Digital Oilfield Solutions Market

Digital Oilfield Solutions Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Digital Oilfield Solutions Market grew at a CAGR of 5.8% between 2017-2021 and is estimated to be US$ 29,746.5 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 6.3% and is expected to reach a valuation of US$  54,798.5 Mn by 2032 end.

The oil and gas market has witnessed exponential growth due to increased demand for crude and natural gas. The escalating need to maximize the production capacity after mature wells and the surging return on investment in the oil and gas industry is anticipated to propel sales in this market. In addition, the vital need to lower the capital and operating expenditures subject to the utilization of smart systems and digitalized solutions is probable to drive the market.

Market Dynamic

RISE IN INVESTMENT IN THE OIL & GAS INDUSTRY

Digital oilfields adopt life cycle theories that let businesses make the most of their limited resources. The oil and gas industry’s integrated operations in “smart fields” use operational technology and information technology to improve Rol by advancing decision-making and enhancing operational performance.

It increases operational productivity, lowers the total cost of ownership, and decreases downtime. Data collection across the entire upstream activities is accomplished using tools and processes in the digital oilfield. Data from every stage of the oil and gas value chain is quickly collected and examined in real-time by operational and information technology.

LACK OF QUALITY INFORMATION, DATA RETRIEVAL, AND ANALYSIS HAMPER THE MARKET GROWTH

The demand for operational digital oilfield solutions is cumulative due to the inadequate fuel supply in the market. Yet, many challenges and constraints hamper the oil industry’s adoption of new and improved technologies. Collecting real-time data and its productive analysis is one of the main hurdles in this market.

Large amounts of data can be condensed through predictive analytics, increasing their value. However, it is essential to understand how to make the information cross-functional to provide useful insights into assets.

THE RISE IN ULTRA-DEEP-WATER DISCOVERIES PROJECTS WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

The deepwater exploration and production activities of the oil and gas industry are going through a phase of technological advancements in survey technology, as well as the commercial viability of the projects. Oil companies can increase recovery and increase production thanks to current promotions. A new company program called GeDlg allows multiple teams across Petrobras to collaborate remotely through remote command centers equipped with internet technology, allowing connectivity between groups without a physical presence in different areas or time zones.

Market Segments Covered in Report

By Component:

• Hardware
• Software
• Services

By Domain:

• Automation solutions
• Instrumentation

By End Use:

• Upstream
• Midstream
• Downstream

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why is the market for digital oilfield solutions for hardware booming?

The hardware segment will likely dominate the digital oilfield solutions market in terms of share over the forthcoming years. The growing demand for process automation managers, Distributed Control Systems (DCS), Programmable Logic controllers (PLC), and human-machine interaction instruments to transfer data and monitor offshore. Onshore fields are anticipated to fuel the growth of this segment.

Why are Automation Solutions Dominating projected to ensure the most revenue during the forecast period?

The automation solutions segment was the largest revenue-generating segment, accounting for over 60.0% of the market. The growth in oilfield automation solutions has been seen due to the accumulative usage of distributed control systems, smart wells, and security systems to evaluate real-time data. Furthermore, various oil and gas companies strive to develop unique products to automate the overall process without harming the environment.

Why is the upstream segment expected to expand the fastest during the forecast period?

In 2021, The surge in the use of digital oilfield solutions was expected to boost the growth of the upstream segment over the forecast period. Technological advancements such as hybrid convoys and storage tanks are anticipated to augment the demand for these systems. Additionally, population growth, changing lifestyles due to technological advances, and green initiatives will contribute to the development of this segment.

Furthermore, increasing investments in shale exploration, enhanced oil recovery (EOR) techniques, drilling for tight gas wells, and the quest for deepwater oil deposits are likely to drive industry growth.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• The North American digital oilfield solutions market is expected to account for approximately 31.8% of the share in 2022. The partial upgradation of the existing technological solutions to accomplish and optimize oil and gas operations is set to spur the market in the U.S. On the other hand, many companies are redecorating several oil and gas platforms in the offshore sector by integrating machine learning and AI solutions, which desired also propel the request for digital oilfield solutions in this country.
• The U.K. government has included digital oilfield solutions in the scope of its Oil and Gas Technologies Fund. This country’s rising crude oil production is anticipated to drive demand for digital oilfield solutions. Furthermore, it is projected that the U.K. Continental Shelf exploration activities are expected to create growth opportunities in the country over the forecast period.

Competition Analysis

Most regional and international companies in the market for digital oilfield solutions are concentrating on creating cutting-edge goods and technology to serve the oil and gas industry better. Some of the other major firms are supplying full toolkits of hardware and software for carrying out a wide range of operations, from production to the transportation of oil and gas.

Some of the key developments that have taken place in the Digital Oilfield Solutions Market include:

• In July 2021, Kognitwin Energy, a cutting-edge digital twin solution from Kongsberg Digital, will be used by Norske Shell, a British multinational oil and gas firm. A virtual image of the company’s Ormen Lange deepwater gas field is what it intends to create. This would aid the business in integrating Ormen Lange into the onshore digital twin made at the Nyhamna gas processing facility.
• In November 2021, Leading U.S.-based oil and gas company, OspreyData unveiled its cutting-edge OspreyData Vision platform, which can be used on all mobile devices. It would make it possible for lease operators, experts in artificial lifts, and production engineers to work at the “Virtual Control Center,” giving them access to crucial operational data and facilitating problem-solving from practically anywhere.

A list of some of the key suppliers present in the market are:

• ABB
• Emerson Electric Co.
• Rockwell Automation, Inc.
• General Electric
• Siemens AG
• Schneider Electric
• Eaton
• Honeywell International, Inc.

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.