Digital Oilfield Market Size, Share, Analysis, Trends, Growth, 2032

Digital Oilfield Industry Prospective:

The global digital oilfield market size was evaluated at $26 billion in 2023 and is slated to hit $34 billion by the end of 2032 with a CAGR of nearly 4% between 2024 and 2032.

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Digital Oilfield Market: Overview

A digital oilfield is an integrated tech strategy adopted by firms for connecting people, processes, and technology with a view to optimizing the performance of assets used in oil & gas production. Apart from this, the use of digital oilfields helps in achieving operational efficacy and real-time optimization of the production processes of the oil & gas sector.

Key Insights

• As per the analysis shared by our research analyst, the global digital oilfield market is projected to expand annually at the annual growth rate of around 4% over the forecast timespan (2024-2032)
• In terms of revenue, the global digital oilfield market size was evaluated at nearly $26 billion in 2023 and is expected to reach $34 billion by 2032.
• The global digital oilfield market is anticipated to grow rapidly over the forecast timeline owing to escalating demand for proficient production of oil & gas.
• In terms of process, the production optimization segment is slated to register the highest CAGR over the forecast period.
• Based on solution, the services segment is predicted to contribute majorly towards the global industry revenue in the upcoming years.
• Based on application, the onshore segment is predicted to lead the application landscape even during the forecast timeline.
• Region-wise, the Asia-Pacific digital oilfield industry is projected to register the fastest CAGR during the projected timespan.

Digital Oilfield Market: Growth Factors

Humungous focus on improving the oilfield operations is likely to enhance the global market surge by 2032

Surging highlights towards effective operational management activities are likely to augment the expansion of the global digital oilfield market. Escalating demand for proficient production of oil & gas to embellish the growth of the market globally. A paradigm shift witnessed in technology due to the launching of new technologies such as cloud computing, AI, IoT, and edge computing is likely to establish a strong growth platform for the global market. Moreover, an increase in the allocation of funds for the production & exploration of oil and gas will prop up the global market expansion in the years ahead. Growing focus of firms on data analytics will spearhead the expansion of the market globally. Huge need for real-time data regarding exploring of new oilfields is likely to append the growth of the global market.

Digital Oilfield Market: Restraints

Need for massive fund allocation for installing digital systems can restrict the global industry expansion over forecast period

Humungous preliminary investment costs and issues related to the compatibility of systems are likely to obstruct the expansion of the global digital oilfield industry. Moreover, issues related to data interoperability and cyber security can pose a huge threat to the progression of the industry across the globe.

Digital Oilfield Market: Opportunities

Necessity of predictive analytics tools for exploring new oil fields can prop up the global market surge by 2032

Huge demand for efficient advanced analytics tools such as predictive maintenance tools will create new avenues of growth for the global digital oilfield market. Humungous need for real-time data processing is likely to shape the growth of the global market.

Digital Oilfield Market: Challenges

Less availability of expert personnel for aptly monitoring the oilfield operations can impact the growth of the global industry

Lack of availability of skilled professionals and growing concerns pertaining to data overload can challenge the expansion of the global digital oilfield industry. Rising compliance charges and resistance to change can hamper the growth of the global industry.

Digital Oilfield Market: Segmentation

The global digital oilfield market is divided into process, solution, application, and region.                                          

In terms of process, the digital oilfield market across the globe is bifurcated into drilling optimization, production optimization, and reservoir optimization segments. Additionally, the production optimization segment, which gained nearly 47% of the global market revenue in 2023, is expected to register the highest growth rate in the forecast timespan. The expansion of the segment in the next couple of years can be due to the need for improving the overall output of oil reserves.

Based on the solution, the global digital oilfield industry is divided into hardware, services, and software segments. Furthermore, the services segment, which garnered approximately 75% of the global industry revenue in 2023, is anticipated to make key contributions towards global industry growth in the forecasting timeframe. The expansion of the segment in the analysis timeline can be attributed to easy access to digital oilfield management solutions.

Based on the application, the digital oilfield market across the globe is sectored into offshore and onshore segments. Moreover, the onshore segment, which led the application landscape in 2023, is predicted to continue its segmental domination in the upcoming years. The segmental expansion can be attributed to a rise in the need for aptly exploring oil, shale, and gas reserves along with increasing the oil & gas production from mature wells.

Digital Oilfield Market: Report Scope

Digital Oilfield Market: Regional Insights

North America is expected to maintain a leading position in the global market during the forecast timespan

North America, which accounted for 49.5% of the global digital oilfield market revenue in 2023, is projected to establish a key position in the global market in the coming eight years. In addition to this, the regional market surge in the forecast timespan can be attributed to the presence of key players such as Schlumberger, Halliburton, and Baker Hughes in countries such as the U.S. A surge in the oil & gas exploration activities in countries such as Canada and the U.S. will spur the regional market trends.  

The Asia-Pacific digital oilfield industry is predicted to register the highest CAGR annually in the coming eight years. The development of the industry in the APAC region can be due to the massive need for power for the residential & commercial sectors as well as various industries with geometrically increasing populace in Asian countries such as India and China. Apart from this, an increase in the oil & gas exploration and production activities in Southeast Asia will help in the flourishing of the industry in the Asia-Pacific region.

Key Developments

• In the second half of 2019, Kongsberg Digital received a deal from ExxonMobil for offering digital services for the latter’s offshore exploration in Guyana. Reportedly, the deal includes exploring oil wells and determining flow lines & risers.
• In the first half of 2019, C3.ai and Baker Hughes decided for initiating a joint venture aimed at the use of digital transformation systems of C3.ai to Baker Hughes so that the latter can effectively perform oil & gas operations.

Digital Oilfield Market: Competitive Space

The global digital oilfield market profiles key players such as:

• ABB SE
• Accenture
• Halliburton
• Schlumberger
• Osprey Informatics
• Kongsberg Digital
• Digi International
• IBM
• Baker Hughes
• Rockwell Automation
• Siemens AG
• Weatherford
• Microsoft Corporation
• Honeywell Process Solutions
• Emerson
• National Oilwell Varco.

The global digital oilfield market is segmented as follows:

By Process

• Drilling Optimization
• Production Optimization
• Reservoir Optimization

By Solution

• Hardware
• Services
• Software

By Application

• Offshore
• Onshore

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa