Augmented Reality (AR) in Oil and Gas - Thematic Research

Augmented Reality (AR) in Oil and Gas - Thematic Research

Summary

While the application of augmented reality (AR) to the oil and gas sector is still in its early stages, this technology has the potential to significantly disrupt the industry within the next few years.

The AR market will experience strong growth, reaching $37 billion by 2025 and $152 billion by 2030. As industrial device designs become more ergonomic and the oil and gas industry welcomes a new cohort of younger workers, adoption within the sector can be expected to increase.

Oil and gas companies are increasingly realizing the potential for AR to improve the efficiency of their operations. AR’s ability to facilitate remote assistance saves machine downtime and lengthy maintenance visits to sites. AR devices that are safe, secure, and hands-free are the missing link between increasing volumes of data under the digitalization of the industry and the application of this information to situations where it is needed.

This technology is also pragmatic about the industry’s aging workforce, with both the need to capture knowledge from industry experts before they retire and the need to expedite the training process of younger members of the workforce.

Companies that are realistic about the use cases of AR and apply the technology appropriately stand to significantly benefit. The wider digitalization of the oil and gas industry will streamline operations, rewarding innovative companies with an edge over their competitors.

Leaders and laggards

Oil and gas adopters of AR technologies
Leaders: Chevron, Royal Dutch Shell, Total, OMV.
Laggards: Rosneft, Reliance Industries, PDVSA.
Leading AR vendors in oil and gas
Hardware: RealWear, Microsoft, Trimble.
Software: Trimble, Librestream, Kognitiv Solutions, Fugro.

Key Highlights

• The oil and gas industry represents a key market for both AR hardware and software. In an interview with industrial technology company, Trimble, the Director of Product Strategy & Innovation revealed how the company had tailored its products for oil and gas use cases. Modifications include achieving a Class 1 Division 2 safety rating and the use of bone conduction in the audio device on the Trimble XR10 with HoloLens 2.
• The release of rugged and intrinsically safe headsets such as the Trimble XR10 for HoloLens 2 and the RealWear HMT1Z1 increased the potential for AR to provide a hands-free solution to many technical changes in the oil and gas industry. As a result, there was a significant increase in the sentiment score within filings as initial critiques that AR was ‘hyped’ started to give way to practical use cases and the tangible increases in productivity that were witnessed as a result
• The use of AR is becoming increasingly commonplace in the oil and gas sector, with major companies such as Chevron, Shell, and National Orwell Varco using the technology for remote collaboration. This application of AR removes the necessity to transport disparately located experts to remote field locations. This provides valuable time-saving but also mitigates the extent to which maintenance and repair activities are hampered by barriers to travel as the uncertainty of pandemic resurgences looms large.
• AR can also be used to digitalize workflows to increase the efficiency and safety of maintenance tasks. This streamlining is especially critical in today’s scenario where oil and gas producers are seeking to streamline their costs to recover from the COVID-led energy demand shock. AR can act as a vital tool for the design, construction, operation, and maintenance of industry assets.

• The detailed value chain comprises five segments: semiconductors, components, devices, platforms, and applications and content. Leading and challenging vendors are identified across all five segments.
• Challenges the oil and gas sector is currently facing are outlined, and the solutions provided by augmented reality are addressed.
• Details of specific use cases of augmented reality in the oil and gas sector are given.
• Forecasts for augmented reality revenues to 2030 split by enterprise and consumer applications are shown. A comprehensive industry analysis is also provided, looking at company filing, hiring, and social media trends related to augmented reality in the oil and gas sector.
• An overview of key contracts and partnerships between oil and gas companies and AR vendors between January 2020 to March 2022 is provided. A timeline highlighting milestones in the development of augmented reality is also included.

• To understand the impact augmented reality is having on the oil and gas industry.
• To identify the emerging trends in this theme and how these developments might advance in the future.
• Learn about the different use cases of augmented reality in the oil and gas and how AR is being used to address the industry’s challenges.
• View market forecast data for AR technology up to 2030.
• Source the leading AR vendors for the oil and gas sector from our winners lists and shortlist potential partners based on their areas of expertise. GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.