Oilfield Analytics Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user and Region

The oil & gas industry is undergoing a transformative phase with a growing focus on the Internet of Things (IoT), remote instrumentation, and process automation. This digital transformation has led to the emergence of digital oilfields and the adoption of data-driven approaches in the industry. As a result, oil and gas supermajors are increasingly turning to oilfield analytics to gain real-time actionable insights, optimize performance, and predict failures. While widespread adoption is still evolving, advancements in technology and the integration of large-scale data are enabling even smaller players to consider the benefits of oilfield analytics.

Streamlining Operational Efficiency Crucial for Mitigating Profit Plunge

The oil & gas industry has faced declining profit margins due to falling crude oil prices since mid-2014, exacerbated by the impact of the COVID-19 pandemic. To counter these challenges, companies involved in upstream, midstream, and downstream activities are seeking ways to streamline operational efficiency. The extraction of oil and gas from unconventional sources, such as shale oil, subsea oil, and oil sands, has witnessed significant growth. Oilfield analytics play a crucial role in optimizing production and drilling operations for unconventional sources, reducing risks, and minimizing operating expenses.

Focus on the US Market for Maximum Profitability

The United States plays a critical role in the global oilfield analytics market as a major consumer and leading provider of oil and gas. Adoption of oilfield analytics solutions is also expected to rise in neighboring countries such as Canada and Mexico. In Europe, oil and gas production is limited, with the exception of the UK, Norway, and Russia. Stringent regulations in Europe have been driving organizations towards renewable energy sources, which restricts the growth of the oilfield analytics market in the region.

Oligopolistic Nature Presents Challenges for New Entrants

The oilfield analytics market is characterized by a few dominant players who shape its direction. In April 2021, Microsoft Corp. partnered with Ambyint, a provider of solutions for oil and gas exploration and production (E&P) companies, to enhance plunger lift and rod lift wells using Microsoft Azure. This partnership aims to streamline the deployment of Ambyint's lift optimization solutions into E&P companies' Azure software. Other key players in the oilfield analytics market include Oracle Corporation, IBM Analytics, SAP SE, Accenture, SAS Institute Inc., Deloitte Development LLC., KPMG International Cooperative, Teradata Corporation, Capgemini S.A, Hitachi Data Systems Corporation, Cognizant Technology Solution Corporation, and TIBCO Software Inc.

Greater Requirement of Oilfield Analytics in Upstream Oil & Gas Activities

Oilfield analytics encompass both hardware and software components. In offshore oil and gas exploration and production, submersibles are deployed to increase output and maximize production. Operational analytics are used in downstream and midstream activities to assist in recovery efforts. Upstream applications of oilfield analytics include supply chain management, storage optimization, and pipeline risk assessment, while downstream applications encompass liquefaction and regasification assessment, refining and separation optimization, trade optimization, personnel safety assessment, and demand-supply optimization.