The global digital transformation market is predicted to reach USD 77.30 billion in 2024 and USD 169.48 billion by 2029, growing at a CAGR of 17% during the forecast period.
Digital transformation refers to the process of harnessing current and emerging digital technologies for tangible, game-changing benefits across all application fields. Digital transformation has been one of the main trends in the global oil and gas industry for the past decade. This transformation enables operations to use advanced digital technologies such as AI, IoT, Big Data, etc., to stimulate business. Efficiency and, therefore, new opportunities for everything, as this could involve digital twins. This obviously improves the efficiency of predictive maintenance of critical assets and, therefore, limits the exposure of hazardous tasks to facility workers.
The process of exploring an oilfield is complex because it requires the analysis of large volumes of data, such as environmental data, equipment data, and seismic data, to detect new oil and gas reserves. This pushes oil and gas industry providers to implement novel technologies like big data and AI. In view of the ecological concerns and expenses related to exploration, they further adopt real-time decisions with the assistance of ML and predictive analytics. This is supposed to optimize exploration and production operations in the oil & gas sector. Hence, the increasing need for advanced technologies will lead to the expansion of the global oil and gas industry digital transformation market during the forecast period.
Factors such as creating a safe working environment throughout the entire value chain will play an important role in the IoT segment and help it maintain its position in the market. Additionally, our global oil and gas industry digital transformation market examines factors such as increased investments and partnerships, increasing pressure to improve operational efficiencies, and the growing need for advanced technologies in business exploration. However, the lack of a trained workforce, the growing threat of cyberattacks, and increasing data quality and management issues can hamper the growth of the digital transformation market in the oil and gas industry in the foreseen period.
Digital transformation is one of the main innovations that drive downstream operations in the oil and gas industry. Companies are focused on increasing the use of assets by improving the efficiency of factory manufacturing. Oil and gas companies' downstream activities, petrochemical and refining, have always adopted technology to improve their operations. Several innovative approaches have been implemented to manage complex processes and interpret information to enhance performance. The pursuit of the digital switchover is expected to have even greater potential, given the strategic will of many companies to expand their activities down the oil and gas value chain, particularly in petrochemicals.
Suppliers' main concern is how to predict, prevent, or reduce maintenance costs. The automation solutions used for delivery and maintenance planning tools use AI-based simulation and application performance management and can be easily added to an existing operating system. Additionally, upgrading sensor systems to enable better predictive and prescriptive maintenance can lead to long-term operational efficiency gains. Many oil and gas companies rely on technologies such as AI, IoT, and Big Data, among others, in their operations to improve their operations. For example, Shell's downstream business, which is responsible for supplying oil and gas to the end consumer, uses artificial intelligence technology to predict consumer demand for petroleum products and measure fuel shortages. Find and recommend an oil blend for a refining process.
The recent COVID-19 outbreak halted global oil production, with closures and uncertainties, with China leading the way. For example, Carbon Brief reported that operating oil refineries in Shandong Province fell from 71.4% in December 2019 to 38.9% in February 2020.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 to 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 to 2029 |
|
CAGR |
17% |
|
Segments Covered |
By Technology, Sector, and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
Emerson Electric Co., General Electric Co., IBM Corp., Intel Corp., Microsoft Corp., Oracle Corp., Rockwell Automation Inc., SAP SE, Tata Consultancy Services Ltd., Teradata Corp., and Others. |
In recent times, with the situation of low oil prices, the APAC region's refining capacity has experienced record growth during the forecast period. According to a 2019 report published by BP Statistical Review of World Energy, the Asia Pacific region has the highest oil refining capacity. Worldwide, processing nearly 34.75 million barrels per day (BPD) in 2018
Given the long lead times and huge capital expenditures involved in oil and gas production, major industry players are looking to gain a competitive advantage through transformative technologies such as artificial intelligence. For example, Woodside, Australia's largest natural gas producer, has implemented IBM Watson to run AI algorithm operations and search over 25 million documents, retrieve content, compare historical performance, and suggest related information to anyone in business.
Countries such as China, India, Japan, and South Korea have some of the most active downstream oil and gas sectors in the APAC area. Together, they are responsible for more than 78% of capacity, with large refineries deeply integrated with petrochemical production units in the Asia Pacific region.
The major companies operating in the global digital transformation market in oil and gas include Emerson Electric Co., General Electric Co., IBM Corp., Intel Corp., Microsoft Corp., Oracle Corp., Rockwell Automation Inc., SAP SE, Tata Consultancy Services Ltd., Teradata Corp, and others.
In October 2019, IBM introduced a new integrated supply chain suite, integrated with Watson AI and IBM Blockchain and open to developers, to help organizations make their supply chains smarter, more efficient, and able to make decisions needed to adapt to disruptions and opportunities in a market where supplier networks are more complex and vulnerable.
In September 2019, Schneider Electric announced its Eco Structure Power & Process launch in India to increase efficiency and profitability in the oil and gas sector. The company aims to combat the volatility associated with the oil and gas industry by reducing operating expenses and private equity by 20% to 30%. This system classifies end users to connect the assets that are the hub of projects with those that are the hub of operations. In addition, the company has also partnered with Microsoft to create professional IoT solutions.
By Technology:
Big Data/Analytics
Cloud Computing
Internet of Things (IoT)
Artificial Intelligence
Industrial Control Systems
Extended Reality
Field Devices
By Sector:
Upstream
Midstream
Downstream
By Region:
Frequently Asked Questions
Digital transformation is revolutionizing traditional oil and gas operations by enabling real-time monitoring, predictive maintenance, and data-driven decision-making, leading to improved asset performance, reduced downtime, and enhanced production efficiency across global operations.
Challenges include legacy infrastructure integration, cybersecurity concerns, skill gaps, regulatory compliance, and the complexity of managing big data. Overcoming these hurdles requires strategic planning, robust cybersecurity measures, and investment in talent development.
Leading companies are implementing robust cybersecurity frameworks, conducting regular risk assessments, adopting encryption technologies, implementing multi-factor authentication, and investing in employee training to mitigate cyber threats and safeguard critical infrastructure and data on a global scale.
Governments worldwide are enacting regulations to promote environmental sustainability, safety standards, and data privacy, which are driving oil and gas companies to accelerate their digital transformation efforts. Compliance with regulations necessitates the adoption of advanced technologies and data management practices across the industry.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region