Oilfield Communications Market to Grow 8%
The global oilfield communication market is expected to grow with a CAGR of 8% over the forecast period 2019-2024, said a study.
With the growing adoption of cloud-based services, oil companies are compelled to use oil field communication, said a report from ResearchAndMarkets. This keeps their offshore sites connected with the inshore site about production stats, which helps in better supply chain management.
The smooth flow of materials is very important for oil companies as their profitability is highly dependent upon the turnover and downtime needs to be avoided.
For instance, GE Oil & Gas, the service provider to oil and gas companies has shifted 350 of its applications to Amazon's cloud offering, AWS, over the past two and a half years.
GE found that the total cost of ownership of running its enterprise applications on the cloud systems provided saving of 52% on average. This is the dominant trend in the sector's most progressive companies.
According to Siemens AG, data-based solutions will lead to huge gains in terms of efficiency gains and cost savings. According to Siemens, digitization can reduce Brent price cost per barrel by 45% while reducing upstream capital cost index and operations cost index by 25% and 18% respectively.
North America is the pioneer in this market and is expected to hold a significant share as it is the largest oil and gas producer, with companies seeking advanced digital communication solutions for their onshore and offshore field operations.
The major players in oilfield communications market include Siemens AG, ABB Ltd, Huawei Technologies Co. Ltd, Baker Hughes (General Electric Company), Inmarsat PLC, Speedcast International Limited among others.