The global smart oilfield market for software technologies is predicted to exceed $11 billion by 2020
LONDON- According to the latest market research study released by Technavio, the global smart oilfield market is expected to generate approximately $35 billion (all figures in US dollars, growing at a compound annual growth rate of over four per cent during the forecast period.
This research report titled ‘Global Smart Oilfield Market 2016-2020’, provides an in-depth analysis of the market in terms of revenue and emerging market trends.
The report segments the global smart oilfield market by technology and services into the following three broad categories:
Global smart oilfield market by services
The global smart oilfield market by the services segment is forecast to exceed $14 billion by 2020, growing at a CAGR of over 4 per cent.
“Smart oilfield services are projected to increase the net present value (NPV) of an oilfield by 25 per cent by reducing the exploration and production (E&P) costs and shortening schedules,” said Anju Ajaykumar, a lead analyst at Technavio for unit operations.
Moreover, they help increase productivity, minimize downtime by effective use of the shrinking pool of experienced technical staff, improve worker safety and health, extend the lifetime of brown fields, and undertake complex projects to access reserves in difficult environments.
Global smart oilfield market by hardware technologies
The global smart oilfield market by the hardware technologies segment is expected to exceed $9 billion by 2020, growing at a CAGR of almost five per cent.
The hardware components used in smart oilfield technology include pressure gauges, data management hardware, temperature and gas leak sensors, and field wireless connectivity systems.
The hardware technology needs to keep pace with the software advancements to achieve an optimum success rate.
The hardware installations can be categorized into the following surface systems and sub-surface systems.
Surface systems involve installation of a complete set of instrumentation on wellheads. Subsurface systems involve installation of permanent downhole gauges, fiber optics, and distributed temperature sensors in wells.
High cost and complexities involved in the installation of smart oilfield hardware are major challenges to the growth of this segment.
However, with increased field experience and high demand for smart oilfield hardware, these challenges are likely to subside during the forecast period.
Global smart oilfield market by software technologies
The global smart oilfield market by the software technologies segment is predicted to exceed $11 billion by 2020, growing at a CAGR of over 3 per cent.
The software components in smart oilfield technologies include engineering applications such as petroleum data management, asset modeling, analysis and optimization, real-time surveillance and workflow integration, and collaboration.
The need to update the existing software and new software requirements will drive the demand for software technologies in the global smart oilfield market during the forecast period.
“There are several vendors offering customized software with additional features, which will increase the revenue of this segment,” says Anju.