North America Digital Oilfield Market – Industry Trends and Forecast to 2029

North America Digital Oilfield Market Analysis and Size

Although the rising ongoing advancement toward wireless technologies, data analysis, mobility, and collection platforms, rising E&P activities across on-shore and off-shore sectors fuelled by ongoing oil price recovery, continuous declining production from conventional wells coupled with a growing inclination toward devising an economic well recovery process, the rising deployment of enhanced oil recovery systems along with the rising number of mature gas fields across the Middle East are the major factors, among others expected to drive the North America digital oilfield market.

However, rising delays in the decision-making process by deploying various analytic tools and rising cyber security threats are the major factors that may restrain engaging new digital talent and rising interoperability of multiple system components from different solution providers.

Data Bridge Market Research analyses that the North America digital oilfield market is expected to reach the value of USD 14,543.91 million by 2029, at a CAGR of 7.6% during the forecast period. The North America digital oilfield market report also covers pricing analysis, patent analysis, and technological advancements in depth.     

Market Definition

Digital oilfield is defined as the automation of upstream, midstream, and downstream oilfield activities. It is a part of the energy industry that has incorporated advanced software and data analysis techniques into its operations to provide enhanced outputs and improve the profitability of the production process. They offer advantages such as optimized production rate of hydrocarbons, improved safety, environmental protection, and ease in finding reserves and exploiting them to the fullest. Digital oilfield is about sensors and screens installed on an oil and gas field. Integrating business processes with digital technologies and automating workflows is a concept. It allows a company to reduce human interference and minimize the risks associated with oil and gas operations. The flow of data and information is rapidly integrated with the analysis interface, allowing timely and best decisions for the operation.

North America Digital Oilfield Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:

Drivers

• Advent of digitization in the oil and gas sector across the region

Digitalization is becoming increasingly evident, and digital technology is transforming the oil and gas sector, further driven by real-time data, cloud computing, and digital worlds. Digital oilfields have been designed to overhaul oil and gas systems and enable full optimization throughout the supply chain by combining process management with digital technologies. Furthermore, adopting digital oilfields helps oil and gas businesses transition into greener practices. For instance, artificial intelligence and predictive analytics can help identify oil spills after or even before they occur, which helps companies to minimize various damages. By investing in digital oilfield technologies, oil and gas operators can automate maintenance and manage equipment more efficiently while continuing to drive innovation.

• Rising penetration of emerging technologies such as artificial intelligence (AI) and IoT

Technology plays an important role in the growth of every business, and also it helps organizations to improve the quality and work speed by supporting and enhancing operations. Companies are adopting big data analytics techniques in their businesses to improve operations and ease facility performance. Disruptive technologies such as artificial intelligence (AI) and the Internet of Things (IoT) are driving digital transformation across the North America digital oilfield market, thereby increasing efficiency, safety, and sustainability.

Opportunities

• Increase in exploration operations in uncharted off-shore/ultra-deep-waters

The rise in the consumption of oil and petroleum products across the globe has been highly uncertain over the past two decades. The uncertainty depicts the demand and supply of petroleum and oil products, which drives oil and gas production or extraction of new oil wells. Moreover, oil companies are surveying oilfields to understand the adoption of digital solutions to increase production capacity. Some companies, such as ABB and CGG, are involved in exploring new off-shore and on-shore oilfields. Nowadays, 70% of the world's oil and gas is extracted from on-shore sites, and the rest 30% is extracted from off-shore oilfields. Thus, exploration of the on-shore oilfield is more and has been very common, and most companies have explored the majority of on-shore oilfields.

Restraints/Challenges

• Increase in cyber security threats due to digital initiatives

Oil and gas companies rely on highly connected data and control systems to facilitate exploration, drilling, and system monitoring and to optimize production from on-shore and off-shore resources. As their dependence on IT technology has grown, the vulnerability to cyberattacks has also increased in the past few years.

The rise of the digital oilfield has left oil and gas companies increasingly dependent on data to sustain production. As these technologies become widespread, the cyber risk for the oil and gas industry has continued to rise.

• Interoperability of multiple system components from different solution providers

Digital oilfield systems are gaining importance in the oil and gas industry due to effective monitoring, supervisory capabilities, and remote control. This digital system or technology integrates oil and gas assets such as pipelines, wells, machinery equipment, and many others. Different vendors offer a wide range of digital oilfield solutions, including SCADA software, computers, wireless sensors, robotics, cloud computing, configuration software, and many others.

Companies in the oil and gas industry usually consider the best and most cost-effective digital solutions, irrespective of vendors and suppliers. However, such decisions are made especially according to the requirement, which dominates the standardization of products based on the requirement, which seems very challenging. Numerous digital solutions are adopted in the industry, creating the need for proper and easy integration techniques. Moreover, the customer-oriented solutions will be a constraint to adding any hardware or software offering.

Post COVID-19 Impact on North America Digital Oilfield Market

COVID-19 negatively impacted the North America digital oilfield market due to lockdown regulations and rules at oilfield facilities.

The COVID-19 pandemic has impacted the North America digital oilfield market to an extent negative manner. However, the rise in demand for well-intervention services and operational digital oilfield solutions has helped the market to grow after the pandemic. Also, the growth has been high since the market opened after COVID-19. It is expected that there will be considerable growth in the sector owing to the rise of immersive technology and cloud-based digital oilfields solution.

Solution providers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology in the digital oilfield. With this, the companies will bring advanced technologies to the market. In addition, government initiatives for the use of automation technology have led to the market's growth

Recent Developments

• In September 2022, IBM Corporation partnered with Saudi Data, the AI Authority (SDAIA), and the Ministry of Energy to accelerate sustainability initiatives in Saudi Arabia using artificial intelligence. This partnership will help the company to drive digitalization in the oil and gas industry and accelerate revenue growth
• In April 2021, Microsoft announced the partnership with Ambyint to provide oil and gas exploration and production solutions to optimize rod lift and plunger lift wells. This partnership will help the company leverage the solutions and software to transform oil fields, attract customers toward digitalization, and accelerate revenue growth

North America Digital Oilfield Market Scope

North America digital oilfield market is segmented based on offering, process, technology, and application. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Offering

• Software
• Services
• Hardware

On the basis of offering, the North America digital oilfield market is segmented into software, services, and hardware.

Process

• Production Optimization
• Reservoir Optimization
• Drilling Optimization
• Safety Management
• Others

On the basis of process, the North America digital oilfield market has been segmented into production optimization, reservoir optimization, drilling optimization, safety management, and others.

Technology

• IoT & Mobile Devices
• AI & Advance Analytics
• Cloud Computing
• Robotics
• Others

On the basis of technology, the North America digital oilfield market has been segmented into IoT & mobile devices, AI & advance analytics, cloud computing, robotics, and others.

Application

• On-Shore
• Off-Shore

On the basis of application, the North America digital oilfield market is segmented into on-shore, off-shore.

North America Digital Oilfield Market Regional Analysis/Insights

North America digital oilfield market is analysed, and market size insights and trends are provided by country, offering, process, technology, and application as referenced above.

Countries covered in the North America digital oilfield market report are the U.S., Canada, and Mexico. The U.S. is expected to dominate the North American region as it is home to many tech giants worldwide.

The country section of the report also provides individual market-impacting factors and market regulation changes that impact the market's current and future trends. Data points like downstream and upstream value chain analysis, technical trends and porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North American brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and North America Digital Oilfield Market Share Analysis

The North America digital oilfield market competitive landscape provides details by the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the North America digital oilfield market.

Some of the major players operating in the North America digital oilfield market are Baker Hughes Company, IBM Corporation, Microsoft, Rockwell Automation, Inc., Halliburton Energy Services, Inc., CGG, Schlumberger Limited, Redline Communications, Osperity, Emerson Electric Co., Siemens AG., ABB, Honeywell International Inc., NOV Inc., OleumTech, Petrolink., Weatherford, Katalyst Data Management, Digi International Inc., Kongsberg Digital (a subsidiary of KONGSBERG), among others.

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