Expanding Oil & Gas Industry Fuels Oil & Gas Sensors Market Growth
The oil & gas industry has played a significant role in the economic transformation of various countries. The industry accounted for the largest share of global consumption of energy resources. Natural gas is projected to become the fastest-growing fossil fuel in the coming years. Oil production is increasing and fulfills energy demand. According to the International Energy Agency (IEA), global oil demand is expected to rise by 6% from 2022 to 2028 and reach 105.7 million barrels per day, with a significant requirement from the aviation and petrochemical industries. Rising demand for oil among various industries increases the demand for numerous oil & gas sensors such as pressure sensors, temperature sensors, flow sensors, and level sensors for monitoring and controlling plant operations.
The expansion of the oil & gas industry is associated with increasing investment in oil & gas exploration activities. For instance, according to the Urwald eV report published in November 2023, between 2021 and 2023, 384 businesses across the globe have reported an average capital expenditure of more than US$ 10 million in oil & gas exploration activities. The top seven companies invested in oil & gas exploration are China National Petroleum Corporation (CNPC) (US$ 5.9 billion), China National Offshore Oil Corporation (CNOOC) (US$ 3.2 billion), Saudi Aramco (US$ 2.8 billion), Pemex (US$ 2.6 billion), Sinopec Group (US$ 2.4 billion), Pioneer Natural Resources (US$ 2.1 billion), and Shell plc (US$ 2.0 billion). These investments support oil & gas companies to adopt technologically advanced oil & gas sensors by expanding their business worldwide. Thus, the expanding oil & gas industry fuels the oil & gas sensors market growth.
US Dominates Oil & Gas Sensors Market in North America
According to Council on Foreign Relations data published in August 2022, the US is the world’s top producer of natural gas and oil. The country produces 75% of its crude oil and 90% of its natural gas supply domestically. According to the US Energy Information Administration data of March 2024, crude oil production averaged 12.9 million barrels per day (b/d) in 2023, surpassing the previous US and global record of 12.3 million barrels per day set in 2019. In December 2023, average monthly crude oil production in the US reached a monthly record high of more than 13.3 million barrels per day. Plant capacity expansion operations, with the increasing spending on infrastructure development and rising operational complexities, create demand for oil & gas sensors for smooth operational activities. Oil & gas sensors help plant operators effectively manage and control operations in real-time.
Segmental Overview of Oil & Gas Sensors Market Report
Based on type, the market is segmented into pressure sensor, temperature sensor, flow sensor, and level sensor. The pressure sensor segment accounted for the largest oil & gas sensors market share in 2023 and is anticipated to record the highest CAGR during the forecast period. On the basis of connectivity, the market is divided into wired and wireless. The wired segment held a larger oil & gas sensors market in 2023 and is anticipated to record a higher CAGR during the forecast period. In terms of function, the oil & gas sensors market is categorized into remote monitoring, condition monitoring and maintenance, analysis and simulation, and others. The remote monitoring segment held the largest oil & gas sensors market share in 2023, and is anticipated to record the highest CAGR during the forecast period. Based on application, the oil & gas sensors market is segmented into upstream, midstream, and downstream. The upstream segment held the largest oil & gas sensors market share in 2023 and is anticipated to record the highest CAGR during the forecast period.
Oil & Gas Sensors Market Analysis: Competitive Landscape and Key Developments
The oil & gas sensors market forecast is done by considering Honeywell International Inc, TE Connectivity Ltd, Robert Bosch GmbH, ABB Ltd, Siemens AG, Rockwell Automation Inc, Analog Devices Inc, Emerson Electric Co, SKF AB, and GE Vernova, are among the key oil & gas sensors market players that are profiled in the report. Several other essential oil & gas sensors market players were also analyzed for a holistic view of the market and its ecosystem. The oil & gas sensors market forecast can help stakeholders in this marketplace plan their growth strategies. The oil & gas sensors market report provides detailed market insights to help major players strategize their growth.
- NevadaNano, an innovator in environmental, social, and governance (ESG) solutions, announced that it had closed its Series C funding round. First-time investors Honeywell Ventures and Emerson Ventures led the round, joined by several existing investors. (Source: NevadaNano, Press Release, November 2023)
- ABB launched its new FusionAir Smart Sensor, a touch-free room sensor with optional room control sensors capable of monitoring the temperature, humidity, carbon dioxide (CO2), and VOCs to improve the overall IAQ and reduce the risk of viral exposure. (Source: ABB Ltd, Press Release, October 2021)