Digital Oilfield Market To Hit Value .21 Billion By 2025Posted by Mrudula Anil Karmarkar on February 15th, 2021 The digital oilfield technology has witnessed appreciable growth in recent years, with the increasing incidences of oil and gas exploration, coupled with growing focus on reducing operating expenses by driving operational efficiency, projected to aid the industry growth and development. The global digital oilfield market size is projected to reach USD 40.21 billion by 2025, advancing at a CAGR of 4.7%, as per a report by Grand View Research, Inc. The major factors for the expected strengthening of demand for digital oilfields in the coming years are the expected growth in the number of oil and gas reserves, as well as the need for increased operational efficiency in the area. Digital oilfield involves the streaming of data from distant wells, as well as the processing, integration, and analysis of the said data. The rising requirement for real-time monitoring systems offering timely and efficient updates through wireless connectivity is anticipated to provide growth avenues for the digital oilfield technology. The market is majorly driven by a need to maximize oilfield recovery, eliminate nonproductive time, while reducing capital and operating expenses by integrating the workflow. Digitalization of upstream processes, including production, reservoir, and drilling optimization through digital twin well evaluation, is expected to benefit the industry growth. Some of the major oilfield services such as predictive maintenance, field productivity, fleet management, and production asset optimization offer better efficiency and recovery rate while maintaining or lowering the extraction and other operational costs. The growing digitalization of other upstream processes such as production surveillance, predictive process control, intelligent command centers, and control systems is anticipated to positively impact the market growth. Moreover, IoT and SCADA (Supervisory Control and Data Acquisition) are being adopted at a very rapid pace in the industry, which are expected to propel market growth. The outbreak of the coronavirus pandemic was a major setback for the oil and gas sector globally, as borders were closed off and transportation activities stopped completely. The contraction in demand caused by the pandemic, coupled with the rise of a price war between OPEC and Russia, combined to the market collapse. The digital oilfield industry is expected to drive the market ahead in the coming months, as economies and borders reopen and the situation starts to return to normal. The digital oilfield market has been broadly segmented on the basis of application and service. The main application segments include upstream, downstream, and midstream processes. Some of the major companies involved in the development of the digital oilfield industry include Halliburton, Weatherford, Schlumberger Limited, Baker Hughes, Rockwell Automation, ABB, National Oil Varco, Siemens, Larsen & Toubro Infotech Limited, and Accenture. Further key findings from the report suggest: 1 The current Industry 4.0 era is expected to provide numerous growth opportunities to the digital oilfield industry. According to Ernst & Young, a survey showed that 75% of the oil and gas companies have already begun introducing concepts such as RPA, while 70% have stated their desire to implement IIoT in the near future 2 The instrumentation & automation service segment is expected to show fastest growth through 2025, exhibiting a CAGR of 5.8% over this period, on account of the development of advanced data acquisition and interpretation systems, coupled with the increasing adoption of wireless networks 3 The downstream application segment was valued at USD 10.84 billion in 2018 owing to factors such as adoption of smart refineries, rapid digitalization of refining processes, higher yields, and reduced inventory costs 4 North America led the global digital oilfield market revenue with 30.70% share in 2018, aided by the surge in domestic production and discovery of shale gas reserves across the region 5 The United States market is a critical revenue generator for the industry, and was worth USD 6.73 billion in 2018. The major factors for the market growth are the rising shale gas production and improving refining capacity in recent years 6 Europe was valued at USD 7.08 billion in 2018 and is forecast to witness substantial growth on account of new development projects in North Sea fields such as Johan Sverdrup field, Johan Castberg Field, and Mariner Heavy Oil Field 7 In recent years, manufacturers have gone to great lengths to introduce innovative products, as well as partner with credible institutions, in order to solidify their market presence 8 In August 2020, Halliburton was the recipient of a contract by PTTEP for the design and implementation of digital transformation projects as part of the latter’s APEX (Advanced Production Excellence) initiative 9 In October 2020, Weatherford launched the ForeSite Sense reservoir monitoring solution for optimizing well production as well as driving the profitability through provision of critical downhole data Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/6733/ibb Grand View Research has segmented the global digital oilfield market on the basis of application, service, and region: Digital Oilfield Application Outlook (Revenue, USD Billion, 2014 - 2025)
Digital Oilfield Service Outlook (Revenue, USD Billion, 2014 - 2025)
Digital Oilfield Regional Outlook (Revenue, USD Billion, 2014 - 2025)
o U.S. o Canada o Mexico
o U.K. o Norway o Russia
o China o India o Indonesia
o Brazil o Argentina
o U.A.E. o Saudi Arabia About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare. For More Information:www.grandviewresearch.com Like it? Share it! More by this author |