Need to update existing and new software will drive demand for software services in global digital oilfield market
According to the latest market study released by Technavio, the global digital oilfield market size is projected to grow to USD 32.33 billion by 2021, at a CAGR of close to 5 per cent over the forecast period.
This research report titled ‘Global Digital Oilfield Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends.
Digital oilfields refer to the application of advanced software, hardware, and data analysis techniques to increase the exploration and production efficiency of oil and gas fields.
The migration of drilling to unconventional areas is one of the key driving factors positively impacting the growth of the market.
“The services segment of the digital oilfield market is expected to contribute over 40% of the overall revenue by 2021, generating over USD 13 billion. Energy services involve the design and implementation of digital oilfield solutions ranging from providing consultation on the use of appropriate tools, designing full end-to-end digital oilfield solutions, and vendor selections,” said Thanikachalam Chandrasekaran, one of the lead analysts at Technavio for oil and gas research.
The market segment offers exploration, drilling, production, and completion services to end-users.
Also, oilfield services providers are investing in and developing new technologies such as enhanced oil recovery (EOR) and vertical drilling to increase production, thereby driving market growth.
The software component of the oil and gas industry includes 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 and new software will drive the demand for software services in the global digital oilfield market over the forecast period.
The availability of many vendors offering customized software with value-added services will likely increase the revenue of this segment.
“The hardware segment of the digital oilfield market includes pressure gauges, data management hardware, temperature and gas leak sensors, and field wireless connectivity systems. These are required to keep pace with the advances in software to achieve optimal utilization of the available resources,” said Thanikachalam.
The growth in field experience and the constantly increasing demand for digital oilfield hardware will drive the growth of the market segment.
The major hardware installations are surface systems such as sensors, meters, valves, and actuators; and subsurface systems such as downhole gauges, fiber optic, and distributed temperature sensors.
The top vendors highlighted by Technavio’s research analysts in this report are:
- Baker Hughes
- Honeywell International
- Weatherford International