Digital Oilfield Market Size, Share, Trends and Analysis by Product (Hardware, Software, Data Storage), End-Use (Onshore, Offshore), Region (North America, Europe, Asia Pacific) and Segment Forecast, 2022-2026
Digital Oilfield Market Report Overview
The digital oilfield market size was valued at US$ 35.05 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% during 2022-2026. The rise in the trend of digitalization in the oil & gas industry and increased return on investment is expected to drive the digital oilfield market growth.
Digital transformation in oil and gas is still primarily driven by the need to improve workplace safety, productivity, and asset life. Oil and gas infrastructure is an extremely capital-intensive setup, including production platforms in the upstream sector, and pipelines and refineries. Hence, companies are looking to maximize the operational life of these assets using technology, which is projected to drive the implementation of digital oilfield systems over the forecast period.
Digital Oilfield Market Outlook, 2022-2026 ($ billion)
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The market is expected to witness rapid growth owing to the increasing implementation of digital solutions to enhance the productivity. Digital oilfields are being deployed to enable remote monitoring and automated operations at oilfields. Companies intend to implement additional functionalities, particularly with the use of digital twins, to foresee the outcome of new processes, technologies, and capacity expansions over the entire lifecycle of the asset.
Digital Oilfield Market Segmentation by Product
Based on product, the digital oilfield market is categorized into hardware, software, and data storage. In 2021. Hardware segment dominated the market in 2021, with market share over 53% and the trend is expected to continue over the forecast period. Hardware based resources creates data center infrastructure which includes switches, storage systems, servers, routers, and security devices which are used to control and monitor a process or application.
Software category provides automation into the operations of oil and gas companies, which improve the profitability of the production process. Artificial intelligence, digital twins, and software as a service (SaaS) are some of the commonly used software solutions. Software is used across the upstream, midstream, and downstream value chain to provide various solutions including health and safety inspection, sample analysis, dashboards, field service management, and well locator.
Digital Oilfield Market Share by Product, 2022 (%)
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Data storage is gaining momentum as companies are focusing on deployment of scalable cloud-based platforms to populate data from disparate oil fields for analysis and decision making. For instance, in 2019, Emerson added a cloud-based software platform to its portfolio of exploration and production solutions and teamed up with Repsol to further enhance the capabilities of this platform for the evaluation of seismic data.
Cloud computing for data storage is rapidly emerging as a superior cost-effective alternative for oil and gas companies over data centers. It provides companies with the option of rapidly scaling up storage capacity, depending on the market developments, without having to maintain data centers of their own. Moreover, technology companies have considerably upgraded their data security and analytics capabilities for handling critical data and solving complex business problems in industrial applications.
Digital Oilfield Market Segmentation by End-use
Digital oilfield end-use segment is classified in two categories, namely, onshore and offshore. The onshore segment dominated the market in 2021 and is projected reach US$ 29.86 billion by 2026. This can be attributed to presence of large number of land reserves, coupled with ease of access to large onshore reservoirs and less complex operations as compared to offshore oilfields.
Digital Oilfield Market Share by End-use, 2022 (%)
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The offshore segment is expected to witness significant growth and is projected to grow at a CAGR of 5.2% over the forecast period, on account of large number of untapped oil & gas reserves and harsh environment for exploration and production activities. In addition, the segment is expected to witness high penetration as the oil companies are focusing on improving the operation efficiency and production output in order to increase the profit margins against their investments.
Digital Oilfield Market Analysis by Region
North America dominated the digital oilfield market in 2021 in terms of revenue and the trend is expected to continue over the forecast period. This can be attributed to high oil & gas production in the region, increase in digital maturity, and presence of key players in the region. Increasing awareness regarding the benefits of digital oilfield to improve the efficiency across upstream, midstream, and downstream operations is expected to drive the market growth.
Significant growth is projected to be observed in European digital oilfield market due to heightened geopolitical tensions including ongoing Russia-Ukraine conflict. The conflict between Russia and Ukraine has resulted in more dependency on digital transformation to enhance production and expand production. Norway and the UK are projected to generate new potential for the deployment of digital oilfield technologies over the forecast period owing to their maturing offshore fields.
Asia Pacific Digital Oilfield Market Share by Country, 2022 (%)
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The presence of growing economies such as China, India, and Indonesia with significant oil & gas production capacities is expected to boost the demand for digital oilfield in Asia Pacific. Continuous R&D activities for wireless technologies, data analysis & gathering, and collection platforms is likely to boost the industry growth. In addition, increase in exploration and production activities across onshore and offshore is estimated to stimulate the market for digital oilfield in the region.
Middle East& Africa is the second largest market for digital oilfield in terms of value in 2021. Heavy investments have given an impetus to oil and gas exploration in the region, ensuring increasing demand for digital oilfield. The emerging markets in the Middle East present huge opportunities for digital oilfield companies. The upcoming infrastructure projects of oil and gas and energy in Iran and Saudi Arabia are also expected to drive the digital oilfield market in the region.
Digital Oilfield Market - Competitive Landscape
The digital oilfield market is consolidated in nature and is dominated by oilfield service providers and industrial equipment makers that offer digital solutions and services to address complex business problems. Digital oilfield products/solutions market is rapidly becoming an integral part of the oil and gas industry, bringing in game-changing disruptions to upstream oil and gas operations. Oil majors—such as BP, Shell, and Equinor—have garnered considerable support in implementing technologies to make digital oilfield technology a reality.
Leading Players in the Digital Oilfield Market
- SLB
- Weatherford
- Baker Hughes Company
- Halliburton
- NOV Inc.
- ABB
- Emerson Electric Co.
- Rockwell Automation, Inc.
- Siemens
- Honeywell International Inc
- Kongsberg
- CGG
- Digi International Inc.
- Pason Systems Corp.
- IBM
Digital oilfield is a rapidly evolving technology bring in efficient measures to the global oil and gas sector. The market participants within this industry are continuously making strategic agreements with the project owners to deploy this technology and enable faster transition towards a digitalized way of producing oil and gas.
Other Digital Oilfield Market Companies Mentioned
Aviat Networks Inc., Oleumtech, Petrolink, Katalyst Data management, Microsoft, Schneider Electric, eDrilling, Quorum Business Solutions, Inc., SUBSEA7, RigNet, Inc.
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Digital Oilfield Market Research Scope
| Market Size 2022 | US$ 35.05 billion |
| Market Size 2026 | US$ 43.54 billion |
| CAGR (2022-2026) | 5.9% |
| Forecast Period | 2022-2026 |
| Historic Data | 2019-2021 |
| Report Scope & Coverage | Revenue Forecast, Competitive Index, Company Market Share, Growth Trends |
| Product Segment | Software, Hardware, Data Storage |
| End-use Segment | Onshore, Offshore |
| Key Companies | Halliburton (US), Schlumberger (US), Baker Hughes (US), Weatherford International (US), NOV, Rockwell Automation and ABB |
Digital Oilfield Market Segments and Scope
GlobalData Plc has segmented the digital oilfield market report by product, end-use, and region:
Digital Oilfield Product Outlook (Revenue, US$ Million, 2019-2026)
- Software
- Hardware
- Data Storage
Digital Oilfield End-use Outlook (Revenue, US$ Million, 2019-2026)
- Onshore
- Offshore
Digital Oilfield Regional Outlook (Revenue, US$ Million, 2019-2026)
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Norway
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Indonesia
- Rest of Asia Pacific
- Central & South America
- Brazil
- Argentina
- Rest of South & Central America
- Middle East & Africa
- Iraq
- Saudi Arabia
- UAE
- Algeria
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- Digital oilfield market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the product, end-use, and regional segments.
- The competitive landscape: an examination of the positioning of leading players in the digital oilfield market.
- Company snapshots: analysis of the market position of leading service providers in the digital oilfield market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global digital oilfield market by product, end-use, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in digital oilfield markets.
- The report also highlights key product segments (Hardware, Software, Data Storage)
- The report also highlights key end-use segments (Onshore and Offshore)
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in digital oilfield markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help oil & gas stakeholders, service providers, and other digital oilfield players succeed in growing the digital oilfield market globally.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The digital oilfield market size globally was valued at US$ 35.05 billion in 2022.
The digital oilfield market size is expected to reach US$ 43.54 billion by 2026
The digital oilfield market is expected to grow at a CAGR of 5.9% during the forecast period (2022-2026).
Increasing focus to enhance productivity in the oil & gas sector, rising technological adoption to improve the output, and shift towards industry 4.0 are some of the factors which are expected to drive the growth of digital oilfield market across the globe.
Product Segments: Hardware, Software, Data Storage
End-use Segments: Onshore and Offshore
Some of the leading digital oilfield companies are Halliburton (US), Schlumberger (US), Baker Hughes (US), Weatherford International (US), and NOV.
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