Market Trends of Offshore Oil & Gas Communications Industry
This section covers the major market trends shaping the Offshore Oil & Gas Communications Market according to our research experts:
Telecom-based Technological Advancements to Drive the Market Growth
- A few years ago, communications between offshore facilities and onshore locations were limited to a two-way radio channel and daily reports. Oilfield workers stationed offshore were virtually cut off from the rest of the world. However, with the technological advancements in communication technologies, offshore industry work has been transformed.
- With the help of microwave communications technology, data is sent over wavelengths that are less than one meter long.These microwave solutions are chosen for locations that are close to each other. Fiber-optic telecommunications are chosen for locations in high-traffic areas, such as the North Sea or the US Gulf of Mexico.
- Technological advancements have allowed improved communication systems that have transformed total subsea developments and the way the remote, unmanned offshore industry works. The increasing vulnerability to cyber security threats in the oil and gas sector is a significant growth driver for the oil field communications market. The growing need for cloud-based services and a greater emphasis on adopting effective communication technology will exacerbate the demand for oil field communications. Increasing investments in network infrastructure and the expansion and growth of the oil and gas sector will generate more profitable growth prospects for the oil field communications market.
- With more oil and gas projects being built around the world, the offshore oil and gas communications market is expected to grow. Baker Hughes says that as of last year, Asia Pacific had the most offshore oil and gas rigs.
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North America is Expected to Hold the Largest Market Share
- One of the biggest markets for offshore oil and gas communications is North America.The demand for communication equipment in this area is likely to be driven by the discovery of new shale resources in the United States and the growth of oil and gas projects in Canada.
- This region is said to be the pioneer in this market because it is also the largest oil and gas producer. According to Baker Hughes, North America hosts the most oil and gas rigs globally and has 14 offshore oil and gas rigs. Moreover, the market is expected to grow, with companies seeking advanced digital solutions for offshore field operations.
- Globally increasing crude oil prices that are expected to reach pre-crisis levels over the forecast period are expected to increase upstream oil and gas activity, leading to an increase in demand for offshore communications in the oil and gas industry.
- During the time frame of the projection, the market would grow because more advanced technologies would be used, there would be more demand for these technologies in large oilfields and offshore locations, and oil and gas field excavation activities in the region would grow quickly.
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