AI in Oil and Gas Global Market Report 2024

The global ai in oil and gas market has grown rapidly in recent years. It will grow from $3.2 billion in 2023 to $3.62 billion in 2024 at a compound annual growth rate (CAGR) of 13.1%. The growth observed in the historical period can be attributed to several factors within the oil and gas industry. These include the proliferation of data in the sector, improvement in operational efficiency, automation of repetitive tasks, enhanced safety measures, optimization of exploration and drilling processes, and the implementation of advanced reservoir management techniques.

The global ai in oil and gas market is expected to see rapid growth in the next few years. It will grow to $5.96 billion in 2028 at a compound annual growth rate (CAGR) of 13.3%. The anticipated growth in the forecast period can be attributed to several key factors within the oil and gas industry. These factors include the development of autonomous operations, the implementation of cybersecurity measures, integration with energy transition initiatives, the adoption of dynamic pricing strategies, resilience planning, and responsive strategies to global market volatility. Major trends expected in the forecast period encompass the use of digital twins for asset modeling, the deployment of autonomous operations and robotics, advanced analytics for enhanced reservoir management, the application of cognitive computing for decision support, the utilization of cloud-based AI solutions, and the implementation of remote monitoring and control systems.

The oil and gas industry's ongoing digitization is a significant driver behind the burgeoning AI in the oil and gas market. Rapid adoption of AI technology among oilfield operators and service providers serves as a catalyst, fostering market growth. This industry shift towards technology integration aims to redefine operational landscapes, harnessing the advantages of enhanced productivity, efficiency, and cost savings. A notable initiative is the Open AI Energy Initiative (OAI), jointly introduced in February 2021 by Shell, C3 AI, Baker Hughes, and Microsoft. OAI constitutes an open ecosystem powered by AI solutions, offering a framework for energy operators, service providers, and vendors to create interoperable AI-based solutions. Leveraging the BHC3 AI Suite and Microsoft Azure, OAI encompasses AI and physics-based models, monitoring, diagnostics, and prescriptive actions, symbolizing a unified effort in the digital transformation of the global oil and gas industry. The digitization trend within the oil and gas sector significantly propels the AI in oil and gas market.

The escalating energy demand serves as another pivotal driver propelling the growth trajectory of the AI in oil and gas market. Energy demand, representing the quantity of energy required by consumers or industries, acts as a crucial metric guiding resource allocation in the oil and gas sector. AI algorithms play a pivotal role in analyzing energy consumption patterns, facilitating efficient resource allocation, cost reduction, and waste minimization. Notably, the European Commission, in August 2023, set ambitious goals for energy efficiency, targeting a 20% increase by 2020 and at least 35% by 2030. This surge in energy demand significantly drives the growth of the AI in oil and gas market.

Technological advancement emerges as a fundamental trend within the AI in the oil and gas market. Major industry players prioritize the development of cutting-edge technology solutions to enhance competitiveness. This integration of IT with operational processes aims to improve essential functions like production, maintenance, safety, and asset management. Digital technologies such as big data, analytics, automation, AI, 3D printing, and IoT have become integral. Saudi Aramco's adoption of robotic innovation in May 2021 exemplifies this trend, emphasizing sustainability, efficiency, and safety enhancements through AI, data analytics, and IoT. Robotics has revolutionized operational methodologies, enabling real-time, data-driven decision-making and predictive capabilities within the oil and gas industry.

Leading entities within the AI in oil and gas market are at the forefront of innovating new technologies, notably exemplified by the emergence of Intelligent E&P (Exploration and Production) solutions. This digital system serves as a critical enabler for oil and gas companies, facilitating advanced and efficient E&P research through the integration of high-performance computing, extensive data storage, AI exploration models, and collaborative scheduling of software and hardware resources. A significant development occurred in September 2023 when Huawei Technologies Co Ltd., a prominent China-based technology company, unveiled its Intelligent E&P Solution. Huawei's E&P cloud solution revolutionizes operations by enabling the conversion of capital expenditure (CAPEX) to operational expenditure (OPEX) and substantially amplifying efficiency in seismic processing and interpretation. Centralized data administration and cloud-based sharing play pivotal roles in enhancing exploration and prediction efficiency, while also consolidating and disseminating professional expertise, marking a transformative leap in the industry.

In a strategic move in July 2021, British Oil, a UK-based oil and gas company, executed the undisclosed acquisition of Open Energi. This strategic acquisition underscores BP's intent to optimize the performance of its renewable energy assets. Open Energi, a UK-based AI-driven company, specializes in providing a digital platform harnessing real-time data to optimize the energy utilization of low-carbon assets, spanning from battery storage to hydrogen electrolyzers and solar farms. Through AI-driven optimization, Open Energi's platform facilitates cost savings while enhancing the operational efficiency of renewable energy assets, marking a strategic step for British Oil in its pursuit of sustainable energy management leveraging AI-driven solutions.

Major companies operating in the ai in oil and gas market report are The International Business Machines Corporation, Microsoft Corporation, Accenture PLC, Google LLC, Intel Corporation, Schlumberger Limited, Halliburton Company, Baker Hughes Company, National Oilwell Varco Inc., Weatherford International PLC, TechnipFMC PLC, Wood PLC, ABB Ltd., Siemens AG, Honeywell International Inc., Emerson Electric Co., General Electric Company, Rockwell Automation Inc., Schneider Electric SE, Yokogawa Electric Corporation, Mitsubishi Electric Corporation, Toshiba Corporation, Hitachi Ltd., Panasonic Corporation, NEC Corporation, Fujitsu Limited, Samsung Electronics Co. Ltd., LG Electronics Inc., Sony Corporation, Oracle Corporation, Numenta Corporation, Sentient Technologies Inc.

North America was the largest region in the AI in oil and gas market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the ai in oil and gas market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ai in oil and gas market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of AI in the oil and gas sector are categorized into hardware, software, and hybrids. Hardware refers to the tangible components of computers or delivery systems responsible for storing and executing the written instructions provided by the software. Various functions of AI in this industry include predictive maintenance and machinery inspection, material movement, production planning, field services, quality control, and reclamation. Different processes involve reservoir optimization, drilling optimization, production optimization, safety management, and other related processes. Technologies such as the Internet of Things (IoT), advanced analytics, robotics, cloud computing, mobility, and others play a crucial role in the implementation of AI in oil and gas. Applications span the upstream, downstream, and midstream sectors of the industry.

This report provides AI in oil and gas market statistics, including AI in oil and gas industry global market size, regional shares, competitors with a AI in oil and gas market share, detailed AI in oil and gas market segments, market trends and opportunities, and any further data you may need to thrive in the AI in oil and gas industry. This AI in oil and gas market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AI in oil and gas market consists of revenues earned by entities by professional services, managed services, installation, training and support and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in oil and gas market also includes sales of hardware and software used in providing AI in oil and gas services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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