The Digital Oilfield Solutions Market is projected to reach $41.7 billion by 2030, at a CAGR of 7.6% during the forecast period 2024–2030. The growing need to increase production from mature oilfields and technological advancements in the oil & gas industry drive the growth of this market. The growing demand for offshore/ultra-deepwater discoveries is expected to generate market growth opportunities. However, data retrieval and analysis and the scarcity of quality information hamper decision-making processes, restraining the growth of this market.
Technological Advancements in the Oil & Gas Industry to Drive the Digital Oilfield Solutions Market
Digital technologies are helping industries, including oil & gas, enhance operations. Advancements in technologies, the reducing costs of digitalization, and the connectivity of smart devices are improving the capabilities of oil & gas companies. Increased productivity, shorter response and intervention times, cost savings, safer operations, asset integrity, and sustainable resource treatment are some of the benefits of digital technologies for oil & gas companies.
Furthermore, with increasing price and demand volatility, the oil & gas industry is facing significant pressure to restructure older operating models and strive for greater efficiencies and resilience. Reducing costs and carbon emissions while improving asset reliability and availability has become imperative for companies seeking to grow and remain competitive. Organizations are recognizing digitalization as a key enabler in realizing these goals. Advancements in core technologies, including data analytics, artificial intelligence (AI), cloud computing, and blockchain, are unlocking possibilities for process optimization, automation and simplification, asset tracking, and data management in the oil & gas industry. Oil & gas companies are investing and partnering with technology companies to develop analytics platforms, improve energy efficiency, and identify major infrastructure risks. Some of the key recent developments in this market are as follows:
- In March 2024, Hess Corporation (U.S.) selected Halliburton Landmark’s DecisionSpace 365 Well Construction applications powered by iEnergy® Hybrid Cloud to plan, design, and construct safe, cost-effective, and productive wells.
- In January 2022, oilfield services company Petrofac Limited (U.K.) announced securing a five-year contract extension for well management and well operator services with NEO Energy (U.K.). Under the contract, the company will provide a five-year framework for well management and well operator support for 27 wells across the Affleck, Balloch, Dumbarton, Lochranza, and Finlaggan fields located in the Central North Sea, U.K.
- In December 2021, Weatherford (U.S.) announced that it was awarded a three-year digital oilfield contract by Kuwait Oil Company (KOC) (Kuwait) to support KOC’s digital transformation strategy in the North Kuwait Heavy Oilfield by deploying its Integrated Enterprise Excellence Platform across KOC.
- In June 2021, Halliburton (U.S.) was awarded a contract by state-owned upstream operator Kuwait Oil Company (KOC) to implement digital transformation solutions to optimize operational efficiency and increase production.
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Key Findings in the Digital Oilfield Solutions Market Study:
The Software Segment to Dominate the Digital Oilfield Solutions Market in 2024
Based on offering, the digital oilfield solutions market is segmented into hardware, software, and services. In 2024, the software segment is expected to account for the largest share of the digital oilfield solutions market. The segment’s large share is attributed to oil & gas companies’ rising need to streamline processes, increase productivity, ensure shorter response and intervention times, increase cost savings, improve operational safety and asset integrity, and ensure sustainable resource treatment.
The Reservoir Optimization Segment to Record the Highest CAGR During the Forecast Period
Based on process, the digital oilfield solutions market is segmented into production optimization, drilling optimization, reservoir optimization, safety management, and other processes. In 2024, the production optimization segment is expected to account for the largest share of the digital oilfield solutions market. However, the reservoir optimization segment is expected to record the highest CAGR during the forecast period. The high growth of this segment is driven by oil & gas companies’ increasing need to assess normal as well as complex reservoirs with higher accuracy.
The IoT Segment to Dominate the Digital Oilfield Solutions Market in 2024
Based on technology, the digital oilfield solutions market is segmented into IoT, artificial intelligence, big data analytics, cloud computing, cybersecurity, blockchain, and other technologies. In 2024, the IoT segment is expected to account for the largest share of the digital oilfield solutions market, mainly due to oil & gas companies’ rising need to optimize production and consumption processes, reduce wastage, enhance efficiency, gain real-time visibility into operations, enable predictive maintenance, and improve hazard management.
According to Birlasoft, the implementation of digital technologies such as IoT potentially increases revenues by up to 1.2%. Progressive companies are investing in IoT to create more intelligent business models.
The Onshore Segment to Dominate the Digital Oilfield Solutions Market in 2024
Based on application, the digital oilfield solutions market is segmented into onshore and offshore. In 2024, the onshore segment is expected to account for the larger share of the digital oilfield solutions market. The large share of this segment is attributed to the accessibility of large-capacity reservoirs on land in conventional and unconventional reserves. Additionally, discoveries of oil, gas, and shale reserves, and production from mature wells, are expected to support the growth of this segment.
Asia-Pacific to Witness the Fastest Growth
Based on geography, the digital oilfield solutions market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the digital oilfield solutions market. The region has some of the largest petroleum reserves in the world, enabling oil & gas companies to use digitalization techniques to enhance production efficiency. The oil & gas industry in this region is growing; hence, many mature oilfields are expected to become digitalized over the coming years.
However, Asia-Pacific is slated to register the highest CAGR during the forecast period. The growth of this regional market is driven by the advent of digitization in the oil & gas sector across the region, the increasing penetration of emerging technologies such as artificial intelligence (AI) and IoT, rising investments in Industry 4.0, and increasing exploration operations in uncharted offshore/ultra-deep waters.
Key Players
The key players operating in the digital oilfield solutions market are Schlumberger (U.S.), Halliburton (U.S.), Rockwell Automation (U.S.), NOV Inc. (U.S.), ABB Ltd. (Switzerland), Siemens (Germany), Schneider Electric (France), Baker Hughes Company (U.S.), Weatherford (U.S.), Infosys Limited (India), Emerson Electric Co. (U.S.), Honeywell International Inc. (U.S.), IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), and KONGSBERG (Norway).
Scope of the Report:
Digital Oilfield Solutions Market Assessment, by Offering
- Hardware
- Software
- Services
Digital Oilfield Solutions Market Assessment, by Process
- Production Optimization
- Drilling Optimization
- Reservoir Optimization
- Safety Management
- Other Processes
Digital Oilfield Solutions Market Assessment, by Technology
Digital Oilfield Solutions Market Assessment, by Application
Digital Oilfield Solutions Market Assessment, by Geography
- North America
- Europe
- U.K.
- Germany
- France
- Italy
- Spain
- Switzerland
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia & New Zealand
- Singapore
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- Israel
- UAE
- Rest of the Middle East & Africa
Key Questions Answered in the Report:
