Oil And Gas Security Market Size, Share and Trends 2024 to 2034

Oil and Gas Security Market Size and Forecast 2024 to 2034

The global oil and gas security market size is calculated at USD 27.94 billion in 2024 and is anticipated to reach around USD 47.82 billion by 2034, expanding at a CAGR of 5.52% between 2024 and 2034. The constant threat of cyber-attacks on oil and gas infrastructure is the key factor driving the oil and gas security market growth. Also, growing production activities in remote locations along with the regulatory compliances imposed by the government can fuel market growth further.

Oil and Gas Security Market Key Takeaways

• North America dominated the oil and gas security market with the largest market share of 34% in 2023.
• Asia Pacific is expected to witness the fastest growth in the market during the studied period.
• By component, the hardware segment contributed the biggest market share of 52% in 2023.
• By component, the services segment will show significant growth in the market over the forecast period.
• By end use, the oil and gas companies segment generated the highest market share of 36% in 2023.
• By end use, the pipeline operators segment is expected to grow at the fastest rate in the market over the projected period.

U.S. Oil and Gas Security Market Size and Growth 2024 to 2034

The U.S. oil and gas security market size is estimated at USD 6.65 billion in 2024 and is expected to be worth around USD 11.63 billion by 2034, growing at a CAGR of 5.73% between 2024 and 2034.

North America dominated the oil and gas security market in 2023. The dominance of the segment can be attributed to ongoing technological advancements like data analytics and the Internet of Things (IoT), which are revolutionizing the market. Companies are utilizing this cutting-edge technology to improve predictive analytics and real-time monitoring. Furthermore, the geopolitical impact of the U.S. plays an important part in its dominance. With its strategic alliances and military presence, the U.S. across the globe is working to protect oil and gas supply chains.

Asia Pacific is expected to witness the fastest growth in the oil and gas security market during the studied period. The growth of the region can be linked to the increase in cyber threats targeting major infrastructure has become a substantial issue for the industry. Moreover, countries like Japan have applied stringent regulations and a rise in investments in AI-driven threat-identifying systems for their oil and gas facilities.

• In September 2023, the National Stock Exchange (NSE) announced that it would unveil an option linked to NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity. Derivatives segment. This came after the exchange received approval from the ETS regulator, the Securities and Exchange Board of India (Sebi), to launch these contacts.

Market Overview

The oil and gas security market is the safeguarding of the industrial operational technology of the oil and gas industry and infrastructure from potential data theft and cyber-attacks. The rise in cyber-attacks on the operational technology of oil and gas companies highlights the growing need for advanced security measures. This also includes protection systems like data acquisition (SCADA) and supervisory control coupled with distributed control systems. However, the persistent need for security upgrades and high capital costs are the main drawbacks of the system.

List of countries by oil exported in 2022

Role of AI in the Oil and Gas Market

AI has extensive applications in the industry, changing conventional processes and systems. Some common AI applications are drilling optimization, reservoir analysis, predictive maintenance, safety, and risk management, pipeline integrity management, and supply chain optimization. Furthermore, AI can analyze market trends and historical data to predict future needs for oil and gas products. Also, AI can help companies make informed decisions, mitigate environmental risks and reduce costs.

• In July 2024, Indosat Ooredoo Hutchinson’s business division unveiled a new suite of AI tools designed to support the sustainable growth of Indonesia's upstream oil and gas industry. OH will offer cutting-edge cloud-based solutions through Indosat Business and its subsidiary, Lintasarta.
• In September 2024, Huawei and industry customers launched the latest collaborative achievements in AI large model construction, intelligent oilfield reconstruction, refined exploration, and natural gas industry updates at the Global Oil and Gas Summit.

Oil And Gas Security Market Growth Factors

• Increasing adoption of risk-based security approaches is expected to fuel oil and gas security market growth shortly.
• The rising shift towards integrated security systems that combine cybersecurity measures with physical security can propel market growth soon.
• Development of new technologies, such as robotics and artificial intelligence (AI), will likely help further market expansion.

Market Scope

Market Dynamics

Driver

Rising need for regulatory compliance

The strict regulatory environment controlling the oil and gas security market plays a key role in boosting the requirement for security solutions. Regulatory entities and governments of many industries are imposing strict regulations to protect critical infrastructure and protect public safety. Additionally, market players are working towards collaboration and compliance with security experts and industry associations. This collaboration optimizes the progress of market-wide security standards.

• In August 2024, Perenco launched its first-ever gas-to-industry supply project in Cameroon. The company put into service the Bigapa Gas Processing Center, making a crucial milestone while strengthening its historic collaboration with Cameroon's National Hydrocarbons Corporation (SNH).
• In December 2023, the European Commission welcomed the political agreement reached at night between the European Parliament and the Council on the Cyber Resilience Act. The Cyber Resilience Act is the first legislation of its kind in the world for the oil and gas security market.

Restraint

Geopolitical risks

Geopolitical risks can affect the oil and gas security market in many ways. Geopolitical risks can lead to uncertainty and instability in the production, distribution, and consumption of oil. Moreover, Geopolitical risks can influence insurance capacity, which can have a substantial impact on small and medium-sized businesses. The geopolitical challenges can have wide r implications for diplomacy and global security.

Opportunity

Rising digitization

The oil and gas security market has undergone a digital transformation in past years, as players are increasingly depending on interconnected digital systems to carry out their operations. This surge in digitization has resulted in lucrative opportunities for cyber-attacks to exploit insecurities and gain unauthorized access to crucial infrastructure. Furthermore, many market players are implementing high cybersecurity measures to protect their digital infrastructure against cyber threats.

• In October 2024, Petronas launches dual initiatives to boost Malaysia's oil & gas sector. Namely the introduction of the Integrated Well Continuity Services contract and the planned establishment of the MPM Hydraulic Workover Unit Academy.
• In July 2024, Immensa & DNV launched global guidelines for the digitization of energy sector spares. The guideline is referred to as ‘the world’s first guideline. on digitizing spare parts for the energy sector. Based in Norway, DNV is the world’s most substantial classification society for oil & gas and maritime, with over 60% of the world’s offshore pipelines classified to DNV standards.

Component Insights

The hardware segment dominated the global oil and gas security market in 2023. The dominance of the segment can be attributed to the increasing utilization of physical equipment like access control systems, surveillance cameras, and communication devices in cyber security measures. These components further established the l infrastructure base for protecting oil and gas facilities against unauthorized access and other threats. Hardware components provide connectivity to remote locations by meeting the need for reliable power.

• In July 2024, Waterfall Security announced the launch of HERA™ - Hardware Enforced Remote Access, a new technology created to enable safe and secure remote access into cyber-physical systems and OT networks. HERA allows companies to reap the economic and operational value of remotely accessing and controlling OT workstations and devices without introducing the risks that come with external connectivity.

The services segment will show significant growth in the oil and gas security market over the forecast period. The growth of the segment can be linked to the expanding threat landscape, and strict regulatory complaints propel the requirement for customized security services. In addition, various oil and gas players lack complex security systems, which has led to a surge in the outsourcing of security measures. This segment encompasses a wide range of offerings, such as system integration of risk assessment, security consulting, and employee training.

End user insights

The oil & gas companies segment led the global oil and gas security market in 2023. The dominance of the segment can be credited to the increasing need for comprehensive security solutions by Oil and gas companies to safeguard their personnel, assets, and operations across the overall chain. Moreover, Oilfield services companies offer technical skills, services, and equipment for testing, drilling, exploring, and producing oil and gas. The oil and gas companies also produce products like chemicals and plastics.

The pipeline operators segment is expected to grow at the fastest rate in the oil and gas security market over the projected period. The growth of the segment can be driven by the growing requirement for tailored pipeline security solutions, and regulatory compliance needs all contribute to the expansion of the market. Furthermore, by investing in innovative security solutions catered to pipeline protection, market players can overcome risks, ensure safe transportation, and protect critical infrastructure through wide pipeline networks.

• In March 2024, CISA’s JCDC initiative launches the 2023 Pipelines Cyber Defense Planning Effort to protect the ONG sector. Acknowledging the role of the (ONG) subsector in ensuring shared security and prosperity, more than 25 ONG organizations, with an emphasis on high-throughput midstream natural gas pipeline owner-operator.
• In May 2024, the National Gas Transmission Company Transgaz and Turkey’s Kalyon Insaat Sanayi Ve Ticaret Anonim Sirketi arranged the launching event of the pipeline for the ‘Black Sea Shore-Podisor’ project, a very essential project in terms of ensuring the energy security of Romania and the region. The pipeline will allow gas obtained from offshore Black Sea blocks to enter the National Gas Transmission System.

Oil And Gas Security Market Companies

• ABB Ltd.
• Cisco Systems Inc.
• Honeywell International Inc.
• Schneider Electric SE
• Siemens AG
• Waterfall Security Solutions Ltd.
• Parsons Corporation
• P2 Energy Solutions
• KBR, Inc.
• DuPont de Nemours, Inc.
• Huawei Technologies Co., Ltd.
• Shell Catalysts & Technology
• Baker Hughes Company
• Halliburton Company
• Symantec Corporation

Recent Developments

• In August 2024, SLB and Palo Alto Networks declared an expansion of their partnership aimed at improving cybersecurity within the energy sector.  The partnership seeks to boost SLB's security infrastructure and develop innovative solutions to address emerging cyber threats.
• In July 2024, Accenture acquired True North Solutions, a U.S.-based provider of industrial engineering solutions, to improve its capabilities in helping clients in the oil, gas, and mining sectors produce and transport energy more safely and efficiently. 

Latest Announcements by Market Leaders

• In November 2023, Honeywell International Inc. announced that it would increase its dividend from last year's comparable payment on the 6th of December to USD 1.13. The payment will take the dividend yield to 2.2%, which is in line with the average for the industry.
• In September 2024, China’s Huawei Showed the World its USD 2,800 ‘Trifold’ phone. The latest announcement from Apple’s China rival came just hours after the unveiling of the iPhone 16.

Segments Covered in the Report

By Component

• Hardware
• Software
• Services

By End user

• Oil and Gas Companies
• Pipeline Operators
• Drilling Contractors
• Energy Infrastructure Providers
• Third-party Security Providers

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa