"Actionable Insights to Fuel Your Growth"
The global digital oilfield market size was USD 24.88 billion in 2019 and is projected to reach USD 29.82 billion by 2027, exhibiting a CAGR of 5.04% during the forecast period.
Rapidly growing demand for oil, gas, and other petroleum products from the developing economies, along with increasing efforts to mitigate the production cost, will positively influence the market. Exploring discoveries of high potential conventional and unconventional reserves in various formations are projected to augment the industry growth.
The digital technology includes a wide range of equipment & functions deployed in different upstream, downstream, and midstream stages to enhance the operational efficiency of oil & gas processes. The technology adopted by oilfield companies to achieve a blend of benefits such as improve recovery, optimize resources, reduce rig downtime, and various other benefits to ensure flexible and reliable operations. The system is a set of hardware, software, and services to deliver smart solutions for analyzing, integrating, and processing data. Development of distant onshore & offshore wells drilling at numerous depth levels, along with rising efforts to increase monetary returns by the assets, has catered to the adoption of advanced oilfield technology in various regions.
COVID-19: Significant Downfall in Exploration Activities
Amid increasing concern over COVID-19, many industries across the globe, such as automotive, aviation, power, manufacturing, and transportation, are experiencing a negative impact on their businesses. Manufacturing activities are generally considered essential activities for construction, industrialization, and power industry globally and have been mostly exempted from the lockdown measures. The spread of COVID-19 poses a significant threat to the global market owing to restrictions on transportation, industrial, and commercial operation. The companies across regions have also suspended major oil & gas projects. Furthermore, the COVID-19 pandemic has also impacted crude oil prices, well drilling, production activities, and the supply chain of oil and gas dramatically.
Request a Free sample to learn more about this report.
Increasing Focus Toward Operational Management to Favor Market Growth
Growing focus on operational management and decline in operating and capital expenses has influenced the adoption of intelligent digitized devices, services, and solutions. The significant development in wireless mobility, technologies, data analysis, and data collection platforms has enhanced decision making and operational performance in the oil & gas industry. The production optimization process drives intelligent decisions, effective measurement, analysis, and modeling. The significant development in technology and an increasing focus on optimizing operational management has resulted in the discovery of untapped oil fields.
Rising Need for Efficient Production to Boost the Global Market
The growing initiatives to integrate efficient production techniques and escalate production yields from mature wells in different regions will propel industry revenue in the forthcoming years. Digital oilfield techniques are an integral part of effective planning, producing, and exploration of oil & gas wells and thereby, can substantially increase the production through statistical and analytical tools & software.
Upgradation of Technology in Existing Tools and Adoption of Novel Technologies will Drive the Market
Increasing focus on improving the existing equipment and developing more efficient and advanced tools of hardware, software, and services, are anticipated to shape the market. Major players are witnessing progress with innovative solutions to optimize capital investments, improve asset tracing, enrich fast data interpretations, and reduce operational risk, in turn, accelerating the technology demand and need for advancement in oilfields.
Delay in the Decision Making Process by Deploying Various Analytic Tools to Impede Growth
The collection of real-time data and productive analysis is time-consuming, which is one of the primary restraints for the oilfield market. It is tough to collate large informative data and to deliver it as information for wellheads in the market. A suitable experienced and proficient skilled workforce is essential for collecting and analyzing the data. Key players in the oil & gas industry are focused on exploring discoveries by tapping the potential with precise and accurate data. Hence, analytical tools adopted for exploring and defining the potential of wellheads are time-consuming methods and techniques. Thus, delay in decision-making processes owing to analytical tools restraints the market growth in the projected time frame.
To know how our report can help streamline your business, Speak to Analyst
Production Optimization to Possess a Dominant Share
Based on the process, this market is segmented into production optimization, reservoir optimization, drilling optimization, and others. The production optimization process is estimated to hold the largest portion over the market during the forecast timeframe. It includes various processes such as modeling, measuring, analyzing, and prioritizing functions to enhance a well or reservoir's overall productivity.
The production optimization process includes various actions such as maintaining well integrity, efficient designing of surface facilities, removal of near-wellbore damage, sand control management, and among other activities to yield maximum outcome. The reservoir optimization technique is projected to witness a substantial growth owing to its increasing adoption to assess normal as well as complex reservoirs with higher accuracy. Precise reservoir data efficiently helps to analyze the actual wellbore behavior and mitigate damage rates. The drilling optimization process is adopted across the globe owing to its ability to reduce operating costs, increase drilling speed, decrease rig downtime, and improved health, safety, and environment (HSE) conditions.
Increasing Focus from Gas Operating Firms on Services Solution to have a Positive Market Outlook
Based on the solution, this market is segmented into services, software, and hardware. The services segment is estimated to have a significant growth in the industry owing to the availability of established and large consulting firms with expertise in technical knowhow to deliver assistance on demand for digital oilfield management services. Increasing advancement in technology to develop new artificial intelligence and other data storage solutions is set to influence the software solution segment positively. The hardware segment is estimated and expected to grow considerably during the forecast period due to significant research & development activities to build advanced hardware equipment and solutions such as Supervisory Control and Data Acquisition (SCADA), Distributed Control Systems (DCS), and among others.
Increasing New Discoveries in Onshore Application Projects a Leading Digital Oilfield Share
Based on the application, the global market is broadly categorized into onshore and offshore. The onshore segment is anticipated to lead and dominate the market size due to the accessibility of large capacity reservoirs on land in conventional and unconventional reserves. Additionally, discoveries of oil, gas, and shale reserves, along with production from mature wells, will positively escalate the segment market dynamics. Offshore application is projected to witness significant growth due to complex drilling, production, and completion, along with the increasing need to handle multiple types of equipment, which are very risky and challenging when operated manually.
Geographically, the global digital oilfield market has been studied across five major regions, which are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North America is projected to maintain the highest share and grow substantially over the forecast period. Technological giants such as Halliburton, Baker Hughes, Schlumberger, and various others are consistently working on new technologies, which helps to favor the North America market outlook. The United States and Canada are the leading countries operating in North America for advancements in technology across the region.
Increasing production & exploration activities to cater to the growing energy demand is projected to boost the Asia Pacific market. Developing economies such as India, China, and South Korea are continuously facing an increase in the overall energy need to suffice the industrial, commercial, and automobile demand. Countries from the Southeast Asian region, which includes Thailand, Indonesia, Malaysia, and Myanmar, have witnessed an abrupt increase in production & exploration activities coupled with discoveries of oil & gas reserves. For instance, In February 2019, Repsol, a global energy company, had announced the largest gas discovery in Indonesia, which holds an estimation of over 2 trillion cubic feet (TCF) of recoverable resources.
Europe's market for digital oilfields is estimated to grow substantially over the forecast period. Increasing onshore and offshore activities in different countries, and growing demand for digitalization in the oil & gas industry will augment the industry outlook, thus creating growth opportunities for the market. The United Kingdom and Norway hold a huge potential for the production and development of hydrocarbons. Furthermore, Russia is experiencing a large investment from E&P operations in different assets, coupled with bulk new oil & gas discoveries, which will shape the outline of regional technology demand. Other major countries operating in the region are Germany and France, which hold significant potential, positively impacting the market size in the projected time frame.
The Middle East and Africa holds substantial market potential for untapped capacity for hydrocarbon development along with non-complex formations to effectively drill the wells, which drive the digital oilfields market growth in the coming years. Countries in Middle East & Africa, which include UAE, Saudi Arabia, Kuwait, Bahrain, and among other countries, are the members of the Organization of the Petroleum Exporting Countries (OPEC), thereby focused on attaining the production targets set by the organization. Other prominent countries engaged in the market across the region are Oman, Algeria, Qatar, and Nigeria.
Market Players Such as Schlumberger, Halliburton, and Weatherford are Adopting Advanced Technologies to Shape the Competitive Landscape
Various regional and international players are consistently working upon developing advanced digital oilfield technologies and featured products for application in the oil & gas industry. Major companies are focused on undergoing different mergers & acquisitions, product development, and JV's to strengthen their position in a competitive environment. Key players are also focused on delivering a complete set of hardware and software tools to efficiently carry out numerous tasks across all oil & gas development & transportation phases. For instance, in November 2019, Weatherford had introduced digital wellhead flow-measurement technology which provides precise flow measurements for any fluid mixture without separation.
An Infographic Representation of Digital Oilfield Market
To get information on various segments, share your queries with us
Growing need to increase the production from aged wells and adoption of advanced technology and to improve the existing set of tools are major factors driving the growth of the market. Along with this, the digital oilfield market research report provides an elaborative analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail digital oilfield industry trends, competitive landscape and company profiles.
To gain extensive insights into the market, Request for Customization
Value (USD Billion)
Fortune Business Insights says that the global digital oilfield market size was USD 24.88 billion in 2019 and is projected to reach USD 29.82 billion by 2027.
Growing at a CAGR of 5.04%, the market will exhibit steady growth in the forecast period (2020-2027).
In 2019, the North America market value stood at USD 8.20 billion.
The production optimization segment is anticipated to be the leading segment in this market during the forecast period.
The increasing need for efficient production from aged wells and high adoption of new techniques & tools are major factors driving the growth of the market.
Schlumberger, Halliburton, Weatherford, Siemens, IBM, Microsoft, Baker Hughes, and Rockwell Automation are major players operating in the global market.
North America dominated the market share in 2019.
Digital technologies are used to increase productivity, reduce costs, and minimize overall risks in oil and gas operations. It combines the business process management, engineering expertise with advanced information technology to streamline the execution of tasks in the oil & gas industry more efficiently.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry