by Digital oilfield refers to the integration of new digital technologies in the oil and gas exploration and production processes. The applications include enterprise and formation development operations, instrumentation/monitoring and visualization systems to optimize production, maximize recovery, and minimize costs. In this market, advanced software helps oil companies in many critical functions such as reservoir modeling, drilling optimization, production optimization, safety management, maintenance management and logistics. Several digital technologies are being adopted including Internet of Things (IoT), Industrial Internet of Things (IIoT), edge and cloud computing, big data and analytics, artificial intelligence and digital twins for enhanced oilfield operations and increased production efficiency.
The global Digital Oilfield Market is estimated to be valued at US$ 26.31 Bn in 2023 and is expected to exhibit a CAGR of 9.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing adoption of advanced digital technologies: The growing adoption of industrial internet of things (IIoT), digital twins, artificial intelligence, cloud and edge computing technologies in the oil and gas industry is driving the growth of digital oilfield market. These digital technologies provide real-time monitoring, predictive maintenance, remote operations and improve the efficiency of production activities. For example, artificial intelligence helps in eliminating human errors, reducing non-productive time and optimizing well operations.
Increased production efficiency and operational optimization: Digital oilfield technologies enable oil and gas companies to efficiently optimize reservoir management, drilling operations, production optimization and safety and maintenance activities. Technologies like IIoT sensors provide real-time data to monitor assets and optimize production. Digital twins helps in virtual assessment of reservoirs and optimize well placement. This improves overall production efficiency, maximizes recovery and lowers production costs.
Segment Analysis
The global digital oilfield market can be segmented by solution into hardware, software and data storage solutions. The hardware solutions segment currently dominates the market and accounts for over 45% share owing to the high costs associated with hardware equipment. The equipment used in hardware solutions comprises sensors, moniters, control equipment etc.
PEST Analysis
Political: Oil production and consumption policies by governments across regions impact the market. Volatile crude oil prices owing to geo-political issues also affect investments.
Economic: Fluctuations in crude oil prices impact upstream capital investments. As digital technologies help optimize operations and reduces costs, they see higher spend even during price downturns.
Social: Rising awareness about optimizing oilfield operations, minimizing environmental footprint and enhancing safety drives adoption of digital solutions.
Technological: Advancements in IoT, cloud computing, artificial intelligence, analytics etc. are expanding application areas and driving new innovations. 5G rollout will further accelerate real-time data collection and analytics.
Key Takeaways
The global Digital Oilfield Market Share is expected to witness high growth between 2023 to 2030 driven by rising oil production and focus on optimizing field operations.
Regional analysis: North America currently accounts for the largest share of over 35% of the global digital oilfield market owing to early adoption of technologies by major oil companies in the region. The Asia Pacific region is expected to witness the fastest growth during the forecast period led by increasing exploration & production activities and investments in digital technologies by national oil companies.
Key players operating in the digital oilfield market are Sotrafa,Berry Global,NETAFIM,Certhon,Richel Group SA,Stuppy Greenhouse,Logiqs B.V.,Argus Control Systems Ltd.,Poly-Tex, Inc.,The Glasshouse Company,Luiten Greenhouses BV,Agra Tech, Inc.. Key players are focusing on introducing integrated solutions and forming partnerships with technology companies to expand their product portfolio and presence across regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
