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
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.
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
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.
The increasing number of
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.
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.
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
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.
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 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.
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
October 2019, Halliburton and Repsol Sign Cloud Data
Management Agreement for Exploration and Production.
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.
of the Report
data – 2016-2019
Base Year –
2020 – 2026
Revenue in USD Million/Billion
U.S, Canada, Germany, UK,
France, Italy, Spain, Brazil, Mexico, Argentina, Japan, South Korea, China,
India, UAE, South Africa, Saudi Arabia
Process, and Application
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 Players
Middle East & Africa