Digital Oilfield Market

Global Digital Oilfield Market Size (2024-2029):

The Global Digital Oilfield Market is estimated at US$ 26.66 billion in 2023 and is projected to reach a valuation of US$ 36.98 billion by 2029 from US$ 28.16 billion in 2024. The market is predicted to register a CAGR of 5.60% during the forecast period 2024-2029.

MARKET SCENARIO

New technological advancements, increased need from oil & gas operators to rescale production, and increased concentration on the remote management of oil fields for process optimization & automation are expected to be the major factors that are boosting the digital oilfield market. The digital technology includes a wide range of equipment & functions deployed in several upstream, downstream, and midstream stages to reinforce the operational efficiency of oil & gas processes. The technology adopted by oilfield companies attains a blend of benefits like improved recovery, optimizing resources, reduced rig downtime, and various other benefits to ensure flexible and reliable operations. Development of distant onshore & onshore wells drilling at numerous depth levels, alongside rising efforts to extend monetary returns by the assets, has catered to the adoption of advanced oilfield technology in various regions.

MARKET DRIVERS

The growing initiatives to integrate efficient production techniques and escalate production yields from mature wells in several regions will propel industry revenue within the forthcoming years.

Digital oilfield techniques are an integral part of effective planning, production, and exploration of oil & gas wells and, thereby, can substantially increase production through statistical and analytical tools & software. Increasing concentration on improving the present equipment and developing more efficient and advanced tools of hardware, software, and services, are anticipated to shape the digital oilfield market. Prominent players are witnessing developments with innovative solutions to reduce capital investments, enrich fast data interpretations, and reduce operational risk, improve asset tracing, in turn accelerating the technology demand and need for advancement in oilfields.

MARKET RESTRAINTS

The collection of real-time data and productive analysis is time-consuming, which is one of the first restraints for the digital oilfield market.

It's tough to collate large informative data and deliver it as information for wellheads within the market. An appropriate experienced, proficient, skilled workforce is crucial for collecting and analyzing the info. Key players within 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, delays in decision-making processes due to analytical tools restrain the digital oilfield market growth within the projected time frame.

MARKET OPPORTUNITIES

Technological advancements in smart fields like IoT, seismic imaging, AI, and ML are boosting the oil & gas industry. Data received from connected devices and sensors provide real-time insights, which may help them in maintenance, planning, and operation optimization. Using digital technology within the oil & gas industries helps operators reduce costs and improve efficiencies by making faster decisions and increasing workforce productivity.

IMPACT OF THE COVID-19 PANDEMIC ON THE GLOBAL DIGITAL OILFIELD MARKET

Amid increasing concern over COVID-19, many industries across the world, like 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 the power industry globally and are mostly exempted from lockdown measures. The spread of COVID-19 poses a big threat to the global digital oilfield market due to restrictions on transportation, industrial, and commercial operations. Businesses 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.

DIGITAL OILFIELD MARKET REPORT COVERAGE:

SEGMENTAL ANALYSIS

Global Digital Oilfield Market Analysis By Solutions

• Hardware 
• Software & Service
• Data Storage Solutions

Global Digital Oilfield Market Analysis By Processes

• Reservoir
• Production
• Drilling Optimizations

Based on Process, the digital oilfield market is segmented into Safety Management, Reservoir Optimization, Production Optimization, Drilling Optimization, and others. Production Optimization holds the most important market share because the major oil and gas suppliers worldwide have increased their production activities to reinforce their respective oil outputs.

Global Digital Oilfield Market Analysis By Application

• Onshore 
• Offshore

The complexity in deepwater drilling, alongside the increasing adoption of digital oilfield techniques in regions like the Middle East and North America, where the maximum share of the oilfield is present in the onshore segment, and this factor is anticipated to boost the segment of onshore. Thus, the increasing production activities in these regions and, therefore, the reduction of non-productive time is predicted to drive the onshore segment at the very best rate during the forecast period.

REGIONAL ANALYSIS

• Europe
• Asia Pacific
• North America
• Latin America
• The Middle East and Africa

The largest share of the digital oilfield market is going to be dominated by the Middle East, followed by North America and the Asia Pacific. The region consists of some of the biggest petroleum reserves in the world. Middle East covers major oil & gas producing countries like Saudi Arabia, Kuwait, the UAE, Iraq, and Iran. Also, they have some of the most important petroleum reserves in the world. The national companies still increase their production output despite the decline in profit margins.

MARKET KEY PLAYERS

1. Schlumberger (Texas, US) 
2. Halliburton (Texas, US) 
3. Weatherford (Texas, US) 
4. Siemens (Munich, Germany) 
5. Osprey Informatics (Calgary, Canada) 
6. IBM (Armonk, New York.) 
7. Digi International (Minnesota, US) 
8. Microsoft (Washington, US) Baker Hughes (Texas, US) 
9. Kongsberg Digital (Asker, Norway) 
10. Rockwell Automation (Wisconsin, US)

MARKET RECENT DEVELOPMENTS

• In March 2020, Weatherford introduced Centro to manage complex well-site operations digitally and effectively. Centro enables advanced domain viewing and live analytics and makes consolidated data available in real-time.
• In February 2020, Schlumberger announced the Egypt Upstream Gateway (EUG), a singular and innovative project in partnership with the Egyptian Ministry of Petroleum to digitize subsurface information and deliver a digital subsurface platform to ensure the evergreenness of Egypt's subsurface data.