Oilfields are spread across various onshore and offshore locations, which required clear communication channels. As a result businesses involved in the oilfield activities are constantly on the lookout for reliable, fast and stable communication networks. Communications network become crucial channel that connects the management to the staff and engineers working at the remote offshore and onshore locations amidst harsh environmental surroundings. The global market of oilfield communications is largely driven by the rising demand across the oil and gas industry and rising demand for oil and gas drilling.
Synopsis of Current Market Conditions
The global oilfield communications market is categorized into various types of solutions, services, communication network technologies, and field site communications. Geographic regions also play a vital role in the study of all the segments within the industry. Some of the most potential technologies and components of the industry include unified communication, machine to machine or M2M communication, WiMAX, video conferencing, and various other advanced technologies. Leading companies are investing millions of dollars into safe and reliable solutions and technologies like fiber optic communication networks and very small aperture terminals or VSATs.
Key Market Drivers
The stability and operational efficiency that these services bring play a major role in the overall growth and development of the global oilfield communications market. Growth in the advanced technologies such as video conferencing, cloud computing, and cyber security are also driving the global market at steady rate. Growth in the deep water drilling activities and operations across harsh fields is creating the potential paths for development and revenue for the industry. The emerging concept of digital oilfields is creating numerous avenues of progress and investment for the existing businesses. Key investments from the established businesses also contribute to the present day demand for the industry.
All these factors eventually influence the growth rate and future business prospects for the industry. Careful analysis of all the segments, current trends, drivers, challenges, and key players in the market reveal vital details about this industry. According to the market research reports, market of oilfield communications is expected to maintain a steady CAGR of over 6% to reach $3.18 billion by the end of 2019. As of 2014, the industry is poised at $2.37 billion. The scalability, reliability, control, and security involved in the concept of digital oilfields are the strongest driver for the rising demand within the global marketplace.
The industry is struggling to keep up with the increasingly rising demand for crude oil. As a result, the market is engaging in the drilling activities across remote and deep water locations. This is a major reason for the increasing adoption of advanced solutions provided by the oilfield communications market.