Hydrocarbons Accounting Solution Industry Analysis in Europe

Europe Hydrocarbons Accounting Solution Industry Outlook from 2023 to 2033

Recording a Y-o-Y growth of 3.8%, the Europe hydrocarbons accounting solution business size reached US$ 135.9 million in 2022. Over the forecast period, demand for hydrocarbon accounting solutions in Europe is predicted to rise with a CAGR of 4.5%. Total hydrocarbons accounting solution revenue in Europe is expected to grow from US$ 141.3 million in 2023 to US$ 207.5 million by 2033.

Analysis of Hydrocarbon Accounting Solution Industry Outlook

Attributes	Key Insights
Europe Hydrocarbon Accounting Solution Base Value (2022)	US$ 135.9 million
Estimated Europe Hydrocarbon Accounting Solution Revenue (2023)	US$ 141.3 million
Projected Value (2033)	US$ 207.5 million
Value CAGR (2023 to 2033)	4.5%

Hydrocarbon accounting solutions (HASs) are gaining wider popularity across Europe. This is because these solutions allow the oil and gas industry to accurately track, manage, and account for the production, distribution, and financial aspects of hydrocarbon products, such as crude oil, natural gas, and refined petroleum products.

The primary purpose of a hydrocarbon accounting solution is to ensure the precise measurement and accounting of hydrocarbon volumes and revenues. They enable companies to optimize operations, comply with regulations, and maximize profitability.

Hydrocarbon accounting solutions provide real-time visibility into operations, enabling optimization, efficiency, and data-driven decision-making while maintaining data security and transparency. These features are expected to fuel their demand across Europe through 2033.

Other Drivers Propelling the Demand for Europe Hydrocarbon Accounting Solutions

• Rising product utilization in the oil and gas industry will likely drive demand for hydrocarbon accounting solutions.
• Growth in energy sector is set to fuel sales of hydrocarbon accounting solutions in Western Europe and Eastern Europe.
• Increasing awareness about the benefits of oil and gas accounting solutions in Europe is anticipated to bolster sales.
• Rising data complexity and volumes are expected to encourage adoption of hydrocarbon accounting solutions in Europe.

Challenges for Companies in the Europe Hydrocarbon Accounting Solution Business

• Regulatory diversity restrains business growth.
• Integrating data from diverse sources also negatively impacts the target business.
• Complexity of supply chain is another factor limiting business expansion

Opportunities in the Europe Hydrocarbon Accounting Solution Business

• Transition to sustainable energy will likely act as a catalyst fueling demand for hydrocarbon accounting solutions in Europe.
• Energy security concerns, including potential supply disruptions and energy independence, will create the need for hydrocarbon accounting solutions.
• Growing popularity of European oil and gas financial software is projected to fuel demand.
• Integration of cutting-edge software and data analytics is set to create lucrative opportunities for hydrocarbon accounting solution companies.
• Rising demand for hydrocarbon accounting solutions in the upstream industry is set to boost revenue.
• Advancements in hydrocarbon accounting software field will likely create opportunities for hydrocarbons accounting solution companies.

Latest Trends in the Europe Hydrocarbon Accounting Solution Business

• Growth in remote work and mobility is predicted to drive the demand for hydrocarbon accounting solutions in Europe.
• The ambitious goals of the European Union for reducing carbon emissions and transitioning to clean energy sources are attracting hydrocarbon accounting solution operators and investors to Europe.
• Rising adoption of hydrocarbon management systems in Europe is set to foster sales growth.
• Integration of AI and data analytics will trigger hydrocarbon accounting solution business expansion.
• Data privacy and GDPR compliance are driving demand for hydrocarbon accounting solutions to ensure the privacy and security of sensitive data.
• Growth in cross-border operations and environmental, social, and governance (ESG) reporting will benefit the target business.
• Rapid penetration of digitalization in oil & gas sector is projected to bolster hydrocarbon accounting solution sales.

Historical Performance vs Hydrocarbon Accounting Solution Sales Forecast in Europe

From 2018 to 2022, the Europe hydrocarbon accounting solution business experienced a CAGR of 3.7%, reaching a valuation of US$ 135.9 million in 2022. For the assessment period, the target business is set to progress at a CAGR of 4.5%.

Historical CAGR (2018 to 2022)	3.7%
Forecast CAGR (2023 to 2033)	4.5%

Europe is actively transitioning towards cleaner and more sustainable energy sources. This transition necessitates a shift in energy accounting practices, with a growing emphasis on tracking renewable energy generation, reducing carbon emissions, and ensuring responsible resource management.

Several European energy companies operate across multiple countries, each with its own regulations, currencies, and tax regimes. They are widely employing hydrocarbon accounting solutions to improve their productivity and reduce overall costs.

Hydrocarbon accounting solutions that efficiently handle cross-border operations and currency conversion are in high demand. These solutions help companies streamline their financial and accounting processes and ensure compliance across diverse jurisdictions.

Europe is known for its stringent energy and environmental regulations. Companies operating in the energy sector are required to comply with complex reporting and emissions standards. To meet these regulations, hydrocarbon accounting solutions are essential.

The energy industry in Europe is undergoing a digital transformation, incorporating technologies like the Internet of Things (IoT), big data analytics, and artificial intelligence. Hydrocarbon accounting solutions are evolving to provide real-time data analysis, predictive modeling, and automation, enabling energy companies to optimize operations, improve efficiency, and enhance decision-making.

The upstream sector of the oil and gas industry is experiencing a significant upsurge in the demand for hydrocarbon accounting solutions in Europe. This growing demand is opening doors to numerous opportunities for the development and enhancement of these solutions, addressing the unique challenges and complexities of the upstream industry.

Hydrocarbon accounting solutions equipped with advanced data analytics offer a comprehensive view of reservoir performance. They help operators make informed decisions regarding drilling and extraction.

By optimizing reservoir management, companies extend the life of their assets, boost production, and ensure sustainable resource utilization. The surging demand for hydrocarbon accounting solutions in the upstream industry is creating lucrative opportunities for revenue growth.

With growing environmental concerns and the rise of environmental, social, and governance (ESG) reporting, companies are seeking hydrocarbon accounting solutions that enable them to track and report their environmental impact. These solutions are integral in helping companies demonstrate their commitment to responsible environmental and social practices, which is increasingly important for stakeholders and investors.

Semi Annual Update

Particular	Value CAGR
H1	5.2% (2022 to 2032)
H2	5.8% (2022 to 2032)
H1	6.2% (2023 to 2033)
H2	6.7% (2023 to 2033)

Comparative View of Adjacent Europe Hydrocarbons Accounting Solution Business

Related Business Growth Outlook Scenario

Particulars	Value CAGR
Europe Hydrocarbons Accounting Solution Business	4.5%
Global Hydrocarbons Accounting Solution Business	4.8%
E&P Software Business	15.0%

The Europe hydrocarbons accounting solution business is likely to be impacted by the peer or tangential businesses in the technology division. These include the global hydrocarbons accounting solution business and the exploration and production (E&P) business. Analysis of these related industries can provide deeper insights that may be helpful for developing unique differentiating strategies to pursue for growth and opportunity in Europe.

Europe Hydrocarbons Accounting Solution Industry Analysis:

Attributes	Europe Hydrocarbons Accounting Solution Industry Analysis
CAGR (2023 to 2033)	4.5%
Sales Value (2023)	US$ 141.3 million
Growth Factor	Robust expansion of the energy sector is expected to spur growth of hydrocarbons accounting solution business in Europe.
Key Trend	Integration of AI and data analytics and growing popularity of cloud-based solutions are key hydrocarbon accounting solution business trends in Europe.

Exploration and Production (E&P) Software Demand Outlook:

Attributes	Exploration and Production (E&P) Software Demand Outlook
CAGR (2023 to 2033)	15.0%
Sales Value (2023)	US$ 11.2 million
Growth Factor	Rising penetration of digitalization in the oil and gas industry is expected to drive demand for exploration and production software.
Key Trend	Surging popularity of cloud-based E&P software is a key trend impacting business growth.

Global Hydrocarbons Accounting Solution Industry Analysis:

Attributes	Global Hydrocarbons Accounting Solution Industry Analysis
CAGR (2023 to 2033)	4.8%
Sales Value (2023)	US$ 498.2 million
Growth Factor	Increasing investments in oil and gas exploration and extraction activities are expected to fuel growth of the global hydrocarbons accounting solution business.
Key Trend	Growing preference towards cloud-based hydrocarbon accounting solutions is a key trend impacting sales growth.

Country-wise Insights

The below table shows the estimated growth rates of key countries in Europe. Among these, BENELUX and France are set to record higher CAGRs of 5.5% and 3.7%, respectively, through 2033.

Countries	Projected CAGR (2023 to 2033)
Spain	1.8%
France	3.7%
United Kingdom	2.4%
Italy	1.2%
BENELUX	5.5%

Rising Popularity of Cloud-based Solutions Boosting the United Kingdom Business

The United Kingdom hydrocarbons accounting solution business size is set to reach US$ 29 million in 2033. Over the assessment period, demand for hydrocarbon accounting solutions in the country will likely rise at 2.4% CAGR.

Several factors are expected to stimulate growth in the United Kingdom during the forecast period. These include rising focus on sustainability in oil and gas sector and surging demand for cloud-based hydrocarbons accounting solutions.

Thanks to their flexibility, scalability, and cost-effectiveness, cloud-based hydrocarbons accounting solutions are gaining wider popularity in the United Kingdom. They allow companies to access their accounting data and applications remotely. Growing usage of these cloud-based solutions is expected to boost growth.

Category-wise Insights

The below section shows the on-premises segment dominating the Europe hydrocarbon accounting solution business, exhibiting a CAGR of 3.1%. On the other hand, cloud-based hydrocarbons accounting solution category is set to witness a higher demand, growing at 5.9% CAGR through 2033.

Based on end user, the oil and gas midstream companies are expected to generate lucrative revenue-generation opportunities for hydrocarbon accounting solution providers in Europe. The target segment is poised to exhibit a CAGR of 6.0% between 2023 and 2033.

Multiple Benefits of On-premises Solutions Making them Popular

Growth Outlook by Solution

Solution	Value CAGR
Cloud-based Hydrocarbons Accounting Solution	5.9%
On-premises Hydrocarbons Accounting Solution	3.1%

As per the latest analysis, the on-premises hydrocarbons accounting solution segment is expected to retain its dominance across Europe. This is due to several advantages of on-premise solutions, including enhanced security.

With a valuation of US$ 91.0 million, the on-premises segment held a dominant business share of 67.3% in 2022. In the forecast period, demand for on-premises hydrocarbon accounting solutions across Europe is set to rise at 3.1% CAGR.

Europe has stringent data privacy laws, most notably the General Data Protection Regulation (GDPR). These regulations require companies to have strong control over their data and ensure its protection. On-premises solutions enable organizations to maintain data sovereignty by hosting their data locally, thereby reducing concerns related to data privacy and complying with the region's strict regulations.

On-premises solutions provide a higher degree of customization and integration capabilities. Energy companies in Europe often have complex and unique requirements due to variations in regulatory frameworks across different countries. On-premises solutions allow organizations to tailor their accounting systems to align with specific compliance needs and seamlessly integrate with existing legacy systems and infrastructure.

Security remains a paramount concern in the energy sector. On-premises solutions offer a higher level of control over data security, as companies implement their security protocols and access controls. This control is vital in protecting sensitive data related to hydrocarbon accounting, which includes financial transactions and environmental compliance.

Oil and Gas Midstream Companies to Become Leading End Users in Europe

Growth Outlook by End User

End User	Value CAGR
Oil and Gas Exploration and Production (EP) Companies	5.3%
Oil and Gas Midstream Companies	6.0%
Oil and Gas Refineries	2.9%
Energy Trading and Risk Management (ETRM) Firms	5.5%
Government Regulatory Agencies	2.4%
Others (Oilfield Services Companies, Energy Consulting Firms)	1.2%

As per the latest report, oil and gas midstream companies are expected to remain leading end users of hydrocarbon accounting solutions across Europe. The target segment is set to register a CAGR of 6.0% over the forecast period.

Midstream oil and gas companies engage in intricate and multifaceted operations, including the transportation, storage, and distribution of hydrocarbons. These operations involve numerous processes, assets, and data points that require sophisticated accounting solutions to manage effectively.

The midstream sector faces stringent regulations, particularly in Europe, where compliance with environmental and safety standards is paramount. Hydrocarbon accounting solutions are crucial for tracking, reporting, and ensuring adherence to these complex regulatory requirements, making them indispensable for midstream companies.

Midstream operations involve a vast network of pipelines, storage facilities, and transportation assets. Efficiently integrating and managing data from diverse sources, such as sensors and IoT devices, is a top priority. Hydrocarbon accounting solutions facilitate real-time data integration and analysis, enabling better decision-making and operational efficiency.

With increasing emphasis on environmental sustainability and emissions reduction, midstream companies are under pressure to accurately monitor and report their environmental impact. As a result, they are adopting hydrocarbon accounting & production reporting solutions.

Hydrocarbon accounting solutions are instrumental in tracking emissions and facilitating sustainability reporting to meet environmental targets and stakeholder expectations. They are becoming key for midsize companies to boost productivity and comply with regulations.

Competitive Landscape

Key players are constantly evolving and adapting to the dynamic energy industry landscape. They are employing different strategies to remain competitive and meet the evolving needs of their clients.

Key Developments in the Europe Hydrocarbon Accounting Solution Business

• In September 2021, Emerson formed a partnership with BayoTech to scale production and distribution of low-cost, modular steam methane reformers (SMRs) for hydrogen production.
• In May 2022, EnergySys announced partnership with Equity Lifting Solutions Pty Ltd as the latest company to become a reseller partner.
• In May 2022, W Energy Software acquired Seven Lakes Technologies to expand its production operations capabilities.
• In March 2020, Accenture and SAP launched a co-developed solution for upstream oil and gas companies based on SAP S/4HANA Cloud to help streamline processes & costs.

Key Strategies Adopted by the Players

• Product Innovation

Companies are investing in research and development to create cutting-edge solutions that improve efficiency in measuring, allocating, and reporting hydrocarbon resources. This innovation includes advanced analytics, real-time data integration, and predictive modeling to optimize operations and decision-making.

• Strategic Partnerships and Collaborations

Top players are also implementing strategic partnerships and collaborations. By forming alliances with other technology providers, software companies, or industry experts, they are expanding their offerings and providing comprehensive solutions to their clients.

• Expansion into Emerging Fields

Vendors seek opportunities in emerging fields where regulatory and compliance requirements are evolving, offering their expertise and solutions to meet the needs of these fields. This expansion also helps diversify their client base and reduce dependence on established sectors.

• Mergers and Acquisitions

Mergers and acquisitions (M&A) represent a strategic move to consolidate the hydrocarbon accounting solution landscape. Vendors acquire smaller competitors, specialized technology companies, or complementary services to expand their product portfolio and customer base.

Key Players in the Europe Hydrocarbon Accounting Solution Business

• P2 Energy Solutions
• Emerson
• CGI Group Inc.
• Quorum Software
• EnergySys
• Schlumberger
• Accrete Petroleum Ltd
• Adept Solutions
• SAP

Scope of Report

Attribute	Details
Estimated Business Value (2023)	US$ 141.3 million
Projected Business Value (2033)	US$ 207.5 million
Anticipated Growth Rate (2023 to 2033)	4.5% CAGR
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in US$ Million and CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Solution End User Countries
Key Countries Covered	Germany France United Kingdom Italy Spain Benelux Nordics Rest of Western Europe Russia Poland Hungary Rest of Eastern Europe
Key Companies Profiled	P2 Energy Solutions Emerson CGI Group Inc. Quorum Software EnergySys Schlumberger Accrete Petroleum Ltd Adept Solutions SAP

Segmentation Analysis of the Europe Hydrocarbon Accounting Solution Business

By Solution:

• Cloud-based Hydrocarbons Accounting Solution
• On-premises Hydrocarbons Accounting Solution

By End User:

• Oil and Gas Exploration and Production (E&P) Companies
• Oil and Gas Midstream Companies
• Oil and Gas Refineries
• Energy Trading and Risk Management (ETRM) Firms
• Government Regulatory Agencies
• Others (Oilfield Services Companies, Energy Consulting Firms)

By Country:

• Western Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Benelux
  • Nordics
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • Hungary
  • Rest of Eastern Europe

Frequently Asked Questions

How big is the hydrocarbons accounting solution business in Europe?

Total business value in Europe is set to reach US$ 141.3 million in 2023.

What is the demand outlook for hydrocarbon accounting solutions?

Demand in Europe is expected to rise at 4.5% CAGR through 2033.

What is the expected hydrocarbons accounting solution business size in 2033?

The business size is set to reach US$ 207.5 million by 2033.

Which end user segment leads the target business?

Oil and gas exploration and production (EP) companies held a share of 37.8% in 2022.

Which solution is in high demand across Europe?

Thriving at 5.9% CAGR, demand remains high for cloud-based hydrocarbons accounting solutions.

Who are the key hydrocarbon accounting solution vendors?

P2 Energy Solutions, Accrete Petroleum Ltd, EnergySys, and Quorum Software.

What is a hydrocarbon accounting system?

A specialized software utilized by oil & gas industry to track and manage the movement of hydrocarbons

What is the importance of hydrocarbon accounting?

Hydrocarbon accounting is crucial as it ensures timeliness and accuracy of hydrocarbon quantities.