Oil and gas security is described as the process of securing the oil and gas operational sectors, namely upstream, midstream, and downstream, using severe physical and network security measures in order to ensure operational efficiency and minimize losses associated with security breaches.
Oil & gas security refers to the protection of operational technology (OT) such as distributed control systems (DCS) and supervisory control and data acquisition (SCADA) of the oil & gas industry's infrastructure from data theft and cyber-attacks. The rise of cyber-attacks against oil and gas firms' OT is driving up market need for security. The key benefits include protection from various data security breaches and cyber threats.
The global oil and gas security and service market size was estimated to reach over USD 23.8 billion in 2020 and projected to grow at a CAGR of 4.9% over the forecast period. The rising trend of security and vulnerability management, as well as increased spending by oil and gas businesses on network and OT security, are some of the primary reasons driving the growth of the oil and gas security market. Furthermore, the growing trend of bring your own device (BYOD) is supporting the expansion of the oil and gas security and service market. Massive capital costs and the ongoing demand for security upgrades, on the other hand, are two main concerns that could limit the expansion of the oil and gas security and service market. Despite this, the growing use of the Internet of Things (IoT) and demand for security-as-a-service (SaaS) creates a plethora of business prospects.
Increased concerns of terrorist attacks, high-profile cyber-attacks, severe government regulations, and security compliance are pushing the oil and gas security and services market. Oil and gas security can overcome the dangers outlined above by diverse human intelligence collecting, risk assessment, site management, and remote site overwatch. To maintain their network architecture secure and resilient, various corporations are investing heavily in network security. This will also help to reduce cyber risks at the oil and gas site's networks, controllers, and end points.
Oil and Gas Security and Service Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 23.8 billion|
|Growth Rate||CAGR of 4.9% during 2021-2028|
|Segment Covered||Component, Security Type, Operation, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East & Africa|
|Key Players Profiled||Cisco Systems, Inc., Siemens AG, Symantec Corporation, Honeywell Corporation, Inc., Parsons Corporation, Intel Corporation, General Electric, Microsoft Corporation, ABB Ltd., and Lockheed Martin Corporation, and others.|
Key Segments of the Global Oil and Gas Security and Service Market
Component Overview, 2019-2028 (USD Billion)
- Risk Management Services
- System Design, Integration, and Consulting
- Managed Services
Security Type Overview, 2019-2028 (USD Billion)
- Physical Security
- Network Security
Operation Overview, 2019-2028 (USD Billion)
Regional Overview, 2019-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global oil and gas security and service market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global oil and gas security and service market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the oil and gas security and service industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on component, security type, and operation. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global oil and gas security and service market. The report will benefit every stakeholder involved in the oil and gas security and service market.
- Managers within the oil and gas security and service industry looking to publish recent and forecasted statistics about the global oil and gas security and service market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global oil and gas security and service market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Oil and gas security and services cover a wide range of operations in the oil and gas industry, including midstream, downstream, and upstream, all of which are protected by stringent network and physical security measures. This will help to ensure operational efficiency while also reducing losses from security breaches. Security and services for the oil and gas industry are utilized to safeguard a natural gas refinery or an oil exploration site. It also allows facilities to be protected from external threats while allowing contractors and workers to have different levels of access across the site.
Cyber-attacks in the past several months have led oil and gas businesses to beef up their security systems. In recent years, most oil and gas firms have been subjected to many cyberattacks, resulting in significant losses. The interruptions caused by the attack on Saudi Aramco, for example, reverberated for months, emphasizing the importance of cyber security in preventing similar attacks. Countries like Iraq and others in the MEA region, which are significant oil producers, have faced similar situations in the past, spurring investment in network and physical security.
Furthermore, in light of the COVID-19 epidemic, the Bring Your Own Device (BYOD) movement is gaining traction, potentially exposing oil and enterprises to phishing assaults. As a result, network security and firewall protection are expected to grow in popularity in the future years.
Based on the component segment, the market is classified into solution, and services. The services segment is anticipated to grow significantly over the forecast period. The services segment is further divided into risk management services, system design, integration, and consulting, and managed services. According to Brian Lord, GCHQ's deputy director, the oil and gas business is the second most vulnerable to cyber-attacks. Upstream, midstream, and downstream industries are all heavily digitalized, making them more vulnerable to cyber-attacks. To avoid such attacks, businesses are putting increasing emphasis on security services. Viruses and malware evolve on a daily basis, making it impossible for outdated systems and security upgrades to detect threats. As a result, businesses are updating their security patches and software to protect themselves against cyber-attacks.
Security Type Segment
Based on the security type, the market is segmented into physical security, and network security. The network security segment is anticipated grow substantially throughout the forecast period. The network security market for oil and gas security and services is being driven by a rise in cyber-attacks as a result of increased use of Internet of Things (IoT) technology. Refineries and storage sites for oil and gas are high-security zones that are often located in regions that are off-limits to casual visitors, and the staff in charge of the refineries' day-to-day operations are highly trained to adhere to safety standards. They also have important operational and controller applications that are vulnerable to cyber-attacks, resulting in significant operational and financial losses. companies. Firewalls, Identity Access Management (IAM) systems, Security Information and Event Management (SIEM), Unified Threat Management (UTM), and Supervisory Control and Data Acquisition (SCADA) security solutions are all used to protect networks.
Based on the operation, the market is segmented into upstream, midstream, and downstream. The upstream segment was expected to hold major market share in 2020. Upstream refers to points in the production process that occur early on. Upstream, often known as exploration and production (E&P), is the part of the oil and gas supply chain that is farthest from the end-user consumer. Exploration, drilling, and extraction are examples of upstream activities.
In the global oil and gas security and service market, North America is predicted to have the largest market size, while the Middle East and Africa (MEA) is expected to develop at the fastest CAGR during the forecast period. North America has been a leader in implementing oil and gas security measures. Furthermore, this region has been very quick to adopt the most recent technological advancements, such as integrating cloud and mobile technologies into oil and gas security solutions to produce proper secured access mechanisms and enforce a security governance framework within a secured installation. The United States and Canada are likely to dominate the North American market. The presence of large oil and gas security and service vendors in the region is also expected to boost market growth.
The major players of the global Oil and Gas Security and Service market are Cisco Systems, Inc., Siemens AG, Symantec Corporation, Honeywell Corporation, Inc., Parsons Corporation, Intel Corporation, General Electric, Microsoft Corporation, ABB Ltd., and Lockheed Martin Corporation, and others. Renowned companies are offering new and modern oil and gas security services and solutions. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.