How Servitization is Fueling Change in the Oil and Gas Industry

The concept of servitization is not a new phenomenon. The term was formally defined in the 1980s, but its essence— bundling service packages with products to add value— goes back several decades earlier. Recently, servitization has come to the fore as a shaping force in the oil and gas industry. For companies looking to add innovative service and asset management capabilities to their offerings, the benefits are straightforward.

Adding service has been found to result in:

  • 10% annual increase in service revenue
  • Maintenance cost reductions of 25–30%
  • Reduction of CO2 emissions by 10-15%

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