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Field Electrification Market size is expected to record significant growth rate from 2023 to 2032, on account of the high awareness about the role of onshore and offshore renewables in accelerating the energy transition. As the energy sector emerges as the largest contributor to GHG emissions, grid integration with clean energy is gaining momentum. The electrification of oil and gas platforms has therefore become a major trend, contributing to industry development during the forecast period.
In recent years, key efforts have been undertaken to access offshore wind power and reduce power consumption-related emissions. A notable example is the UK’s North Sea Transition Deal, targeting a 50% reduction in emissions related to oil and gas production by 2030. Such initiatives will influence the nation to sanction expenditure on the next wave of oil field electrification projects.
Electrification refers to the process of replacing fossil fuel consumption with low-carbon electricity, which includes offshore wind, solar, or nuclear. To slow down the pace of global warming and mitigate climate change, companies and governments made commitments to reach carbon neutrality by 2050. The introduction of decarbonization projects will positively impact the field electrification market outlook over the forthcoming years.
The automotive industry is anticipated to represent new opportunities for developers of field industrial electrification solutions between 2023 and 2032, considering the emphasis on electric vehicle promotion. Over the years, semiconductor manufacturing companies have been designing efficient electrical systems for use in EVs.
Citing an instance, in November 2022, NXP Semiconductors unveiled an S32K39 series of automotive microcontrollers, designed and optimized for EV control applications. These modern MCUs were intended to take electrification into the future with high-resolution and high-speed control for increased power efficiency to ensure a smoother EV driving experience. Initiatives such as these will stimulate field electrification to ensure an uninterrupted power supply for EV charging and other automotive applications.
Europe will emerge as a lucrative revenue pocket for the field electrification market by 2032, considering the rise in oil and gas exploration projects. For example, in October 2022, the Conservative government of the UK offered nearly 100 oil and gas exploration licenses covering around 900 areas in the North Sea.
Additionally, private companies including the North Sea Transition Authority have signed deals with the UK government and secured funding to reduce offshore emissions. Such decarbonization strategies will lead to progress in offshore field electrification projects and consequently add impetus to the regional industry expansion.
To tackle the climate crisis amid global inflation, key legislations have also been passed. The Inflation Reduction Act, for example, unlocked additional transformative investments to strengthen energy security in America. Signed into law in August 2022, this legislation provided USD 369 billion to boost the consumption of clean energy solutions and promote community-scale environmental justice. With climate change becoming a top priority, government bodies have also created task forces to reach GHG emission goals. These efforts to accelerate the clean energy transition will drive electrification trends and consequently boost field electrification market dynamics over the years ahead.