Oil & Gas Wireless Sensor Networks - Research and Markets

In 2023, Global WSN Revenues for Oil and Gas Exploration, Production and Pipeline Operation will Reach $2.2 Billion up from $480 Million in 2017

At a pivotal time for the oil and gas industry, wireless sensor networks (WSN) are connecting stranded assets, streamlining operations and reducing deployment costs.

WSNs have enabled remote monitoring from offshore platforms, battery-less sensors in Arctic oilfields, pipeline leak monitoring in South Africa, wireless seismic sensors and continuous monitoring for stripper wells. Oil and gas WSN advances continue today with multiprotocol wireless mesh devices, passive sensors, wireless MEMs and Low Power Wide Area (LPWA) networks that provide a new generation of solutions for connecting assets in remote locations as well as enabling exploration projects to go deeper in challenging environments.

Operating on increasingly thin margins and focused on maximizing output from existing resources, oil and gas companies are adopting wireless sensor instruments that provide up to 80% infrastructure savings compared with wired options. As oil prices continue to rise and exploration activity increases, WSN adoption is steadily growing for core applications such as wellhead automation and pipeline compressor/pump station monitoring as well as growing innovations for asset management, worker safety and environmental monitoring.

In 2023, global WSN revenues for oil and gas exploration, production and pipeline operation will reach $2.2 billion up from $480 million in 2017. Production will make up 59% of the revenues by this time, including wellhead automation, asset/equipment monitoring, asset tracking and locating, as well as safety and environmental applications

This report is based on input from 100+ individuals across the whole oil and gas value chain. It also includes an extensive survey conducted by the publisher in collaboration with the International Society of Automation (ISA) and the LoRa Alliance.

In this report-- our 6th edition-- we present the key survey findings; 6-year market size forecasts by market, application, product segment, geography and technology; as well as a standards/technology review and competitive analysis of 90+ companies with oil and gas products and services.

1. Executive Summary2. Methodology/Scope

3. The Oil & Gas WSN Ecosystem

Market Forces & Drivers
Wireless Sensor Network Variations
Wireless Mesh Sensor Networks
Long Range Wireless Sensor Networks
Low Power Wide Area Networks

4. Target Markets & Applications

Well Site Automation
Machine Health/Equipment Monitoring
Downhole Sensors
Seismic Surveying
Pipeline Operations
Tank Farms & Storage
Corrosion & Structural Integrity Monitoring
Health, Safety & Environmental Monitoring
Wireless Gas Detectors

5. The Digital Oilfield Value System

Transmission & Communications
Remote Monitoring & SCADA Systems
Market Leaders & Innovators
Wide Area Wireless Transmissions
Data Measurement
MEMS Seismic Sensors
HP & Shell MEMS Seismic Survey System
Time Domain Switched Accelerometer
Other MEMS Innovations
Production Optimization
WSNs for Artificial Lift
Production Operations Management

6. Adoption Trends & Survey Results

Wireless Sensor Networks
Adoption Status
Fastest Growing Applications
WSN Protocols Used
Wireless Mesh & Standards Views
Satisfaction Levels
Most Important Purchasing Considerations
Planned WSN Applications
Needed Innovations
Strategic Investment Areas
Low Power WAN
LPWAN Awareness
Product Development
LPWAN Applications
LPWA Network’s Impact
Future Projections

7. Technology Dynamics

Summary
Mesh Networking Standards
IP Addressable Sensors
Multi-Protocol Chips and Modules
LPWA Networks
WSN Standards & Industry Alliances
Short Range WSN Technologies
IEEE 802.15.4
IEEE 802.15.4e
IEEE 802.15.4e Time-slotted Channel Hopping (TSCH)
IEEE 802.15.4k (Low Energy Critical Infrastructure Networks)
IEEE 802.15.4g (Smart Utility Networks)
Wi-SUN Alliance
Zigbee
Dotdot
WiFi
Bluetooth Low Energy
Bluetooth 5
Bluetooth Mesh
Industrial WSN Standards
WirelessHART
HART-IP
ISA100
ISA100 Wireless
ISA100 Wireless Compliance Institute (WCI)
WirelessHART Convergence
WIA-PA
LPWA Networks
Cellular Based LPWA Technologies
LTE-M
NB-IoT
Non-Cellular LPWA Technologies
Sigfox
LoRa Alliance
Weightless SIG
ETSI’s Low Throughput Networks (LTN)
Other LPWA Technologies
RPMA (Ingenu)
Qowisio
Link Labs
LPWAN Network Tests
Range
IP Smart Object Technologies
IETF Standards
OMA SpecWorks
Open Source WSN/IoT Initiatives

8. Global Total Market Size Forecasts

Methodology
Global Total Units by Market
Global Total Revenues by Market
Global Total Units
Global Revenues by Product Segment
Global Total Units by Solution
Global Total Equipment Revenues by Solution
Global Total Revenues by Geography
Global Total Units by Technology

9. Exploration & Production

Units by Solution
Equipment Revenues by Solution
Revenues by Equipment & Services
Global Revenues by Geography
Chipset Shipments by Technology

10. Pipelines & Storage

Units by Solution
Equipment Revenues by Solution
Revenues by Equipment & Services
Global Revenues by Geography
Chipset Shipments by Technology

11. Competitive Landscape

Chips, Modules & Development Kits
IoT Connectivity, Device Management & Network Infrastructure
Devices & Vertical Systems
Platforms

List of Figures

Figure 1: Global Oil & Gas WSN Revenues (2017-2023)
Figure 2: Oil & Gas - (Select) Planned WSN Applications
Figure 3: Oil & Gas – LPWA Adoption
Figure 4: Global E&P Spending (2016-2023)
Figure 5: Wireless Mesh Field Devices by Oil & Gas Industry
Figure 6: Oil & Gas Respondents’ Planned WSN Approach
Figure 7: Oil & Gas Respondents Rate LPWA as an Innovation Area
Figure 8: Annual Oil & Gas Corrosion Costs by Segment
Figure 9: Select Wireless Gas Detectors
Figure 10: The Digital Oilfield Value System
Figure 11: Global Remotely Monitored Oil & Gas Wells (2017-2023)
Figure 12: Most Likely Sensors to be Used with WSNs
Figure 13: Oil & Gas Respondents by Geography
Figure 14: Oil & Gas Respondents by Industry Role
Figure 15: Oil & Gas Respondents by Job Position
Figure 16: Oil & Gas Respondents by Target Markets
Figure 17: Oil & Gas Respondents by WSN Status
Figure 18: Oil & Gas – Total WSN Devices Installed
Figure 19: Oil & Gas - Largest WSN Installation
Figure 20: Oil & Gas – Fastest Growing Applications
Figure 21: Oil & Gas – WSN Protocols Used
Figure 22: Oil & Gas – WSN Protocols Used Over the Last 2 Years
Figure 23: Oil & Gas – Wireless Mesh Devices Installed
Figure 24: Oil & Gas - Standards Viewpoints
Figure 25: Oil & Gas – WSN Satisfaction Levels Rated
Figure 26: Oil & Gas - Most Important WSN Considerations
Figure 27: Oil & Gas - Planning WSN Applications
Figure 28: Oil & Gas - Planned WSN Applications
Figure 29: Most Important WSN Innovation Areas Rated
Figure 30: Oil & Gas - Strategic Investment Areas
Figure 31: Oil & Gas - LPWA Adoption Status
Figure 32: Oil & Gas - LPWA Product Timeline
Figure 33: Oil & Gas - Wireless Applications Requiring >1K Bytes/Day
Figure 34: Oil & Gas - Most Likely LPWA Applications
Figure 35: LPWA’s Impact
Figure 36: Most Likely LPWA Technologies in 2028
Figure 37: LPWA IoT Penetration Rate by 2028
Figure 38: LPWA Technologies - Range in Meters
Figure 39: LPWA Technologies - 5000 Node Percent Complete vs Power Used
Figure 40: Global Annual Oil & Gas WSN Units by Market (2017-2023)
Figure 41: Global Oil & Gas WSN Revenues by Market (2017-2023)
Figure 42: Global Annual Oil & Gas WSN Units by Product Segment (2017-2023)
Figure 43: Global Oil & Gas WSN Revenues by Product Segment (2017-2023)
Figure 44: Global Oil & Gas WSN Units by Solution (2017-2023)
Figure 45: Global Oil & Gas WSN Eqpmnt Revenues by Solution (2017-2023)
Figure 46: Global Oil & Gas WSN Revenues by Geography (2017-2023)
Figure 47: Global Oil & Gas WSN Chipsets by Technology (2017-2023)
Figure 48: Global E&P WSN Unit Shipments by Solution (2017-2023)
Figure 49: Global E&P WSN Eqpmnt Revenues by Solution (2017-2023)
Figure 50: Global E&P WSN Revenues by Eqpmnt & Services (2017-2023)
Figure 51: Global E&P WSN Revenues by Geography (2017-2023)
Figure 52: Global E&P WSN Chipsets by Technology (2017-2023)
Figure 53: Global Pipelines WSN Unit Shipments by Solution (2017-2023)
Figure 54: Global Pipelines WSN Eqpmnt Revenues by Solution (2017-2023)
Figure 55: Global Pipelines WSN Revenues by Eqpmnt & Services (2017-2023)
Figure 56: Global Pipelines WSN Revenues by Geography (2017-2023)
Figure 57: Global Pipelines WSN Chipsets by Technology (2017-2023)
Figure 58: The Oil & Gas WSN/IoT Competitive Landscape

List of Tables

Table 1: Oil & Gas Target Markets & Applications
Table 2: Wireless WAN Transmission Technologies & Competitors
Table 3: Artificial Lift Methods & Likely Impact for WSN
Table 4: Industrial Wireless Sensor Network Standards
Table 5: LPWA Technologies Summarized
Table 6: Open Source WSN/IoT Initiatives
Table 7: Global Annual Oil & Gas WSN Units by Market (2017-2023)
Table 8: Global Oil & Gas WSN Revenues by Market (2017-2023)
Table 9: Global Annual Oil & Gas WSN Units by Product Segment (2017-2023)
Table 10: Global Oil & Gas WSN Revenues by Product Segment (2017-2023)
Table 11: Global Oil & Gas WSN Units by Solution (2017-2023)
Table 12: Global Oil & Gas WSN Eqpmnt Revenues by Solution (2017-2023)
Table 13: Global Oil & Gas WSN Revenues by Geography (2017-2023)
Table 14: Global Oil & Gas WSN Chipsets by Technology (2017-2023)
Table 15: Global E&P WSN Unit Shipments by Solution (2017-2023)
Table 16: Global E&P WSN Eqpmnt Revenues by Solution (2017-2023)
Table 17: Global E&P WSN Revenues by Eqpmnt & Services (2017-2023)
Table 18: Global E&P WSN Revenues by Geography (2017-2023)
Table 19: Global E&P WSN Chipsets by Technology (2017-2023)
Table 20: Global Pipelines WSN Unit Shipments by Solution (2017-2023)
Table 21: Global Pipelines WSN Eqpmnt Revenues by Solution (2017-2023)
Table 22: Global Pipelines WSN Revenues by Eqpmnt & Services (2017-2023)
Table 23: Global Pipelines WSN Revenues by Geography (2017-2023)
Table 24: Global Pipelines WSN Chipsets by Technology (2017-2023)
Table 25: WSN Components – Profiles
Table 26: IoT Platforms & Network Infrastructure – Profiles
Table 27: Industrial WSN Systems – Profiles
Table 28: Industrial IT/Automation Platforms – Profiles

Samples

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Executive Summary

For the past decade, wireless sensor networks (WSN) have connected stranded assets, streamlined operations and reduced deployment costs for the oil and gas industry. WSNs have enabled remote monitoring from offshore platforms, battery-less sensors in Arctic oilfields, pipeline leak monitoring in South Africa, wireless seismic sensors and continuous monitoring for stripper wells.

Oil and gas WSN advances continue today with multiprotocol wireless mesh devices, passive sensors, wireless MEMs and Low Power Wide Area (LPWA) networks that provide a new generation of solutions for connecting assets in remote locations as well as enabling exploration projects to go deeper in challenging environments.

Operating on increasingly thin margins and focused on maximizing output from existing resources, oil and gas companies are adopting wireless sensor instruments that provide up to 80% infrastructure savings compared with wired options. As oil prices continue to rise and exploration activity increases, WSN adoption is steadily growing for core applications such as wellhead automation and pipeline compressor/pump station monitoring as well as growing innovations for asset management, worker safety and environmental monitoring.

In 2023, global WSN revenues for oil and gas exploration, production and pipeline operation will reach $2.2 billion up from $480 million in 2017. Production will make up 59% of the revenues by this time, including wellhead automation, asset/equipment monitoring, asset tracking and locating, as well as safety and environmental applications.

The publisher's Q2 2018 survey of 159 industrial automation professionals found that 43% are targeting oil and gas applications. Two in five of the oil and gas respondents have installed over 1,000 WSN nodes across all locations. Twenty percent (20%) have deployed networks with at least 3,000 nodes compared with 6% in our previous survey in Q4 2016.

Focus on Asset Management, Safety and Environmental Monitoring
The survey found that the fastest growing WSN applications by oil and gas respondents are asset tracking and locating, process control, environmental/safety and asset/machine health monitoring.

Wireless gas detection is an increasingly popular safety application with several products available today including ISA100 Wireless compliant devices by GasSecure (Dräger), New Cosmos Electric, Riken Keiki as well as WirelessHART devices by Emerson and United Electric Controls. RAE Systems (Honeywell) provides a multi-radio wireless gas detector that includes wireless mesh, WiFi and Bluetooth Low Energy (BLE).

Other innovations include a wireless mesh wearables worker safety platform by Scandinavian Reach Technology (SRT) that provides real-time location information about assets and personnel. For the past decade, Kongsberg Maritime has been using SENSeOR’s wireless passive SAW sensors for continuous temperature monitoring of bearings and other moving parts from offshore platforms and shipping tanker engines with over 80,000 devices installed to date.

Steady Migration to Wireless Mesh Standards
Illustrated by ABB’s WirelessHART network deployed on the Goliat FPSO (floating production storage and offloading vessel) in the Barents Sea, applications for wireless mesh sensor networks continues to grow. Our survey found that 56% of the oil and gas respondents are using WirelessHART and/or ISA100. However, uses for Bluetooth, WiFi and Low Power Wide Area (LPWA)technologies such as LoRaWAN TM, NB-IoT, LTE-M and Sigfox have increased faster.

Growing Adoption for LPWA Technologies
LPWA technology is one of the most disruptive technologies for the Internet of Things with lowcost, multi-year battery-powered wireless sensors that communicate over multiple miles and scale to thousands of devices per gateway. LPWA solutions are especially suited for oil and gas remote monitoring and asset tracking/locating applications that are not being addressed because of 1)Limited network range, 2) Poor structural penetration, 3) High costs and 4) Complexity.

A few of the oil and gas LPWA products and platforms that have emerged over the past two years include the following:

OleumTech’s line of Sigfox sensor instruments including Class 1, Division 1 options
Zedi’s LoRaWAN TM IIoT field gateways and devices in partnership with MultiTech
WellAware’s RPMA edge devices and cloud platform
WESROC’s remote monitoring solution for fuel/lube/propane distributors using Senet’s LoRaWAN TM network

The publisher has been researching oil and gas IoT and wireless sensor networks for the past 15 years and this report is the 6th edition on this subject.

Methodology/Scope
This report covers the global market opportunity for oil and gas wireless sensor networking including wireless field instrumentation, associated software and services. Our methodology emphasizes primary research with hundreds of individuals across the whole oil and gas value chain, an in-depth technology evaluation, weighted market drivers and a competitive analysis of 90+ companies. The major components of our research include the following:

Data Collection/Investigation:
100+ surveys/phone interviews with professionals representing oil and gas companies, services companies, automation vendors, software platforms, systems integrators and component suppliers.

Extensive analysis of financial, industry and technical reports.

Segmentation:

Geographies: North America, Western Europe, Asia Pacific and Rest of World

Markets segments: Exploration, Production, Pipelines

Solutions: Process monitoring and control; Machine health; Corrosion monitoring; Other asset monitoring; Asset tracking and location; Health, safety and environmental monitoring; Seismic sensing Product segments:
WSN equipment (End nodes, repeaters, gateways and associated software) and services (installation, maintenance and hosted/Web services)

Competitive Forces & Technology Dynamics:

Product segmentation, value chain and business model analysis
Distribution channels, product availability and vendor strength
Standards developments, technology adoption and emerging technologies
Evaluation of 90+ companies and their offerings, pricing, partners, financials and potential for disruption

Market Size Forecasts:

Market data: Recent data is collected from vendors, suppliers and end users on unit sales, growth trends, applications, hardware/service pricing, distribution channels, etc.

Market drivers: Analysis of the weighted driver impact for each solution/market.

Projections: Using all the above, we create data models from a moderate and aggressive viewpoint. Breakdowns are provided by target market, application, product segment, geography and technology. Revenues are for equipment and associated software/services.

Verification: Forecasts are benchmarked with secondary sources and verified with market leading vendors and industry experts.