Growth Opportunities in Emissions Management for Oil and Gas, Global, 2024–2035

Revenue Forecast

The revenue estimate for the base year 2024 is $1,886.8 million with a CAGR of 8.3% for the study period 2024–2035.

Scope of Analysis

• On 12 December 2015, 196 parties adopted the Paris Agreement, a legally binding international treaty on climate change aimed at limiting global temperature rise to well below 2°C, with efforts to cap it at 1.5°C above pre-industrial levels. Now, a decade later, the agreement remains a cornerstone of global climate action, uniting nations in their commitment to reduce greenhouse gas emissions and achieve net-zero emissions by around mid-century, typically by 2050. The Paris Agreement has driven significant progress, but with only 25 years remaining to meet its long-term goals, the urgency for accelerated and coordinated action has never been greater.
• GHGs mainly comprise 76% CO2, 16% methane, 6% nitrous oxide (N2O), and 2% other gases*. This study focuses on hardware and software solution for the end-to-end emissions management of GHGs emissions from the global O&G industry.
• These gases have different impacts on the environment and human health according to the following main factors:
  • Radiative efficiency or ability to absorb energy
  • Longevity or how long the gases stay in the atmosphere
• The drive to reduce emissions is rapidly escalating across various industry verticals. The energy sector (including O&G), which is responsible for more than 50% of global emissions) is facing mounting social pressure to meet climate goals. Regulatory compliance and legal measures in the form of operational and financial penalties have increased the importance of emissions management.
• Emissions management is a broad and complex topic. This study covers hardware and software solutions such as Continuous Emissions Monitoring System (CEMS) used to continuously measure, monitor and report data. The study also covers digital solutions such as Predictive Emissions Monitoring Systems (PEMS), edge and IoT based devices connected to ERP and SAP software for optimization of processes, Asset management, risk mitigation and data analytics for smart decision making.
• Since the emission management market is combination of product and service, it is difficult to estimate per unit cost and hence bottom-up approach is used to estimate the market size.
• The regional analysis includes NA (the United States, Mexico and Canada), Latin America (Brazil, Venezuela, Guyana, and Argentina), Europe (Norway, the United Kingdom, France, the Netherlands, Switzerland, and Germany), MEA (Saudi Arabia, the United Arab Emirates, Oman, Qatar, Egypt, Nigeria, Angola, and the Republic of Congo), and APAC (China, India Malaysia, Australia, Indonesia, Japan, and Singapore).

Scope of Analysis

Digital Platforms

• Software licensing
• SaaS models
• Emissions Management-as-a-Service
• IoT datasets
• Data marketplace participation
• AI-based decision-making

The Impact of the Top 3 Strategic Imperatives on the Emissions Management Industry in Oil and Gas

Disruptive Technologies

• Why: Climate change and sustainability are the main issues affecting companies globally, driving significant investments in innovative technologies to lower emissions and achieve net-zero targets. Incomplete information about actual emission levels and a lack of awareness about the cost-effectiveness of abatement are 2 challenges in reducing methane emissions.
• Frost Perspective: Investment in innovative technologies, such as smart sensors, is increasing because they accurately capture different emission data types. Emerging technologies, including AI, machine learning (ML), and cloud services, will be integral to managing and storing large datasets. In the next 10 years, automation, robotics, and data analytics will become more prevalent in measuring and controlling emissions.

Transformative Mega Trends

• Why: Many industry verticals are accelerating their efforts to lower emissions. The energy sector—including O&G, which is responsible for more than 50% of global emissions—faces mounting pressure to meet climate goals. Regulatory compliance and legal measures in the form of operational and financial penalties have increased the importance of managing emissions.
• Frost Perspective: Emissions management service providers should not only focus on the O&G industry but also tailor their products and services to other hard-to-abate industries, thereby expanding their business value proposition. End-to-end emissions management solutions, from measuring and monitoring to managing and lowering, will be the main business model in the future.

Innovative Business Model

• Why: O&G end users are looking for high-quality, accurate gas detection and analysis solutions at affordable costs. However, high acquisition costs, especially for analyzers, fixed detectors, and sensor networks, often deter companies from investing heavily. Companies focus instead on meeting compliance parameters.
• Frost Perspective: A subscription-based, as-a-service business model will enable providers to offer high-quality services at a low cost. Providers can implement subscription services, such as gas detection-as-a-service, with the required Internet of Things (IoT) platforms, cloud connectivity, AI, and data analytics-based solutions to gather intelligence. Sensor companies can partner with industrial robot providers to develop an as-a-service business model.

Key Competitors

Growth Drivers

• Corporate Sustainability and Net-Zero Goals
• Regulatory Compliance and Reporting
• Cost Optimization and Operational Efficiency
• Increased Regulations Methane Emissions
• Asset Integrity and Risk Management
• Advanced Technologies and Integration

Growth Restraints

• Regulatory Uncertainty and Volatility
• Data Security and IP Concerns
• Legacy Infrastructure and Data Silos
• Lack of Standardization
• High Initial Costs and Uncertain ROI
• Limited Digital and Emissions Expertise

Competitive Environment