Investments in oil and gas (O&G) automation declined in 2020 and 2021 as demand dried up because of the COVID-19 pandemic. From 2021 onward, the market began gradually stabilizing and recovering, with high levels of growth starting in 2022.
Industry 4.0 is driving the demand for new technology investments and has transformed the O&G value chain by increasing connectivity, simplifying operational maintenance, and emphasizing safety. Automation applications that will have the biggest effects on market growth are robotics for remote site inspection, the internet of things (IoT) for facility monitoring, and artificial intelligence (AI) for predictive maintenance. Because they will be the main enablers of full automation, robotic technologies will not realize their full potential for several years. AI and IoT, on the other hand, will function as complementary technologies to start the shift toward gradual automation rather than as means of fully automating operations.
The market for conventional operational technologies is mature and thus will experience slower growth as attention shifts to more innovative technologies such as AI and robotics. O&G companies have traditionally displayed a conservative approach to adopting new technologies—especially when compared with more progressive industries such as technology or manufacturing —because of their highly regulated and safety-critical environments in which any technological failure or malfunction could have severe repercussions. As a result, the industry has relied on established technologies such as distributed control systems, programmable logic controllers, and other environmental management systems to automate processes while ensuring operational safety. By the beginning of the next decade, however, these technologies will experience rapid displacement. AI is becoming an increasingly important technology in the O&G industry—particularly in North America. Major O&G companies are deploying AI-based technologies to automate complex decision-making processes and achieve higher levels of autonomy in their operations.
IoT technologies are gaining traction, particularly as a supplement to sensors or other OT systems, but obstacles include data security and privacy concerns, interoperability issues, and infrastructure costs. By the end of the decade, O&G companies will have developed the necessary infrastructure capacity to increase their use.
Robotics technologies show tremendous potential for achieving full automation in several O&G operations, but companies are not fully embracing them yet because of the high implementation costs and concerns about safety and reliability in hazardous environments. The deployment of robotic systems can be a drawn-out and complicated process since they require a substantial investment in infrastructure and specific training for staff, but it will inevitably increase in tandem with the demand for automation.
Frost & Sullivan analyzes numerous companies in an industry. Those selected for further analysis based on their leadership or other distinctions are benchmarked across 10 Growth and Innovation criteria to reveal their position on the Frost Radar™. This publication presents competitive profiles of each company on the Frost Radar™ considering their strengths and the opportunities that best fit those strengths.
Oil and Gas Automation 2024
- Oil and Gas Automation
Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
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Impacting your company's future growth potential.
| Deliverable Type | Frost Radar |
|---|---|
| Industries | Energy |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Automation Industry Trends |
| Keyword 2 | Oil and Gas Industry Insights |
| Keyword 3 | Oil and Gas Technology Trends |
| Podcast | No |
| WIP Number | K956-01-00-00-00 |
Frost Radar™: Oil and Gas Automation, 2024
A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines
23-Jan-2024
Global
Frost Radar
