AI in Oil & Gas market

Global AI in Oil & Gas Market Size (2022-2027):

The Global AI in Oil & Gas Market size was estimated at US$ 2.03 billion in 2021, and to reach the valuation of US$ 3.75 billion by the end of 2027, expanding at a Compound annual growth rate of (CAGR) 10.8% between 2022 and 2027.

Market Overview:

Artificial Intelligence is an advanced technology that helps in enhancing production and business efficiencies. Artificial intelligence in the oil and gas industry helps in enhancing the production of oil and gas with predictive maintenance and machinery inspection, quality control, dwelling, exploration, tank and reservoir monitoring, etc, and increases the profit of oil and gas business industries. Artificial intelligence consists of various types of tools such as machine learning, artificial neural networks, fuzzy logic, and expert systems that help in transforming the data into valuable insights, and these insights can be further applied in the various stages of the exploration and production of the lifecycle. The various stages of exploration and production include seismic, drilling, petrophysics, reservoir, and energy production AI also helps the oil and gas industry to reduce cost and reduce operational efficiency, thereby demand by the oil and gas industry. Due to various benefits of AI such as assessing the value of a specific reservoir, helpful in customizing the drilling and customization plan according to the geology of the area, and accessing the risk of each individual well. All the above factors drive the demand for the AI in oil & gas industry that fuels the growth of the market during the forecast period between 2022 and 2027.

Market Drivers:

The driving force of the AI in Oil & Gas Market is increasing demand for energy and the smooth functioning of the upstream, downstream, and midstream operations, the need of increasing efficiency and reduce downtime of the oil and gas industries, predictive maintenance of machinery and safety environment of human as well as physical assets.

Oil and gas remain highly valued commodities in the energy sector. Oil and gas industries have started focusing on improving efficiency and reducing downtime due to reduced profits since 2024 due to fluctuations in oil prices. However, the impact of the environmental concern encourages companies to adopt innovative approaches to achieve their business goals while reducing the environmental impact of their business.

As helps in monitoring and tracking the equipment, tanks, reservoirs, dwelling, exploration, etc due to which companies can save time and increase productivity at less cost. And also AI helps in predictive maintenance that aids in maintaining the oil and gas equipment so that equipment does not get fail at the time of operation, this is a significant factor that drives the growth of the market.

Moreover, the stringent regulations and need for safety in the risky environment of the oil and gas industry due to the presence oil extensive oil and gas and explosive chemicals drive the demand for AI in this industry in order to make a safe environment and reduce the chance of any harmful incident.

The growing research and development in order to bring more innovative solutions and technologies in AI that can dynamically predict and stimulate the oil and gas resources drive the growth of AI in the oil and gas market.

Market Restraints:

The lack of skilled professionals that can handle AI-based operations and deliver better results in advanced technologies hampers the growth of the market. And also, the company has to invest a huge amount to integrate AI technologies into the existing infrastructure is also restricting the growth of the market.

GLOBAL AI IN OIL & GAS MARKET REPORT COVERAGE:

Market Segmentation:

Global AI in Oil & Gas Market - By Type:

• Hardware
• Software
• Hybrid

On the basis of type, the Global AI in Oil & Gas market is segmented into Hardware, Software, and Hybrid. The software segment is dominating segment of this market because of the demand for AI in Oil and Gas activities and software plays an important role in the functioning of AI that including various stools that help in recording, monitoring tracking, and predicting failure and schedule maintenance on time. The hardware segment is expected to dominate AI in the Oil & Gas Market during the projected period, owing to the growing need for sophisticated hardware system configurations and components capable of handling large volumes of data and installing software-based AI capabilities.

Global AI in Oil & Gas Market - By Application:

• Upstream
• Downstream
• Midstream

On the basis of application, the Global AI in Oil & Gas market is segmented into Upstream, Downstream, and Midstream. The upstream operation segment is estimated to dominate the AI in oil and gas. With the integration of AI software, oil and gas companies get significant insights in order to improve their business outcomes in their upstream operations. AI offers oil and gas companies the digitization of records, can automate the analysis of gathered geological data and charts that helps in identification of the potential issues such as corrosion in the oil & gas pipelines, or increase the usage or the life of the equipment, etc.  

Global AI in Oil & Gas Market - By Function:

• Predictive Maintenance & Machinery Inspection
• Material Movement
• Productive Planning
• Field services
• Quality control
• Reclamation

On the basis of function, the Global AI in Oil & Gas market is segmented into Predictive Maintenance & Machinery Inspection, Material Movement, Productive Planning, Field services, Quality control, and Reclamation. The predictive Maintenance & Machinery Inspection segment is going to become a significant segment of this market due to the increasing demand for mechanical inspection and prediction of the other equipment so that maintenance would be done on time in order to get smooth operations. Also, AI tools help in scheduling predictive maintenance to prevent the failure of the equipment or reduce the chances of any type of hazard and thus, save millions of dollars.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America is expected to hold the largest market share of AI in Oil & Gas during the forecast period due to the increasing adoption of Artificial Technologies across the oil field operators and service providers and also there is a strong presence of renowned Artificial Intelligence software and system supplier particularly in the United States and Canada of North America region.

In addition to it, the demand for sensor-based tank monitoring and the reduction in safety-related issues in the oil and gas industry and its working; are some of the key factors that drive the growth of IoT in the Oil & Gas market in the projected period. The sensor is used in the oil and gas industry in order to monitor the tank and the environment inside the tank. These sensors help in reducing the risk of hazards to human resources as well as physical assets. Furthermore, the growing escalation of internet and cloud-based services for the functioning of the equipment, services, and recording data is also supporting Artificial Intelligence in the oil and gas market in coming years.

Asia-Pacific is expected to become the fastest-growing market for AI in Oil and Gas during the projected period. The reason for this growth, the oil and gas industries have a high level of the gaseous and explosive chemical environment in order to monitor the tanks and oil and gas industry, and the demand and adoption of AI are increasing in this region. The adoption of robust technologies in the field of oil & gas is fueling the growth of AI in the Oil & Gas market. The AI helps in the prediction of tanks and reservoirs and increases the productivity of oil and gas thereby increasing the demand for AI o oil and Gas. Also, the government of various nations in the region is supporting the oil and gas industry and stringent industrial regulation for worker safety is fueling the growth of AI in the oil & gas market in the forecast period between 2022 and 2027.

Middle East and Africa are also the fastest-growing markets for AI in the oil and gas sector because of increasing investment in start-ups for the implementation of Artificial Intelligence which will further increase the demand for AI in the projected period.    

Leading Company:

Google had the largest share of the world’s AI in Oil & Gas market in terms of sales revenue in 2021.

Market Key Players:

Some of the leading companies operating in the Global AI in Oil & Gas Market are 

1. IBM (US)
2. Intel (US)
3. Microsoft (US)
4. Accenture (Republic of Ireland)
5. Oracle (US)
6. Google (US)
7. Numenta (US)
8. Sentient technologies (US)
9. Inbenta (US)

Market Recent Developments:

• In November 2021, Domino Data Labs has done strategic alliance with global Information Technology giant Tata Consultancy Services and Chipmaker firm Nvidia through wit TCS would integrate Domino Data Science as well as machine learning software as a part of the Tata Consultancy Services platform that would be running on Nvidia DGX systems. This alliance leads to Domino’s MLOps software that provides support as the front end of a new high-performance computing service that TCS has launched based on Nvidia DGX hardware.
• In September 2021, Bharat Petroleum Corporation (BPCL) which is a “Maharatna” and “a Fortune 500” company announced the launch of “Urja”. It is an intelligent virtual assistant with Artificial Intelligence / Natural Language Processing (NPL) capabilities and trained in more than 600 use cases.