-By Fred Ojiegbe
As security in the oil and gas industry continues to raise concerns among stakeholders, Dublin, Ireland – based Research and Markets reports that the global oil and gas security and service market size is expected to grow from an estimated value from US$ 25.3 billion in 2020 to US$ 32.5 billion by 2025.
This is calculated at a Compound Annual Growth Rate (CAGR) of 5.2 percent during the forecast period, Research and Markets reports. The report highlighted that the oil and gas security and service industry is driven by various factors, such as growing political instability in Middle East and need to ensure compliance with industry regulations in oil and gas security and service market. However, high reliance on existing security solutions can hinder the growth of the market.
Middle East and Africa to grow at the highest rate during the forecast period
The report also stated that the oil and gas security and service market in Middle East and Africa is expected to grow at the highest CAGR during the forecast period. It explained that the rise of various terrorist groups and militias and vacuum created due to the ineffective governments in the Middle Eastern and northern African countries is propelling the need for oil and gas security solutions. In North America, there is a tremendous demand for oil and gas security and service. The report also noted that the recent COVID-19 pandemic is expected to impact the oil and gas security and service industry. The pandemic and subsequent response is already exerting pressure on governments, economies, households, and different industries across the world. The oil and gas industry, both onshore and offshore, are mostly affected by Stuxnet and Exxon’s Torrance. Fluctuation in oil prices and political instability in the MEA and APAC region have set the stage for cyber disasters in the oil and gas industry, it stated.
Service segment to grow at a higher CAGR during the forecast period.
According to the Deputy Director of Government Communications Headquarters (GCHQ) in Cheltenham, England, Brian Lord, the oil and gas industry is the second most susceptible sector to cyber-attacks. “The upstream, midstream, and downstream sectors are highly digitalised, which makes them more prone to cyber-attacks. Companies are focusing more on security services to prevent such attacks. Viruses and malware are evolving daily due to which it becomes very difficult for old systems and security patches to identify threats. Consequently, organisations are updating security patches and software to secure themselves from cyber-attacks. “Due to the outbreak of COVID-19, companies such as NTT Security has started offering managed services to help oil and gas companies manage all aspects of cyber-security. Increase in the number of connected devices, which raises the number of endpoints, has increased cyber issues recently. “Moreover, lack of awareness about oil and gas security solutions and services, difficulty in the implementation of the IT technologies, and vulnerabilities associated with the cloud have also affected the oil and gas industry, which provides growth opportunities to service providers, Research and Markets reports,” he said.
Solution segment to account for a higher market share during the forecast period.
The report also stated that oil and gas companies, which form the backbone of many regions, are facing unprecedented challenges due to various reasons, ranging from geopolitical issues to the obstacles created by the current pandemic. According to the report, onshore wells, offshore platforms, and oil and gas pipelines constitute the key assets of energy companies and ensuring the cyber-security of these assets is critical for companies. To comply with regulations, upkeep asset performance, and utilise business resources optimally, oil and gas companies are switching to cloud technologies. Migration to the cloud makes organisations more vulnerable to cyber-attacks, which call for proper security measures. The increasing number of mobile devices, including personal and those used by field personnel, in utility companies’ corporate networks has raised the chances of cyber-attacks. Consequently, the demand for security solutions has catapulted remarkably, it added.