Digital Transformation Market in The Oil and Gas Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

• Digital Transformation Market in The Oil and Gas Industry is expected to register CAGR of 10% during 2021 - 2026. Digital transformation has been one the key trends driving the global Oil & Gas industry since the last decade, This transformation enable the operations to leverage advanced digital technologies such as AI, IoT, Big Data among others to drive efficiencies and thereby open up new opportunities for the same as it might involve digital twins which evidently improves the efficiency of predictive maintenance of the critical assets and thereby restricting the exposure of hazardous task to the workers in the facilities.
• with oil and gas upfronting the energy sectors added with an increased focus on improving efficiencies and reducing downtime set as a priority by oil and gas companies has resulted in profits been slashed since the year 2014 majorly due to fluctuating oil prices globally. However, raising concerns over the environmental impact of energy production and consumption persist, companies are actively seeking to innovate their strategies and goals while reducing the environmental feedback
• Additionally, the price of oil reduced by 40%, since hitting four-year highs of above USD 76 a barrel in October 2018, in the United States, nurturing concerns for oil and gas firms. Hence, the companies in the oil and gas sector are experimenting with contemporary technologies to increase their efficiency and revenue. By leveraging technologies such as AI in oil and gas operations, corporations can design algorithms to guide drills on landmass and ocean floor.
• For instance, UK’s first oil and gas National Data Repository (NDR), launched in March 2019, using AI to interpret data, which according to the OGA anticipations will assist to discover new oil and gas forecasts and permit more production from existing infrastructures.
• Also, the application predictive analytic algorithm is fueling the automation across the upstream segment of the oil & gas industry majorly attributed to the increasing demand for big data technology in the oil & gas industry to augment E&P capabilities with the growing need for automation in the oil & gas industry there by increasing the investments through joint venture capitals.​
• Additionally, Adoption the monitor equipment such as IoT will allow companies to further digitize the industry by automating and optimizing the processes and eliminating the risk associated including as safety and regulation issues, remote access by constantly enabling constant monitoring of the equipment.

Scope of the Report

• Digital transformation refers to the process of leveraging emerging and prevalent digital technologies for realizing tangible, game-changing benefits in any field of application. Given the dynamic nature of the oil & gas industry, it has now become imperative for companies to increasingly rely on technology to attain tangle benefits across various processes
• The report tracks the current market scenario and key trends related to the use of major technologies, such as Big Data, ICS, AI, IoT, and AR/VR, among others.

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Key Market Trends

Downstream Sector is Expected to Witness Major Market Share

• Digital Transformation is considered as one the core innovations being used in leading the downstream operations of the oil & gas industry, the companies are focusing to increase the asset utilization by enhancing the manufacturing efficiency of the plants
• The downstream operations of the oil and gas companies, including both petrochemicals and refining, have always adopted technology to improve its operations. These companies have developed and adopted innovative approaches that manage complex processes and interpret data to improve performance. The ongoing shift to becoming digital is expected to present even greater potential, given the strategic push by many companies to expand their downstream operations of the oil and gas value chain, especially petrochemicals
• The major area of concern for the vendors is how to predict and prevent, or reduce, maintenance costs. The automation solutions that are being used for maintenance and turnaround planning tools use application performance management and AI-based simulation and can be easily added to an existing operational system. Moreover, the upgradation of sensor systems, to enable better predictive and prescriptive maintenance, can lead to long-term operational efficiencies
• Multiple oil and gas companies are relying on technologies such as AI , IoT, Big Data, among others into their operations so as to improve their operations. For instance, Shell’s downstream commercial business, that is responsible for the supply of oil and gas to the end consumer, is using AI technology to predict consumer demand for petroleum products, measure supply shortages, and recommend a mix of oil for a refining process.

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