Market Size of Oil & Gas Engineering Services Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 54.70 Billion |
| Market Size (2029) | USD 78.50 Billion |
| CAGR (2024 - 2029) | 7.49 % |
| Fastest Growing Market | Middle-East and Africa |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oil & Gas Engineering Services Market Analysis
The Oil & Gas Engineering Services Market size is estimated at USD 54.70 billion in 2024, and is expected to reach USD 78.5 billion by 2029, growing at a CAGR of 7.49% during the forecast period (2024-2029).
The rise in the adoption of various automation technologies in the Oil and Gas sector is the prime factor enhancing the engineering services market exponentially.
- Due to the industry's dynamic nature, the need to increase productivity and efficiency, uptime, and return on assets is rising. At the same time, minimizing costs is estimated to drive the adoption of engineering services in the industry. Moreover, the oil and gas industry faces challenges like rising penetration of renewable energy, strict carbon footprint regulations, electric vehicles, and various new hydrocarbon sources. Hence, the companies are adopting various strategic Industry 4.0 strategies to overcome these challenges.
- Advanced application of technologies, such as machine learning, analytics, and many others, is expected to help and assist oil and gas companies in analyzing big data sets and provide meaningful insights. Hence, the engineering services adoption within the industry is anticipated to rise during the forecast period.
- Also, the market is witnessing various strategic collaborations amongst the players, acting as a lucrative path toward expansion. For instance, in April 2023, Energy company BlueNord, also known as Noreco Oil Denmark AS or Noreco, and engineering and contracting company Semco Maritime AS entered into a strategic partnership agreement to jointly identify, explore, and investigate opportunities in the oil and gas space.
- However, the growing operational and compliance-related challenges and the fluctuations in the oil and gas prices, as well as other macroeconomic changes within the industry, could be a significant concern limiting the overall market's growth throughout the forecast period.
- The COVID-19 pandemic and its economic implications have received intense government attention, which diverted attention from the energy transition. The crisis's short and long-term effects significantly impacted the sector. However, during the post-COVID-19 period, the market is expected to witness significant growth opportunities, especially due to the surge in the adoption of automation in the oil and gas industry to aid the overall growth of design and engineering services as well as the rise in the Industry 4.0 Practices Such as Extended Reality & BIM 4D.
