Report Overview

Global Digital Oilfield Market Forecast and Trends

The global Digital Oilfield market has reached USD 24.19 Billion and anticipated to grow nearly at a CAGR of 4.68% to reach USD 33.2 billion by 2026. The upcoming technological transition is caused by today's low-cost of crude oil along with the combination of information technology and the Internet of Things with Virtual Oilfield operational technology. Increasing emphasis on operational management, capital, and operating expenses reduction will contribute to the adoption of smart digitized devices and solutions.

Advancement in wireless technology, connectivity, data analysis, and collection systems have allowed significant improvements in decision making and efficiency. The market share of digital oilfields is set to grow due to the increasing need to optimize oil and gas operations. The declining output from existing wells, along with the need to develop a method of economic recovery would accelerate the growth of the industry. Rising O&G production across remote locations with requirements for remote monitoring and automated operations will also boost the outlook for the industry.

Global Digital Oilfield Market Overview:

The digital oilfield is the use of technology to manage production, personnel, and safety, allowing for lower costs, increased production, and improved oil and gas efficiency. The digital oilfield aims to optimize recovery of the oilfield, minimize unproductive time, and increase productivity by developing and deploying automated workflows. Digital Oilfield innovations have not penetrated deeply into the otherwise highly innovative oil and gas industry, given the benefits that they offer. There is a low overall understanding of technology and benefits. Oil and gas companies are responding to low oil and gas prices with a renewed focus on improving efficiencies and cutting costs. Industry leaders are emphasizing the use of innovation and technology to bring significant improvements in performance.

Digital Oilfield covers a wide range of technologies, including fleet management and predictive maintenance. Such advances are a direct result of maturing enabling technologies such as low-cost sensors, big data analytics, cloud computing, among others. Most Digital Oilfield solutions are field test and under implementation for well over a decade, and already pay dividends for early adopters. It is providing not only increased efficiencies and cost savings but additional benefits as well in areas such as health and safety and environmental enforcement. When organizations look toward investment, it is recommended that they recognize the Digital Oilfield technologies with the highest potential to improve productivity and profitability and provide leadership at all levels to facilitate the cross-organizational coordination needed to optimize their benefit.

Growth drivers

New Technological Advancements in the Digital Oilfield

The new advancement in technologies for mobility, surveillance, connectivity, and storage, coupled with the ability to process and analyze data quickly, enhance alertness, and support real-time decision-making and execution, is propelling the digital oilfield market across the globe. Collecting and analyzing flow, temperature, vibration, and integrity sensor data to improve operational safety and decision making related to performance. The seamless flow of information to the field through technologies such as digital mobile communications and satellite allows analysis and response in real-time. And with the advancement in Artificial intelligence and machine learning implementation for making the oil and gas operation easier is expected to fuel the digital oilfield market.

Demand to scale up hydrocarbon production

Growing numbers of mature fields across the globe, together with increasing adoption of enhanced oil recovery techniques, are boosting the digital oilfield adoption. Advanced solutions, including reservoir characterization, development planning, reservoir monitoring, and equipment, including sensors, actuators, smart alarms, and others, have resulted in reservoir development and optimization. The oil & gas industry has followed the model of advanced technology and smarter software/hardware to perform tasks in the upstream sector of the oilfield. Automation allows companies in the oil & gas sector to capture more data in real-time that helps to increase performance and boost the production efficiency of the wells.

Restraints

The increasing number of cyberattacks

The growing use of digital technologies, reliance on cyberinfrastructures and cost-conscious operating principles leaves the industry vulnerable to new cyber threats. Focusing on the availability of data makes ransomware attacks financially motivated a critical risk to the industry. Ransomware attacks that are carefully planned and well-executed can cost millions of dollars in damages and downtime.

Global Digital Oilfield Market: By Solution

Based on Solution, the Digital Oilfield market is segmented into Software, Hardware, and Services. The hardware segment is expected to dominate during the forecast period of 2026. The Hardware Cover Distributed Control System (DCS), Supervisory Control and Data Acquisition (SCADA), Smart Wells, Safety Systems, Wireless Sensors, Programmable Logic Controller (PLC), Process Automation, and Human-Machine Interaction Instrument are responsible for communication, data transfer in both offshore and onshore. Oilfield operator's capital investment in technology enhancement and process automation allows companies to reduce unproductive time, maximize output, and enhanced control. Track oil & gas fields are the major reason for the growth of the digital oilfield market.

Global Digital Oilfield Market: By Process

Based on the process, the Digital Oilfield market is segmented into Production Optimization, Reservoir Optimization, Drilling Optimization, and Others. Production optimization is expected to grow at the highest rate due to increased production activities among the major oil & gas suppliers worldwide, and the segment is expected to grow during the forecast period for improving their respective oil outputs. The acceptance and implementation of digital optimization techniques can enable these companies to achieve their production goals and enhance their respective profitability.

Global Digital Oilfield Market: By Application

Based on Application, the Digital Oilfield market segmented into Onshore and Offshore. Offshore segment is expected to grow due to increasing energy demand, combined with increasing oil consumption across emerging economies, would drive growth in the industry. The rapid discovery of new oilfields will improve the industry environment.

Global Digital Oilfield Market: Regional insights

By geography, the Global Robotic Process Automation Market segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America is expected to grow due to the presence of leading oil and gas companies and also due to the ultimate technological capabilities. The different companies in the USA offer a wide range of products and solutions. The surge in domestic production and discoveries on the oilfield have increased the landscape of the industry. With it, the US remains the biggest investment hub for investors in digital oilfield.

Digital Oilfield Market: Competitive Landscape

Notable players operating in the Digital Oilfield market are Halliburton, Weatherford, Osprey Informatics, IBM, Digi International, Microsoft, Baker Hughes, National Oilwell Varco, Kongsberg Digital, General Electric, Rockwell Automation, Accenture, Honeywell Process Solutions, ABB, Emerson, Schlumberger, Cisco, National Oilwell Varco, Siemens, and Other Prominent Companies are expanding their presence in the market by implementing various innovations and technology.

Recent Developments:

In January 2020, KONGSBERG and DNV GL have signed an agreement to enable customers of KONGSBERG's Vessel Insight data infrastructure solution to share their data for use in DNV GL's digital class and assurance services.

In October 2019, Halliburton and Repsol Sign Cloud Data Management Agreement for Exploration and Production.

The objective of the Study:

To analyze and forecast the global Digital Oilfield market size of the market in terms of value.

To examine the careful market segmentation and forecast the market size, in terms value, based on the region by segmenting the Global Digital Oilfield market into five regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, Latin America, and their leading countries.

To outline, categorized, and forecast the global Digital Oilfield market based on the Solutions, Process, and Applications with the region.

To examine competitive developments like technological advancement, services, and regulative framework within the global Digital Oilfield Market.

To highlight the impact analysis of the factors affecting the market dynamics such as drivers, restraints, opportunities, and challenges.

To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.

Scope of the Report

By Solution

·         Software

·         Hardware

·         Services

By Process

·         Production Optimization

·         Reservoir Optimization

·         Drilling Optimization

·         Others

By Application

·         Onshore

·         Offshore

By Region

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East & Africa