Oilfield Communications Market worth $4.5 billion by 2025
According to a research report "Oilfield Communications Market Share by Component, Communication Network (VSAT Communication Network, Fiber Optic-based Communication Network, Microwave Communication Network), Field Site, Application, and Region - Global Forecast to 2025"The oilfield communications market is projected to grow from USD 3.4 billion in 2020 to USD 4.5 billion by 2025, at a CAGR of 5.5% during the forecast period. Various factors such as rising technological advancements for enhanced communication across oilfields, increasing investments in enhancing network infrastructure, and growing demand from oil and gas operators to scale the production of mature oilfields and reservoirs are expected to drive the adoption of the oilfield communications market. Businesses providing oilfield communications solutions and services are expected to witness a minor decline in their growth for a short span of time. The COVID-19 lockdown has also reduced the demand for transportation fuels by up to half, forcing refineries to cut their rates or even stop production altogether. To survive the pandemic, oil and gas companies would have to restructure their General and Administrative (G&A) functions, launch operations improvements, reconsider supply chain and procurement, optimize trading capabilities, and deploy advanced technology-based networking solutions that support efficient remote connectivity. The lack of real-time visibility in complex oil and gas operations, massive skill shortage due to a shrinking pool of qualified technical personnel, and slow growth of the oil and gas industry due to the COVID-19 pandemic are the key challenges in the adoption of oilfield communications solutions and services. The microwave communication network segment to grow at the highest CAGR during the forecast period The oilfield communications market by communication network has been segmented into Very Small Aperture Terminal (VSAT) communication network, TErrestrial Trunked RAdio (TETRA) network, cellular communication network, fiber optic-based communication network, and microwave communication network. The microwave communication network segment is expected to grow at a rapid pace during the forecast period. The growth can be attributed to its ability to operate without any fiber-optic infrastructure and the relative ease of setting up a wireless network. The VSAT communication network segment is projected to hold the largest market size, owing to its ability to operate without any fiber optic infrastructure and the relative ease of setting up a wireless network. The midstream application segment to grow at the highest CAGR during the forecast period The oilfield communications market is segmented based on application into upstream, midstream, and downstream. The highest CAGR of the midstream application segment can be attributed to the growing concern of midstream operators to gain a sharper insight and control of data that leads to more intelligent decisions, safer conditions, increased efficiencies, and greater profits. Among field site, the offshore segment to grow at a higher CAGR during the forecast period The oilfield communications market is segmented on the basis of field site into onshore and offshore. The offshore segment is expected to grow at a higher CAGR during the forecast period. In the current scenario, the constant fluctuation in crude oil prices has resulted in a decrease in drilling activities