Unmanned aerial systems (UAS) or unmanned aerial vehicles (UAV), commonly known as drones, are equipped with cameras and sensors, such as gas detectors, infrared or laser pulses. They are proving to be beneficial in the energy sector. The oil & gas industry, both upstream and downstream, is expected to benefit significantly from the advantages that drones can provide. Drones can reach otherwise unreachable places and collect the required data faster than the manual techniques.
The oil & gas industry relies heavily on the building of infrastructure, for the safe transportation of large quantities of potentially hazardous or environmentally damaging chemicals across borders and continents. The political and economic differences could always pose a threat to infrastructure. Therefore, oil & gas companies are expected to emerge as one of the prime users of drones. In addition to differences, the exploration and production (E&P) activities often tend to take place offshore or in sparsely populated areas. Sending inspection crews to such far off areas and onto difficult terrains can be expensive and dangerous. In such cases, the deployment of drones offers the maximum advantage of risk mitigation.
Years of high oil price have encouraged oil companies to head deeper into the offshore and exploit new reserves. However, the recent collapse has triggered fear of losses, prompting them to slash costs and abandon expensive explorations, thus reducing their ability to take high risks. The deployment of drones (when integrated with the required technology) is expected to restore confidence in companies, to keep exploring tougher terrains and derive the maximum benefits for them and the users. Moreover, drones can make offshore oil & gas operations safer and efficient, with the help of secure and robust communication networks.
Stringent Safety Norms in the Oil & Gas Industry to Drive the Market
The oil & gas industry uses standards to enhance the technical integrity, improve safety, enable cost reductions, and reduce the environmental impact of operations. The operators, suppliers, contractors, and drilling companies in the oil & gas industry, are aware of the need for and value of comprehensive sets of standards that provide greater consistency of safe practices worldwide.
The countries themselves are formulating policies in the oil & gas sector, to integrate and strengthen the industry’s standardization network. This, in turn, is expected to create significant opportunities for the quality improvement of its processes. Drones equip the oil & gas industry to carryout flare stack inspections, offshore and onshore oil derrick inspections, tailings pond inspections, oil spill detection and damage assessment, and monitoring gas emissions. Moreover, from the equipment inspection point of view, drones can be utilized to the increased safety norms and reduce the burden of high costs with each added norm.
Asia-Pacific Exhibits Significant Growth Potential
Owing to the fast growing consumption in China and India, Asia-Pacific is the top oil consuming region. The demand for drones in the oil & gas industry remained at a low level in 2015, due to a slowdown in the relevant markets in countries, such as China and India. In the recent years, the growth rate of the Chinese economy has witnessed a slowdown, which is a cause of concern for all industries. However, the country offers considerable scope for growth and so does the demand for drones in oil & gas inspection activities. Being the net importer of oil & gas, the growth in oil exploration and production is expected to boost the implementation of drones in in offshore pipeline inspection for images and processing. However, the laws dealing with drone operations in India are constantly changing.
Key Developments in the Market
- December 2017: India’s biggest gas transporter, GAIL India Ltd (GAIL), has hired one drone on a pilot basis, for the aerial surveillance of HBJ pipeline in the Chambal Ravines in Madhya Pradesh. In addition, to patrol the pipeline and detect physical abnormal activity, such as encroachment or intrusion on the pipeline.
Major Players: Airware Inc., Airobotics, Cyberhawk Innovations Limited, Sky-Futures Ltd, Unmanned Experts Inc., Sharper Shape Inc., Phoenix LiDAR Systems, BAE Systems Inc., and SkyX, among others.
Reasons to Purchase this Report
- Current and future oil & gas drone services market outlook in the developed and emerging markets.
- Analyzing various perspectives of the market, with the help of Porter’s five forces analysis.
- The segment that is expected to dominate the market.
- The countries that are expected to witness the fastest growth during the forecast period.
- Identify the latest developments and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023
3.3 Recent Trends and Developments
3.4 Government Policies and Regulations
4. Market Dynamics
5. Supply Chain Analysis
6. Industry Attractiveness – Porter Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Intensity of Competitive Rivalry
7. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.2 North America
7.4 South America
7.5 Middle East & Africa
8. Key Company Profiles* (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
8.1 Airware Inc.
8.3 Cyberhawk Innovations Limited
8.4 Sky-Futures Ltd
8.5 Unmanned Experts Inc.
8.6 Sharper Shape Inc.
8.7 Phoenix LiDAR Systems
8.8 BAE Systems Inc.
9. Competitive Landscape
9.1 Mergers & Acquisitions
9.2 Joint Ventures, Collaborations, and Agreements
9.3 Strategies Adopted by Major Players
10.1 Contact Us
*List is not exhaustive
**Subject to Availability on the Public Domain