Trends in the Russian fuel and energy sector digitalization market

Results of 2024

In 2024, the fuel and energy complex digitalization market came to a state of confident stable growth, having managed to finally adapt to the changes that began in 2022. Investment strategies are now coming to the fore, not crisis or optimization.

Fuel and Energy Complex companies have re-evaluated their IT infrastructure and are building systems that take into account the realities and requirements of a specific fuel and energy complex facility or ecosystem of facilities. Challenges in this direction for many companies have become a priority in the formation of an IT strategy for the coming years.

In 2024, the Russian portfolio of products and services expanded, the institutions of support and coordination of digitalization processes at the level of industry segments strengthened, and the base of competencies for their implementation expanded.

2024 showed that even against the background of external restrictions, the Russian fuel and energy complex is moving forward confidently. Companies are actively switching to domestic software products - the share of such software has grown from 60% to 80% over the past few years. This not only strengthens technological sovereignty, but also stimulates the development of local IT platforms, providing jobs and new competencies for specialists.

Market changes in 2024

The market went through the phase of primary turbulence in 2022 and the stage of active search for alternative solutions in 2023. The business has demonstrated a significant evolution in understanding its needs and requirements for domestic developments. This process is characterized by the transition from spontaneous response to challenges to the systemic formation of technological independence.

One of the main strategic areas was the import substitution of technological solutions. AI, digital twins were actively introduced, data processing technologies were improved.

{{quote 'author=Fanur Sayfulmulyukov, Head of power and Housing and Communal Services of Zyfra Group | We see that energy sector companies are exploring the possibilities of existing systems and developing scenarios for their use to solve the problems of improving the quality of their own investments in the development of energy assets. }}

The primary level of "classical digitalization" is being completed at the fuel and energy complex enterprises. Key players in the oil and gas industry are looking to optimize costs with the latest digital tools amid significant changes in the economy. In this regard, IT projects for the creation of common service centers (CSCs), which include the management of business processes of large organizations, are in high demand. The desire to maximize the efficiency of the use of assets and production facilities translates into MR digitalization projects, and oil and gas companies use UAVs to monitor the condition of pipelines. They strive to increase sales in the domestic market, hence the demand for projects to optimize supply chains, commercial accounting of the movement of petroleum products, automation of the accounting and control process, assortment management and pricing.

Most energy companies in Russia invest in the creation and implementation of predictive analytics information systems to assess the technical condition of networks and equipment and early detection of developing defects. This allows you to reduce the risks of accidents and losses associated with them. To improve management efficiency, companies are implementing real-time dispatch systems.

For example, one of the acute questions about the transition to domestic solutions and an important area in digitalization among oil workers was the situational and analytical centers for the management and control of distributed facilities, as well as information and diagnostic systems for collecting and analyzing seismic data, modeling technological processes, preparing and processing well products.

System modeling of objects and networks, the creation of digital twins with integrated IoT tools ensure the deployment of object monitoring and the full transition of the fuel and energy complex to the category of Industry 4.0 enterprises with the large-scale use of automatic processes. The key point of development is the distributed monitoring of all fuel and energy complex components for instant monitoring of equipment condition and timely maintenance.

The main challenges in 2024 included a lack of qualified personnel, the need to modernize existing IT infrastructures and the difficulty of integrating new domestic solutions with outdated industrial systems.

Market Volume Estimates

The domestic market for the digitalization of the fuel and energy complex in 2023-2024. in general, followed the dynamics of the IT market, although the rate of sustainable growth, at least, was higher than the average market, and at most could be one of the highest. No wonder the fuel and energy complex is among the leaders in terms of digitalization: the modernization of the digital infrastructure is actively ongoing here, innovations are being introduced, since IT has become the main driver in improving the efficiency of industry enterprises.

According to industry analysts, the volume of investments in digital technologies in the fuel and energy complex reached ₽180-200 billion, which is due to increased demand for import-substituting solutions and the development of new technological platforms. The growth drivers were the introduction of industrial IoT solutions, the development of domestic software for technological process control, and the growing interest in artificial intelligence and predictive analytics.

In 2023, the oil and gas sector made 17% more financial investments in digital transformation, the amount amounted to ₽53 billion.

Growth in the market as a whole in 2023 could be 10-15%, especially in the IT sector for automation of production. In 2024, this trend remained, and the growth of the share of domestic software in the market became a new trend - import substitution costs increased.

In 2024, the market for software solutions for the electric power industry crossed the mark of ₽42 billion, and companies continue to enthusiastically master innovations. This is naturally reflected in the financial results, where efficiency increases by an average of 10% to EBITDA.

Investments in the cybersecurity of the industry increased by about 22-24% compared to 2023, while fully justifying the business goals for which they stood out: thanks to them, hundreds of oil and gas and generating enterprises are protected by control and data transmission systems, minimizing the risks of cyber attacks, reducing the likelihood of accidents and downtime.

The role of the state is growing

In 2023-2024, state regulation of the IT sector was focused on supporting the development of domestic software. It is possible that in the future the state policy will focus on promoting high-quality, competitive and replicated Russian IT solutions, and not only for the fuel and energy complex. Currently, the Ministry of Energy of Russia is actively working to ensure the necessary level of technological sovereignty of the country in the fuel and energy complex.

The technological transformation of the fuel and energy complex is taking place as part of the digital development strategy until 2030.^[1] In parallel with the unification of data and their processing algorithms, fuel and energy complex companies are participating in the development of national digitalization standards, which should ensure a state strategy in the field of digital transformation of the fuel and energy complex.

Evgeny Odintsov, General Director of SIGMA, recalled that one of the key measures on the part of the state to support various industries was the creation of industrial competence centers (ICCs), which are designed to promote the import substitution process in strategically important sectors of the economy. At the end of 2024, the interim results of the work of the ICC were summed up and a number of additional measures were developed aimed at creating standard industry solutions.

For the digitalization market of the electric power industry, an important event was the entry into force of the provisions of the Decree of the Government of the Russian Federation No. 890, aimed at the modernization and "intellectualization" of accounting systems.^[2] Since January 2024, the moratorium on fines for not installing smart metering devices has been lifted, and Government Decree No. 2554 of December 30, 2022 has made changes regarding liability for failure to provide or improper provision of a minimum set of functions of smart metering systems for electric energy (power).^[3] These measures accelerated the digitalization of electricity accounting in the retail market.

Domestic companies of the fuel and energy complex and state structures strive to ensure a high level of security in the face of modern cyber threats. In March 2022, a presidential decree was issued "On measures to ensure the technological independence and safety of the critical infrastructure of the Russian Federation," which significantly changed the structure of previously existing requirements.^[4] One of the points of this decree was the ban on the use of foreign software at significant objects^[5] KII with 01.01.2025.

Do not forget that 70% of KII facilities are located at fuel and energy complex enterprises. Tighter requirements for critical infrastructure protection have accelerated the implementation of monitoring, backup, and cyber defense systems. Data localization laws stimulated the development of Russian cloud platforms and data centers, which increased the reliability of industry IT systems.

Influence the processes of digital transformation in the fuel and energy complex and general market initiatives of the state. For example, the measures introduced to support domestic developers and manufacturers, as well as initiatives to create a unified data infrastructure, subsidy programs and tax and loan benefits for digitalization companies.

State initiatives in the field of business process and data management stimulate the launch of projects aimed at introducing new solutions and updating existing ones, taking into account changes in legislation. The possibility of using electronic signatures in labor relations led to the emergence of a new niche of applied software - electronic personnel electronic document management systems (EDC). Over the past two years, they have been actively implemented, including at fuel and energy complex enterprises.

{{quote 'author = Vladimir Andreev, president of Docsvision, vendor of the low-code platform Docsvision | Last year, the Docsvision-based KEDO system was put into operation at the State Unitary Enterprise "Fuel and Energy Complex of St. Petersburg," one of the leading heat and power companies in the North-West. The launch of the KEDO system made it possible to radically speed up personnel processes and unload the HR service - 9 thousand employees of the enterprise, including those working in remote units, now get acquainted with personnel documents online and sign them using the EDS. The project became the winner of the competition "The best personnel technologies of the North-Western Federal District - 2024" in the nomination "The best personnel technology of working with personnel. }}

Another project "Docsvision" became the winner of the Global CIO community competition "Project of the Year 2024" in the nomination "The best project in the fuel and energy complex." Due to the new solution, the volume and cost of legal support for the customer's claim work was reduced by 80%, and the time for issuing claims was reduced from several weeks to one minute. The economic impact of the implementation exceeded the payback indicator of the project by 10 times.

{{quote 'author = Vladimir Andreev, president of Docsvision, vendor of the low-code platform Docsvision | The IT solution based on Docsvision, developed for LUKOIL-AERO, was integrated with the accounting system of the enterprise and a specialized system for issuing documents for cargo transportation. As a result, the customer received an effective tool for monitoring the downtime of tank cars and prompt decision-making on the basis of data, automated processing, billing and accounting of claims. }}

The industry is in demand for projects to switch to new formats of electronic signatures using machine-readable powers of attorney (MCD). The development of the regulatory framework regarding the storage of electronic documents makes it possible to predict the growing interest in projects for the creation of electronic archives, including long-term storage systems.

In light of the active participation of the state in the development of Russia's energy infrastructure, information systems for comprehensive scenario modeling of the development of energy systems are promising. In this direction, the leading positions are and will be taken by the state to ensure its own tasks of regulation, control, supervision and co-financing of the development of the industry.

{{quote 'author=Leonid Tikhomirov, Managing Partner of ITPS | It is important to note the strengthening of the role of the state in stimulating the development of domestic technologies for the fuel and energy complex.}}

Import substitution progress

Despite the implemented measures that ensured accelerated migration to domestic solutions, a number of challenges remain relevant.

From the point of view of customers of replacement IT products, in comparison with the previous period, the qualitative difference between the situation in 2024 lies in the activation of industry enterprises in the direction of choosing suitable IT solutions from domestic developers.

Market participants noted the high importance of information security issues, both due to the growing importance of information technologies at production, generation, transportation, processing enterprises, and due to the growing motivation of violators in terms of organizing attacks on the country's energy infrastructure.

{{quote 'author=Alexander Shcherbakov, Sales and Business Development Director at IT company Innostage | The increased demand for information security in the power was the result of an increase in the level of digitalization of the sphere: much more IT assets and related business processes need protection from cyber threats. On the other hand, the industry has strengthened cyber defense in response to the general increase in the number and power of hacker activity on the country's enterprises, and primarily the objects of critical information infrastructure.}}

According to Federal Law No. 127, the transition to domestic software in KII facilities was set aside until January 1, 2025, and many enterprises had to plan large-scale implementations in the previous year in order to be in time for deadline.

{{quote 'author=Nikolay Maslov, analyst-designer of IT company SimbirSoft | Russian products have been actively present in the fuel and energy complex before, but now the advantage is given to the integrated import substitution of ICT infrastructure, including equipment for ensuring cybersecurity and the stability of critical infrastructure.}}

{{quote 'author=Maxim Melsitov, Development Director for Development and Implementation of Jet Infosystems Software | At the beginning of 2025, import substitution reached 75-85% in the segments of operating systems, databases and cybersecurity.}}

At the moment, it is the fuel and energy complex that is one of the most massive customers of domestic complexes for various purposes - both for monitoring and for countering cyber threats. In addition, the industry actively integrates Russian PACS into its networks and develops its own applications with the help of partner and subsidiary enterprises.

The transition to domestic software required the use of special strategies, including the integration of existing and new solutions. There was a certain centralization in the development of complex design solutions.

The experts' attention was focused on the progress of APCS, import substitution of ERP class systems is being actively discussed. Active development and implementation of domestic solutions in the field of LIMS, MES, SCADA, TORO, ERP is relevant for fuel industry companies. The transition to Russian databases and Servers OS at enterprises is almost complete. Currently, a massive transition to domestic software in virtualization systems is expected.

{{quote 'author=Alexey Menzovitny, SpaceVM Product Director of DACOM M | In terms of virtualization systems, the next two to three years we expect a massive transition to Russian solutions: by the end of the year, the share of domestic virtualization systems among Russian businesses, including the fuel and energy complex, may be about 60%.}}

{{quote 'author = Maxim Berezin, Business Development Director Orion soft | An especially active increase in the pace of import substitution in terms of virtualization - 2 times - was shown by energy companies. In petrochemical companies, the growth in the volume of software implementations for virtualization was more moderate: most of the players in the petrochemical industry have already passed the period of testing and piloting software and have now begun the implementation stage.}}

Orion soft conducted analytics of import substitution of virtualization software in companies of the fuel and energy sector included in the Forbes rating "100 largest companies in Russia by net profit." At the beginning of 2025, the zVirt system was already implemented in 43% of such companies as an internal standard. 30% actively test and choose a product, and another 27% for one reason or another did not start the import substitution process, use solutions based on Open Source or have implemented products from other vendors.

According to Vladimir Andreev, president of Docsvision, a vendor of the low-code platform Docsvision, projects for import substitution of system and application software were successfully completed at customer enterprises during the period under review. In particular, in 2024, the main area of ​ ​ work with the leading Russian petrochemical holding was the transfer of solutions based on Docsvision to an import-independent stack.

This project can be called a reference, - said the expert. - Systems based on our platform, operating at the enterprise for more than ten years, were transferred to the Russian DBMS Postgres Pro. New solutions that were developed for the customer during this period (confidential document management system and archival document storage system) were created on a technology stack that includes Linux and Postgres Pro DBMS. "

According to Victoria Reutskaya, head of the business automation department of the IT company SimbirSoft, among the problems of the direction, such phenomena as lack of investment, shortage of personnel should be noted. Import substitution distracted the resources of fuel and energy enterprises from other options and digitalization processes, believes Alexander Goltsov, General Director of AMT GROUP.

Recall that representatives of the IC "Neftegaz, Petrochemistry and Subsoil Use" reported on the current status of projects and plans for demodn on December 13, 2024. As it became known, the list of particularly significant projects to replace imported software in the oil and gas industry is on hold, some of the projects are delayed.

In 2024, there was a noticeable increase in activity in the field of business applications, data platforms and industrial management systems on the market, but so far there is a dependence on foreign solutions in the field of high-performance computing, complex industrial systems and specialized software for analyzing geological exploration data.

The wave of DDoS attacks on the fuel and energy complex at the end of 2024

As Yulia Sonina, senior analyst of audits and compliance with the requirements of the Information Security Service of the UTSB, said, by the beginning of the current heating season, in the fall of 2024, a record increase in DDoS attacks on fuel and energy complex enterprises was recorded, so the impact of attacks of this type on the digitalization of the fuel and energy complex can be significant. As a result, companies that are at the initial level of information security maturity have to face new challenges. Currently, a significant share of such companies is working to expand the arsenal of information security tools for mitigating such events.

{{quote| It was the fuel and energy complex that entered the top 5 industries most susceptible to DDoS attacks. For example, at the end of 2024, there was an increase in such attacks on the websites of fuel and energy complex companies in the Siberian, North-West and Volga federal districts, "said Nikolai Maslov, an analyst-designer of the IT company SimbirSoft.}}

Financial losses from such incidents are composed of direct costs of system recovery and indirect losses from production downtime, loss of customers and reputational risks.

DDoS attacks can pose a threat to online services that fuel and energy companies provide to their customers. For example, energy sales companies have online personal account services as one of the main channels for collecting readings and paying for electricity. DDoS attacks on them can create risks of personal data leakage and theft of funds.

Also, technological processes implemented on the basis of the architecture of the Internet of Things (IoT) may be threatened. During an active DDoS attack, IIoT devices available from the Internet may lose the ability to exchange information with databases that are the core of the system, SCADA systems may be attacked. In addition, this type of attack is often used as a distraction to carry out other attacks, such as data theft or malware injection.

Countering DDoS attacks requires significant investments in security systems such as NGFW, IDS/IPS, distributed DDoS protection systems, and backup systems and infrastructure. This threat requires a comprehensive protection approach that includes multi-layered perimeter protection, activity monitoring, and implementation of rapid recovery mechanisms for critical functions. One of the negative consequences is an increase in cybersecurity spending, which reduces the return on investment. This slows down the digital transformation of the fuel and energy complex.

Industrial Automation Level

The level of automation of industrial systems in the Russian power can be called high, but the potential amount of work to improve is still very large. If we talk in detail, then in each individual case the level is directly related to the size of the enterprise and a number of other factors, that is, it varies very much.

As Viktoriya Reutskaya, head of business automation at IT company SimbirSoft, said, large energy companies have an automation level of more than 50%, as they invest significant funds in automation and continue to optimize their processes. But companies of a regional scale lag behind the giants, often this is due to a lack of funding, a shortage of personnel.

Enterprises realize that automation and data mining help save up to 15-20% of operating costs, as well as reduce accidents. Leading companies are implementing modernization programs for existing production facilities, switching to unified control and integrated process control systems.

In the fuel part of the fuel and energy complex there are production facilities built from scratch in the last 10 years with the involvement of foreign partners, EPM contractors and vendors. They are close to what lies behind the terms "digital production" and "digital doubles."

The departure of leading foreign equipment suppliers and the partial loss of expertise in the design and implementation of modern control systems hinder success. At the moment, large centers of competence are only being formed on the Russian market, which can take on the role of the main automation contractors instead of international companies that have left the market.

The situation with highly specialized software, including within the framework of automation of industrial systems, remains not fully clarified, since here import substitution requires the entire software and hardware complex. If the company uses foreign sensors, controllers and other equipment, then it will not be possible to control it using Russian software, and, as a rule, the manufacturer writes its own software for each equipment.

However, at present, the level of automation may not be so critical for the implementation of MBV (Management By Value) management. The tasks of effective automation of production accounting, consolidation of balances and optimization of planning remain a priority.

Trends in the Electric Power Industry

In the electricity generation segment, requirements for equipment reliability and reduced operating costs are growing. The main technological problems of the electric power industry remain large in volume losses, wear of equipment, emergency shutdowns. Analysis of losses, formation of proposals for measures to reduce them, determination of equipment critical for updating or maintenance, planning of M&R measures - all these are now tasks of digitalization and new generation information systems.

For the network complex, the development of TECont and analysis of the state of the networks, tracking inefficient areas, conducting commercial and technical accounting of electricity, automation based on IoT devices, as well as the formation of a single digital network model to ensure the reliability of power supply are relevant.

In the segment of electricity sales, along with the development of intelligent accounting systems, personal accounts and mobile applications, we can note an increase in demand for the use of chatbots and other digital solutions to improve the quality and reduce the cost of customer service.

The electric power industry is undergoing a revolutionary change, especially thanks to the development of smart grids. Such networks allow you to balance loads in real time, integrate renewable energy sources and reduce transmission losses, "said Irina Kuptsova, head of backend development at IT company SimbirSoft.

The expert noted the trend towards the development of microgrids and distributed generation, which is especially important for remote regions where the reliability of power supply plays a critical role. Demand management with smart meters and IoT solutions not only reduces the load on networks, but also gives end users the freedom to choose tariffs and regulate consumption. There are unified information platforms that allow you to monitor the entire cycle in real time - from generation to the end consumer.

Shortage of personnel

According to Dmitry Kichko, Vice President of the Borlas Group for Consulting, the shortage of personnel is observed on the side of the fuel and energy complex companies. For example, to implement complex projects for implementing ERP systems within the framework of import substitution, specialists are required both with a deep understanding of business processes and their implementation in historical systems, and with the skills of project management. In connection with the personnel issue, roadmaps are optimized towards sequential launch with less load on key resources instead of parallel launch of different projects and systems.

As for IT, personnel shortages are manifested both in a lack of personnel and in an increase in the speed of "migration" from place to place in a overheated labor market. At the same time, it cannot be said that this situation has a tangible impact on the process of digitalization of the industry as a whole: most enterprises have long built relationships with both vendors and integrators - access to the expert resource of the IT market allows closing emerging holes.

IT companies are implementing mentoring and coaching programs to develop employee competencies. The main focus is on cooperation with higher education institutions, the work on the targeted training of IT specialists is increasing.

Role of BT import substitution and infrastructure investment

Digitalization is closely related to computer import substitution processes, as digital solutions require powerful and reliable hardware. The volume of data processed is constantly growing, which requires a constant increase in the performance and efficiency of the resources used. And here it is necessary to calculate the risks of late delivery of domestic equipment with the required characteristics, which, theoretically, can arise at the active phases of the implementation of resource-intensive IT solutions. However, in general, experts do not note a significant impact on the pace and content of digitalization projects from the import substitution processes of VT. ENERGY INDUSTRY

Investments in enterprise infrastructure (as well as general economic: in telecommunications infrastructure, including broadband Internet and 5G mobile networks, cloud technologies and data centers, etc.) influence the digitalization of the fuel and energy complex. The fuel and energy complex traditionally relies on its own information and computing infrastructure. At the same time, there is an opinion on the market that in 2024 there were no trends that would signal the need for a significant increase in infrastructure investment.

Notes