Oilfield Communications Market Forecasts to 2028 – Global Analysis By Component (Solutions and Services), Communication Network (VSAT Communication Network, Cellular Communication Network, Microwave Communication Network, Fiber Optic-Based Communication N

Oilfield Communications Market Forecasts to 2028 – Global Analysis By Component (Solutions and Services), Communication Network (VSAT Communication Network, Cellular Communication Network, Microwave Communication Network, Fiber Optic-Based Communication Network, Tetra Network, Other Communication Networks), Field Site (Offshore Communications and Onshore Communications), Application and By Geography

According to Stratistics MRC, the Global Oilfield Communications Market is accounted for $3.92 billion in 2022 and is expected to reach $6.06 billion by 2028 growing at a CAGR of 7.5% during the forecast period. Oil and gas field communications necessitate dependable, high-capacity wireless networks that can operate across broad areas in harsh environments. Wireless oil and gas communication networks provide broadband speeds and a scalable base for a variety of applications that improve operational efficiency and safety. Oil firms are driven to employ oil field communication due to the increasing acceptance of cloud-based services. This keeps their offshore facilities in touch with their inshore sites regarding production statistics.

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.

Market Dynamics:

Driver:

Increasing investments in network infrastructure improvement

The oil and gas industry has relied on its own telecommunications networks for decades. These privately owned and operated networks are used to handle day-to-day operations and to coordinate emergency services during times of crisis. Many mission-critical networks nowadays face a dual dilemma. First and foremost, there is a need to modernise. Immediate data, complex management and surveillance further from the connection's edge, and high-level security create extra demands on equipment and exceed the capabilities of narrowband networks. The second requirement is to ensure high-quality communication. Oil and gas field communications necessitate dependable, durable, and high-capacity wireless networks that can operate over broad areas in harsh environments thus propelling the growth of the market.

Restraint:

Instability of oil price

Oil is a commodity, and as such, its price fluctuate more than more stable investments such as equities and bonds. Oil prices are influenced by various factors, including supply and demand laws. Natural disasters that could impede production, as well as political turmoil in oil-producing countries, all have an impact on pricing. Production costs, as well as storage capacity, influence prices. Moreover, the global spread of this epidemic has reduced demand and price for oil and several countries imposed nationwide curfews. This has resulted in a significant decrease in transportation and related operations, affecting demand for oil and gas.

Opportunity:

5G as critical enabler in the digitalization

The fast acceptance of 4G wireless communication technology, as well as the growth of 5G standards to support industrial use cases, would create more significant potential for constructing private LTE and 5G networks in the oil and gas industry. When it comes to 5G adoption plans in the oil and gas industry, uncertainty still reigns. However, it is clearly obvious that 5G will become a significant competitive advantage for oil and gas players in the near future. Oil E&P efficiency and agility are becoming necessities, and this is driving ambitious digital projects in the E&P segment of the oil value chain which enhancing the growth of the market.

Threat:

Cybersecurity threats

Cyber attackers have been targeting crude oil and gas firms with sophisticated attacks for years, as the industry adopts linked technology such as the Internet of Things (IoT) and Artificial Intelligence (AI). Various areas of the oil and gas industry involve various risks and therefore different tactics. Exploratory digging as well as manufacturing has one of the greatest cyber risk characteristics among upstream operations, while seismic imaging has a lower risk profile. The increased requirement for the firm to digitise, eStore, and feed seismic data into other disciplines may raise its risk profile in the future. Aside from the critical infrastructure status of the upstream business, the industry's extensive processing, networking, and physical operating procedures distributed around the world make it extremely prone to cyberattacks thereby hindering the market growth.

Covid-19 Impact

Businesses that provide oilfield communications solutions and services are projected to have a major drop in growth for a short period of time as a result of the COVID-19 pandemic-led global lockdown. The oil and gas industry is also under turmoil as a result of the oil price war. The pandemic may cause inefficient companies to face liquidity crises, healthier organisations to diversify their activities and change their business models, and companies to face a skilled worker scarcity when the market recovers due to layoffs during the lockdown. The oil and gas business is projected to face two scenarios unexpected travel disruptions and a longer-term reduction in demand due to an economic downturn, as well as an increase in telecommuting and an accelerating shift to greener energy sources.

The cellular communication network segment is expected to be the largest during the forecast period

The cellular communication network segment is estimated to have a lucrative growth, due to communications system that is distributed over land areas known as cells and is supplied by a minimum of one fixed-location transceiver known as the cell site or base station. Each cell in a cellular network employs a separate range of frequencies than neighbouring cells to prevent interference and ensure bandwidth within each cell. It offers benefits such as voice and data services, connecting customers on both fixed and mobile phones, being simple to maintain and upgrade, consuming less power, and reducing interference from other signals.

The offshore communications segment is expected to have the highest CAGR during the forecast period

The offshore communications segment is anticipated to witness the fastest CAGR growth during the forecast period, due to environmental issues such as strong ocean currents and extremely distant locations. The majority of them are deep-water rigs that work at considerable depths. Communications are critical in such remote areas for monitoring various components and remaining in touch with onshore facilities for reporting and assistance in crises. Offshore communications in the oil and gas industry have advanced significantly. Real-time communications networks now enable not only wi-fi and personal cell phone connections, but also real-time data transfer from offshore to onshore offices situated all over the world.

Region with highest share:

North America is projected to hold the highest market share during the forecast period owing to the largest oil and gas producer, North America is likely to hold a substantial part of this market, with corporations pursuing innovative digital communication solutions for both onshore and offshore field operations. Many oil businesses have their headquarters in the United States. The majority of corporations test new services in the country before launching them globally. Furthermore, with newly discovered shale resources and quickly increasing exploration and production operations as a result of the OCS-approved Outer Continental Shelf Leasing Programme, the region is likely to be one of the fastest growing markets for oilfield communications over the forecast period.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the region's fast expanding oilfield excavation activity. This expansion can be imparted to the region's increasing number of oil refineries and various exploration activities. This region has a number of research sites, rigs, and refineries, as well as complicated control systems scattered throughout the region, which will fuel the expansion of the oilfield communications industry.

Key players in the market

Some of the key players profiled in the Oilfield Communications Market include Huawei Technologies Co. Ltd, Siemens AG, ABB Ltd, Commscope, Inc., Tait Communications, Ceragon Networks Ltd, Rignet, Inc., Commtel Networks Pvt. Ltd, Hughes Network Systems LLC, Rad Data Communications, Inc, Baker Hughes, Alcatel-Lucent France, S.A., Inmarsat PLC, Speedcast International Limited, Airspan Networks, Inc., MoStar Communications, BlueJeans, Ondaka, WellAware and Hitachi.

Key Developments:

In March 2023, Huawei partners with ooredoo to boost fintech service development, under the agreement, the two entities will work together to enable Ooredoo to provide state-of-the-art, mobile-first, financial services on Huawei’s platform for both consumers and merchants.

In March 2023, Huawei launched its next-generation microwave MAGICSwave at the Mobile World Congress (MWC) 2023 Barcelona. MAGICSwave uses cross-generational innovations to help operators build simplified target networks that are better oriented to long-term 5G evolution as they optimize total cost of ownership (TCO) and smooth transport network evolution.

In March 2023, Siemens launches Connect Box, a smart IoT solution to manage smaller buildings, Increases building operations efficiency, reduces energy consumption and meets regulatory requirements for sustainable and healthy buildings

Components Covered:
• Solutions
• Services

Communication Networks Covered:
• VSAT Communication Network
• Cellular Communication Network
• Microwave Communication Network
• Fiber Optic-Based Communication Network
• Tetra Network
• Other Communication Networks

Field Sites Covered:
• Offshore Communications
• Onshore Communications

Applications Covered:
• Midstream
• Upstream
• Downstream

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements