Connected Oilfield Global Market Report 2024

The connected oilfield market size has grown strongly in recent years. It will grow from $24.76 billion in 2023 to $26.5 billion in 2024 at a compound annual growth rate (CAGR) of 7%. The expansion observed in the historical period can be attributed to the evolution of communication networks, the adoption of SCADA systems, the growth of data analytics, efforts in safety and risk management, and the ongoing energy transition initiatives.

The connected oilfield market size is expected to see strong growth in the next few years. It will grow to $33.16 billion in 2028 at a compound annual growth rate (CAGR) of 5.8%. The anticipated growth in the forecast period is driven by the demand for operational efficiency, the emphasis on data-driven decision-making, regulatory compliance requirements, the need for effective management of remote workforces, and the focus on supply chain optimization. Major trends expected in this period include the integration of digital twins, enhanced cybersecurity measures, optimization of remote operations, and the implementation of hybrid connectivity solutions.

The surge in oil and gas exploration activities is expected to drive the growth of the connected oilfield market in the foreseeable future. Oil and gas exploration activities involve the systematic process of searching for underground deposits of oil and natural gas resources, providing essential data for maximizing oil recovery and operational efficiency in connected oilfields. These exploration efforts play a crucial role in increasing oil recovery from the seabed through enhanced data analysis, software utilization, and technological advancements. For example, according to the U.S. Energy Information Administration's (EIA) 2021 report, annual U.S. crude oil production was projected to average 11.1 million b/d in 2021, with an anticipated increase of 0.4 million b/d in 2022 due to heightened drilling activities amid stable oil prices. Consequently, the escalating oil and gas exploration endeavors are fueling the expansion of the connected oilfield market.

Key players in the connected oilfield sector are channeling their efforts towards developing innovative solutions, such as upstream digital oilfield solutions, to drive operational excellence, enhance profitability, and uphold competitiveness in the rapidly evolving market landscape. Upstream digital oilfield solutions comprise advanced technological tools and systems tailored to optimize operations in the upstream segment of the oil and gas industry, encompassing exploration and production activities. For instance, in June 2022, mCloud Technologies Corp., a U.S.-based software company, unveiled its AssetCare digital oilfield solutions in the United States. Leveraging AI technology, mCloud's solutions continuously optimize operations to enhance efficiency and performance across the oil and gas sector. These cloud-based AI solutions automate production management, facilitate ongoing optimization of wellsite performance, and enable predictive maintenance initiatives. This strategic initiative underscores the company's commitment to harnessing advanced digital technologies to streamline operations and maximize productivity in the upstream oilfield sector, signaling a significant advancement in the realm of connected oilfield solutions.

In February 2022, NextMart Inc., a prominent US-based oilfield service business, successfully acquired Defender Contracting LLC for an undisclosed amount. This strategic acquisition is geared towards reinforcing NextMart's presence in the competitive oilfield services market, with a specific focus on the Permian Basin. The move is expected to yield multiple benefits, including increased operational capacity, an expanded service portfolio, strategic geographical positioning, utilization of an experienced workforce, and overall support for NextMart's broader acquisition strategy. Defender Contracting LLC, also based in the United States, specializes in providing connected oilfield services, encompassing bulk oil transportation and environmental services.

Major companies operating in the connected oilfield market are China Petroleum & Chemical Corporation, Exxon Mobil Corporation, Royal Dutch Shell plc, TotalEnergies SE, Chevron Corporation, BP plc, GAZPROM PAO, Equinor ASA, Ente Nazionale Idrocarburi Società per Azioni., ConocoPhillips, Repsol SA, Occidental Petroleum Corporation, PJSC Lukoil, Schlumberger Limited, Pioneer Natural Resources, Baker Hughes Company, Kinder Morgan Inc., Devon Energy, Woodside Petroleum, Enbridge Inc., Hess Corporation, TC Energy Corporation, Apache Corporation, Rosneft Oil Company, Marathon Oil Corporation.

North America was the largest region in the connected oilfield market in 2023. The regions covered in the connected oilfield market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the connected oilfield market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A connected oilfield is a solution that utilizes information and communications technology (ICT), digital technologies, and communication networks within oilfield operations to enhance efficiency, productivity, safety, and decision-making processes. Its aim is to improve oil recovery from the seabed by employing advanced data analysis and software tools.

The primary types of solutions in connected oilfields include hardware, software, services, and data storage solutions. Hardware encompasses the physical components of computer systems or electronic devices involved in processes such as reservoir management, production optimization, drilling operations, and safety management. These solutions find applications in both onshore and offshore oilfield environments.

The connected oilfield market research report is one of a series of new reports that provides connected oilfield market statistics, including connected oilfield industry global market size, regional shares, competitors with a connected oilfield market share, detailed connected oilfield market segments, market trends and opportunities, and any further data you may need to thrive in the connected oilfield industry. This connected oilfield market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The connected oilfields market consists of revenues earned by entities by providing services such as real-time monitoring, predictive maintenance, remote operations, data analytics, asset optimization, environmental monitoring, and safety management. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected oilfields market also includes sales of communication devices, remote monitoring systems, predictive maintenance tools, environmental monitoring equipment, safety management solutions, and integrated control systems. 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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