Oil and gas logistics: Key market research findings
- Surge in offshore oil and gas activities drives market growth
- Pipeline segment accounts for a majority of the market’s revenue
- Key vendors – Agility, BDP, Deutsche Post DHL, DB Schenker, Kuehne+Nagel, and Neovia Logistics
Technavio’s market research analysts predict the global market for oil and gas logistics to grow at a CAGR of around 7% between 2016 and 2020. The market’s growth can be attributed to the surge in offshore oil and gas exploration and production activities. Exploration and production activity is an upstream process in the oil and gas industry, which includes locating oil rigs, searching for oil and petrochemical products, underwater drilling for natural gas and crude oil fields, and operating subsea vessels. During 2015, the global oil and gas logistics market was dominated by the Americas with a market share of more than 37%. Rising shale oil production in the US will contribute to the growth of the oil and gas logistics market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the oil and gas logistics segments based on the transportation type.
“The market is currently witnessing a trend where shippers prefer contract logistics providers that offer a one-stop solution and avoid the tediousness associated with outsourcing different tasks to different vendors. Companies outsource these logistics services to contract logistics service providers because they are more specialized in providing these services. In addition, through outsourcing these services, users of contract logistics are able to serve their customers more efficiently,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
During 2015, the pipeline segment was the dominant shareholder in the global market for oil and gas logistics by accounting for a market share of around 66%. Pipelines are a widely used method to move petroleum and refined petroleum products. This includes both long distance inter and intra-state transmissions systems. For delivery into common carrier transmission systems, it also includes local or regional gathering systems, which aggregate production for delivery.
The key vendors in the global oil and gas logistics market include Agility, BDP, Deutsche Post DHL, DB Schenker, Kuehne+Nagel, and Neovia Logistics. The market is fragmented and localized with several establishments supplying to each logistics sub-segment. It comprises of both large and small players but is largely dominated by small and medium enterprises (SMEs). However, many companies are entering into mergers and acquiring companies, leading to consolidation in the market. Competition is increasing, and as a result, many vendors are seeking to gain an edge by adapting to the changing market landscape.
A more detailed analysis is available in the Technavio report, Global Oil and Gas Logistics Market 2016-2020.
