Energy Industry Becoming More Progressive in Big Data and Analytics; Spend Expected to Reach $21 Billion by 2019

Oyster Bay, New York - 04 Aug 2014

New market forecasts from ABI Research show that spending on big data and analytics in the energy industry will amount to US$7 billion in 2014, representing over 15% of the overall cross-industry spending. In 2019, the spending on energy analytics will exceed $21 billion, following a CAGR of 25%.

As a sector, energy has traditionally been very conservative in adopting new forms of IT, but the resistance to change has already started softening. Principal analyst Aapo Markkanen comments, “Greater shareholder pressure is pushing many energy groups to improve their returns after having it easy in the past. In such a highly asset-intensive field, huge cost savings are possible by making the operations more driven by data. Analytics allow the early movers to gain a critical competitive advantage over laggards, in a field where competing by the end product is seldom an option.”

In 2014, 63% of the spending is expected within upstream operations, where big data is bound to revolutionize the exploration and production of resources. Meanwhile, the downstream accounts for 31% of the total, reflecting the growing use of data in refining and the smart grid. Finally, the midstream represents 6% of the sum, spent mostly on optimizing logistics.

Practice director Dan Shey concludes, “Energy is an industry that has expensive problems, but can afford premium solutions. For instance, in the core analytics part of the value chain, newer suppliers like Ayata and Ayasdi are pushing the state of the art when it comes to modernizing the upstream. But there are also opportunities for entrants tackling other parts of the value chain. Rethinking data storage to accommodate the growing influx of sensor data is one example. In this domain, pay attention to likes of Infobright, SpaceCurve, and TempoIQ as innovators.”

These findings are from ABI Research’s “Big Data and Analytics in Energy Industry” study, which is part of the firm’s Internet of Everything Market Research.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media: Interview an Analyst

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670