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Future Market Insights: Digital oilfield solutions market to grow at a significant CAGR of 6.3% through 2028

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Oilfield Technology,

In the last couple of years, the oil and gas industry has changed tremendously, with crude oil prices hitting an all-time low, thereby, changing the investments dynamics. The price fluctuations of crude oil is not associated with the origin of its production or consumption. The price tends to move and change in the same direction- at a similar rate. Moreover, new supplies and other disruption like elevated or reduced demand will affect the crude oil prices, globally. However, with increasing energy consumption across the globe, pressures are tightening on the oil and gas industry to cater to the growing demands as extractions become challenging. The word has already lost on shale and traditional gas owing to commercial exploitation. So, how does the oil and gas industry locate new oil fields, considering it is much behind the technology graph owing to manual processes? The glaring answer to this are the time and cost-effective digital oilfields.

"However, with digital solutions comes the fear of being hacked, information leak, and cyber threat. Any threat to the oil and gas companies, will have a direct impact on the economy and security of a country. This is an important concern that IT service providers need to address to invite more oil and gas companies to adopt automation solutions", says Principal Analyst, Industrial Automation, Future Market Research.

Digital Oilfields enable oil and gas companies to maximise oilfield recovery, eliminate lean time and increase profitability and work efficiency through the design and deployment of integrated workflows. With increasing need to collect data, digital oilfields places business process management combined with advanced IT solution in the forefront to streamline and automate tasks performed by cross-functional teams-to improve the oil and gas production. According to a recent market study by Future Market Insights, the sales of global digital oilfield solutions is estimated to stand at a market valuations of US$54 415.5 million by 2028, expanding at a significant CAGR of 6.3% over the forecast period of 2018-2028.

MEA region is projected to dominate the global digital oilfield solutions market during the forecast period owing to more oil and gas companies are looking to adopt digital solutions in new installations and capacity expansion. In terms of investments, U.S is projected to present maximum opportunities.

Owing to the increasing demand for digital oilfield solutions in the next ten years, prominent manufacturers are likely to focus on collaborating with technology giants to further expand their business footprint, globally. Some key players in the digital oilfield solutions market are ABB, Emerson Electric, Rockwell Automation, Siemens AG, Schneider Electric, Honeywell International Inc, and General Electric.

For operation and maintenance efficiency, oilfields needs full network availability- along with a dedicated radio frequency. The world's first Offshore Long Term Evolution (LTE) wireless communications solution is enhancing efficiency in the Norwegian North Sea. With 'integrated operations' practices, oil and gas companies are able to complete oilfields explorations in 3 – 4 months, thereby reducing labour cost, with a much higher return on investment by increased production efficiency. High-Tech integrations such as offshore LTE connects the oilfield to company offices-by syncing people, processes, and technology coupled with real-time monitoring, analysis, and control. Experts at FMI believe that digital oilfield solutions will be adopted significantly owing to these factors.

Additionally, digitisation partnerships between IT solutions provider and key players in the oil and gas industry is projected to augment the adoption of digital oilfield solutions in the coming years, by reducing operation costs and improving drilling efficiency. Recently, Halliburton and Microsoft collaborated for digitally transforming the oil and gas industry, concentrating on delivering intelligent cloud solutions. Such partnerships would unlock huge potential of digital oilfield solutions for offshore drilling operations. Digital oilfield solutions players are offering end to end products like hardware, software, and services to the oil and gas industry, keeping them in line with the current automation trends, and open up more 'smart oil fields'.

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