The demand for oil and gas is continuously increasing with the expansion of industries and the transportation sector. Major oil and gas extractors are continuously exploring new fields around the world in the search of fossil fuel reservoirs. Due to which demand for logistic services in this sector is in huge demand. The logistics in the oil and gas sectors refers to the transport of machinery, raw fuels, and refined products to the end-users. With the advancement of logistic solutions, demand for logistics is expected to spur in the oil and gas industry.
The growing use of smart technologies in logistic services is primarily contributing to the growth of the market. Smart technologies such as fleet management software, connecting logistics, high safety concerns, and penetration of IoT in logistic services are collectively accountable for the increasing demand for logistic services in the oil and gas sectors. In addition, increasing exploration of new oil & gas reservoirs and increasing demand for fuels in remote areas also driving the growth of the market. Increasing oil and gas exploration in emerging countries is expected to provide excellent growth opportunities to the global oil and gas logistic market.
The global oil and gas logistic market is classified based on type, application, and region. Upstream, midstream, and downstream are the major types of oil and gas logistics. The major application of logistics in oil and gas involve onshore and offshore fields. With the increasing need for transportation of refined products, logistic services are majorly needed in the downstream process, which is ultimately expected to spur the growth of the segment over the forecast period.
Among the regions, Asia Pacific is expected to be the highest revenue generator in the global oil and gas logistic market during the forecast period. Growing investments in oil and gas industries in emerging countries such as India and China are majorly contributing to the high share of the market in the region. North America and Europe are also expected to generate significant revenue for the global oil and gas logistic market.
To ascertain the business growth, key players in the market are continuously focusing on the adoption of newer technologies to ensure the safety and timely delivery of the goods. Most prominent players in the global oil and gas logistic market are ASCO, Agility Project Logistics Inc, BDP International, Gulf Agency Company Ltd, Kuehne Nagel Company, DB Schenker, Crown Logistics, A.Hartrodt GmbH, SGS Logistics, Bollore Africa Logistics Ltd., SDV International Logistics, and Neovia Logistics among others.
Key development: In June 2021, Bolloré Logistics, ranking has taken a significant leap forward in the Nordics with the acquisition of a majority stake in the Swedish company Global Freight Solutions AB and its Finnish affiliate.