Global Digital Oilfield Market, By Offering (Software, Hardware, and Services), Process (Production Optimization, Reservoir Optimization, Drilling Optimization, Safety Management, and Others), Technology (IoT & Mobile Devices, AI & Advance Analytics, Cloud Computing, Robotics, and Others), Application (On-Shore and Off-Shore) - Industry Trends and Forecast to 2029.
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 global 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 global digital oilfield market is expected to reach a value of USD 41,654.30 million by 2029, at a CAGR of 7.2% during the forecast period. The global digital oilfield market report also comprehensively covers pricing, patent, and technological advancements.
2022 to 2029
2020 (Customisable to 2019-2014)
Revenue in USD Million, Pricing in USD
By Offering (Software, Hardware, and Services), Process (Production Optimization, Reservoir Optimization, Drilling Optimization, Safety Management, and Others), Technology (IoT & Mobile Devices, AI & Advance Analytics, Cloud Computing, Robotics, and Others), Application (On-Shore and Off-Shore)
U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, the Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, South Africa, Egypt, Israel, U.A.E and Rest of the Middle East and Africa
Market Players Covered
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., OleumTech, NOV Inc., Petrolink., Weatherford, Katalyst Data Management, Digi International Inc., Kongsberg Digital (a subsidiary of KONGSBERG), among others
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.
Global 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:
- 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 global oil and gas automation market, thereby increasing efficiency, safety, and sustainability.
- 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 globally. 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.
- 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 Global Digital Oilfield Market
COVID-19 created a negative impact on the global digital oilfield market due to lockdown regulations and rules at oilfield facilities.
The COVID-19 pandemic has impacted the global digital oilfield market to an extent a 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, and 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 involved 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
- 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
Global Digital Oilfield Market Scope
The global 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.
On the basis of offering, the global digital oilfield market is segmented into software, services, and hardware.
- Production Optimization
- Reservoir Optimization
- Drilling Optimization
- Safety Management
On the basis of process, the global digital oilfield market has been segmented into production optimization, reservoir optimization, drilling optimization, safety management, and others.
- IoT & Mobile Devices
- AI & Advance Analytics
- Cloud Computing
On the basis of technology, the global digital oilfield market has been segmented into IoT & mobile devices, AI & advance analytics, cloud computing, robotics, and others.
On the basis of application, the global digital oilfield market is segmented into on-shore, off-shore.
Global Digital Oilfield Market Regional Analysis/Insights
The global digital oilfield market is analysed, and market size insights and trends are provided by country, offering, process, technology, and application, as referenced above.
Some countries covered in the global digital oilfield market report are the U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, the Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, South Africa, Egypt, Israel, U.A.E and Rest of the Middle East and Africa.
North America is expected to dominate the global digital oilfield market owing to the increasing adoption of industrial IoT, especially in the oil and gas sector. The U.S. is anticipated to dominate in the North American region as it is home to many tech giants worldwide. Germany may dominate in the Europe region due to increasing oil demand and automation in the industry. China is expected to dominate in the Asia-Pacific region due to heavy investment in the marine digitalization of the oil and gas industry.
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, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global 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 Global Digital Oilfield Market Share Analysis
The global 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, global 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 global digital oilfield market.
Some of the major players operating in the global 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., OleumTech, NOV Inc., Petrolink., Weatherford, Katalyst Data Management, Digi International Inc., Kongsberg Digital (a subsidiary of KONGSBERG), among others.