Global oil and gas or petroleum industry provides solutions and processes for extraction, refining, exploration, transportation and marketing of different petroleum products like fuel oil, gasoline and raw materials for many other chemical products. Business operations in oil & gas companies have sensitive infrastructure, which needs high level of security. Guarding and protecting operations, infrastructure, offices, staffs and actual sites of these businesses is a crucial responsibility of the different authorities. Rising threats to the petroleum industry is the strongest driver for global oil & gas security market, which is expected to make steady growth despite uncertain economic conditions.
Driving Factors for Oil & Gas Security Industry
Security of oil and gas is an essential area of concern for developed as well as developing countries. Oil & gas security is the ability of the businesses to secure all the platforms of petroleum from attacks through physical harm, cyber intrusions or in any other form. This ability is vital for the companies looking for undisrupted and lasting supply, productions and vital operations to different consumer countries. Due to growing security threats, companies are taking different steps to secure their business distribution networks and infrastructures. This trend is reflecting into rise in demand for oil & gas security market on global level. Since growth and upkeep of oil rigs, pipelines and offshore platforms play pivotal role in development of a country, government authorities are also taking initiatives in their provision.
Oil and gas security industry is segmented into security solutions and technologies used for the same. The market is also divided based on the products of deployment, types of investments and geographic regions. Based on investment, the industry is segmented into downstream, midstream and upstream investments. Upstream processes include drilling and exploration, while midstream processes include pipelines and distribution of oils and gas. Downstream processes include and downstream operations include various refining activities. The industry provides essential solutions for physical security and network safety solutions. Advanced technologies deployed by the businesses in the market include building management, surveillance radars, access control, SCADA network security and intrusion detection technologies, firewalls, UTM, antivirus systems and IDS/IPS systems.
Considering the importance of oil and gas industry and petroleum producing countries in global economy, businesses as well as governments prefer taking extra steps to secure their safety. This is the biggest driver for oil & gas security market of the world, which is estimated to grow at a steady compound annual growth rate. According to the market research reports, the industry will maintain steady CAGR of over 5% from 2013 to 2018. During the forecasting period, the market is expected to become worth more than 29.98 billion by 2018, which was positioned at $ 23.23 billion in 2013. Rising adoption rate in developed countries as well as emerging market is a positive sign for this industry. Offshore oil and gas security market is also showing vital growth in terms of revenue, adoption, innovation and implementation.