Enjoy complimentary customisation on priority with our Enterprise License!
The backup power systems market for oil and gas industry size is forecast to increase by USD 995.1 million at a CAGR of 4.36% between 2023 and 2028.
The market industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The generators segment is estimated to witness significant growth during the forecast period. In the oil and gas industry, generators serve as essential backup power sources during power outages. Facilities require careful consideration of their power system architecture before installing a generator. Generators are categorized by fuel source into gas, diesel, and bi-fuel models. Diesel and natural gas are the most commonly used fuel sources. These generators ensure uninterrupted power supply, critical function backup, and peak shaving during consumption spikes. Technological advancements include battery systems, compact wind turbines, and fuel-efficient diesel generator sets. Manufacturing locally and implementing cost-effective solutions, such as solar generators, are increasingly popular. Contractual agreements and reliable backup power sources are crucial for industrial sectors, data centers, and digital services.
Furthermore, advanced technology integrations, like artificial intelligence and IoT, enhance grid resilience and mitigate voltage disturbances. Renewable sources, such as wind and solar, are increasingly integrated into power systems for sustainable backup solutions.
Get a glance at the Backup Power Systems For Oil And Gas Industry Industry report of share of various segments Request Free Sample
The generators segment was valued at USD 1.84 million in 2018 and showed a gradual increase during the forecast period.
Middle East and Africa is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions, Request Free Sample
The North American oil and gas industry is a significant contributor to the global backup power systems market, accounting for the largest share in 2023. The US and Canada are the major contributors to this market due to their status as prominent oil and gas producers. The rise in oil and gas production, driven by unconventional exploration and production activities, has necessitated the use of reliable backup power systems to ensure uninterrupted supply during peak shaving and outages. Battery systems, engine families, and fuel-efficient generators, including diesel generator sets, are popular backup solutions for critical functions. Technology development in advanced technologies such as solar generators, wind turbines, and distributed power systems is driving cost-effective backup solutions.
Furthermore, manufacturing locally and ensuring compactness are essential considerations for operational costs. Infrastructure expansion and the increasing demand for reliable backup sources in industries such as healthcare, digital services, and data centers, necessitate the use of backup power systems. The market is expected to continue growing due to the increasing importance of backup power systems in ensuring the reliability of electricity supply in the oil and gas industry.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Demand from oil and gas industry is the key driver of the market.
Increased M and A activities and strategic alliances is the upcoming market trend.
Harsh environmental conditions in oil and gas industry is a key challenge affecting the industry growth.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The oil and gas industry relies heavily on uninterrupted power supply to ensure the smooth operation of critical functions. Power outages can lead to significant downtime, operational costs, and potential safety hazards. To mitigate these risks, backup power systems have become an essential component of the industry's infrastructure. These systems are designed to provide power during outages or peak energy consumption periods. These systems can be categorized into various types, including battery systems and prime generators. Battery systems, such as lithium-ion and lead-acid batteries, store energy and can provide power for short durations. Prime generators, on the other hand, generate power on demand and can run for extended periods.
Moreover, the oil and gas industry's choice of backup power systems depends on several factors. Operational costs, reliability, and compactness are among the critical considerations. Fuel-efficient generators, such as diesel generator sets, have gained popularity due to their cost-effectiveness and ability to provide reliable power for extended periods. Technology development in the market is ongoing, with manufacturers focusing on advanced technology to improve efficiency and reduce operational costs. For instance, some manufacturers are developing fuel-efficient engines and distributed power generation technologies. Others are exploring renewable sources, such as solar and wind, to reduce reliance on traditional fuel sources.
Furthermore, the increasing urbanization and infrastructural expansion in the oil and gas industry have led to a growing demand for these solutions. These solutions are essential for critical functions such as data centers, healthcare facilities, and defense operations. Contractual agreements between oil and gas companies and power providers often include backup power provisions to ensure uninterrupted supply. Digital infrastructure, cloud computing, and IT systems require uninterrupted power to function effectively. These systems are also crucial for cyber defense and IoT applications in the oil and gas industry. Power outages can disrupt communication networks and data flow, leading to potential security vulnerabilities. Advanced technology, such as artificial intelligence and voltage disturbance mitigation systems, is being integrated into backup power systems to improve reliability and cybersecurity.
Backup Power Systems Market For Oil And Gas Industry Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market Growth 2024-2028 |
USD 995.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Key countries |
US, Saudi Arabia, Russia, Canada, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Get the report (PDF) sent to your email within minutes.
Complimentary full Excel data with your report purchase.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.