Digital Oilfield Market – Global Industry Analysis and Forecast (2023-2029)

Digital Oilfield Market reached a value of US $ 24.32 Bn. in 2022. Digital Oilfield Market size is estimated to grow at a CAGR of 5.14%.
Digital Oilfield Market Overview:
The term "digital oilfield" refers to a concept that blends business process management with digital technologies to automate workflows in order to increase productivity, lower costs, and reduce overall risks in oil and gas operations. The digital oilfield aims to maximize oilfield recovery, decrease non-productive time, and boost profitability through the design and deployment of integrated processes. It helps in the efficient deployment of both human and machine resources. It increases overall safety, environmental protection, hydrocarbon production rate optimization, and resource waste elimination.

It is designed to change the upstream sector by allowing the production of a digital twin, which simulates an oilfield's performance on a computer. It aims to increase the attractiveness of the oil and gas sector by combining operational and information technology, especially in a low-oil-price situation. As there are developments in technologies for sensing, automation, networking, and data analytics, the adoption of digital oilfields has increased in the last 15 years.To know about the Research Methodology :- Request Free Sample Report
Digital Oilfield Market Dynamics:
The growing demand for oil and oil derivatives across numerous industries, along with the oil and gas industry's potentially hazardous working environment, has significantly increased the demand for digital oilfields across the globe. The saturating industries are resulting in necessitating the use of digital technologies to improve oil recovery. The increasing exploration operations, which are leading to the discovery of new oilfields are expected to boost the product demand over the during the forecast period. According to report, by deployment of technology, the companies are expected to realize up to 25% savings in operating costs, around 8% higher production rates, 2%–4% lower the project costs, and nearly 6% improved resource recovery within a year.

Oil and gas companies across the globe are planning to increase their investments, especially in digital technologies, in order to increase their cost reductions. In addition, companies are scrutinising their investments more closely and searching for ways to lower cost-per-barrel, improve recovery rates, and reduce non-productive time in order to boost profits. For instance, in 2022, GE and Noble Corporation formed a cooperation to develop the world's first digital drilling vessel, with the aim of reducing operational costs by 20% across the targeted equipment and increasing drilling efficiency. This is a significant step forward in realising the enormous potential of digital technologies for offshore drilling.

The growing use of security systems, smart wells, distributed control systems, and SCADA to improve production efficiency and analyse real-time data are expected to drive demand for instrumentation and automation solutions. ABB, for example, has released a cloud-based SCADA visualisation system that allows both small and large operators to gather data on their upstream onshore assets. In addition, rising concerns about cyber security, combined with an increase in the use of wireless networks to ensure personnel safety and operational efficiency, are expected to boost the product demand across the globe.

However, fluctuating crude oil prices, combined with a growing need for other fuels, are hampering the global digital oilfield market's growth during the forecast period. In addition necessity of well trained and fully committed employee is a critical component for digital oilfield market growth.
Digital Oilfield Market Segment Analysis:
Based on the Solution, the Digital Oilfield Market is segmented into Hardware, Software, and Services.

The Hardware segment held the largest market share, accounting for 39% in 2022. The Hardware Solution further segmented into Distributed control systems (DCS), supervisory control and data acquisition (SCADA), smart wells, safety systems, wireless sensors, programmable logic controllers (PLC), computer equipment & application hardware, process automation manager, and human-machine interaction instrument. The Hardware solutions are responsible for surveillance and data transfer in both onshore and offshore fields. The increased demand to reduce non-productive time is primarily driving the market growth for this segment.

The Services segment is expected to witness a significant growth at a CAGR of 5.63% during the forecast period. The easy availability of consulting organisations with technical intellectual and expert assistance as a service provider for digital oilfield market. Increasing advancement in digital oilfield technology to develop new artificial intelligence and data storage solution are primarily driving the market growth software solution in digital oilfield market.

Based on the Application, the Digital Oilfield Market is segmented into Onshore and Offshore.

The Onshore segment held the largest market share, accounting for 80% in 2022. The segment growth is attributed to the increasing number of onshore oil and gas and matured fields. For instance, In Nov, 2022, China National Oil Company (CNOC) has planned to put 35 development wells into production, including 26 production wells and 9 water injection wells. In Oct 2022, China had produced 144.1 million barrels of oil in third quarter of 2022, showing an increase of 9.9% year-over-year. In addition, findings of new oil, gas and shale reserves are expected to boost the product demand for this segment.
Digital Oilfield Market Regional Insights:
North America region held the largest market share accounted for 37% in 2022. Advancement in technological solutions to increase optimization and management of the oilfield operations are driving the market growth for this region. The growing energy demand along with technological advanced solutions from digital oilfield industry is expected to boost the market growth. For instance, In U.S., during 2022, average number of oil rig was 944 which is 7% more as compared to 2022. In addition, the growing investment from government and private partners towards the upstream oilfield sector is expected to boost the technology adoption.

The Asia Pacific region is expected to witness significant growth at a CAGR of 5.4% during the forecast period. The region’s growth is attributed to presence of large oilfields and growing use of digital solutions in the region. In addition, the growing industrialization and increasing investment in oil & gas industries in emerging economies, such as India and China are expected to boost the digital oilfield market growth in the region.

The objective of the report is to present a comprehensive analysis of the Digital Oilfield Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Digital Oilfield Market dynamic, structure by analyzing the market segments and projecting the Digital Oilfield Market size. Clear representation of competitive analysis of key players by Process, price, financial position, product portfolio, growth strategies, and regional presence in the Digital Oilfield Market make the report investor’s guide.
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Digital Oilfield Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 24.32 Bn.


Forecast Period 2023 to 2029 CAGR:
5.14%
Market Size in 2029:
US $ 34.55 Bn.


 Segments Covered:
by Process
Reservoir
Production
Drilling Optimizations
Safety Management


by Solution
Hardware
Software
Service


by Application
Onshore
Offshore



Digital Oilfield Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Digital Oilfield Market Key Players are:
1. Emerson
2. BHGE
3. Schlumberger
4. ABB
5. Halliburton
6. Weatherford
7. National Oilwell Varco
8. Rockwell
9. Siemens
10.Honeywell
11.CGG
12.IHS Markit
13.Digi International
14.Pason
15.Kongsberg
16.Redline
17.EDG
18.Oleumtech
19.Petrolink
20.Katalyst

Frequently Asked Questions:

1] What segments are covered in the Digital Oilfield Market report?
Ans. The segments covered in the Digital Oilfield Market report are based on Process, Solution, and Application.

2] Which region is expected to hold the highest share in the Digital Oilfield Market?
Ans. The North America region is expected to hold the highest share in the Digital Oilfield Market.

3] What is the market size of the Digital Oilfield Market by 2029?
Ans. The market size of the Digital Oilfield Market by 2029 is US $ 34.55 Bn.

4] What is the forecast period for the Digital Oilfield Market?
Ans. The Forecast period for the Digital Oilfield Market is 2023-2029.

5] What was the market size of the Digital Oilfield Market in 2022?
Ans. The market size of the Digital Oilfield Market in 2022 was US $ 24.32 Bn.