According to a report from Berg Insight, the oil and gas industries are seeing a massive surge in the rapid adoption of IoT devices.
The report shows the key driving force behind this surge, this being remote monitoring of industrial equipment, tanks, and pipelines in midstream and downstream sectors. These methods are all utilising wireless IIoT solutions to achieve these outcomes.
Other key findings of the report include:
- The installed base of wireless devices in the oil and gas industry, including cellular, satellite, or LPWA connectivity, is projected to increase from 7.8 million units in 2023 to 18.8 million by 2028, growing at a CAGR of 19.3%.
- The growth in cellular device shipments is driven by the rising adoption of LTE-M and NB-IoT technologies and the continued preference for cellular communications in remote tank monitoring.
- Non-3GPP LPWA technologies like LoRa are expected to gain a significant market share due to their suitability for applications with limited bandwidth requirements.
- Partnerships between industrial automation vendors and technology companies are expanding, including collaborations with oil and gas operators and software companies, offering complete solutions through extensive partner ecosystems.
- The selection of network topology and communications standards varies according to specific connectivity needs across the oil and gas value chain.
- Providers offer modular routers and gateways with customizable wireless interfaces, reflecting a trend towards the convergence of wireless technologies and hybrid solutions catering to diverse connectivity needs in the industry.
- The increasing reliance on IIoT device data for decision-making is driven by the need for greater data volumes, necessitating edge processing capabilities for real-time data analysis at remote locations to improve asset performance and reduce downtime.
- The deployment of wireless IIoT devices with edge computing is crucial for optimizing assets and enhancing oil and gas operations.
“Oil and gas companies are increasingly relying on data from IIoT devices to make better informed decisions”, commented Veronika Barta, IoT Analyst at Berg Insight. “Deployments of wireless IIoT devices with edge computing will be key to optimise assets and improve oil and gas operations.”