Home » M2M Devices to More Than Double in Oil & Gas
M2M Devices to More Than Double in Oil & Gas
The oil and gas industry, perhaps more than any other, is characterized by remote and inaccessible facilities where wireless communication is the only viable option for transferring machine-to-machine (M2M) data.
The number of devices with cellular or satellite connectivity deployed in oil and gas applications worldwide is expected to rise at a compound annual growth rate (CAGR) of more than 20% over the next several years — from 164,000 at the end of 2011 to 435,000 by 2016, according to Berg Insight. Cellular-based M2M devices are expected to count for almost two-thirds of the nearly half million devices at the end of the forecast period.
As Berg Insight notes in its report, wireless technologies such as private radio, cellular and satellite communication can provide ubiquitous online connectivity at reasonable cost and deliver good performance and availability. This enables the delivery of operations management, equipment management and regulatory compliance applications linking remote equipment and enterprise IT systems.
Telemetry and M2M solutions can be found in applications such as monitoring and controlling of drills, wells and pipelines. North America is the forerunner in the use of wireless M2M solutions in oil and gas applications, accounting for almost half of the worldwide device shipments.
Wireless M2M applications in the oil and gas industry have entered a growth phase that will last for several years to come, Berg Insight predicts. Analysts estimate that the shipments of oil and gas M2M devices with cellular or satellite communication capabilities will almost triple in coming years, from 33,000 in 2011 to 126,000 in 2016. Onshore well-field-equipment monitoring and in-land-pipeline monitoring are expected to be top two applications for wireless M2M in the oil and gas industry.
Many factors are driving the M2M market in the oil and gas industry, including new regulations, rising operating costs due to increasingly inaccessible reserves, and accelerating competition between international oil companies (IOCs) and national oil companies (NOCs). "Demand for improved operational efficiency and new governmental regulations will push the adoption of wireless M2M in the industry," said Johan Svanberg, senior analyst for Berg Insight.
Advanced SCADA and wireless M2M solutions can help stakeholders to comply with regulations and meet the high demands on security and efficiency that come with oil and gas operations. "Wireless M2M, remote automation, control and monitoring are also key ingredients in order to make it cost effective to extract, transport and distribute emerging oil and gas products, including LNG and unconventional resources such as shale gas and heavy oil," Svanberg said.
The installed base of active oil and gas M2M devices is expected to rise to 435,000 units by 2016.
Source: Berg Insight
Production Process Enhances MES With SQL Database
ERP System Integrated With Production Improve Manufacturing Processes
Honeywell Green Boot Camp Addresses Sustainability Challenges
Five Day Interactive Workshop Focuses on Best Practices for Teaching Energy, Sustainability and Environmental Concepts
Distech Controls Welcomes Shareholder Samsung Ventures
Financing Will Be Used to Accelerate Company Growth and Development Roadmap Worldwide
Winners of AmeriStar 2013 Package Awards Competition
IoPP Announces Top Competitors in Package Innovation, Sustainability, Protection, Economics, Performance and Marketing
Igus Wins Two Awards at iF Product Design Competition
Triflex R TRLF Cable Carrier Designed for Three-Axis Movement for Robotic Applications
Engineering Graduates Make Top 10 Highest Starting Salaries List
NACE Reports Engineers Took Seven of the Top 10 Spots in April Survey
Major Tool & Machine Purchases Large-Part Machining Systems From MAG
New U5 Machine Will Initially Replace Production Capacity During the Rebuild of Massive DSI Gantry Mill/Turn Machine
ODVA Forms SIG for Machinery Information
Developing Standards for the Exchange of Information Between Machines, and Between Machines and Supervisory Systems
Digital Manufacturing Market Poised for Global Growth
Frost & Sullivan Analysis Finds Market Earned Revenues of $704 Million in 2012 and Is Estimated to Reach $928 Million in 2016
Strong Growth Forecast for Direct Drives
IMS Research/IHS Report Shows Global Market Is Predicted to Be Worth Nearly $300 Million in 2016
- All news »
Access the entire print issue on-line and be notified each month via e-mail when your new issue is ready for you. Subscribe today.
- Featured White Papers