Digital Oilfield Market
Digital Oilfield Market - Global Industry Assessment & Forecast
- By Solutions Hardware Solutions, Software & Service Solutions, Data Storage Solutions
- By Process Production Optimization, Drilling Optimization, Safty Management, Other Processes
- By Applications Onshore, Offshore
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
|Forecast Years:||2023 - 2030|
|Historical Years:||2017 - 2021|
|Revenue 2022:||USD 25.44 Billion|
|Revenue 2030:||USD 40.57 Billion|
|Revenue CAGR (2023 - 2030):||6.00%|
|Fastest Growing Region (2023 - 2030)||Asia Pacific|
|Largest Region (2022):||North America|
- Cross-segment Market Size and Analysis for Mentioned Segments
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- Additional Countries (Apart From Mentioned Countries)
- Country/Region-specific Report
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- Region Specific Market Dynamics
- Region Level Market Share
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The Global Digital Oilfield Market is valued at USD 25.44 Billion in 2022 and is projected to reach a value of USD 40.57 Billion by 2030 at a CAGR of 6.00% over the forecast period.
Digital Oilfield Markets are booming as more and more oil and gas companies begin to utilize digital tools in their operations. This has led to an increase in demand for Digital Oilfield services, which in turn is boosting the growth of Digital Oilfield Market players. One of the main drivers of the Digital Oilfield Market is the increasing trend of companies moving away from manual processes and towards automated ones. This shift has made using digital tools essential for a company’s operations, especially regarding resources such as data and information. In addition, technological advancements have allowed companies to analyze data and make informed decisions quickly. Another key factor behind the growth of the Digital Oilfield Market is businesses' increasing use of artificial intelligence (AI). AI can quickly process large quantities of data and identify patterns that would otherwise be difficult or impossible to find. This can help companies save time and money while improving their operations overall. In terms of investment, venture capitalists are pouring money into Digital Oilfield startups at a rapid pace. This indicates that this sector has a high potential for growth, which will only fuel the adoption of digital tools by companies throughout the industry. The Digital Oilfield Market is the fastest-growing sector in the oil and gas industry. For years, producers have been looking for ways to improve their production processes and reduce costs. One of the most promising new technologies is exploring for and extracting oil and gas from geologically tricky or remote deposits. To reach these difficult-to-reach areas, producers need high-tech equipment, such as helicopters and drones, which can be expensive to buy and operate. Many firms have turned to Digital Oilfield exploration tools to drive down these costs to help them manage their resources more efficiently. This growing industry has created several opportunities for companies focusing on Digital Oilfield exploration tools. For example, firms that offer mapping and information services can help producers navigate their resources more efficiently. Software developers who create technological innovations that make extraction more efficient can also benefit from this market trend.
Digital Oilfield services benefit from a rapidly expanding global economy, fueling the demand for these services. Rapid economic growth in developed countries and emerging markets leads to increased investment in new technologies, including Digital Oilfield services. Increased investment by energy companies in new capabilities, such as drilling and production techniques, analytics and data management, and machine learning, contributes to the growth of Digital Oilfield services. Several factors, including rising demand for oil and gas resources and increasing efficiencies in the oil and gas exploration and extraction process, drive growth in the Digital Oilfield Market. The benefits of using digital tools for exploration and production – such as reduced time to find reserves and improved safety – drive this market growth. There is a growing demand for enhanced oil recovery (EOR) techniques and services in the Digital Oilfield Market. Companies are looking to increase production from existing wells and find new ways to exploit marginal fields. EOR technologies help recover more oil and gas from difficult-to-reach reservoirs. In addition, drilling technologies, computer modeling, and chemical synthesis advancements have allowed greater well placement and formation stimulation precision. This has led to increased demand for applied injectivity downhole processing (ADP), which helps refine oil during its extraction from the ground. Moreover, as unconventional drilling becomes more commonplace, companies seek novel methods of recovering crude oil and shale gas resources. This is attributed to the rising demand for mobile apps, data management platforms, and digital workplace solutions among oil and gas companies.
Digital Oilfield Market Size, 2022 To 2030 (USD Billion)
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Additionally, fundamental advancements in machine learning fuel the growth of artificial intelligence (AI) in the oilfield sector. Factors such as these create an enabling environment for adopting digital platforms across various industries. Organizations in the oilfield sector are increasingly turning to digitized tools to streamline operations and improve decision-making. To date, most digital platforms have been used by large corporations. However, this is beginning to change as smaller firms adopt digital technologies to compete with larger counterparts. Entrepreneurs who operate small businesses in the oilfield sector find that they can benefit significantly from using digital platforms for marketing and recruitment. These firms can use online channels to reach a wider audience more easily than traditional methods such as print advertisements or radio broadcasts.
Additionally, online tools offer opportunities for deeper customer connections that can result in higher sales volumes. Digital platforms are also being employed by independent exploration companies as well as venture capitalists investigating new oil and gas projects. For example, virtual reality (VR) technology has become increasingly popular among explorers looking for ways to visualize potential drilling locations before making investment decisions. Several startups specialize in providing exclusive access to corporate partners through digital platforms.
This growth is due in part to advancements in technology and regulatory changes that bolster the safety and efficiency of oil production operations. However, some key restraints on this market keep it from reaching its full potential. Despite significant technological advances, drilling operations still rely on manual processes such as spudding and tubing. As a result, most Digital Oilfield projects still need to be licensed and registered, hampering their growth potential. The Digital Oilfield Market needs to be more cohesive across various geographies and technologies, making it difficult for companies to move quickly from idea to execution. This lack of interoperability hampers market competition and innovation. These restraints have created a window of opportunity for new entrants exploring new ways to tap into this growing market. Innovative technologies like artificial intelligence (AI) can help companies automate redundant processes to focus on higher-value activities like exploration and production.
Top Market trends
● One example of this is the use of data analytics. By gathering information about a well's performance over time, companies can make better decisions about drilling and maintaining their resources. This trend has led to developing new software platforms that allow operators to monitor drilling and production processes in real-time.
● Additionally, new drilling techniques are being developed that use lasers and other remote sensing tools to map subsurface conditions. These systems allow operators to identify potential oil or gas sources before drilling begins.
● One such technology is 3D seismic imaging. This technique enables operators to map subterranean deposits better and assess their resource potential. This information can then be used to make better drilling decisions and improve field operations overall.
● Another key trend in the Digital Oilfield Market is the growing use of drones for land surveys and exploration. These unmanned vehicles are cheaper and more efficient than traditional methods, making them a popular choice for operators seeking lower investment costs.
● In addition, mobile app developments are helping to speed up processes across the entire oilfield lifecycle. This includes data collection and decision-making, allowing operators to adapt to changing conditions on the ground quickly.
The market is segmented based on Solution, Process, Application, and Region. Based on Solution, the market is segmented into Hardware Solutions, Software & Service Solutions, and Data Storage Solutions. Based on Process, the market is segmented into Production Optimization, Drilling Optimization, Safty Management, and Others. Based on Application, the market is segmented into Onshore and Offshore.
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Based on Solution
The hardware solutions dominated the market in 2021 owing to their high adoption rates and low-price points across geographies. This was primarily because these platforms address the major challenges faced by pipeline operators – timely data acquisition, managing complex data sets, and reducing efficiency costs. Additionally, software offerings have been gaining traction over the last couple of years owing to increasing demand from oilfield service providers for real-time analytics tools that can monitor production operations. This explosive growth in the software segment is expected to germinate more innovation in this market over the coming years as vendors strive to differentiate their offerings and tap into specific customer needs. For instance, startups are focusing on developing artificial intelligence (AI) tools that can autonomously identify problems before they become big issues, thereby averting costly downtime. In addition, mobile devices are increasingly being used to collect data remotely, fueling demand for apps that simplify operator data entry.
Based on Process
The production optimization segment dominated the market, accounting for 63% of total revenue. This was primarily due to the increasing demand for efficient and reliable technologies that can help operators improve their operational efficiency. Other factors contributing to this include increasing investments in data acquisition, mapping, and analytics capabilities and an increased focus on environmental sustainability. The production optimization segment dominated the market compared to drilling optimization and safety management. Live processing significantly impacted this market's growth, owing to its ability to improve efficiencies and optimize procedures. The core products offered by the leading companies in this market are process mapping, process optimization, process control, instrumentation, and software development. These products improve production through improved fluid movement, enhanced safety, and optimize equipment utilization.
Based on Application
Offshore segments dominate the Digital Oilfield Market compared to onshore segments. This is because offshore platforms and installations are more permanent and reliable and offer better exploration prospects. Additionally, offshore installations tend to be situated in deeper waters, making them easier to access and allowing for better drilling operations. Technology and satellite imagery have also made it possible to explore oilfields even in deep-sea areas. Onshore segments, on the other hand, dominate in countries with abundant natural resources, such as the US. These installations are more affordable than offshore ones and can be built relatively quickly. However, they may not offer as good exploration prospects due to their smaller size and lack of permanence.
Based on Region
Europe held the largest market share in the Digital Oilfield Market in 2021 and is expected to maintain its supremacy over the next five years. Asia Pacific is projected to be the fastest-growing region during the said period. Several reasons are responsible for this growth, including increasing adoption of remote sensing technologies, increasing investment in unconventional oil and gas reserves, and rising infrastructure requirements. Russia was the fastest-growing country in the Digital Oilfield Market with a CAGR of 36%. The major contributors to this growth include an increase in government spending on energy projects and the development of innovative technology solutions. North America holds the second-largest market share with a CAGR of 18%. The region is expected to grow due to increasing demand from emerging countries such as China and Brazil. Several factors are responsible for growth in Digital Oilfield Markets. These include increasing adoption of remote sensing technologies, increasing investment in unconventional oil and gas reserves, and rising infrastructure requirements. Remote Sensing helps accurately identify reservoirs buried beneath the earth’s surface by using signals transmitted through electromagnetic waves that can penetrate deep into the ground. Enhanced Oil Recovery (EOR) techniques can be employed when deploying sensors for 3D imaging. When employed along with directional drilling, these sensors help extract heavy crude oils and liquids from difficult reservoirs below rock formations.
The key players in the Global Digital Oilfield Market include- Schlumberger (US), Halliburton (US), Rockwell Automation (US), National Oil Varco (US), ABB Ltd. (Switzerland), Siemens (Germany), Schneider (France), Baker Hugh (US), Weatherford International (US), Infosys (India) and others.
Recent Market Developments
● In December of 2021, Weatherford International PLC made public its receipt of a Digital Oilfield contract from the Kuwait Oil Company, which would last for three years. In a press release, Petrofac revealed that they would continue working with Neo Energy past their contract's original January 2022 end date. It will function for 27 wells throughout the United Kingdom's many regions.
● Leading U.S.-based oil and natural gas firm OspreyData unveiled its cutting-edge OspreyData Vision platform in November 2021, making it accessible from any mobile device. Lease operators, artificial lift technicians, and production engineers might all sit at the 'Virtual Control Center,' giving them access to crucial operating information and facilitating problem-solving from almost anywhere.
● Kongsberg Digital's innovative digital twin solution, Kognitwin Energy, was adopted by Norske Shell, a British multinational oil and gas firm, in July 2021. The company aims to create a digital version of its Ormen Lange deep sea gas field. Incorporating Ormen Lange into the onshore digital twin already created at the Nyhamna gas processing complex will greatly benefit the corporation.
Segmentation of the Global Digital Oilfield Market
|Regions & Countries Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|
Frequently Asked Question
What is the global demand for Digital Oilfield in terms of revenue?
The global Digital Oilfield valued at USD 25.44 Billion in 2022 and is expected to reach USD 40.57 Billion in 2030 growing at a CAGR of 6.00%.
Which are the prominent players in the market?
The prominent players in the market are Schlumberger (US), Halliburton (US), Rockwell Automation (US), National Oil Varco (US), ABB Ltd. (Switzerland), Siemens (Germany), Schneider (France), Baker Hugh (US), Weatherford International (US), Infosys (India).
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 6.00% between 2023 and 2030.
What are the driving factors fueling the growth of the market.
The driving factors of the Digital Oilfield include
- Increase in investments towards digital technologies in the oil & gas industry
Which region accounted for the largest share in the market?
North America was the leading regional segment of the Digital Oilfield in 2022.