The market for Oil and Gas Drone service market is expected to grow at a CAGR of over 60% during the forecast period of 2020
Market Overview The market for Oil and Gas Drone service market is expected to grow at a CAGR of over 60% during the forecast period of 2020–2025. Several oil & gas companies such as BP, Shell, etc.
New York, Feb. 27, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Oil and Gas Drone Services Market - Growth, Trends, and Forecast (2019 - 2024)" - https://www.reportlinker.com/p05865706/?utm_source=GNW have started to digitalize their operation (drone services are a part of digitalization in oil & gas industry) across all the three sectors. Of the three sectors, midstream is expected to be one of the fastest-growing markets. Though, drones offer the most cost-effective and efficient monitoring methods, technological limitation such as shorter flight time, low speed, vulnerability to hackers, and susceptibility to weather are restraining the market growth.
- The modern drones are smarter and faster in processing the data produced from assets, and as AI (Artificial Intelligence) improves, these drones may have the capability to independently decide their further course of actions through AI. As these technologies keep improving, the application for these drones would increase and, thus, it is expected to drive the market. - The demand for associated infrastructure such as pipelines and refinery are expected to be increase in market, thus offering a greater business opportunities for the drone service providers. - North America has been the major market for drone services in 2018, and it is expected to be the largest market in terms of revenue, during the forecast period owing to increasing adoption of drones across all three sectors of Oil and gas industry.
Key Market Trends Drones Integration with Artificial Intelligence (AI) to Drive the Market
- The drones have existed for long, but the high cost and the lack of technology have restricted the use of drone in the oil and gas industry. However, with technological advancement, the drones have come a long way and now are more reliable and provide cost-effective solutions to the oil and gas operators, globally. - The modern drones are smarter and faster in processing the data produced from assets, and as AI (Artificial Intelligence) improves, these drones may have the capability to independently decide their further course of actions through AI. As these technologies keep improving, the application for these drones would increase and, thus, it is expected to drive the market. - With the development of AI, drones can be operated without any human intervention; as AI integrated sensor is now easily able to move inside the closed building and is not prone to collisions with the wall too i.e. this application would increase and expected to drive the market.
North America to Dominate the Market
- In offshore rigs, drones are used for inspection of all substructure and top structure of platform or rig to determine any damage or corrosion and to provide data for structural integrity and visual and infrared photography. Increase in offshore activities is expected to increase the demand for drone services in the United States, over the forecast period. - As a result of expected stabilized oil prices from the end of 2019 and declining drilling cost, the offshore rig count and offshore oil production of the country are expected to increase, which is expected to be a significant driver for the market studied in the country. - The growing refining infrastructure in the country is expected to drive the demand for drone services used for the inspection and monitoring in the country, over the forecast period. - In the midstream sector, drones are used for pipeline inspection, corrosion checks, security checks, and maintenance issues. In Canada, oil supply in Western Canada exceeds the transport capacity of pipelines serving external markets. As export pipelines operate at full capacity and timing of new capacity remains uncertain, producers are increasingly relying on rail transportation to deliver incremental production to the market. Hence, to inspect the existing pipeline, the demand for drone services is expected to increase over the forecast period. - Overall, the western refineries are operating at the utilization rate of around 60%. Hence, stagnant growth is expected in the market studied over the forecast period. - In January 2018, the country awarded 19 out of 29 deep water blocks. A total of 39 bids were received for the 19 blocks. The auction received an estimated investment of USD 1.4 billion, and two tie-break bonus bids resulted in a cumulative USD 0.5 billion offered to the country. - Increasing investment in the country’s upstream sector by foreign companies are expected to create ample opportunity for the drone services market.
Competitive Landscape The oil and gas drone services market is partially fragmented. Some of the major companies include Precisionhawk, Cyberhawk Innovations Limited, Terra Drone Corporation, Viper Drones, and Sky-Futures Limited.
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