
Study Period | 2022 - 2030 |
Market Size (2025) | USD 3.54 Billion |
Market Size (2030) | USD 6.40 Billion |
CAGR (2025 - 2030) | 12.61 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
AI In Oil And Gas Market Analysis
The AI In Oil And Gas Market size is estimated at USD 3.54 billion in 2025, and is expected to reach USD 6.40 billion by 2030, at a CAGR of 12.61% during the forecast period (2025-2030).
The oil and gas industry is experiencing a significant transformation driven by technological advancement and changing global energy dynamics. According to the Gas Exporting Countries Forum (GECF) Annual Gas Market Report 2024, global gas production increased by 0.8% to 4.08 cm in 2023, with North America leading the global production growth. The industry's landscape has been particularly impacted by geopolitical shifts, as evidenced by Eurostat's reporting that Russia's share in EU pipeline gas imports dramatically decreased from 40% in 2021 to approximately 8% in 2023. This restructuring of global energy supply chains has accelerated the adoption of advanced technologies, particularly artificial intelligence in oil and gas, as companies seek to optimize their operations and maintain competitiveness in a volatile market.
The integration of artificial intelligence in oil and gas has evolved from basic automation to sophisticated predictive analytics and operational optimization. In a notable development, Abu Dhabi National Oil Company (ADNOC) reported generating USD 500 million in value through AI deployment in 2023, achieved through the integration of more than 30 AI tools across their value chain. This success story demonstrates the tangible benefits of AI implementation in the industry, particularly in areas such as operational efficiency, safety enhancement, and emissions reduction, with ADNOC preventing approximately 1 million tons of CO2 emissions between 2022 and 2023.
The industry is witnessing a rapid evolution in AI capabilities, particularly in the realm of generative AI applications. In March 2024, Saudi Aramco introduced its groundbreaking generative AI model, Aramco Metabrain AI, which incorporates 250 billion parameters and has been trained using seven trillion data points collected over 90 years of company history. This sophisticated system demonstrates the industry's movement toward more complex and comprehensive AI solutions that can analyze drilling plans, geological data, and historical information to optimize operations and decision-making processes.
The market is characterized by increasing strategic partnerships and collaborations between technology providers and oil and gas companies. A significant example is the October 2023 announcement of C3 AI's integration of Shell's predictive maintenance software into their reliability application, enhancing the maintenance capabilities for critical equipment. These collaborations are becoming more prevalent as companies recognize the need to combine domain expertise with advanced AI capabilities to address complex operational challenges and improve overall efficiency. The industry is moving toward more integrated solutions that combine traditional operational technology with AI in Oil and Gas, creating more resilient and adaptive operational systems.
AI In Oil And Gas Market Trends
Increasing Focus to Easily Process Big Data
The oil and gas industry's growing need to efficiently process massive datasets has become a crucial driver for AI adoption. According to recent industry data, oil and gas data analytics technologies have demonstrated significant potential in analyzing extensive seismic surveys, geological formations, historical well logs, and satellite imagery to accurately identify potential oil reservoirs. For instance, in March 2024, Corva LLC's AI program implemented at Nabors Industries Ltd rig showcased remarkable efficiency by reducing human operator commands by approximately 5,000 while enhancing drilling speed by at least 30%. This advancement in data processing capability has revolutionized traditional exploration methods, enabling companies to make more informed decisions based on real-time analysis of complex geological data.
The industry's focus on preventing environmental hazards through better data processing has intensified, as evidenced by historical spill data showing a significant reduction in tanker spills from 788 incidents in the 1970s to just 27 incidents in the early 2020s. Companies are leveraging machine learning in oil and gas to process environmental monitoring data more effectively, with recent implementations showing promising results. For example, Schlumberger's AI-powered platform Predix successfully identified a potential pipeline leak that could have caused a significant explosion, while Chevron's partnership with Microsoft's Azure Machine Learning platform prevented 12 major equipment failures in its first year of implementation, resulting in approximately $10 million in savings from avoided downtime and maintenance costs.
Rising Trend to Reduce Production Cost
The oil and gas industry's push toward cost reduction has become a significant driver for AI adoption, as companies seek to optimize operations and improve efficiency. According to the Gas Exporting Countries Forum (GECF) Annual Gas Market Report 2024, global gas production increased by 0.8% to 4.08 cm in 2023, with a projected 2% increase in 2024, creating pressure on companies to optimize production costs. This trend is further emphasized by the increasing marginal cost of finding oil and natural gas, with natural gas costs rising from 2.6 USD/boe in 2022 to 5.3 USD/boe in 2023, while oil finding costs increased from 3.5 USD/boe to 8.8 USD/boe in the same period, driving companies to seek oil and gas automation solutions for cost optimization.
Recent implementations of AI technologies have demonstrated significant cost-saving potential across the industry. For instance, Abu Dhabi National Oil Company (ADNOC) reported generating USD 500 million in value through the deployment of more than 30 AI tools across its value chain in 2023, while simultaneously reducing carbon dioxide emissions by approximately 1 million tonnes between 2022 and 2023. French innovative software company NUMALIS has reported that AI initiatives in subsurface and reservoir modeling can improve production efficiency by 15% to 30%, demonstrating the technology's potential in reducing operational costs. These successful implementations have encouraged other companies to adopt oil and gas predictive maintenance solutions for cost optimization, particularly in areas such as predictive maintenance, production forecasting, and supply chain management.
Segment Analysis: By Operation
Downstream Segment in AI in Oil and Gas Market
The downstream AI segment dominates the AI in oil and gas market, accounting for approximately 49% of the total market share in 2024. This significant market position is driven by the increasing adoption of automation, IoT, and other analytical tools in oil refineries to enhance productivity and safety. The segment's growth is particularly evident in the implementation of AI for diverse applications, including employee safety monitoring, optimization of crude distillation units (CDUs), improvement of fired heaters' efficiency, and predictive maintenance of critical equipment. Major oil companies are increasingly leveraging AI-based solutions to optimize their refinery operations, as demonstrated by Bharat Petroleum Corporation Limited's (BPCL) implementation of UptimeAI's advanced AI-based plant monitoring solution in 2023, which aims to enhance operational efficiency, improve reliability, and promote sustainable practices within its operations.

Upstream Segment in AI in Oil and Gas Market
The upstream AI segment is experiencing the most rapid growth in the AI in oil and gas market, with a projected growth rate of approximately 14% during the forecast period 2024-2029. This accelerated growth is driven by the increasing application of AI in critical exploration activities, including geological surveys, land rights acquisition, and both onshore and offshore drilling operations. The segment's expansion is further supported by the adoption of advanced AI algorithms that analyze extensive datasets of seismic surveys, geological formations, historical well logs, and satellite imagery to accurately identify potential oil reservoirs. Companies like ExxonMobil are at the forefront of this transformation, leveraging upstream AI models to analyze real-time seismic data and historical drilling information for precise detection of natural oil seeps in ocean environments, demonstrating the segment's growing sophistication in exploration technologies.
Remaining Segments in Operation Segmentation
The midstream AI segment plays a crucial role in the AI in oil and gas market by focusing on post-extraction and production phases, including gathering, transportation, storage, and distribution of crude oil, natural gas, and other energy products. This segment leverages AI technology for optimizing supply chains and analyzing logistics data such as weather patterns, pipeline capacity, and storage availability. The implementation of AI in midstream operations has proven particularly effective in route optimization, delivery time improvement, and fuel savings across various transportation modes, including pipelines, trucks, railways, and ships, making it an integral part of the industry's digital transformation journey.
Segment Analysis: By Type
Platform Segment in AI in Oil and Gas Market
The Platform segment dominates the AI in oil and gas market, commanding approximately 84% of the market share in 2024. This significant market position is driven by the increasing adoption of digital strategies in oil and gas industries to enhance operational productivity through factory automation, maintenance management, and employee safety. The emergence of generative AI has transformed refinery processes, including crude oil distillation, product blending, yield optimization, predictive maintenance, risk management, and real-time monitoring of operations. Market vendors like FuGenX Technologies, C3.AI, and others have been witnessing significant advancements in base software development to remain competitive, addressing the increasing demand for AI software in the oil and gas sector. For instance, in September 2023, C3 AI announced the launch of the C3 Generative AI Suite for the oil and gas industry to improve upstream discovery, asset uptime, and production throughput. The growth of IIoT adoption, usage of cloud-based software, and opportunities for software integrations with data sources in oil and gas industry applications continue to fuel the platform segment's dominance.
Services Segment in AI in Oil and Gas Market
The Services segment is projected to experience the fastest growth rate of approximately 16% during the forecast period 2024-2029. This accelerated growth is driven by the emergence of outsourced non-core business functionalities to third-party market vendors for better ROI and the growth of OPEX-based strategies in enterprise operations. Oil and gas companies, including upstream, midstream, and downstream operators, are increasingly engaging with service providers that offer advanced AI implementations, integrations, and wholly managed AI services. The market has been registering significant collaborations and acquisitions by service providers to strengthen their market presence. For example, in May 2024, Accenture plans to acquire Partners in Performance, a global strategy consulting firm specializing in business performance improvement in asset-intensive industries, leveraging data and AI capabilities. Additionally, the growth of ERP tools in oil and gas industries is generating substantial factory data, creating opportunities for service providers to utilize proprietary AI solutions for better business insights.
AI In Oil And Gas Market Geography Segment Analysis
AI in Oil and Gas Market in North America
North America, commanding approximately 31% of the global AI in oil and gas market in 2024, stands as a leading and highly developed market for AI implementation. The region's dominance is attributed to its strong economy, widespread adoption of AI technologies among oilfield operators and service providers, and the significant presence of top AI software and system suppliers. The United States leads the regional market due to its extensive oil and gas sector and increasing adoption of AI within the sector. The region's well-established infrastructure, capable of accommodating cutting-edge solutions in the oil and gas industry, provides a strong foundation for market growth. Joint investments made by government and private entities to support research and development activities further fuel the demand for AI in the oil and gas sector. The expanding oil and gas production capacities and rising investments in the industry continue to enhance market opportunities. The integration of AI into oil and gas exploration has ushered in a new era of effectiveness and precision, revolutionizing the methods employed by companies to locate and uncover hydrocarbon resources.

AI in Oil and Gas Market in Europe
Europe holds a substantial portion of the global AI in oil and gas market, demonstrating approximately 11% growth from 2019 to 2024. The region's market is driven by significant government efforts to promote AI adoption and the presence of substantial activity in the downstream oil and gas sector. The high industrial activity serves as a major driving force for the AI market in Europe. The region's focus on reducing reliance on traditional energy sources has led to increased investments in innovative technologies, including AI solutions for optimization and efficiency. European oil and gas companies are increasingly leveraging AI technology for reservoir analysis, drilling optimization, pipeline anomaly detection, safety monitoring, and emissions reduction. The growing investments in pipeline infrastructure for the transportation of oil and gas products across Europe, coupled with the region's push toward energy independence, continue to fuel the demand for AI technology. The region's commitment to environmental sustainability and operational efficiency has made it a key adopter of AI-powered solutions in the oil and gas sector.
AI in Oil and Gas Market in Asia-Pacific
The Asia-Pacific region represents the fastest-growing market for AI in oil and gas, with a projected growth rate of 14% during 2024-2029. The region's market dynamics are shaped by rapid industrialization, increasing energy demands, and growing investments in oil and gas production activities across countries like India, China, and other Southeast Asian nations. Similar to Europe, this region demonstrates strong demand for AI technology in the downstream oil and gas sector. The region has begun embracing advanced technologies and is expected to witness significant growth in AI adoption across various operational aspects of the oil and gas industry. Major state-owned oil and gas companies are making substantial investments in AI technology to enhance operational efficiency and maintain a competitive advantage. The increasing focus on digital transformation, coupled with the growing need for operational optimization and safety improvements, continues to drive the adoption of AI solutions in the region's oil and gas sector. The emergence of new oil and gas projects, particularly in Southeast Asian countries, further creates opportunities for AI implementation.
AI in Oil and Gas Market in Latin America
Latin America is experiencing a digital revolution in both public and private sectors as the region positions itself to remain competitive in the global economic market. The region is recognized as the new frontier for oil and has the potential to contribute substantially to global oil and gas output in the coming years. The increasing demand for natural gas, primarily driven by the shift from coal to natural gas in power generation and industrial processes, is creating new opportunities for AI in oil and gas market implementation. Oil and gas companies in the region are increasingly adopting AI and machine learning technologies to optimize their operations and enhance production efficiency. The region's focus on modernizing its oil and gas infrastructure, combined with the growing emphasis on sustainable practices, is driving the adoption of AI-enabled solutions. The integration of advanced analytics and AI-driven decision-making tools is helping regional operators improve their operational efficiency while maintaining environmental compliance.
AI in Oil and Gas Market in Middle East & Africa
The Middle East and Africa region represents a significant market for AI in oil and gas, driven by the presence of major oil-producing nations and increasing investments in digital transformation initiatives. The region's oil and gas industry is undergoing rapid technological advancement, with major players implementing AI solutions across their value chains. The adoption of AI technology is particularly strong in the United Arab Emirates and Saudi Arabia, where national oil companies are leading digital transformation efforts. The region's focus on enhancing operational efficiency, reducing environmental impact, and optimizing production processes has created a robust demand for AI solutions. The implementation of AI-driven technologies is helping regional operators improve their exploration and production capabilities while maintaining environmental compliance. The growing emphasis on sustainable practices and operational excellence continues to drive the adoption of AI solutions across the region's oil and gas value chain.
AI In Oil And Gas Industry Overview
Top Companies in AI in Oil and Gas Market
The competitive landscape is characterized by major technology companies and specialized AI companies in the oil and gas sector working to transform the oil and gas industry through innovative offerings. Companies are heavily investing in research and development to enhance their AI platforms and services, with a particular focus on developing generative AI capabilities and industry-specific solutions. Strategic partnerships and collaborations between technology providers and oil and gas companies have become increasingly common, enabling faster deployment and integration of AI solutions. Market players are expanding their geographical presence, especially in emerging markets like the Middle East and Asia-Pacific, while simultaneously strengthening their existing operations in mature markets. The emphasis on sustainability and environmental compliance has driven companies to develop AI solutions specifically targeted at emissions monitoring, environmental risk management, and operational efficiency optimization.
Market Dominated by Tech and Industrial Giants
The market structure reflects a mix of global technology conglomerates like IBM, Microsoft, and Intel, alongside specialized AI companies in the oil and gas sector such as C3.AI and oPRO.ai. These established players leverage their extensive technological expertise, robust financial resources, and global presence to maintain their market positions. The landscape is further enriched by industrial automation companies like ABB and Honeywell, which bring deep domain knowledge of oil and gas operations to their AI offerings. The market shows moderate consolidation, with larger players actively pursuing strategic acquisitions and partnerships to enhance their capabilities and market reach.
The competitive dynamics are shaped by significant barriers to entry, including high initial investment requirements, the need for specialized industry knowledge, and established relationships with oil and gas companies. Market participants are increasingly focusing on developing end-to-end solutions that integrate with existing infrastructure and operations, rather than standalone products. The industry has witnessed numerous strategic alliances between technology providers, consulting firms, and oil and gas companies, creating a complex ecosystem of partnerships and collaborations aimed at delivering comprehensive AI solutions for the oil and gas industry.
Innovation and Integration Drive Future Success
Success in this market increasingly depends on the ability to deliver customized, scalable solutions that address specific challenges in the oil and gas value chain. Companies must maintain significant investment in research and development to stay ahead of rapid technological advancements, particularly in areas like generative AI and machine learning applications in the oil and gas industry. The ability to integrate AI solutions with existing operational technology infrastructure and demonstrate a clear return on investment has become crucial for market players. Vendors must also focus on building strong service and support capabilities to assist customers throughout their AI implementation journey.
Market contenders can gain ground by focusing on niche applications or specific segments of the oil and gas value chain, developing specialized expertise that larger players may lack. The increasing emphasis on environmental sustainability and regulatory compliance creates opportunities for companies offering AI solutions for the oil and gas industry that help reduce emissions and improve environmental performance. Success also depends on building strong relationships with system integrators and technology partners to enhance distribution capabilities and market reach. Companies must maintain flexibility in their business models to accommodate varying customer preferences for deployment options, from on-premise to cloud-based solutions, while ensuring robust cybersecurity measures to protect sensitive operational data.
AI In Oil And Gas Market Leaders
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IBM Corporation
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Fugenx Technologies
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C3.AI Inc.
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Microsoft Corporation
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Intel Corporation
- *Disclaimer: Major Players sorted in no particular order

AI In Oil And Gas Market News
- March 2024: ADNOC, the Abu Dhabi National Oil Company, announced plans to harness artificial intelligence (AI) for oil production in the Belbazem offshore block. It aims to boost operational efficiency, bolster safety measures, and simultaneously slash emissions and costs. Teaming up with AIQ, ADNOC will leverage AIQ's WellInsight tool to scrutinize reservoir data and streamline operations, underscoring the burgeoning demand for AI solutions in the oil and gas industry.
- January 2024: Schlumberger (SLB) forged a strategic alliance with Geminus AI, a prominent player in physics-informed AI technology for the oil and gas industry. This collaboration grants SLB exclusive rights to deploy the industry's maiden physics-informed AI model builder. This innovative tool merges physics-based methodologies with operational data, crafting highly precise AI models that can be swiftly scaled at a reduced cost compared to conventional methods. Geminus' platform, distinguished by its physics-informed AI computing, embeds real-world constraints into its digital models. Notably, this platform operates efficiently with minimal data and can be seamlessly updated with new inputs. Such capabilities empower data scientists and engineers to make real-time, data-driven decisions, setting a solid foundation for future market expansion.
AI in Oil and Gas Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of Macroeconomic Factors on the Market
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4.4 Technology Snapshot - By Application
- 4.4.1 Quality Control
- 4.4.2 Production Planning
- 4.4.3 Predictive Maintenance
- 4.4.4 Other Applications
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Focus to Easily Process Big Data
- 5.1.2 Rising Trend to Reduce Production Cost
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5.2 Market Restraints
- 5.2.1 Initial High Cost of Adoption
- 5.2.2 Lack of Skilled Professionals in the Oil and Gas Industry
- 5.3 Key Use Cases
6. MARKET SEGMENTATION
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6.1 By Operation
- 6.1.1 Upstream
- 6.1.2 Midstream
- 6.1.3 Downstream
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6.2 By Type
- 6.2.1 Platform
- 6.2.2 Services
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6.3 By Geography***
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia
- 6.3.4 Australia and New Zealand
- 6.3.5 Latin America
- 6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 IBM Corporation
- 7.1.2 FuGenX Technologies
- 7.1.3 C3.AI Inc.
- 7.1.4 Microsoft Corporation
- 7.1.5 Intel Corporation
- 7.1.6 ABB Ltd
- 7.1.7 Honeywell International Inc.
- 7.1.8 Huawei Technologies Co. Ltd
- 7.1.9 NVIDIA Corporation
- 7.1.10 Infosys Limited
- 7.1.11 oPRO.ai Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
AI In Oil And Gas Industry Segmentation
The oil and gas industry is increasingly turning to artificial intelligence (AI) as a cost-saving measure. AI applications, ranging from boiler diagnostics to drilling operations, are becoming integral in optimizing processes across the industry's upstream, midstream, and downstream segments. In the exploration and production areas, AI is leveraged for tasks like quality control, predictive maintenance, and planning. The report also delves into AI services, encompassing both professional and managed services.
This study evaluates the revenue generated by AI solutions from various industry players. The report not only scrutinizes market size but also delves into key parameters, growth drivers, and major vendors, all crucial for estimating market trends and growth rates during the forecast period.
The AI in oil and gas market is segmented by operation (upstream, midstream, and downstream), type (platform and services), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in value terms (USD) for all the above segments.
By Operation | Upstream |
Midstream | |
Downstream | |
By Type | Platform |
Services | |
By Geography*** | North America |
Europe | |
Asia | |
Australia and New Zealand | |
Latin America | |
Middle East and Africa |
AI in Oil and Gas Market Research FAQs
How big is the AI In Oil And Gas Market?
The AI In Oil And Gas Market size is expected to reach USD 3.54 billion in 2025 and grow at a CAGR of 12.61% to reach USD 6.40 billion by 2030.
What is the current AI In Oil And Gas Market size?
In 2025, the AI In Oil And Gas Market size is expected to reach USD 3.54 billion.
Who are the key players in AI In Oil And Gas Market?
IBM Corporation, Fugenx Technologies, C3.AI Inc., Microsoft Corporation and Intel Corporation are the major companies operating in the AI In Oil And Gas Market.
Which is the fastest growing region in AI In Oil And Gas Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in AI In Oil And Gas Market?
In 2025, the North America accounts for the largest market share in AI In Oil And Gas Market.
What years does this AI In Oil And Gas Market cover, and what was the market size in 2024?
In 2024, the AI In Oil And Gas Market size was estimated at USD 3.09 billion. The report covers the AI In Oil And Gas Market historical market size for years: 2022, 2023 and 2024. The report also forecasts the AI In Oil And Gas Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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AI In Oil And Gas Market Research
Mordor Intelligence provides comprehensive insights into the rapidly evolving AI in oil and gas landscape. We leverage our extensive expertise in oil and gas digital transformation and industry analytics. Our detailed research covers the full spectrum of artificial intelligence in oil and gas industry applications. This includes upstream AI, midstream AI, and downstream AI implementations. The report examines crucial developments in oil and gas automation, machine learning in oil and gas, and oil and gas IoT technologies. It provides stakeholders with actionable intelligence on digital oilfield innovations and smart oilfield solutions.
Stakeholders benefit from our in-depth analysis of oil and gas data analytics trends and predictive analytics in oil and gas industry applications. This information is available in an easy-to-read report PDF format for download. The research covers emerging oil and gas predictive maintenance strategies and intelligent oilfield technologies. It also examines the impact of Industry 4.0 on the sector. Our analysis includes detailed insights into oil and gas digitalization initiatives, digital oilfield market developments, and advanced oil and gas analytics applications. This enables decision-makers to navigate the complex landscape of technological transformation in the industry.