Home Energy And Power Oil and Gas Analytics Market Size, Share & Growth Report 2032

Oil and Gas Analytics Market

Global Oil and Gas Analytics Market: Information by Offering (Hardware, Software, Service), Deployment (On-premises, Cloud), Application (Upstream, Midstream, Downstream), End-User (Small and Medium Enterprises, Large Enterprises), and Region (North America, Europe, APAC, Middle East and Africa, LATAM)—Forecast Till 2024-2032

Report Code: SREP56315DR
Study Period 2020-2032 CAGR 22.3%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 8.46 billion
Forecast Year 2032 Forecast Year Market Size USD 63.5 billion
Largest Market North America Fastest Growing Market Asia-Pacific
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Market Overview

The global oil and gas analytics market size was valued at USD 8.46 billion in 2023 and is projected to reach USD 63.5 billion by 2032, registering a CAGR of 22.3% during the forecast period (2024-2032). The escalating global need for energy significantly drives the industry.

Oil and gas analytics is a statistical technique used to facilitate predictive analysis. Oil and gas analytics is conducted to mitigate market risks, optimize yield, and enhance performance. The oil and gas industry analytics field employs several methods to extract trends and patterns from data to aid in the decision-making process or optimization. Oil and gas analytics provides numerous benefits to oil and gas companies, including enhanced occupational safety and efficient optimization of drilling operations. Companies using oil and gas analytics will likely experience tremendous growth. Oil and gas businesses employ a substantial volume of field data and machine learning algorithms to conduct their analytics process. The gathered data aids in enhancing corporate efficiency, predicting future trends, and comprehending consumer behavior. Companies in the oil and gas business have been compelled to embrace oil and gas analytics due to the data's intricate and fluctuating nature.

The expansion of the oil and gas analytics market is ascribed to the increasing recognition of the importance of security in oil and gas sector operations. The need for oil and gas analytics is increasing due to the investments made by various companies in digitization. Moreover, the substantial expansion of the worldwide oil and gas analytics market is propelled by developments in process automation and the increasing need for the adoption of big data analytics.

Highlights

  • The software generates the highest revenue share based on the offer.
  • Cloud accounts for the largest market share by deployment.
  • Upstream accounts for the largest market share by application.
  • Large enterprises generate the highest revenue share based on end users.

Market Dynamics

Global Oil and Gas Analytics Market Drivers:

Growing Government Regulation

Oil and gas analytics oversee several processes by utilizing data gathered from sensor networks, including exploration, drilling, production operations, seismic data analysis, reservoir characterization and modeling, asset management, and occupational safety. The oil and gas industry is often subject to scrutiny due to environmental concerns such as the quality of air and water, regulations for offshore operations, and the management of chemicals.

Nevertheless, ecological restrictions might be viewed as beneficial to the gas drilling industry. The Natural Gas Pipeline Permitting Reform Act in the United States aims to streamline the federal review process for interstate gas pipeline applications to expedite their approval. The Occupational Safety and Health Administration (OSHA) oversees worker safety by setting regulations for working conditions. OSHA provides a set of criteria that oil and gas operators must adhere to, and these guidelines can be effectively monitored using oil and gas analytics. The Petroleum and Natural Gas Regulatory Board (PNGRB) in India, established by the Petroleum and Natural Gas Regulatory Board Act of 2006, has been given the responsibility to oversee and control the activities related to refining, processing, storage, distribution, transportation, marketing, and sale of petroleum, petroleum products, and natural gas. Therefore, oil and gas analytics are utilized to optimize compliance with rules imposed by various governments.

Thus, the increasing government regulation of the oil and gas industries is driving the demand for analytics to ensure compliance, which in turn is fueling the market growth.

Growing Need for Predictive and Preventive Analysis

The oil and gas sector uses sensor networks and wireless technologies to gather real-time data from various sources, including rigs, field assets, and plants. This data is extensive and lacks organization. Predictive analytics in the oil and gas business has been discovered to decrease risk and expedite decision-making processes. Predictive maintenance reduces the costs associated with unforeseen reactive maintenance and downtime. Furthermore, firms may consider implementing a proactive maintenance approach, including regular equipment inspection, replacement, and predictive maintenance. The ability to get immediate and accurate knowledge and management of maintenance expenses has resulted in additional prospects for oil and gas analytics providers.

Lately, oil and gas analytics firms have emphasized drill bit failure analysis and enterprise analytics apps to simplify integrating enterprise applications. The McKinsey paper focused on devising strategies to minimize unforeseen operational disruptions resulting from failures of essential manufacturing equipment. A team of researchers has developed algorithms that accurately forecast breakdowns in a gas compressor train with an accuracy rate of over 70%. Furthermore, the implementation and execution of these models result in a productivity boost of 0.25-0.5 percent. The increasing demand for predictive and preventative maintenance to optimize costs is fueling the expansion of the oil and gas analytics industry.

Global Oil and Gas Analytics Market Restraints:

Big Data Implementation Issues

Oil and gas analytics involves the processing and analysis of large amounts of data retrieved from sensor networks, which necessitates structured and intricate analysis. Structured, unstructured, and semi-structured data are collected in some instances. The primary challenge in implementing big data analytics in the oil and gas business is the financial burden of handling data recording, storage, and analysis. A significant obstacle in digital oilfields is data transmission from the field to data processing facilities, which depends on factors such as the data's nature, data volume, and communication protocols. A survey done by IDC Energy revealed that the primary obstacle in effectively leveraging big data in oil and gas analytics is a need for more knowledge and support from the corporate sector.

Additional barriers identified in the poll included making decisions regarding pertinent data, a shortage of qualified individuals, and the expenses associated with oil and gas analytics infrastructure. Another concern pertains to the frequency of data collection and the quality of the collected data. Consequently, the efficient management of data transport, handling, and coordination in big data analytics for the oil and gas industry is challenging, thereby restricting market expansion.

Global Oil and Gas Analytics Market Opportunity:

Increased Natural Gas Production

The worldwide oil and gas analytics market is positioned for substantial expansion, propelled by increased natural gas extraction. The increased natural gas production from non-traditional sources such as shale requires advanced data analytics to handle the difficulties and possibilities effectively. The increasing popularity of this trend is driven by breakthroughs in data collecting and processing, as well as the incorporation of AI and ML, which offer more profound insights and predictive skills.

According to the US Energy Information Administration's estimation, natural gas output in the United States grew by approximately 4% in 2022 compared to the previous year, reaching a daily volume of 4.9 billion cubic feet. This indicates promising opportunities for oil and gas analytics growth since real-time data analysis will be crucial for optimizing operations due to growing production.

Regional Analysis

North America Dominates the Global Market

The global oil and gas analytics market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global oil and gas analytics market shareholder and is estimated to grow at a CAGR of 22.1% over the forecast period. The reason for this is the implementation of strict government rules, the growing demand for data analysis in oil and gas supply chain management, and the expanding discovery of oil sources. Implementing the Clean Air Act in the United States and several other government laws is significantly fueling the growth of oil and gas analytics by reducing greenhouse gas emissions. The United States Environment Protection Agency obligates oil and natural gas companies to inform the agency electronically or in writing before a new hydraulically-fractured well is finished. Oil and gas analytics can effectively handle these requirements. Enverus, a software and data analytics firm based in Austin, Texas, purchased RS Energy Group, a Canadian technology company specializing in upstream oil and gas, in February 2020. This acquisition will expedite the progress of technology development, machine learning, and sophisticated analytics for the market. The increasing technological improvements and the growing demand for process automation and optimization drive the market expansion in North America.

Asia Pacific is estimated to grow at a CAGR of 22.8% over the forecast period. The Asia Pacific oil and gas analytics market is propelled by various factors, such as the escalating need for data analysis in oil source exploration, rising oil and gas industry funds, and the swift adoption of cloud services in the region. In addition, the area has numerous software companies specializing in developing analytics platforms tailored explicitly for oil and gas companies, thereby significantly contributing to the market's growth. Furthermore, the growing proliferation of oil and gas projects in the region, namely in nations like China and India, is also fueling the need for oil and gas analytics.

Europe is expected to show significant growth. Several considerable factors drive the development of Europe's global oil and gas analytics industry. The main factors driving this are the growing energy consumption and the imperative to improve operational efficiency. The region's emphasis on digital transformation and the integration of cutting-edge technologies like AI, ML, and cloud computing will also have a substantial impact. Furthermore, the focus on decreasing carbon footprints and enhancing environmental sustainability is driving the implementation of analytics to optimize operations and reduce emissions. The increasing exploration of aging oil resources and the growing need for predictive maintenance further drive market growth.

Report Scope

Report Metric Details
Segmentations
By Offering
  1. Hardware
  2. Software
  3. Service
By Deployment
  1. On-premises
  2. Cloud
By Application
  1. Upstream
  2. Midstream
  3. Downstream
By End-User
  1. Small and medium Enterprises
  2. Large Enterprises
Company Profiles Infosys LandT Infotech TCS Tech Mahindra Capgemini Tibco software IBM SAS Oracle Hitachi
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global oil and gas analytics market is segregated based on offering, deployment, application, and end user.

The market is segmented into hardware, software, and service based on the offerings.

The software segment dominated the market in 2023. This is due to the increasing utilization of ML and AI for predictive analysis, the expanding number of applications driven by the Internet of Things (IoT), and the demand for extensive data processing. Production analytics is employed to enhance operational efficiency. Robotics, predictive and preventative maintenance, and sensor networks are gaining popularity in the oil and gas industry.

Therefore, different software solutions control and monitor activities from a distance by integrating with sensor networks, other hardware, and service provider systems. In May 2022, Petrobras, the national oil company of Brazil, conducted tests on various data visualization models before ultimately adopting an analytics platform created by Tibco, a software company based in the United States. Petrobras' corporate ICT department initiated a procedure to evaluate all available analytics and business intelligence (BI) software solutions. Therefore, the increasing advancements that meet the specific needs of the oil and gas industry are driving the growth of the software sector, which is leading to the expansion of the oil and gas analytics market.

The hardware segment is the fastest growing. Companies in the industry are progressively implementing advanced hardware solutions to improve operational efficiency, optimize output, and save costs. As organizations want to get valuable insights from the large volumes of data produced by interconnected assets, there will be an increasing need for advanced hardware tools. This will enable the oil and gas industry to function more efficiently and competitively in the changing market environment.

The service segment is the second largest. The service segment provides a secure facility for storing and maintaining created data. Additionally, it guarantees data safeguarding and verifies the user's iden

Market Size By Offering

Market Size By Offering
  • Hardware
  • Software
  • Service
  • Recent Developments

    Key Players

    Oil and Gas Analytics Market Share of Key Players

    Oil and Gas Analytics Market Share of Key Players
    Infosys LandT Infotech TCS Tech Mahindra Capgemini Tibco software IBM SAS Oracle Hitachi Others

    Frequently Asked Questions (FAQs)

    How big is the Oil and Gas Analytics Market?
    The global oil and gas analytics market size was valued at USD 8.46 billion in 2023 and is projected to reach USD 63.5 billion by 2032, registering a CAGR of 22.3% during the forecast period (2024-2032).
    North America region dominates the Oil and Gas Analytics Market.
    The prominent players in the market include Infosys , LandT Infotech , TCS , Tech Mahindra , Capgemini , Tibco software , IBM , SAS , Oracle , Hitachi.
    Growing Government Regulation and Growing Need for Predictive and Preventive Analysis are the key drivers for the growth of the market.
    The global market is segmented by offering, deployment, application and end user.


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