The Smart oilfield market size is projected to reach approximately $ XX billion by 2030, at a CAGR of X% from 2022 to 2030. Smart oilfields, also known as digital oilfields, have become very useful for the oil and gas industry. Smart oilfield involves the application of advanced software and hardware along with extensive data analysis to increase oil and gas field efficiency. It helps to achieve maximum productivity through intelligent automation and oilfield monitoring. These smart oilfields typically collect real-time data from pump flow sensors, pressure and temperature gauges, tank level sensors, and many other I/O devices and send the collected data. to the central server. and a control room providing an overview of the current situation. Many smart oilfields are implementing live video feeds for visual monitoring and evaluation.
The smart field relies on advanced software, hardware, and data analysis techniques, and dramatically improves oil and gas E&P efficiency. Maximizing oilfield recovery by reducing non-production time is driving the growth of the smart oilfield market.
Rapid advances in oilfield technology are likely to bring positive changes to the smart oilfield market. In addition, with market-leading smart field suppliers such as Halliburton and CNPC investing heavily in R&D, the reliability and efficiency of these fields are expected to improve significantly in the coming years.
COVID-19 Impact Analysis
The digital oilfield market is expected to see a decline in 2020 due to the COVID19 outbreak. The global spread of COVID19 has slowed the development of many industries. The effects of the COVID19 pandemic, including measures taken by businesses and governments to prevent the spread of the virus, have resulted in a significant and rapid reduction in demand for oil and gas. Each country’s government has ordered a nationwide shutdown that has resulted in a significant drop in transportation and related activities, impacting oil and gas demand. The crisis has forced some existing production to halt because the production as low oil prices are uneconomical and do not support continued operation. Furthermore, the rapid accumulation of oil inventories has saturated the available storage capacity in some parts of the world, even leading to negative prices.
The increasing penetration of technology in the oil and gas industry has paved the way for the deployment of smart oil fields. Companies are increasingly deploying smart oilfields to maximize oilfield resiliency, eliminate downtime, and increase profits through integrated workflows. Advanced smart fields also help oil companies redevelop existing oil fields and improve well management. These factors are expected to drive the growth of the smart oilfield market.
Ø Increasing return on investment in the oil and gas industry
A digital oilfield is a technology-centric concept that allows companies to leverage limited resources. Integrated Operations in the smart sectors of the oil and gas industry that combine operational technology (OT) with information technology (IT) to improve decision-making and enhance operational efficiency; thus, improving return on investment. It reduces downtime and total cost of ownership (TCO) and improves operational productivity. Digital oilfield includes both tools and processes for data collection across the entire upstream business. Operations technology (OT) with information (IT) collects data with greater frequency from all parts of the oil and gas value chain and analyzes it in real-time. Thus, optimizing the performance of reservoirs, wells, and structures, resulting in increased return on investment.
Oil and gas industries in all countries are gearing up to accelerate investments primarily in digital technology as they seek to double their economies. Similarly, companies are coming under closer scrutiny of their investments and looking for solutions to lower costs per barrel, help recovery rates, and reduce downtime to increase profits. This is a concrete step towards unlocking the huge potential of digital solutions for offshore drilling operations.
- Lack of data extraction, analysis, and quality information complicates decision-making processes.
The demand for digital oilfield mining solutions is growing due to the limited fuel supply in the market thus forcing the oil industry to adopt new and improved technologies. Real-time data collection and its performance analysis are one of the major hurdles in the field of digital oil extraction. market. Typically a huge collection of raw data as a result of the digitized production of facilities, such as digital wells, seismic imaging, and the deployment of ground sensors, leads to a scarcity of quality information. As a result, this impedes the decision-making process for upstream production. The operator must have appropriate knowledge of data collection and analysis. Oil and gas companies need to make sure they’re targeting the right data. Retrieving and analyzing data is an ongoing process that requires careful attention and the right skill set to make effective decisions. Thus, it becomes the biggest constraint on the digital oilfield market.
- Growing demand for offshore/ultra-deep-water discoveries
The oil and gas industry is experiencing a period of technological advancement in exploration technology for deepwater exploration and production operations and the commercial viability of projects. Current advances allow oil companies to improve resilience and accelerate production. Offshore wells can have varying degrees of automation, which can range from simple one-way monitoring to complex underground control with intelligent detection. Oil companies are investing massively in remote control and monitoring hubs so that operators, engineers, and geoscientists don’t have to travel to distant oil fields. Interdisciplinary teams of geoscientists, engineers, operations managers, and financial analysts now interact through remote command centers, encouraging teamwork and collaboration by solving problems faster.
Based on solutions, the smart oilfield market is segmented into hardware, software & service, and data storage solutions. The hardware segment of the market is expected to grow at a fast pace during the forecast period. This is attributed to the large capital investment by oilfield operators toward technology enhancement and process automation. This enables the companies to eliminate non-productive time, optimize production and control, and monitor oil & gas fields.
Based on processes, the market is divided into the reservoir, production, and drilling optimizations. The production optimization segment accounted to be the largest segment of the market in 2018 and this is a trend expected to continue during the forecast period. This is attributed to the increasing production activities among the major oil & gas suppliers worldwide for enhancing their respective oil outputs. Smart or digital optimization will ease production and profitability.
In terms of applications, the market is bifurcated into onshore, and offshore. Onshore application is anticipated ta o occupy a large er share as compared to offshore smart oilfields over the forecast period.
Global Smart Oilfield Market Share, by Segmentation
Based on region, the smart oilfield market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Europe is projected to dominate the use of the Smart Oilfield market followed by the Asia-Pacific and Europe regions.
Europe holds the largest share of the digital oilfield market in 2020. The European market scope includes the UK, Norway, Russia, and the rest of Europe. The rest of Europe includes Denmark, Italy, and Germany, among others. Europe is a key region for offshore business as oil operators and oil service providers (OFS) target new fields and reserves on the UK’s continental shelf. and Norway. This growth trend creates opportunities for the digitization of more oil fields in the region. In addition, rising Brent oil prices and demand for the Brent basket are driving the digitization of oil fields in Europe. Digitization helps to generate accurate data analysis, thereby reducing production time from wells.
Asia-Pacific is the fastest-growing region with developing economies. The future of the smart oilfield market in merging geographies like China, India, Mexico, and ASEAN is crucial due to weak digital infrastructure which in turn will increase the demand in the future.
The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as Halliburton, China National Petroleum Corporation (CNPC), Baker Hughes, Honeywell International, and Schlumberger are some of the key players in the smart oilfield market. Some other prominent players in the smart oilfield market are Kongsberg Gruppen, Microseismic, National Oilwell Varco, Paradigm, Petrolink, Redline Communications Group, Rockwell Automation, Shell, Siemens, Weatherford, and many more. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.
- China National Petroleum Corporation (CNPC)
- Baker Hughes
- Honeywell International and Schlumberger
- Kongsberg Gruppen
- Microseismic, National Oilwell Varco
- Paradigm, Petrolink
- Redline Communications Group
- Rockwell Automation
In December 2021, for instance, Baker Hughes CEO Lorenzo Simonelli stated at the World Petroleum Congress that the oil and gas industry is yet to realize the full potential of digitization for achieving better efficiency. He also declared that the next generation of productivity is anticipated to come from connected smart equipment featuring digitalization for reducing the non-productive time.
Smart Oilfield Market, by Solution
- software & service
- data storage solutions
Smart Oilfield Market, by Process
- drilling optimization
Smart Oilfield Market, by Application
- offshore applications.
Travel Insurance Market, by Region
- North America
- Rest of Europe
- The Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
|Market Size||2030: $ 1,638.78 Billion|
|CAGR||21.6% CAGR (2022-2030)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Key Segmentations||Solution, Process, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, Middle East, Africa|
|Key Vendors||Halliburton, China National Petroleum Corporation (CNPC), Baker Hughes, Honeywell International, and Schlumberger|
|Key Market Opportunities||Growing demand for offshore/ultra-deep-water discoveries|
|Key Market Drivers||Increasing return on investment in the oil and gas industry|
REPORT CONTENT BRIEF:
- High-level analysis of the current and future MICE Tourism market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Smart Oilfield market historical market size for the year 2020, and forecast from 2021 to 2028
- Smart Oilfield market share analysis at each product level
- Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
- Identifies key strategies adopted, including product launches and developments, mergers and acquisitions, joint ventures, collaborations, partnerships, and funding taken and investment done, among others.
- To identify and understand the various factors involved in the global MICE Tourism market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Smart oilfield Market FAQs
- What is the study period of this market?
- The study period for the smart oilfield market is 2020 – 2030
- What is the growth rate of the smart oilfield market?
- The smart oilfield market is growing at a CAGR of ~ 6% over the next 7 years
- Which region has the highest growth rate in the smart oilfield market?
- Asia Pacific is expected to register the highest CAGR during 2022 – 2030
- Which region has the largest share in the smart oilfield market?
- Europe holds the largest share in 2021
- Who are the key players in the smart oilfield market?
- Halliburton, China National Petroleum Corporation (CNPC), Baker Hughes, Honeywell International, and Schlumberger
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