Digital Oilfield Solutions Market

Digital Oilfield Solutions Market: Middle East and China to Witness Significant Growth Owing to New Installations and Capacity Expansion of Oil Refineries: Global Industry Analysis 2013-2017 and Opportunity Assessment 2018-2028

With crude oil & gas being a valued global commodity, the related exploration, refining, internal transfer of base feedstock and intermediate distillates as well as the final derived product involve a high degree of supervision and monitoring of the mentioned operations in oilfields and associated refinery units. Oilfields have three integral operations viz. upstream, midstream and downstream, which require continuous monitoring and supervision. The chief objectives of supervision and monitoring are optimizing product output rate, scrutinizing each level of start-to-finish project, eradicating any anomalies and errors from the mandated norms, avoiding any oil/fuel spills and losses incurred during explorations, internal transfer of intermediates and monitoring inventory levels. Another crucial aspect of digital oilfield solutions is to arrest any counterfeiting or theft that might occur during midstream and downstream operations.

Traditionally, manual intervention and monitoring were associated with the monitoring and supervision of oilfield and refinery based operations. However, to decrease the lead cycle of operations, increase the degree of accuracy in key parameter measurements, ease the functioning in remote and inaccessible areas, digital oilfield solutions have been emerging as an attractive solution over the last two decades on the global front. The key benefits associated with digital oilfield solutions include zero tolerance band for observation of parameters to be measured/ monitored, ease of installation and operation including remote areas, sound shelf life, and access to real time data with no time gap, ability of data integration and its analysis and minimal levels of physical size, maneuvering and installation. The digital oilfield solutions market, since its inception, has evolved as a high value market and has been witnessing a healthy growth rate in the current scenario. It is expected to have a prolonged effect of growth during the forecast period.

The digital oilfield solutions market comprises digitally operating platforms of measuring instruments either as an individual component or an integrated unit (e.g. a sensor as an individual unit whereas controllers as an integrated unit), controlling and display based automation and software systems as well as services related to hardware components/units and automation systems. The scope of the digital oilfield market in this research study is mainly associated with the upstream, midstream and downstream processes associated with the oil/gas field and refinery units installed by the respective oil and gas companies.

The global digital oilfield solutions market is estimated to be valued at US$ XX Bn by 2018 end and reach US$ XX Bn by the end of 2028, expanding at a CAGR of 6.3% over the forecast period. The global digital oilfield solutions market is anticipated to represent an incremental opportunity of US$ XX Bn between 2018 and 2028 and thus, is expected to be a high value – high growth market.

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Drivers and Trends

The global digital oilfield solutions market is expected to witness steady growth rate over the forthcoming years. Rising adoption of LTE regarding technological advancements has led to an upsurge in offshore oil and gas industry. Growing partnerships among key players in the oil and gas industry to digitally transform the industry is supporting the growth of digital oilfield solutions market. The growth in the market is fueled by increasing investments by Middle-East region, especially in nations, such as Saudi Arabia, UAE, and Kuwait.

Key Players

Some of the prominent players reported in this study of the global digital oilfield solutions market include ABB, Emerson Electric, Rockwell Automation, Siemens AG, Schneider Electric, Honeywell International Inc, and General Electric, among others. These players are key participants in the global digital oilfield solutions market and there are some regional players who are offering hardware products. In recent times, automation suppliers are merging or collaborating with service companies such as Microsoft and IBM to enhance the security and safety of their systems. As cyber threat is a major concern for the oil and gas industry, merging and acquisitions, and collaboration activities by large players will drive the end users to adopt modern digital oilfield solutions.

Future Market Insights offers a 10-year forecast for the digital oilfield solutions market between 2018 and 2028. In terms of value, the market is expected to register a CAGR of 6.3% during the forecast period (2018–2028). The main objective of the report is to offer insights on advancements in the global digital oilfield solutions market. The study provides market dynamics that are expected to influence the current business environment and future status of the digital oilfield solutions market over the forecast period. The primary objective of this report is to offer updates on trends, drivers, restraints, value forecasts and opportunities for manufacturers operating in the digital oilfield solutions market.

A section of the report discusses how the overall competition in the market is steadily increasing. It discusses various factors that are shaping internal as well as external competition in the market. The sales of digital oilfield solutions is estimated to grow at a rapid pace in the near future. Moreover, the growth of the oil and gas industry, recovery from low crude oil prices and rising demand for cyber security solutions are expected to further drive the growth of the digital oilfield solutions market.

The report provides a detailed market share analysis of the digital oilfield solutions market on the basis of key manufacturers. A section of the report highlights a country-wise analysis of the digital oilfield solutions market. It provides a market outlook for 2018–2028 and sets the forecast within the context of the report, including new technological developments as well as product offerings for niche applications in the digital oilfield solutions market.

Key Segments Covered

By Component

  • Hardware

  • Software

  • Services

By Domain

  • Automation solutions

  • Instrumentation

By End Use

  • Upstream

  • Midstream

  • Downstream

By Region

  • North America

  • Latin America

  • Eastern Europe

  • Western Europe

  • South East Asia (SEA) & Pacific

  • China

  • Japan

  • Middle East & Africa (MEA)

A detailed analysis has been provided for every segment in terms of market size analysis for digital oilfield solutions.

The report starts with the market overview and provides market definition and analysis regarding drivers, restraints, opportunities, supply chain analysis and key trends in the market. The next section that follows includes global market analysis, analysis by components, domain, end use and regional/country level analysis. All the above sections evaluate the market on the basis of various factors affecting the market, covering present scenario and future prospects. For market data analysis, the report considers 2017 as the base year with market numbers estimated for 2018 and a forecast made for 2018–2028.

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyze the same on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and identify the right opportunities for market players.

Another key feature of this report is the analysis of all key segments in terms of absolute dollar. This is usually overlooked while forecasting the market. However, the absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve as well as identify potential resources from a sales and delivery perspective in the digital oilfield solutions market.

In the final section of the report, a competitive landscape has been included to provide report audiences with a dashboard view. Detailed profiles of manufacturers are also included within the scope of the report to evaluate their long- and short-term strategies, key offerings and recent developments in the digital oilfield solutions.

Research Methodology

FMI conducts exploratory research at a granular market level to arrive at the segmentation of the digital oilfield solutions market. An initial study is conducted to identify the digital oilfield solutions market structure and demand pattern of the digital oilfield solutions market by the segments (i.e. by component, by domain and by end use) in each prominent region of the globe. This study involves data mining via primary interviews with experts representing digital oilfield solutions manufacturers, dealers and end user industries. Data from secondary sources includes company annual reports, industry association publications, industry presentations, white papers and company press releases to understand the digital oilfield solutions market dynamics across various levels of the value chain. Post ascertaining the digital oilfield solutions market behavior, a data validation is conducted vis-a-vis primary and secondary research data to arrive at the base numbers with 2017 as the base number and estimated sales for 2018, followed by a forecast for the years 2018 to 2028.

FMI validates the forecast developed using concrete growth levels derived from macro and micro factors related to the digital oilfield solutions market. For instance, the growth of digitalization in the oil and gas industry, industry value added, end use industry growth and key participant annual sales performances are analyzed to attain the digital oilfield solutions market forecast and refine anomalies, if any. This approach enables the forecasting of the digital oilfield solutions market in terms of CAGR with respect to the forthcoming period based on end user sentiments and analyzes the digital oilfield solutions market on the basis of Year-on-Year growth (Y-o-Y). The digital oilfield solutions market is analyzed in terms of Absolute Dollar Opportunity and Basis Point Share (BPS) along with a market attractive index for sharing every aspect of high growth segments in the digital oilfield solutions market.