IIoT monitoring solutions to find growth in oil & gas as industry investments increase
End-user emphasis on reduced downtime will create huge demand for real-time monitoring solutions, finds Frost & Sullivan
Regulatory requirements and the need to minimize unexpected downtime, loss from leakages, and workplace accidents are driving the demand for Industrial Internet of Things (IIoT)-based monitoring solutions across different streams of the oil & gas industry. Responding to market demand, vendors will offer end-to-end IIoT-based monitoring solutions that increase the ease of purchase and deployment and enable seamless operation
"Innovative pricing models such as subscription-based pricing, pay per connected device, and pay-as-you-grow services enabled by IIoT are likely to promote the rapid adoption of monitoring solutions," said Krishna Raman, Research Analyst for Industrial at Frost & Sullivan. "These models reduce the end-users' CAPEX required to implement them."
Frost & Sullivan's recent analysis, Digitization of Oil and Gas—Understanding the Impact of IIoT-based Monitoring, analyzes the industry trends in the upstream, midstream, and downstream oil & gas sectors. The study covers the geographic segments of North America, EMEA and Russia, Latin America, and Asia-Pacific.
"The midstream sector is expected to experience the highest growth in investments," noted Raman. "Growth of the United States gas power plants segment and increased emphasis on gas exports will boost investment in pipelines, especially real-time pipeline monitoring solutions and natural gas liquefaction terminals. This demand for real-time monitoring will be further driven by end-users' desire for zero asset downtime and fool-proof personnel safety."
There will be greater growth opportunities for IIoT solution vendors that:
- Develop non-intrusive sensors offering benefits and retrofit them in existing pipeline structures.
- Provide self-powered sensors, which are based on energy-harvesting technologies.
- Partner with machine learning solution providers to create an end-to-end solution and analyze data obtained from sensors in geographically dispersed locations.
- Market and install proof-of-concept solutions at end-user sites to demonstrate ROI.
Digitization of Oil and Gas—Understanding the Impact of IIoT-based Monitoring is part of Frost & Sullivan's globalGrowth Partnership Service program.
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Industries such as construction, mining, energy, utilities and forestry, face many challenges when it comes to tracking assets and employees. Equipment often has to be transferred between locations, or monitored while it is dormant during off seasons. Lone workers may have to travel long distances or visit multiple sites during the course of their activities. And, all of this is further complicated today with shifting supply chains and economic realities putting further strain on the bottom line.