Need to Enhance Efficiency of Resources to Drive the Global IT Spending Market in the Oil and Gas Industry Through 2020, Says Technavio
The global
IT spending market in the oil and gas industry is expected to
grow at a CAGR of around 1% during the period 2016-2020, according to
Technavio’s latest report.
In this report, Technavio
covers the market outlook and growth prospects of the global IT
spending market in the oil and gas industry for 2016-2020. The
market is further segmented into three categories, including services,
software, and hardware.
“The widespread application of mobile technologies and cloud-based
solutions (in tandem with growing investments in business intelligence
solutions) may propel the market during the forecast period. Analytical
capabilities are a key enabler for achieving sustainability in this
highly expanding competitive environment,” says Amit Sharma, a lead IT
professional services research expert from Technavio.
Technavio’s research study segments the IT spending market in the oil
and gas industry market into the following regions:
Americas: largest market for IT spending in the oil and gas industry
The Americas hold the largest share of global IT spending in the global
oil and gas industry. The large percentage share stems from the presence
of technology driven economies such as the US and Canada. Major oil and
gas players such as Exxon Mobil and Chevron have consistently adopted
innovative technologies for horizontal drilling and hydraulic fracturing
to improvise the oil and natural gas production process. These
technological developments (combined with high oil and gas prices)
boosted the production of abundant oil and natural gas resources in the
region.
However, recent developments are expected to influence the capital
expenditure (CAPEX) and operational expense (OPEX) of oil and gas
companies in a positive way. This will lead to a resurgence in spending
on information technologies after 2017.
In contrast to markets in the US, reduced prices of oil and gas have not
really impacted oil production in Latin America. Some companies such as
Petrobras in Brazil have raised production volumes as new projects have
come on stream. “Moreover, the gradual strengthening of oil prices may
push market dynamics in a positive direction during the forecast period,
says Amit.
Ask for a sample of this report: http://goo.gl/F1Eqy3
EMEA: adoption of third platform technologies to ensure steady
investments in IT solutions
Europe is a developed and technology-oriented region that has actively
adopted innovative tools and techniques to automate industrial
production processes. The presence of tremendous hydrocarbon reserves in
Russia has made the region an active supplier of oil and gas with Europe
emerging as the cheapest source of supply, resulting in high gasoline
exports to the US and China.
However, consistent declines in oil prices have resulted in erratic cash
flows in the oil companies in Norway and the UK which will affect both
the will and the ability to make investments by oil companies. This has
led to a drastic cut in the total expenditure of oil and gas companies.
The MEA region has experienced some lack of technological expertise and
infrastructure. However, the lack of tandem production cuts among most
of the OPEC members indicates positive market prospects for IT solution
and service providers. The oil and gas companies’ IT investments are
expected to remain steady toward adoption of third platform technologies
(such as cloud computing, big data analytics, and mobility). The
integration of these technologies with existing strategies of the oil
and gas companies should prepare them for the “Big Crew Change” and
future cyber-threats, such as attacks on industrial control systems.
APAC: increase in demand for oil and gas to boost growth of the market
The oil and gas industry in APAC has grown progressively in response to
the increase in demand for oil and gas in countries such as China and
India. The main growth factors of this region include a large
population, robust economies, and rising disposable incomes. These
factors have spurred the growth of automobiles and in turn cast a
positive influence on the oil and gas industry. Despite lower oil and
gas prices in 2014, the leading companies in APAC faced lesser issues
compared to other regions of the world. Such immunity stems from the
fact that most companies in APAC are large, have secured good financial
positions, and have benefitted from strategic relationships with their
respective governments.
Cost management shall remain the top priority of the oil and gas
companies for the initial couple of years during the forecast period.
These exercises may be driven by low margins.
Some of the top vendors highlighted in the report are:
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About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
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