Product Code: 53266
The Oil and Gas Security market was valued at USD 26.34 billion in 2019 and is expected to reach USD 34.59 billion by 2025, at a CAGR of 4.65% over the forecast period 2020 - 2025.
- The growth in the digitization of the oil and gas industry has made it prone to cyber-attacks, such as denial of service, malware, and phishing. Moreover, cyber-attacks in the sector have caused significant disruptions to the entire network, including upstream, midstream, and downstream processes.
- Various types of cyber-attacks, such as insider misuse, web application attacks, and physical risk/loss of property have affected the oil and gas industry. Therefore, several companies are implementing effective cybersecurity solutions to combat them.
- Increase in the expenditure by oil and gas companies on the network and operational technology security and increased trend of security and vulnerability management have bolstered the growth of the oil and gas security market. Moreover, the growing trend of bringing your device (BYOD) in the industry poses further challenges for the security infrastructure.
- The rising energy demand and depletion of energy resources in recent years have put pressure on companies as well as governments to develop plans for oil and gas security system measures.
- The adoption of new technology has significantly improved the efficiency and has also brought concerns for securing these critical infrastructures essential for the building of a nation. The pipeline networks of the oil and gas industry extend to a vast area and it is not economically viable in the current competitive market to use human resources to safeguard it. It has driven the demand for the economic surveillance system and has created opportunities for the players. Additionally, the products and machinery component installed within the core industry requires it to adhere to the flame and explosion proof standards.
- Securing the resources is a paramount necessity through the totality of the product lifecycle, i.e., from the exploration, upstream, and downstream processes to the final product marketing. It is essential as they are dangerous to handle and prone to fire and other accidents. Web-based mobile surveillance units in such scenarios enable remote surveillance from a centralized or designated location and help in streamlining the security. Aging infrastructure pushes the need for surveillance for safety reasons.
- Owing to the operation ease brought about by the network-driven communication in the industry, the security features are expected to be agile as network-driven communication systems also bring in the vulnerability aspect along with them. Harsh weather conditions, extreme operating temperature, hazardous processes, etc., make the market challenging as it requires compliance to multiple industry and safety standards for the products to be used in the industry and impacts the market landscape. All these factors have been critical for the demand and are expected to drive it over the forecast period.
Scope of the Report
As the oil and gas industry incorporates more connected systems and networking technologies, companies will need to develop an understanding of the new security risks and what's required to combat them.
While the oil and gas sector may have unique challenges, it nonetheless shares many of the same security challenges that face other enterprises. So the response should lean heavily on the basics of cybersecurity. The National Institute of Standards and Technology provides detailed guidance on a comprehensive set of cybersecurity guidelines and how to implement best practices for cybersecurity.
Key Market Trends
Rise in the Level of Sophisticated Cyber-attacks to Drive the Market
- The growth in the digitization of the oil and gas industry has made it prone to cyber-attacks such as denial of service, malware, and phishing. Moreover, cyber-attacks in the sector have caused significant disruptions to the entire network, including upstream, midstream, and downstream processes. Various types of cyber-attacks such as insider misuse, web application attacks, and physical risk/loss of property have affected the oil and gas industry. Therefore, several companies are implementing effective cybersecurity solutions to combat them.
- However, lack of awareness about oil and gas security solutions, difficulties in implementation for complicated operational technology, and the vulnerabilities associated with cloud technologies can act as a challenge for the growth of the oil and gas security market.
- Increase in the expenditure by oil and gas companies on the network and operational technology security and increased trend of security and vulnerability management have bolstered the growth of the oil and gas security market. Moreover, the growing trend of bringing your own device (BYOD) in the industry poses further challenges for the security infrastructure. Also, according to a survey, 68% of respondents have stated that their company had suffered at least one security compromise involving information loss or operational disruption in the past year (2017). Thus, cyber security must be considered as a priority in the industry.
North America Account for Largest Market Share
- The oil and gas production companies in North America, especially in the United States, are among the most efficient production companies in the world. As companies operating in the region move to address their specific security concerns, they are looking for holistic frameworks that can help them to implement prescriptive process changes.
- Exploration, production, processing, and delivery of products require enterprises to work with many different external partners and third parties. These interactions and the need for electronic data interchange between various organizations. The stakeholders push for developing and implementing security solutions to safeguard from any potential cyber-attack.
- For instance, Apache Corporation, a Houston-based oil, and gas company, with around three billion barrels' equivalent of oil and natural gas reserves uses Microsoft's customized and modified security framework that considers everything from physical to logical access to application security to data protection to data continuity needed in the industry.
The Oil and gas security Market is Highly concentrated due to the high initial investments and few buyers of the services. Some of the key players in the market are Cisco, ABB, Microsoft. Some recent development in the market includes:
- Chevron Corporation's, which is into exploring, producing, and transporting crude oil and natural gas, had its productivity improved with security-enhancing Microsoft cloud services. it is headquartered in San Ramon, California, with 52,000 employees working in 162 countries. Chevron created a highly secure, modern digital workplace with Microsoft Office 365 and OneDrive for its global workforce. To date, Chevron has reduced storage expenses by migrating more than 800 terabytes of data to OneDrive.
- BP deployed Microsoft 365 to improve user experience and security. BP is migrating its work environment to Microsoft 365 Enterprise E5 to take advantage of a platform approach and defend a vast digital perimeter against cyber attacks.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Rise In Spending By Oil And Gas Players On Network And Infrastructure Protection
- 4.3.2 Government Regulations Regarding Security Measures
- 4.4 Market Restraints
- 4.4.1 Vulnerabilities Associated With Cloud Technologies
- 4.5 Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Security Type
- 5.1.1 Network and Cyber Security
- 5.1.2 Surveillance
- 5.1.3 Screening and Detection
- 5.1.4 Others Security Types
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Asia Pacific
- 5.2.4 Latin America
- 5.2.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 ABB Ltd.
- 6.1.2 Cisco Systems Inc.
- 6.1.3 Honeywell International Inc.
- 6.1.4 Microsoft Corporation
- 6.1.5 Parsons Corporation
- 6.1.6 Schneider Electric SE
- 6.1.7 Siemens AG
- 6.1.8 Waterfall Security Solutions Ltd
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS