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Oil and gas industry spending on EHS software heads for $454 million

Monday, September 19, 2022

• Nearly a third of global spending on EHS software is in oil and gas sector, Verdantix report says
• Global spending on EHS software will reach $2.7 billion by 2027

Spending on environment, health, and safety (EHS) software is heading for $454 million this year in the oil and gas industry and will continue to grow as the switch to renewable energy continues, a new report from Verdantix says (please see the attached press release).

The report from the leading independent research and advisory firm says the sector's transformation driven by a transition to green energy backed by regulatory support will increase spending on environmental management and ESG software.

The oil and gas industry has suffered two highly turbulent years following the pricing volatility due to supply chain instability between Saudi Arabia and Russia in March 2020 and uncertainty over the long-term repercussions of Russia's invasion of Ukraine, Verdantix says.

Its Market Size and Forecast: EHS Software 2022 -2027 (Global) report estimates the oil and gas sector makes up 29% of the global market which it forecasts will expand to $1.57 billion this year and continue to grow at around 11.9% a year to reach $2.7 billion by 2027.

Growth is being achieved despite fears of worldwide recession and economic uncertainty given the impact of the Russian invasion of Ukraine, spiralling costs of goods and rising inflation and interest rates, Verdantix says.

The chemicals industry will account for $169 million of global EHS software spend this year followed by mining and metals on $132 million. The high-risk nature of chemicals, mining and metals means there is more spending on mobile apps, integrated IoT devices and consolidated EHS management platforms.

Industries that pose very high EHS risks - oil and gas, chemical manufacturing, and mining and metals - will remain the largest spenders on EHS software in 2027, accounting for 48% of the global market, at $1.33 billion, Verdantix estimates.

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