Oil and Gas Industry Innovation Tracker: Automation, 2025

Revenue Forecast

Revenue estimate for the base year 2024 is $20.86 billion with a CAGR of 7.4% for the study period 2024-2030.

The Impact of the Top 3 Strategic Imperatives on the O&G Automation Industry

Transformative Megatrends

• Why:
  • The transport industry accounts for 30% of the global energy demand, of which 90% comprises oil products.
  • Carbon dioxide (CO2) emissions from the transport sector amount to about 8 gigatons a year, about one-seventh of global emissions.
  • Mandates on using low-carbon fuels, such as biofuels, biogas, and e-fuels, are changing globally, with the support of government policies and legislation to achieve net-zero targets.
• Frost Perspective:
  • As governments develop blending mandates for alternative fuels, the demand for fuels such as biodiesel, renewable diesel, bio-liquefied natural gas (LNG), and e-fuels will double by 2030.
  • Technological advancements in processes and new feedstocks will increase the adoption rate during the next 3–5 years.
  • Renewable diesel, or hydrotreated vegetable oil (HVO), has the same chemical and physical properties as conventional diesel but a low carbon content.

Disruptive Technologies

• Why:
  • Sustainability trends, such as reducing carbon emissions and deploying electrifying processes, are gaining importance globally.
  • New disruptive technologies, such as AI, IoT, and robotics, are revolutionizing O&G operations.
  • These technologies will complement human labor and enable O&G companies to increase safety, efficiency, and productivity in their fuel transformation activities.
• Frost Perspective:
  • Technological advances and economies of scale make renewable energy production and electrolyzer capital and operational costs more competitive.
  • Research and development (R&D) activities enhance renewable fuels cost and energy efficiency, thereby increasing their competitiveness and adoption.

Industry Convergence

• Why:
  • Alternative fuels find applications in all industries where greenhouse gases (GHGs) are evident and difficult to abate. Achieving climate goals is impossible without cross-industry support.
  • The increased adoption of alternative fuels is achievable by sharing the lessons various industries have learned throughout their pilot phases.
  • This will provide technology developers and service providers opportunities to explore new avenues and industries, offering a broader operational space.
• Frost Perspective:
  • Cross-industry convergence is inevitable in the alternative fuels market, with many O&G companies already collaborating with airline companies to develop a sustainable aviation fuel (SAF) market.
  • Airline companies are collaborating with technology developers to design and develop engines for low-carbon fuels.
  • The automotive sector is polar testing synthetic fuels from Shell and ExxonMobil using green hydrogen and captured CO2.

Competitive Environment

Key Competitors