Oil and Gas Drones Market

Global Oil and Gas Drones Market is valued at USD 8.94 Billion in 2022 and it is expected to reach USD 87.83 Billion by 2029 with a CAGR of 38.6% over the forecast period.

Global Oil and Gas Drones Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2023-2029- The advancements in drone technology, increased regulatory support for drone operations, and rising demand for efficient and cost-effective solutions are some of the major factors driving the growth of Global Oil and Gas Drones Market

Scope of Global Oil and Gas Drones Market Report-

Oil and gas drones refer to the use of unmanned aerial vehicles (UAVs) for various applications in the oil and gas industry. These drones are equipped with high-resolution cameras, sensors, and other technologies that can capture images, detect leaks, inspect pipelines, and perform various other tasks that are difficult or dangerous for humans to carry out.

The use of drones in the oil and gas industry began in the early 2000s, primarily for surveillance and security purposes. As the technology improved, drones became increasingly popular for various other applications, including pipeline inspections, oil rig inspections, and environmental monitoring.

Oil and gas drones have several applications in the industry, including pipeline inspections, oil rig inspections, environmental monitoring, gas leak detection, surveying and mapping, and security and surveillance. The end-users of oil and gas drones include oil and gas companies, pipeline operators, environmental organizations, and government agencies.

Revenue Generation Model:

The revenue generation model of the oil and gas drones market includes the sale of drones, along with related hardware, software, and services such as data analysis and maintenance.

Supply Chain Model:

The supply chain mode of the oil and gas drones market involves several stages, including drone production, distribution, and maintenance. The supply chain may involve multiple companies, including drone manufacturers, software developers, and service providers.

Value Chain Model:

The value chain model of the oil and gas drones market involves the creation of value for customers through the development, distribution, and maintenance of drones and related services. This value chain may include several activities, such as research and development, manufacturing, marketing, and customer support.

Covid-19 Impact on the Global Oil and Gas Drones Market:

The Covid-19 pandemic has had a mixed impact on the global oil and gas drones market. With the sharp decline in demand for oil and gas due to travel restrictions and economic slowdown, the deployment of drones for inspection, maintenance, and surveillance activities in the oil and gas industry has witnessed a slowdown in the short term.

However, the pandemic has also accelerated the adoption of digital technologies, including drones, for remote monitoring and maintenance of oil and gas infrastructure, which is expected to drive the growth of the market in the long term.

Moreover, the increasing focus on worker safety and cost optimization in the industry is expected to further drive the adoption of drones for various applications. Overall, while the Covid-19 pandemic has created challenges for the oil and gas drones market in the short term, it is also expected to create new opportunities for growth and innovation in the long term.

Key Players of Global Oil and Gas Drones Market Report-

• AeroVironment Inc.
• AirRobot US
• Airware
• Airobotics
• Altavian Inc.
• Avitas Systems
• Cyberhawk Innovations Ltd.
• Delair
• DJI
• DroneDeploy
• ECA Group
• Flyability
• Freefly Systems
• General Electric Company
• Honeywell International Inc.
• Insitu Inc.
• Kespry
• Lockheed Martin Corporation
• Microdrones
• Northrop Grumman Corporation
• Parrot SA
• PrecisionHawk
• QuestUAV
• Raptor Maps Inc.
• Raytheon Company
• Rovco
• Scanse
• senseFly
• Sky-Futures
• SkySpecs
• Skysense
• Textron Inc.
• The Boeing Company
• ULC Robotics
• Unifly
• Vantage Robotics
• Wingtra
• XAG
• Yamaha Motor Co.Ltd.
• Zipline

Global Oil and Gas Drones Market Segmentation:-

By Product:

• Fixed-wing drones
• Rotary-wing drones
• Hybrid drones

By Application:

• Inspection
• Surveying and Mapping
• Security and Emergency Rersponse

By Regional & Country Level:

• North America

  • US.
  • Canada

• Europe

  • UK.
  • France
  • Germany
  • Italy

• Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia

• Latin America

  • Brazil
  • Mexico

• Middle East and Africa

  • GCC
  • Africa
  • Rest of Middle East and Africa

Market Drivers:

Advancements in drone technology, such as longer battery life and improved sensors: Longer battery life allows drones to fly for longer periods without the need for recharging, which increases their operational efficiency. For example; some companies have developed drones with flight times of up to 4-5 hours, while others are working on developing drones with flight times of up to 12 hours or more. Improved sensors enable drones to capture more accurate data and detect leaks and other anomalies that may be missed by human inspectors.

These advancements have also led to the development of autonomous drones that can operate without human intervention, further increasing their efficiency and reducing the need for human labor. For example; a report by the oil & gas technology centre found that using drones for offshore inspections can reduce the need for human inspectors by up to 75%. This can result in cost savings of up to 50% compared to traditional inspection methods.

Increased regulatory support for drone operations in the oil and gas industry: As it provides companies with greater regulatory certainty and facilitates the adoption of drone technology. Regulators are recognizing the potential benefits of using drones in the oil and gas industry, such as improving safety, reducing costs, and increasing efficiency. In the United States, the FAA has established Part 107 regulations for the commercial operation of small drones weighing less than 55 pounds.

As a result, regulations are being developed to support the safe and responsible use of drones in the industry, which is expected to encourage more companies to invest in drone technology. For example; in the United States, the FAA has reported that there were over 1.7 million registered drones for commercial and recreational use as of December 2021. Additionally, the FAA has issued over 120,000 remote pilot certificates for commercial drone operations, including in the oil and gas industry.

Market Restraints:

Growing concern about data security and privacy: The use of drones in the oil and gas industry generates a large amount of data, which may include sensitive information such as pipeline layouts, infrastructure, and personnel. This data can be vulnerable to hacking or cyber-attacks, which can lead to significant security breaches.

According to a report by the cybersecurity company Carbon Black, the oil and gas industry is the most targeted sector for cyber attacks, with 70% of oil and gas companies reporting at least one cyber attack in the past year. The report also found that the average cost of a cyber attack for the oil and gas industry is $13.2 million, with some attacks resulting in costs as high as $50 million.

In addition, the collection and processing of this data may raise privacy concerns for workers and communities living near oil and gas facilities. As a result, companies must invest in robust data security measures and comply with strict regulations to ensure the protection of sensitive information and mitigate privacy concerns.

Limited flight times for drones in harsh weather conditions: Adverse weather conditions such as strong winds, rain, and fog can significantly limit the ability of drones to operate safely and effectively. This can result in reduced flight times and decreased data collection capabilities, which can affect the overall efficiency and productivity of drone operations.

Additionally, harsh weather conditions can increase the risk of accidents or crashes, which can lead to equipment damage and safety hazards for workers. Therefore, companies must carefully assess weather conditions and take appropriate safety measures to ensure the safe and efficient operation of drones in the oil and gas industry.

Market Opportunities:

Opportunity factors for the oil and gas drones market include the increasing adoption of drones in the oil and gas industry for pipeline inspection, site surveys, and environmental monitoring. In addition, the development of advanced drone technologies such as LiDAR and photogrammetry is creating new opportunities for data collection and analysis in the industry. Furthermore, the rising demand for efficient and cost-effective solutions for oil and gas operations is driving the growth of the market.

Market Trend:

Product and Technology Development:

The integration of artificial intelligence and machine learning algorithms for real-time data processing and analysis. This allows for faster and more accurate data collection and interpretation, leading to improved decision-making and operational efficiency. Another trend is the development of drones with longer flight times and enhanced weather resistance, which allows for more consistent and reliable data collection in challenging environments.

Customer Trends:

The growing demand for customized drone solutions that are tailored to specific needs and use cases in the oil and gas industry. Additionally, customers are increasingly seeking drones that can operate in hazardous environments and provide data on safety risks and potential hazards.

Market Competition Nature:

The competition in the oil and gas drones market is intense, with several key players competing for market share. Past strategies employed by market players include product differentiation, partnerships and collaborations with industry stakeholders, and mergers and acquisitions to expand their capabilities and reach. Future strategies may include a focus on developing specialized drone solutions for specific applications and industries, expanding into new geographic regions, and investing in research and development to stay ahead of emerging trends and technologies.

Geography Analysis:

North America:

North America is a significant market for oil and gas drones, owing to the large number of oil and gas companies operating in the region and the increasing adoption of drone technology in the industry. Furthermore, according to the Federal Aviation Administration (FAA), as of December 2021, there were over 600,000 drones registered for commercial and recreational use in the United States. While this number includes all industries, the increasing adoption of drones in the oil and gas industry is a contributing factor to this growth.

The United States is a key market for oil and gas drones due to the presence of several large oil and gas companies in the country, including ExxonMobil, Chevron, and ConocoPhillips. The increasing adoption of drones in the industry has been driven by factors such as the need for cost-effective solutions, the ability to collect data more efficiently, and the potential for improved safety and environmental monitoring.

Europe:

Europe is also a significant market for oil and gas drones due to the region's focus on environmental sustainability and stringent regulations around pipeline inspection and monitoring. In addition, a survey conducted by Drone Industry Insights found that the top applications for drones in the oil and gas industry in Europe are inspection and monitoring (67%), followed by surveying and mapping (14%), and emergency response (9%).

In Europe, the adoption of drone technology in the oil and gas industry is driven by the increasing demand for efficient and cost-effective solutions for exploration and production activities. In addition, the region's focus on environmental sustainability and renewable energy is leading to the use of drones for environmental monitoring and site surveys.

Key Benefits of Global Oil and Gas Drones Market Report–

• Global Oil and Gas Drones Market report covers in-depth historical and forecast analysis.
• Global Oil and Gas Drones Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Oil and Gas Drones Market report helps to identify opportunities in the marketplace.
• Global Oil and Gas Drones Market report covers extensive analysis of emerging trends and competitive landscape.