Worldwide Oilfield Communications Market Analysis & Outlook to 2024 - Siemens, ABB, Huawei Technologies Co, Baker Hughes, Inmarsat, and Speedcast International are Dominating

DUBLIN, June 25, 2019 /PRNewswire/ -- The "Oilfield Communications: Insights Into & Future of the Global Market (2019-2024)" report has been added to ResearchAndMarkets.com's offering.

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The oilfield communication market is expected to grow with a CAGR of 8% over the forecast period 2019-2024.

Oil and gas industry is a highly regulated and dynamic market. It goes through cycles of production cuts and price regulations depending on projected demand and the extent of an oil glut in the market.

Key Highlights

    --  Global oil supply has surged this year, with the top three producers,
        the United States, Russia, and Saudi Arabia pumping more than a third of
        global consumption. However, a monthly report published in March 2019 by
        the Organization of the Petroleum Exporting Countries has stated that in
        2019, the demand for its crude would average 30.46 million barrels per
        day, 130,000 barrels per day less than forecast last month and below
        what it is currently producing and hence the production cuts might
        continue.
    --  These dynamics of the market are driving progressive companies in the
        sector to used data-based solutions to optimize return on investments.
    --  For instance, the complex data requirements and field operations coupled
        with collaborative work processes have led to the development of healthy
        communication networks across the industry. To upsurge oil production,
        oil exploration organizations are looking for oilfields in harsh
        environments offering a variety of operational challenges that have
        resulted in a demand for high bandwidth communication solutions.

Key Market Trends

Growing Adoption of Cloud-based Services to Drive Market Growth

    --  With the growing adoption of cloud-based services, oil companies are
        compelled to use oil field communication. 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.
    --  The Cloud technology has been able to effectively address security
        concerns that previously restrained its adoption thereby rewarding
        pioneering companies with the transparency to revolutionize their
        out-dated on-premise systems.

North America to Account for a Major Share

    --  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.
    --  Many oil producing companies are headquartered in the United States.
        Most of the companies pilot new services in the country before global
        launches and deployment.
    --  Fast adoption of new technology in this country and the growing focus on
        global communication is pushing the market forward.
    --  Moreover, with newfound shale resource and rapidly increasing
        exploration and production activities, due to Outer Continental Shelf
        Leasing Program approved by OCS, the region is expected to be one of the
        fastest growing markets for oilfield communications, over the forecast
        period.
    --  According to the US Energy Information Administration Statistics
        released in June 2019, annual U.S. crude oil production reached a record
        11.0 million barrels per day in 2018 and is projected to increase by 1.4
        million barrels per day in 2019 and by 0.9 million barrels per day in
        2020, with 2020 production averaging at 13.3 million barrels per day.

Competitive Landscape

The oilfield communications market has a few major players who provide the entire spectrum of solutions. The major players include Siemens AG, ABB Ltd, Huawei Technologies Co. Ltd, Baker Hughes (General Electric Company), Inmarsat PLC, Speedcast International Limited among others. Merger and Acquisition are expected to be one of the key growth strategies of the market which will change the dynamics of competition in this industry as well as proliferate opportunities for new product development.

Recent Developments

    --  March 2019 - A USD 3.4 billion deal was announced for the takeover of
        mobile satellite communications company Inmarsat by a consortium named
        Triton Bidco, which comprises UK-based Apax Partners, US-based Warburg
        Pincus, and two Canadian pension funds - CPPIB and the Ontario Teachers'
        Pension Plan Board.
    --  August 2018 - Siemens AG announced its intent to deploy its latest
        innovation, Topsides 4.0, a virtual planning tool for the oil and gas
        industry, on Brazil's Offshore establishments. The foundation of
        Topsides 4.0 is based on the workflow and data integration of standalone
        solutions that have been successfully delivered to the oil and gas
        industry over many years.

Key Topics Covered

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Adoption of Cloud-based Services
4.3.2 Geographically Challenging Locations will Increase Reliance on Digital Communication for Oilfield Recovery and Productivity
4.3.3 Development and Adoption of Effective Communication Technologies
4.4 Market Restraints
4.4.1 Stringent Regulatory Framework and the Rising Risk of Inadequate Data and Asset security
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
5 MARKET SEGMENTATION
5.1 By Solution
5.1.1 M2M Communication
5.1.2 Unified Communication Solutions
5.1.3 Video Conferencing
5.1.4 VoIP
5.1.5 Wired/Wireless Intercom
5.1.6 Other Solutions
5.2 By Communication Network
5.2.1 Cellular Communication Network
5.2.2 VSAT Communication Network
5.2.3 Fiber Optic-Based Communication Network
5.2.4 Microwave Communication Network
5.2.5 Tetra Network
5.3 By Field Site
5.3.1 Onshore Communications
5.3.2 Offshore Communications
5.4 Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia-Pacific
5.4.4 Latin America
5.4.5 Middle East & Africa

6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Huawei Technologies Co. Ltd
6.1.2 Siemens AG
6.1.3 Speedcast International Limited
6.1.4 ABB Ltd
6.1.5 Commscope, Inc.
6.1.6 Inmarsat PLC (Triton Bidco)
6.1.7 Tait Communications
6.1.8 Baker Hughes (General Electric Company)
6.1.9 Alcatel-Lucent France, S.A.
6.1.10 Ceragon Networks Ltd
6.1.11 Rad Data Communications, Inc.
6.1.12 Rignet, Inc.
6.1.13 Hughes Network Systems LLC
6.1.14 Airspan Networks, Inc.
6.1.15 Commtel Networks Pvt. Ltd

7 INVESTMENT ANALYSIS

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/r/6mtodu

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