The global digital oilfield solutions market is projected to attain a valuation of USD 39.63 billion in 2023 and is expected to reach USD 65.4 billion by 2033, trailing a CAGR of 5.1% during the forecast period.
The rising need to maximize the production capacity from mature wells and the surging return on investment (RoI) in the oil and gas industry is anticipated to propel sales in this market. In addition, the urgent need to lower the capital and operating expenses subject to the utilization of smart systems and digitalized solutions is likely to drive the market.
Ongoing advancements in data collection, mobility, and analysis platforms are set to improve the overall performance and management of oil and gas platforms. Further, the rapid shift of countries toward devising a robust economic well recovery process, coupled with the declining production of oil and gas from conventional wells, might also affect the market positively.
Future Market Insights predict a comparison and review study for the dynamics and trends of the digital oilfield solutions market, which is primarily impacted by ongoing developments in data collecting, mobility, and analytic platforms. These are further expected to improve the overall performance and management of oil and gas platforms.
The market might benefit from the change in growth rates that occurs in numerous nations affected by the development of a strong economic growth outlook paired with growth impacted by oil and gas output from conventional wells.
According to FMI analysis, the change in BPS values observed in the market for digital oilfield solutions for the current estimation for the first half of 2023 as compared to the projected one for the same period is expected to be at a 17-unit increase. In comparison to H1-2022, the market is predicted to rise by 40 basis points in H1-2023 as per the current estimates.
The oil and gas sector had a period of tremendous expansion, notably in the field of deep-sea exploration and production technologies, which is one of the main justifications for this change in growth rate. Furthermore, many oil companies are attempting to boost output and enhance recovery. Further use of cutting-edge technologies like AI, ML, IoT, and automation in the oil and gas sector is anticipated to accelerate growth rates.
There are still significant barriers preventing industry expansion, including lengthy execution times, inefficient workflows, and change management at all levels. Additionally, because of continuous geopolitical concerns, changes in the price of crude oil and a shift toward sustainability are the main market restraints.
| Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 39.63 billion |
| Anticipated Forecast Value (2033) | USD 65.4 billion |
| Projected Growth Rate (2023 to 2033) | CAGR 5.1% |
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The digital oilfield solutions market is expected to register a 5.1% CAGR between 2023 and 2033, up from a 3.9% CAGR recorded from 2018 to 2022.
The oil and gas sector is undergoing a phase of advancements, especially in the field of exploration technology for deep water production and exploration activities. Also, many oil companies are striving to enhance recovery and boost production.
Additionally, these companies are investing increasingly in remote monitoring solutions and command centers to help geoscientists, engineers, and operation specialists to work from any part of the world, thereby eliminating the need to visit the oilfields.
Oil companies are developing innovative solutions, such as smart alarms, sensors, actuating devices, and reservoir monitoring control systems to enhance reservoir expansion. For instance,
The engagement of key players in collaborations is likely to aid in connecting the well sites with numerous critical systems for streamlining large data sets, which might drive the market.
Digital oilfield solutions can enhance the operational performance and decision-making process, thereby improving the RoI. It can also reduce the Total Cost of Ownership (TCO) and downtime, as well as bolster the productivity of operations. Therefore, the oil and gas industry worldwide is expected to develop novel plans to increase their investments in digital technologies to double their cost savings.
Most of the companies in this industry are likely to look for solutions to reduce non-productive time, aid recovery rates, and cut down the cost-per-barrel for surging returns. In December 2021, for instance,
The development of such technologies in the forthcoming years is projected to accelerate growth and open doors to new opportunities for key players.
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The ongoing upgradation of the existing technological solutions to manage and optimize oil and gas operations is set to spur the market in the United States in the assessment period. As per FMI, North America’s digital oilfield solutions market is expected to account for around 25.6% of the share in 2023. The market in this region is expected to thrive at a CAGR of 5.3% during the forecast period.
The rising domestic production and the increasing number of oilfield discoveries are expected to transform the business landscape in the United States. On the other hand, many companies are refurbishing numerous oil and gas platforms in the offshore sector by integrating machine learning and AI solutions, which might also propel the demand for digital oilfield solutions in this country.
The high demand for energy owing to a paradigm shift toward technologically advanced solutions is estimated to drive the segment. In January 2020, Baker Hughes, one of the world's largest oil field services companies, for instance, stated that the average rig count in the United States was 804 in December 2019. This number is likely to surge in the upcoming years, thereby bolstering the market.
The surging numbers of new field development and exploration activities are projected to create growth opportunities in the United Kingdom over the forecast period. Also, the demand for digital oilfield solutions in the United Kingdom is expected to rise with a CAGR of 4.8% during the forecast period. Western Europe’s digital oilfield solutions market is predicted to account for around 23.2% of the share in 2023, estimates FMI.
According to the United Kingdom government, in 2020, the country’s refineries took receipt of 8.6 million tons of crude oil produced from the United Kingdom Continental Shelf (UKCS), which helped in meeting 18% of refinery demand. Hence, the rising production of crude oil in this country is anticipated to drive the demand for digital oilfield solutions in the future.
The ongoing development of smart oil fields to optimize the overall operation and management is likely to propel the market in China. The market in this region is expected to capture a CAGR of 5% during the forecast period. South East Asia (SEA) & Pacific digital oilfield solutions market is projected to generate about 12% of the share in 2023, predicts FMI.
In October 2021, for instance, China National Offshore Oil Corp, one of the largest national oil companies in the country, started operating Qinhuangdao 32-6 smart oilfield. It is going to help to make offshore gas and oil production intelligent and digital through AI, big data, IoT, and cloud computing.
At the same time, it could also reduce maintenance costs by 5-10% and raise production efficiency by 30%. Such industry developments by leading players are estimated to push the demand for digital oilfield solutions in China.
Based on component, the hardware segment is likely to dominate the digital oilfield solutions market in terms of share over the forthcoming years. Additionally, the demand from this segment is expected to rise with a CAGR of 5.6% during the forecast period.
Moreover, the increasing demand for process automation managers, Distributed Control Systems (DCS), Programmable Logic Controllers (PLC), and human-machine interaction instruments to transfer data and monitor offshore and onshore fields is anticipated to drive the growth of this segment.
The urgent need to reduce manual intervention and non-productive time is likely to bolster the growth of the hardware segment. At the same time, the rising focus of manufacturers on the enhancement or upgradation of the existing equipment, as well as the introduction of efficient hardware solutions might also fuel the growth.
In terms of domain, the automation solutions segment is projected to remain at the forefront by generating a significant estimated share of 64% in 2023 in the digital oilfield solutions market. This growth is attributable to the increasing usage of distributed control systems, smart wells, and security systems to evaluate real-time data, as well as to improve production efficiency.
Various oil and gas companies are striving to come up with unique products to automate the overall process without harming the environment. In June 2021, for instance, Beyond Oil, a food-tech company based in Israel launched its new blockchain-powered platform named Solar Oil Project.
It could help in recycling abandoned wells for the production of oil, thereby eliminating a trillion-dollar ecological hazard. Such innovations by key players are likely to propel the growth of this segment in the forthcoming years.
By end use, the upstream segment is expected to account for around 43% of the global digital oilfield solutions market in 2023, finds FMI. The segment is expected to generate growth with a CAGR of 6.2% during the forecast period. Further, the surging demand for light and sweet crude oil owing to its extensive usage in the production of gasoline is likely to bolster the growth of this segment.
The increasing discovery of shale, oil, and gas reserves, as well as the production from mature wells, might escalate the growth of this segment in the forecast period. Besides, governments of numerous countries, especially developing ones, are planning to invest huge sums for accelerating production in the upstream sector. For instance,
The IEA mentioned that every country must invest in the upstream sector amid the rapid shift of governments toward a sustainable future. Spurred by the aforementioned factors, the upstream segment is anticipated to expand at a notable pace.
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Start-ups play a vital role in recognizing growth opportunities and driving industry expansion. Their efficiency in converting inputs into outputs and adapting to volatile market conditions is valuable. In the digital oilfield solutions market, several start-ups are engaged in manufacturing and providing related services.
The market for digital oilfield solutions is characterized by intense competition, as notable industry players are making significant investments to enhance their manufacturing capabilities. The key industry players working in the market are ABB, Emerson Electric Co., Rockwell Automation, Inc., General Electric, Siemens AG, Schneider Electric, Eaton, and Honeywell International, Inc.
Recent Developments in the Digital Oilfield Solutions Market
| Attribute | Details |
|---|---|
| Market Value in 2023 | USD 39.63 billion |
| Market Value in 2033 | USD 65.4 billion |
| Growth Rate | CAGR of 5.1% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By component, By domain, By end-use, By region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East and Africa |
| Key Countries Profiled | The United States of America, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, South Africa, Israel |
| Key Companies Profiled | ABB; Emerson Electric Co.; Rockwell Automation, Inc.; General Electric; Siemens AG; Schneider Electric; Eaton; Honeywell International, Inc. |
| Customization | Available Upon Request |
The market in 2023 is valued at USD 39.63 billion.
By 2033, the market will reach USD 65.4 billion.
The market will expand at a 5.1% CAGR through 2033.
From 2018 to 2022, the market rose at a 3.9% CAGR.
In 2023, the United States accounts for 25.6% revenue.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Hardware 5.2. Software 5.3. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Domain 6.1. Automation solutions 6.2. Instrumentation 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Upstream 7.2. Midstream 7.3. Downstream 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. ABB 18.2. Emerson Electric Co. 18.3. Rockwell Automation, Inc. 18.4. General Electric 18.5. Siemens AG 18.6. Schneider Electric 18.7. Eaton 18.8. Honeywell International, Inc. 18.9. Schlumberger 18.10. Halliburton 19. Assumptions & Acronyms Used 20. Research Methodology
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Digital Oilfield Solutions Market
