Offerings
24.7.5 Key Strategies
24.7.6 Key Strengths
24.7.7 Key Opportunities
24.8 Sierra Wireless
24.8.1 Business Overview
24.8.2 Financial Overview
24.8.3 Product & Service Offerings
24.8.4 Key Strategies
24.8.5 Key Strengths
24.8.6 Key Opportunities

25 Other Prominent Players
25.1 Alibaba Cloud
25.1.1 Business Overview
25.1.2 Product & Service Offerings
25.2 Fuze
25.2.1 Business Overview
25.2.2 Product & Service Offerings
25.3 Google (Google Cloud)
25.3.1 Business Overview
25.3.2 Product & Service Offerings
25.4 Intrado
25.4.1 Business Overview
25.4.2 Product & Service Offerings
25.5 Microsoft (Microsoft Azure)
25.5.1 Business Overview
25.5.2 Product & Service Offerings
25.6 Ntt
25.6.1 Business Overview
25.6.2 Product & Service Offerings
25.7 Qualcomm
25.7.1 Business Overview
25.7.2 Product & Service Offerings
25.8 Samsung
25.8.1 Business Overview
25.8.2 Product & Service Offerings
25.9 Sateliot
25.9.1 Business Overview
25.9.2 Product & Service Offerings
25.10 Verizon
25.10.1 Business Overview
25.10.2 Product & Service Offerings
25.11 Windstream
25.11.1 Business Overview
25.11.2 Product & Service Offerings
25.12 Zte
25.12.1 Business Overview
25.12.2 Product & Service Offerings

26 Report Summary
26.1 Key Takeaways
26.2 Strategic Recommendations

27 Quantitative Summary
27.1 Spectrum
27.1.1 High-Band
27.1.2 Low-Band
27.1.3 Mid-Band
27.2 Application
27.2.1 Upstream
27.2.2 Midstream
27.2.3 Downstream

28 Geography
28.1 US
28.1.1 Application
28.1.2 Spectrum
28.2 China
28.2.1 Application
28.2.2 Spectrum
28.3 Europe
28.3.1 Application
28.3.2 Spectrum
28.4 Saudi Arabia
28.4.1 Application
28.4.2 Spectrum

29 Appendix
29.1 Abbreviations

Companies Mentioned

  • Athonet
  • Cisco
  • Ericsson
  • Hitachi Energy
  • Huawei
  • Niral Network
  • Nokia
  • Sierra Wireless
  • Alibaba Cloud
  • Fuze
  • Google (Google Cloud)
  • Intrado
  • Microsoft (Microsoft Azure)
  • NTT
  • Qualcomm
  • Samsung
  • Sateliot
  • Verizon
  • Windstream
  • ZTE

Methodology


Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.



 

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