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The IT spending market in oil and gas industry size is projected to increase by USD 5.25 billion, at a CAGR of 5.06% between 2023 and 2028.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including, Accenture Plc, ALE International, Capgemini Service SAS, Cisco Systems Inc., Dell Technologies Inc., General Electric Co., HCL Technologies Ltd., Huawei Technologies Co. Ltd., Indra Sistemas SA, Infosys Ltd., International Business Machines Corp., Microsoft Corp., Oracle Corp., SAP SE, Siemens AG, Tata Consultancy Services Ltd., Tech Mahindra Ltd., and Wipro Ltd.. Additionally, ABB Ltd. company offers to digitalize, automate, and electrify the oil and gas industry and focus on helping energy companies operate more efficiently to reduce their environmental impact while enabling new, clean energy value chains to fuel the future.
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Increasing adoption of digital technologies to enhance operational efficiency and productivity is the key factor driving the market. With the industry facing challenges such as fluctuating commodity prices, rising operational costs, and increasing regulatory pressures, companies are turning to digital solutions to streamline operations, optimize workflows, and improve overall efficiency. This trend is spurring significant investments in infrastructure, software applications, and data analytics platforms tailored to the specific needs of the sector. Moreover, digital technologies are revolutionizing asset management and maintenance practices within the oil and gas industry.
Moreover, the adoption of digital technologies is driving improvements in supply chain management and logistics within the sector. Integrated software solutions enable companies to optimize inventory levels, streamline procurement processes, and track the movement of materials and equipment across complex supply chains. Also, through the use of remote sensing, unmanned aerial vehicles (UAVs), and satellite imagery, operators can monitor infrastructure integrity, detect environmental hazards, and respond rapidly to emergency situations, enhancing overall safety and environmental stewardship. Therefore, the increasing adoption of digital technologies to enhance operational efficiency and productivity is expected to drive the expansion of the market during the forecast period.
The increasing need for asset optimization and predictive maintenance is the primary trend in the market. As the sector grapples with aging infrastructure, remote operating environments, and stringent safety regulations, companies are increasingly turning to proactively manage their assets and minimize downtime. Predictive maintenance, enabled by advanced analytics, machine learning, and IoT technologies, allows organizations to detect potential equipment failures before they occur, thereby avoiding costly disruptions to operations. Moreover, predictive maintenance leverages historical data, sensor readings, and machine learning algorithms to forecast equipment failures and prescribe targeted maintenance interventions, reducing the likelihood of unplanned downtime and optimizing maintenance resources.
Furthermore, the adoption of predictive maintenance technologies aligns with broader industry trends toward digital transformation and operational excellence. By integrating predictive maintenance capabilities into their overall digital strategy, oil and gas companies can unlock additional value from their existing investments, improve asset lifecycle management, and enhance operational efficiency. These technologies also enable organizations to move towards condition-based maintenance approaches, where maintenance activities are performed based on the actual condition of assets rather than predetermined schedules, leading to further cost savings and operational improvements. Therefore, the need for asset optimization and predictive maintenance is expected to drive the development of the market during the forecast period.
The threat of cybersecurity is a significant challenge that affects market expansion. As one of the most critical infrastructures, oil and gas facilities are prime targets for cyberattacks due to their dependence on interconnected digital systems for operational control, data management, and remote monitoring. The consequences of successful cyberattacks in this sector can be severe, ranging from operational disruptions and financial losses to environmental damage and threats to public safety. Consequently, concerns about cybersecurity have led to increased scrutiny and caution among oil and gas companies regarding their spending and investment decisions.
Additionally, the dynamic and persistent nature of cyber threats compounds the challenge of cybersecurity risk management for oil and gas companies. Threat actors, including nation-states, criminal organizations, and hacktivists, are constantly evolving their tactics, techniques, and procedures to exploit vulnerabilities and evade detection. This requires companies to continuously update and adapt their cybersecurity strategies, invest in threat intelligence capabilities, and engage in collaborative information-sharing initiatives with industry peers and government agencies to stay ahead of emerging threats and mitigate cyber risks effectively. Therefore, the threat of cybersecurity is expected to impede market growth during the forecast period.
The market share by the hardware segment will be significant during the forecast period. The market encompasses various hardware components crucial for operations and innovation. Hardware investments in this sector often focus on robust computing infrastructure, such as servers, data storage solutions, and networking equipment. With the adoption of advanced technologies like cloud computing and edge computing, companies are investing in high-performance servers to enhance operational efficiency and decision-making capabilities.
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The hardware segment showed a gradual increase in the market share of USD 7.98 billion in 2018. Additionally, specialized servers optimized for tasks such as seismic processing and reservoir simulation are in demand to support complex computational requirements. Furthermore, with the proliferation of IoT sensors and devices, there is a growing emphasis on robust and secure network architectures to mitigate cyber threats and ensure uninterrupted operations. Thus such factors are expected to drive the evolution of the hardware segment of the IT spending market in oil and gas industry during the forecast period.
In the upstream segment, IT spending is instrumental in optimizing exploration, drilling, production, and reservoir management processes. Furthermore, IT investments in upstream operations extend to asset integrity management and predictive maintenance. By leveraging digital twins, remote monitoring, and predictive analytics, operators can assess the condition of critical assets such as offshore platforms, pipelines, and equipment in real-time. Early detection of anomalies and potential failures allows for proactive maintenance interventions, minimizing unplanned downtime, mitigating safety risks, and optimizing asset lifecycle costs. Thus, such factors are expected to drive the growth of the upstream segment of the market during the forecast period.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Another region offering significant growth opportunities to companies is North America. The market in North America reflects a dynamic landscape shaped by technological advancements, market trends, regulatory developments, and industry dynamics. Despite the challenges posed by factors, this sector in North America continues to invest in digital technologies to increase operational efficiency, productivity, and competitiveness.
Moreover, one of the primary drivers is the increasing adoption of digital technologies across the value chain, from downstream refining and distribution to upstream exploration and production (E&P). Furthermore, the emergence of new business models and partnerships like joint ventures, alliances, and integrated service offerings, is driving investments in IT infrastructure and digital platforms that enable collaboration, data sharing, and value creation across ecosystem partners. Hence, such factors are expected to drive market growth in this region during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
In the oil and gas industry, enterprise software plays a pivotal role in optimizing operations and managing resources efficiently. With a focus on enhancing productivity and reducing costs, companies invest significantly in IT services tailored to their unique needs. Data centre systems are vital for storing and processing vast amounts of operational data securely. Communication services ensure seamless connectivity across remote sites and offices. Furthermore, the adoption of third platform technology enables the integration of digital technology like artificial intelligence and the Internet of Things. These advancements facilitate predictive maintenance, improving safety and operational efficiency. The emergence of hybrid jobs reflects the industry's shift towards new technologies and multi-cloud environments, leveraging both hybrid and public cloud solutions.
Additionally, augmented reality and virtual reality are transforming training processes and enhancing workforce skills and safety. As the industry embraces the Future of Work technology, collaborative robotics streamline discrete and process manufacturing, while 3D and digital product design optimizes asset development. Operational performance management solutions provide real-time insights, empowering decision-makers with actionable intelligence. Besides, amidst this digital transformation, business intelligence, and cloud platforms are indispensable for driving innovation and maintaining competitiveness in the dynamic oil and gas market.
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IT Spending Market in Oil and Gas Industry Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.06% |
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Market Growth 2024-2028 |
USD 5.25 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.29 |
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Regional analysis |
North America, APAC, Middle East and Africa, Europe, and South America |
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Performing market contribution |
APAC at 36% |
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Key countries |
US, Saudi Arabia, China, India, and Russia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Accenture Plc, ALE International, Capgemini Service SAS, CGI Inc., Cisco Systems Inc., Dell Technologies Inc., General Electric Co., HCL Technologies Ltd., Huawei Technologies Co. Ltd., Indra Sistemas SA, Infosys Ltd., International Business Machines Corp., Microsoft Corp., Oracle Corp., SAP SE, Siemens AG, Tata Consultancy Services Ltd., Tech Mahindra Ltd., and Wipro Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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