(MENAFN- Straits Research)
Introduction
Oil and gas cloud-based applications are specialized software solutions for the industry's requirements. These apps use cloud computing technology to deliver services ranging from data storage and analytics to process optimization and collaboration. With the increased demand for oil and gas, the market share of oil and gas cloud applications is predicted to expand at a 14.4% CAGR. Rising data storage and access demand also add to the expansion of the oil and gas cloud application industry.
Market Dynamics
Cost Efficiency Propels Market Growth
Traditional oil and gas IT infrastructure involves large upfront investments in hardware, data centers, and software licenses. Cloud computing moves these costs to OpEx, letting firms pay only for what they use. Companies can use Amazon Web Services (AWS) or Microsoft Azure instead of buying and maintaining on-premises servers, thus eliminating costly hardware purchases. Cloud computing has decreased costs for BP, a major oil and gas company. Amazon Web Services (AWS) has been utilized for data analytics and HPC. BP reduced data storage and processing expenses by moving some processes to the cloud.
The oil and gas cloud application market insights show that the industry's requirement for cost-effective solutions in a volatile market mixes the ability to transition from capital-intensive expenditures to a more flexible, pay-as-you-go cloud model.
Integration of IoT Sensors Creates Tremendous Opportunities
IoT sensors and gadgets are helping oil and gas companies remotely monitor and manage equipment. These real-time sensors measure temperature, pressure, and vibration. Offshore oil rig sensors monitor pumps and pipelines. Anomalies can be reported to maintenance workers for preventive maintenance and downtime reduction. World-leading oil company Shell has adopted digital transformation. They use cloud-based technologies and IoT sensors to monitor equipment health and safety on their oil rigs. These digital initiatives reduced operational costs by 10% and increased equipment uptime by 20% for Shell.
Cloud-based data analytics and IoT help reduce maintenance expenses via predictive maintenance. IBM claims predictive maintenance may reduce unscheduled downtime by 50% and maintenance costs by 25%. Digital transformation can increase the oil and gas industry's operating efficiency, safety, cost, and environmental effects.
Regional Insights
Europe has the greatest market share due to rising demand for oil and gas cloud applications and digital transformation by large and small organizations. The U.K. leads the European market due to early cloud adoption, followed by Denmark, Italy, and Spain. Cloud computing is projected to cut costs and boost efficiency in the region. The Norwegian belt and the North Sea have huge oil and gas deposits. European oil and gas business Equinor uses cloud applications. They optimized North Sea drilling through cloud-based data analytics and machine learning. Using cloud technology to analyze distant drilling data improved drilling accuracy, downtime, and cost for Equinor.
In addition, Europe has severe data privacy rules like the GDPR. These restrictions forced European oil and gas companies to check their cloud solutions, resulting in the broad use of secure and compliant cloud services. European oil and gas firms also cared about the environment. Through data analytics and monitoring, cloud apps helped firms optimize operations, reduce emissions, and meet sustainability goals.
Asia-Pacific oil and gas cloud application market growth is projected due to its big population in China and India and the need for sustainability. Asia-Pacific oil and gas companies deploy cloud applications differently. China, India, and Australia are among the first to adopt cloud technologies due to their large and complicated energy operations. Smaller countries in the region are also interested in cloud solutions. The Asia-Pacific oil and gas cloud applications market was competitive with multinational cloud service providers, regional IT firms, and niche competitors offering specialized solutions. Alibaba Cloud, Tencent Cloud and regional providers expanded. Market demand can rise with government help to local farmers for new equipment and cereal exports. The Indonesian government maintains a fund to boost yields, fund rice science, and help create indigenous agricultural equipment. The market may be driven by tractor demand and harvest loss reduction investments.
Key Highlights
The global oil and gas cloud applications market size was valued at
USD
6.81 billion in 2024
and is projected to reach from
USD
7.79 billion in 2025
to
USD
22.84 billion by 2033 , growing at a
CAGR of 14.4% during the forecast period (2025-2033).
The component is divided further into solutions and services. Solutions control the majority of the market.
The market is divided into three segments based on the deployment model: hybrid, private, and public. The general public had an impact on market expansion.
The segment can be divided into upstream, midstream, and downstream operations. Upstream accounts for the lion's portion of the market.
Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. Europe dominates the market.
Competitive Players
The key players in the global Oil and Gas Cloud Applications market are Citrix Systems, Microsoft Corporation, Accenture PLC, Cisco Systems Inc., Oracle Corporation, SAP SE, Capgemini S.A., Hewlett-Packard Company, and IBM Corporation.
Recent Developments
In June 2023, Citrix Expands Cloud and On-Premises Capabilities to Meet the Needs of Hybrid Customers.
In September 2023, Oracle and Microsoft expanded their partnership to provide Oracle Database Services on Oracle Cloud Infrastructure in Microsoft Azure.
In September 2023, the Cisco Secure Application (previously Security Insights for Cloud Native Application Observability) is now available on the Cisco Full-Stack Observability Platform, allowing organizations to bring together application and security teams to develop and deploy modern applications securely.
Segmentation
By Component
By Deployment Model
By Operation
Upstream
Midstream
Downstream
By Region
North America
Asia-Pacific
Europe
The Middle East and Africa
Latin America
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