North America Digital Oilfield Market - By Process (Production Optimization, Reservoir Optimization, Drilling Optimization), By Service (Instrumentation & Automation, Information Technology), Application, Technology & Forecast, 2024 – 2032

North America Digital Oilfield Market Size

North America Digital Oilfield Market size surpassed USD 10.5 billion in 2023 and is anticipated to expand at 7.2% CAGR from 2024 to 2032.
 

The global digital oilfield industry is likely to cross USD 54.5 billion by 2032. The increasing need for optimizing oil and gas production operations has propelled the adoption of digital technologies in the oilfield sector. Digital oilfield solutions offer real-time data monitoring, predictive analytics, and automation, enabling operators to enhance production efficiency, reduce costs, and improve decision-making, which in turn complement the technology acceptance across upstream activities.
 

COVID-19 Impact

Since late 2019, the global economy has been significantly impacted by the COVID-19 pandemic, causing substantial disruptions across various industries, including the digital transformation industry. The economic uncertainties caused by the pandemic resulted in reduced capital expenditures and delayed investments in new digital oilfield technologies. Many companies have been cautious about making significant financial commitments during the crisis, leading to a slowdown in the implementation of digital solutions. The decline in global oil demand during the pandemic led to reduced drilling activities and production shutdowns in certain areas. This had an impact on the demand for digital oilfield services as companies scaled back their operations and focused on cost-cutting measures, thus resulting in a slowed growth of digital oilfield industry.
 

Despite the challenges posed by COVID-19, the North America digital oilfield market witnessed a growth in demand since mid-2021 owing to implementation of remote monitoring services. The pandemic compelled many companies to implement remote working and social distancing measures, limiting on-site personnel. This led to an increased reliance on digital oilfield services that enable remote monitoring and control of operations. Companies leveraged technologies such as IoT sensors, data analytics, and remote collaboration tools to monitor and manage oilfield assets from off-site locations, which in turn augmented the industry growth.
 

North America Digital Oilfield Industry Trends

The digital oilfield industry in North America over the years have experienced a notable demand in the recent years. Growing requirement for hydrocarbons along with governmental practises to boost the domestic production have compelled the oil & gas players across the region to integrate advanced technologies to enhance their production. Advanced analytics techniques, including machine learning and artificial intelligence, are being increasingly integrated into digital oilfield solutions, which further drives the market growth. By leveraging analytics, operators can optimize production, predict equipment failures, and make data-driven decisions to improve overall efficiency, thus improving their operational and production capabilities.
 

In addition, as digital oilfield systems become more interconnected, the importance of robust cybersecurity measures is increasing. The industry is focusing on implementing cybersecurity solutions to protect sensitive data, prevent unauthorized access, and ensure the integrity of digital infrastructure. This includes implementing encryption, firewalls, and security protocols to safeguard critical systems and networks, thereby proliferating the North America digital oilfield market statistics.
 

North America Digital Oilfield Market Analysis

The production optimization processes held a major market share of over 28% in 2022 and will witness 6% growth during 2023-2032. Remote monitoring and control systems provide real-time data and alerts, allowing operators to make quick decisions and adjustments to optimize production. Improving production statistics, operator safety and operational efficiency are few of the prominent factors driving the espousal of production optimization services, further propelling the North America digital oilfield industry expansion.
 

IoT segment accounted for USD 3 billion of the North America digital oilfield market value in 2022 and is poised to attain 6% gains between 2023 and 2032. Real-time data collection provides operators with immediate insights into the status and conditions of assets, allowing them to detect anomalies, identify potential issues, and make informed decisions in real-time. This leads to improved operational efficiency, enhanced safety, and proactive maintenance.
 

IoT technology further enhances safety and risk management in the digital oilfield. Additionally, IoT data can be used to analyze safety trends, identify potential risks, and implement preventive measures to improve overall safety performance. Furthermore, data driven decision making, optimization of resource utilization, integration & collaboration of various stakeholders, improved predictive maintenance and remote operations and controls are few of the key advantages offered by the IoT technology, which in turn is propelling the North America digital oilfield market demand.
 

The oil and gas industry in U.S. has witnessed a substantial development in the recent years. This sector has faced cost pressures in recent years due to market volatility and price fluctuations. For instance, as per International Energy Agency (IEA), the crude oil first purchase price in U.S. has grown from USD 26.7 per barrel in 2000 to USD 65.8 per barrel in 2021 with highest value of USD 96 per barrel witnessed in 2013. This has boosted the requirement for digital oilfield services as these technologies aid the industry in streamlining processes, minimize downtime, and reduce operational expenses, thereby improving profitability.
 

North America Digital Oilfield Market Share

The North America digital oilfield market is projected to experience significant growth in the upcoming years due to the increased acceptance of digital technologies by major industries worldwide. To minimize investments in the O&G E&P projects, major digital oilfield service providers are focused on research and development activities aimed at deploying efficient and reliable technologies. Key players in the digital oilfield market include :

• ABB
• Siemens
• Weatherford
• National Oilwell Varco
• General Electric
• Halliburton
• SLB
• Schneider Electric
• Rockwell Automation
• Emerson Electric Co
• Accenture
• Infosys Limited
• Intel Corporation
• Honeywell International Inc
• Wipro

North America Digital Oilfield Industry News:

• In October 2022, GE Digital, a subsidiary of GE, introduced CIMPLICITY and iFIX software, which are utilized for SCADA/HMI applications across oil & gas industries. The new software can aid in accelerating development and increase efficiency through native HMI, HTML5, MQTT, common portfolio configuration and centralized deployment. In addition, the new software can significantly reduce the maintenance and installation efforts with the help of HTML5 HMI integrated with Procify Operations Hub.
   
• In October 2020, ABB partnered with IBM with focus on Operational Technology (OT) and connecting cybersecurity. The company developed a new OT Security Event Monitoring Service, which will combine the company’s process control system with the security event monitoring portfolio of IBM. Additionally, it will improve the security for industrial operators.
   

This North America digital oilfield market research report includes an in-depth coverage of the industry with estimates & forecast in terms of USD Million from 2019 to 2032, for the following segments:

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Market, By Process

• Production Optimization
• Reservoir Optimization
• Drilling Optimization
• Others

Market, By Service

• Instrumentation & Automation
• Information Technology

Market, By Application

• Onshore
• Offshore

Market, By Technology

• IoT
• Advance Analytics
• Robotics
• Cloud Computing
• Mobility
• Others

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico