Internet of Things (IoT) in Oil & Gas Market Size - By Offering, By Operation, By Application, By End Use, Growth Forecast, 2025 – 2034

Internet of Things in Oil & Gas Market Size

The global internet of things (IoT) in oil & gas market size was valued at USD 2.3 billion in 2024 and is estimated to register a CAGR of 8.1% between 2025 and 2034. The growing emphasis on real-time monitoring, improved operational efficiency, and enhanced safety protocols are key drivers behind the expansion of the IoT market in oil & gas.
 

Companies are increasingly adopting IoT solutions to improve asset management, optimize production processes, and enhance environmental compliance. Strategic collaborations are accelerating the integration of IoT technologies across various oil & gas operations. For example, in October 2024, IMI Plc acquired TWTG Group, a player in Industrial IoT, to enhance its wireless IoT solutions within the process automation sector, boosting its digital transformation efforts.
 

The adoption of IoT technologies is transforming the oil & gas industry by enabling real-time data collection, remote monitoring, and predictive maintenance. These technologies not only increase operational performance but also contribute to improved safety standards and environmental sustainability. By utilizing IoT for environmental monitoring, fleet management, and pipeline monitoring, companies are able to proactively detect issues before they escalate, reducing operational risks and minimizing downtime.
 

Additionally, growing focus on green technology and sustainability is accelerating the adoption of IoT solutions in the oil and gas sector. As environmental concerns and regulatory pressures intensify, companies are leveraging IoT technologies to enhance operational efficiency while minimizing environmental impact. Through IoT-enabled sensors and real-time monitoring, companies can track emissions, optimize energy usage, and detect potential hazards such as gas leaks, all of which contribute to more sustainable and eco-friendly practices. This not only helps in reducing operational costs but also aligns with the industry's broader goals of achieving energy efficiency, lowering carbon footprints, and supporting long-term sustainability initiatives.
 

As a result, IoT is playing a crucial role in driving the oil and gas industry's transition to greener, more sustainable operations. The green technology and sustainability market is projected to grow and generate revenue of around USD 80 billion by 2032, with an annual growth rate of over 19%.
 

Internet of Things in Oil & Gas Market Trends

The growing integration of Internet of Things (IoT) solutions in the oil & gas sector is driving significant advancements in operational optimization and real-time monitoring. As IoT technologies continue to mature, strategic alliances and acquisitions are accelerating their adoption across various operations. For instance, in February 2024, TWTG, a prominent provider of Industrial IoT solutions, entered into a Memorandum of Understanding (MoU) with Aramco to enhance the digital transformation efforts of Saudi Arabia’s industrial sector. This collaboration is poised to leverage IoT technologies for better asset management, pipeline monitoring, and well optimization.
 

In addition, a significant opportunity in the market lies in improving operational efficiency while reducing environmental impact. With growing regulatory pressures and a focus on sustainability, IoT solutions are becoming crucial for monitoring emissions, water usage, and energy consumption in real-time. IoT applications such as environmental monitoring and predictive maintenance not only help in complying with stringent environmental regulations but also optimize resource utilization, significantly reducing the carbon footprint. These advancements create new opportunities for innovation and investment, driving further growth in the sector.
 

The market faces several challenges including the complexity of integrating IoT technologies with existing infrastructure, as legacy systems may not be compatible with modern IoT solutions, requiring costly upgrades. Additionally, the vast volumes of data generated by IoT sensors need advanced management and analytics tools to derive actionable insights. A further challenge is the shortage of skilled personnel, as there is a growing need for experts who can manage and analyze large datasets effectively, thus hindering market growth.
 

Internet of Things in Oil & Gas Market Analysis

Based on operation, the market is divided into upstream, midstream, and downstream. In 2024, the upstream segment was valued at over USD 900 million. This is primarily due to the increasing demand for IoT solutions for monitoring drilling and well operations. IoT sensors and devices are used to track equipment health, monitor well conditions, and optimize drilling processes in real time. Furthermore, IoT technologies enhance exploration efficiency and production optimization by providing actionable insights from vast amounts of geological and operational data.
 

The midstream segment is also expected to experience significant growth during the forecast period. The integration of IoT in pipeline monitoring, storage, and transportation systems helps enhance operational efficiency by providing real-time data on pipeline conditions, thereby reducing the risk of leaks and improving the overall integrity of the pipeline infrastructure.
 

Based on application, the IoT in oil & gas market is categorized into pipeline monitoring, fleet & asset management, drilling & well management, production optimization, environmental monitoring, safety & emergency management, and others. The pipeline monitoring segment is anticipated to register a CAGR of over 5.5% from 2025 to 2034. This growth is largely driven by the increasing demand for real-time monitoring and predictive analytics to ensure the safe and efficient operation of pipeline infrastructure.
 

The integration of IoT-based solutions such as smart sensors and remote monitoring systems, allows for continuous surveillance of pipeline conditions, detecting potential leaks, corrosion, and other threats that could lead to downtime or environmental hazards. This proactive approach helps in minimizing pipeline failures, improving maintenance schedules, and reducing operational costs. The ability to monitor pipeline health in real-time also enables operators to make data-driven decisions, optimizing resource allocation and ensuring uninterrupted supply flow.
 

North America Internet of Things in oil & gas market accounted for 30% of the revenue share in 2024, driven by the accelerated adoption of real-time monitoring solutions and predictive maintenance technologies. The country’s well-established oil and gas infrastructure, along with substantial investments in IoT and digital technologies, is facilitating the widespread deployment of advanced solutions across pipeline monitoring, asset management, and safety management. The increasing need for efficiency, safety, and regulatory compliance is propelling demand for IoT applications, particularly for leak detection, corrosion monitoring, and environmental monitoring.
 

In Europe, the Internet of Things in oil & gas market is growing steadily with a strong focus on regulatory compliance and environmental sustainability. The region’s stringent environmental policies and its emphasis on reducing carbon emissions are driving the adoption of IoT solutions for real-time monitoring of emissions, water usage, and energy efficiency in operations. IoT-enabled systems for pipeline monitoring and asset tracking are becoming increasingly crucial, particularly in offshore operations like those in the North Sea, where operational risks are high.
 

Additionally, Asia Pacific is emerging as a major growth Internet of Things in oil & gas market, driven by increasing energy demand and rapid industrialization in countries such as China, India, and South Korea. The region is witnessing widespread adoption of IoT technologies for monitoring critical infrastructure, including pipelines, fleets, and drilling operations. With significant investments in infrastructure and technological advancements, Asia Pacific is positioning itself as a hub for digital transformation in oil & gas.
 

The integration of IoT with AI and big data analytics is enhancing decision-making capabilities and operational efficiency, particularly in countries focused on expanding their oil and gas production while managing environmental impact and resource constraints.
 

Internet of Things in Oil & Gas Market Share

Siemens Energy, Cisco, and Schlumberger hold a significant market share of over 13% in Internet of Things (IoT) in oil & gas industry. These major companies are making significant investments in research and development to strengthen their product offerings, focusing on integrating advanced IoT solutions with real-time monitoring, predictive analytics, and data-driven insights. Companies are emphasizing innovation to address the industry's demand for operational efficiency, enhanced safety, and environmental sustainability. By enhancing IoT systems with features like remote monitoring, automated control, and sensor-based data collection, these players are providing solutions that streamline operations and reduce costs.
 

Additionally, players such as Siemens Energy and Cisco are entering strategic partnerships with software developers and energy firms to enhance their competitive positioning in the IoT space. These collaborations aim to leverage IoT and cloud computing technologies to provide advanced asset management, pipeline monitoring, and fleet tracking solutions.
 

By integrating real-time data analytics and edge computing, these partnerships are enabling more responsive and efficient operations across various oil and gas processes, from upstream exploration to downstream distribution. Their focus on developing integrated platforms for remote monitoring, predictive maintenance, and system optimization is shaping the future of digital transformation in the sector.
 

Internet of Things in Oil & Gas Market Companies

Major players operating in Internet of Things (IoT) in oil & gas industry include:

• ABB
• Baker Hughes
• Cisco
• ConocoPhillips
• Halliburton
• Schlumberger
• Shell
• Siemens Energy
• TotalEnergies
• Yokogawa
   

Internet of Things in Oil & Gas Industry News

• In July 2024, Armada and Halliburton’s Landmark announced an ‘iEnergy Partner Agreement’ to maximize the potential of DecisionSpace365 and other third-party applications at the edge for the oil and gas sector. Central to this collaboration is Armada’s advanced full-stack edge computing platform powered by IoT, artificial intelligence, and satellite connectivity plays a key role in this collaboration.
   
• In October 2023, Four Data, a French start-up specializing in Internet of Objects and innovative sensor technologies announced to acquire the oil & gas energy customer portfolios of Birdz and SilentSoft SA. This acquisition is anticipated to strengthen Four Data’s position in the IoT market and enhances its capabilities in energy resource management, particularly in the Remote Tank Monitoring segment in future.
   

The Internet of Things (IoT) in oil & gas market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Offering

• Platform
• Service

Market, By Operation

• Upstream
• Midstream
• Downstream

Market, By Application

• Pipeline monitoring
• Fleet & asset management
• Drilling & well management
• Production optimization
• Environmental monitoring
• Safety & emergency management
• Others

Market, By End Use

• National Oil Companies (NOCs)
• Independent Oil Companies (IOCs)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia