The market for digital oilfields is mostly driven by the rising trend of digitalization across a number of industries, including oil and gas. The demand for digital oilfields has greatly increased as a result of the surge in demand for oil and oil derivatives across many industries as well as the potentially hazardous working environment in the oil & gas industry. Moreover, digital approaches are being employed to increase oil recovery while many oilfields are saturated. End-user industries are adopting cutting-edge technology including reservoir optimization and well testing facilities. An surge in exploration activities that are finding new oilfields is another factor driving the sector.
The market for digital oilfield will be significantly impacted by the recession. Even if it is projected that price inflation will decrease in 2023, a rise in interest rates will unquestionably result in a major slowdown in the rate of economic growth. Global inflation will drop from 8.8% in 2022 to 6.5% in 2019, according to IMF forecasts. Inflation is only expected to fall by 8.1% in 2023, which will provide less reassurance to developing economies. For a while, power and raw materials will be expensive.
Oil and Gas Industry's Transition to Digitization will Accelerate Market Expansion
The oil and gas industry is changing as a result of digital technology, which is further fueled by real-time data, cloud computing, and virtual reality. By fusing process management with digital technologies, digital oilfields have been developed to revamp oil and gas systems and enable complete optimization throughout the supply chain. Additionally, implementing digital oilfields aids oil and gas companies in their shift to greener business practises. Predictive analytics and artificial intelligence, for instance, can assist organisations discover oil leaks after or even before they happen, minimising various losses. Oil and gas companies may automate maintenance and manage equipment more effectively while fostering innovation by investing in digital oilfield technologies.
Delay in Decision Making with the Use of Different Analytical Techniques to Limit Market Growth
One of the main obstacles for the oilfield sector is the time-consuming nature of real-time data collecting and useful analysis. It is challenging to compile extensive instructive data and present it as market-relevant information for wellheads. The collection and analysis of the data require a professional personnel with the appropriate experience and knowledge. The oil and gas industry's major players are concentrating on making new discoveries by utilising the potential of precise and reliable data. As a result, the analytical instruments used to investigate and define the potential of wellheads are laborious processes. This means that the market expansion in the anticipated time frame is constrained by the delay in decision-making processes caused by analytical tools.
Based on solution, the digital oilfield market is segmented into hardware solution, software & service solution and data storage solutions. The software & service solution category dominated the market in 2022 due to the availability of well-established, sizable consulting businesses with the technological know-how to provide support for digital oilfield management services on demand. The software & service solution segment is expected to benefit from rising technological advancements in the creation of new artificial intelligence systems and other data storage solutions.
Based on process, the digital oilfield market is segmented into production optimization, drilling optimization, reservoir optimization, safety management and others. The production optimization category dominated the market in 2022 due to the rising demand for dependable and effective technologies that can aid operators in boosting the efficiency of their operating processes. Increasing investments in data collecting, mapping, and analytics skills as well as a stronger emphasis on environmental sustainability are additional variables that contribute to this.
Based on application, the digital oilfield market is segmented into onshore and offshore. The onshore category dominated the market in 2022 because both conventional and unconventional deposits have significant capacity on-land reservoirs that are accessible. Moreover, production from mature wells and the discovery of oil, gas, and shale reserves would enhance the segment market dynamics. On the other hand, offshore applications are expected to develop significantly as a result of complicated drilling, production, and finishing processes as well as the growing requirement to manage a variety of equipment types, which is extremely dangerous and difficult to do manually.
North America is projected to hold the largest share of the digital oilfield market over the forecast period. The market expansion in this region is being driven by improvements in technical solutions to improve optimization and administration of the oilfield operations. The market expansion is anticipated to be aided by the rising energy demand and technologically sophisticated solutions from the digital oilfield industry. Additionally, it is anticipated that increased government and private sector investment in the upstream oilfield sector will accelerate the adoption of new technology. On the other hand, the Asia Pacific digital oilfield market is anticipated to grow significantly. Large oilfields in the area and an increase in the usage of digital solutions there are credited with the region's growth. Furthermore, the region's digital oilfield market is anticipated to rise as a result of rising industrialization and rising investment in the oil and gas sectors in developing nations like China and India.
LIST OF KEY COMPANIES PROFILED:
- Rockwell Automation
- National oil Varco
- Baker Hugh
- Weatherford international
- In August 2019, DecisionSpace 365, a cloud-based E&P programme from Halliburton, features scalable earth modelling, real-time control at the edge, data foundation, and comprehensive asset simulation. Operators may enhance reservoir characterisation, lower exploration risk, and increase drilling effectiveness with the use of these cloud applications.
|Market Size in 2022||USD 24.2 Billion|
|Market Forecast in 2030||USD 33.2 Billion|
|Compound Annual Growth Rate||5.40 %|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Solution, By Process, By Application and By Geography|