Global Oil and Gas Security and Service Market Grow Significantly at a CAGR of 5%

Introduction

The term "oil and gas security and services" refers to the various approaches and solutions employed by the oil and gas industry to safeguard its operations, infrastructure, assets, and personnel. This industry is critical because of the strategic importance of oil and gas resources and the potential hazards associated with their discovery, production, transportation, and storage.

The increased use of cloud technology in the oil and gas has made it more vulnerable to cyber-attacks. Data confidentiality and privacy, key issues in the oil and gas industry, have been addressed thus far by isolating networks and beefing up perimeter defenses. With the entrance of cloud technology into the oil and gas business, firms can resurrect and improve their protection mechanisms through cybersecurity. As many firms lack knowledge, resources, and on-premise servers, cloud technology is required to secure data. The Oil and Gas Security and Service Market share is estimated to increase during the forecast period.

Market Dynamics

Increasing Cyber Security Threats Propel the Global Market

The oil and gas industry's digitization and automation of critical processes have increased cybersecurity risks. Data leaks, ransomware, and espionage are among these threats. Since the sector relies on digital technologies, cybersecurity is a significant responsibility. Nearly 45% of East Coast fuel is transported by the Colonial Pipeline. It was hacked in May 2021. The attack shut down the Colonial Pipeline, causing fuel shortages, panic buying, and East Coast price hikes. The incident showed how vulnerable electricity infrastructure is to cyberattacks and the importance of cybersecurity.

Between 2018 and 2019, cyberattacks on oil and gas installations surged by 50%, according to the IEA. Cyberattacks on oil and gas industries can interrupt operations and cost money. Cyberattacks can interrupt petroleum delivery and transportation, as seen by the Colonial Pipeline accident. Oil and gas companies invest more in cybersecurity measures like threat detection systems, employee training, and incident response plans to protect their digital infrastructure and operations. Thus, oil and gas security and services market trends are affected.

Integrated Security Services Creates Tremendous Opportunities

Oil and gas businesses get a complete security solution from integrated security services combining physical and digital security. Improved threat detection, simpler operations, and better reactions are benefits of this strategy. 

Integrated security systems save money over time. The Security Industry Association (SIA) found that integrated security systems save 20% on administrative expenditures. According to Frost & Sullivan, integrated security solutions can cut security incidents and expenses by 50%. 

Unifying security measures can also make managing several systems easier for companies. Integration in oil and gas security services is driven by the need for a holistic approach that addresses physical and digital dangers. This technology improves security, saves money, and improves operations, making it desirable to oil and gas companies worldwide.

Regional Insights

North America has the largest market share. Microsoft and Google will boost market growth by adding new technology to their products. Corporate R&D spending would enhance local market growth. Apache Corporation, a Houston-based oil and gas company with three billion barrels of oil and natural gas reserves, uses Microsoft's customized and modified security framework, which addresses physical to logical access, application security, data protection, and industry-specific data continuity.

In addition, the energy landscape in North America is evolving fast. The discovery of plentiful tight oil and unconventional natural gas is a once-in-a-generation chance to boost North American economic growth and global competitiveness. While physical infrastructure is rapidly changing, digital infrastructure and security must catch up. Government and industry leaders seek safe, prudent, and efficient use of these resources.

The United States remains concerned about internal and foreign malicious hacking. Numerous foreign malware attacks against U.S. national assets like power grids, nuclear power plants, data centers, military and airforce sites, communication networks, banks, and others have been documented. U.S. civilian cybersecurity programs will cost USD 9.8 billion. Cyber-attacks seriously threaten U.S. oil and gas companies, forcing them to invest in cutting-edge cyber protection. This helps the U.S. oil and security markets.

Rising militancy and terrorism in the Middle East and Africa would produce the highest CAGR during the predicted period. Region-threatening terrorists assault oil and gas facilities. The oil and gas industry's growing use of digital technologies has made cybersecurity a major issue. The 2012 Shamoon malware attack on Saudi Aramco showed how cyberattacks can disrupt operations. 

The Middle East is oil and gas wealthy. Global oil output relies on Middle Eastern countries' 48.3% oil reserves. Saudi Arabia, Iraq, Kuwait, Iran, Oman, and the UAE were the top crude oil producers last year, according to GlobalData. The USD 25 billion Saudi Gas Initiative, which integrates upstream gas extraction with downstream petrochemicals and power generation, may increase Middle Eastern gas supplies. The regional upstream boom helps Shell Exploration and Production (E&P), which has major projects in Saudi Arabia, Oman, Egypt, Qatar, Kuwait, Libya, and Syria. 

Key Highlights

• The global oil and gas security and service market size was valued at USD 27.45 Billion in 2022 and is projected to reach USD 42.58 Billion by 2031, registering a CAGR of 5% during the forecast period 2023-2031.
• Physical security, network security, risk management services, system design, integration, consultancy, and managed service are all type subcategories. Network security commands the lion's share of the market.
• The segment is divided into Exploration and Drilling, Transportation, Pipelines, Distribution, and Retail Services. Exploration and drilling have an impact on market growth.
• Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America is the most significant global cosmetic dyes market shareholder and is estimated to grow at a CAGR of 4% over the forecast period.

Competitive Players

1. Al Safina Security
2. Athos Group LLC
3. Cisco Systems Inc.
4. Honeywell International Inc.
5. ABB
6. Intel Corporation
7. Microsoft Corporation
8. Schneider Electric
9. Siemens AG
10. Waterfall Security Solutions Ltd.

Recent Developments

Recent Developments

• September 2023- ABB and Canada's export financing agency, Export Development Canada (EDC), formed a global cooperation to promote investments in sustainable technology and projects in Canada and worldwide.
• September 2023- Cisco acquired Splunk to help organizations become more secure and resilient in an AI-powered world.

Segmentation

1. By Type
   1. Physical Security
   2. Network Security
   3. Risk Management Service
   4. System Design, Integration, and Consulting
   5. Managed Service
2. By Application
   1. Exploring and Drilling
   2. Transportation
   3. Pipelines
   4. Distribution and Retail Services
   5. Others (Engineering, Refining, and Storage)