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, growing at a CAGR of 5.1% during the forecast period, according to a recent study by Future Market Insights (FMI).
The demand for digital oilfield solutions is being significantly driven by the increasing need to enhance production capacity from mature wells, optimize operational efficiency, and reduce both capital and operating expenses in the oil and gas industry. With rising return on investment (RoI) expectations, oil and gas companies are turning to advanced digital technologies to maximize efficiency and profitability.
Key Market Drivers
The primary drivers behind the market growth include:
- Maximizing Production from Mature Wells: Increasing focus on enhancing output from aging oilfields, coupled with the declining production from conventional wells, is accelerating the adoption of digital oilfield solutions.
- Cost Reduction through Smart Systems: As companies seek to reduce operational costs, the integration of IoT, AI, machine learning, and automation solutions is rapidly gaining traction.
- Technological Advancements: The ongoing progress in data collection, mobility, and analytics platforms is expected to significantly improve the management of oil and gas operations, providing higher accuracy and faster decision-making capabilities.
Regional Insights
- North America: The North American market is expected to account for 25.6% of the global market share in 2023, with the U.S. leading the charge. The ongoing upgradation of technological solutions, coupled with rising domestic production and oilfield discoveries, is anticipated to spur demand for digital solutions. North America is forecasted to grow at a CAGR of 5.3%.
- United Kingdom: Western Europe, led by the U.K., is projected to hold 23.2% of the market in 2023, benefiting from an increase in new field developments and exploration activities. The U.K.’s production from the UK Continental Shelf (UKCS) will continue to drive demand for advanced digital oilfield solutions.
- China: In the Asia-Pacific region, China’s smart oilfield development is a key growth driver. The country’s focus on integrating AI, big data, IoT, and cloud computing to enhance offshore production efficiency is expected to raise the market share for digital solutions in the region.
Hardware and Automation Solutions Leading Market Growth
- Hardware: The demand for hardware solutions is expected to dominate the digital oilfield market, growing at a CAGR of 5.6% during the forecast period. The adoption of smart sensors, actuating devices, and reservoir monitoring control systems is critical to enhancing production efficiency.
- Automation Solutions: The automation segment is forecast to account for 64% of the market share in 2023. Real-time monitoring, distributed control systems, and the implementation of smart wells are pivotal in driving this segment’s growth.
Competitive Landscape
The digital oilfield solutions sector is highly competitive, with major industry players making substantial investments to strengthen their manufacturing capabilities. Key players in the industry include ABB, Emerson Electric Co., Rockwell Automation, General Electric, Siemens AG, Schneider Electric, Eaton, and Honeywell International.
Recent Developments in the Digital Oilfield Solutions Market
- OspreyData, a prominent United States-based oil, and natural gas company launched its cutting-edge OspreyData Vision platform in November 2021. This advanced platform is compatible with all mobile devices and empowers lease operators, artificial lift technicians, and production engineers to access crucial operational data.
- In July 2021, Norske Shell, a British multinational oil and gas company, revealed its adoption of Kognitwin Energy, a revolutionary digital twin solution developed by Kongsberg Digital.
- In January 2022, Petrofac, an oilfield services company, disclosed the successful acquisition of a five-year contract extension from NEO Energy. The extension pertains to good management and well-operator services. This contract establishes a comprehensive framework for Petrofac to provide well management and operator support over the course of five years.
Tap into Expertise: Discuss with Our Analyst on Email: sales@futuremarketinsights.com
Key Segments Profiled in the Digital Oilfield Solutions Market Industry Survey
By Component:
- Hardware
- Software
- Services
By Domain:
- Automation solutions
- Instrumentation
By End Use:
- Upstream
- Midstream
- Downstream
By Region:
- North America
- Latin America
- Western Europe
- Eastern Europe
- South Asia and Pacific
- East Asia
- The Middle East and Africa
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
Contact Us:
Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware – 19713, USA
T: +1-845-579-5705
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube