According to a new research report from Berg Insight, the analyst firm says the wireless M2M devices industry within the gas and oil business is heating up fast.
Based on the research presented, the number of devices with cellular or satellite connectivity deployed in oil & gas applications worldwide was 423,000 at the end of 2013.
“Growing at a compound annual growth rate (CAGR) of 21.4 percent,” the report summary reads, “this number is expected to reach 1.12 million by 2018.”
The split between cellular and satellite based M2M devices at the end of the forecast period will be 871,000 units and 244,000 units respectively. The oil and gas industry is characterized by remote and inaccessible facilities where wireless communication in many cases is the only viable option for transferring M2M data.
The report notes that North America is the most advanced market for M2M applications in the oil and gas sector. The region is also the home of a majority of the players specializing in the oil & gas industry.
“Booming production volumes of shale gas and tight oil in North America has increased the use of wireless M2M solutions in the upstream segment,” said Johan Svanberg, Senior Analyst at Berg Insight.
Real-time pipeline monitoring is driving the adoption in the midstream segment. Wireless M2M solutions are retrofitted to existing infrastructure as well as incorporated in new pipeline projects across the world.
“In the downstream segment,” Svanberg concludes, “cellular telemetry solutions have proven to be a great fit for remote monitoring of storage tanks.”
