The global AI in oil & gas market is poised for substantial growth, with a staggering CAGR of 16.9% expected between 2023 and 2030. By the end of 2030, the market is anticipated to achieve a valuation of approximately US$2.9 billion. In an industry where downtime can lead to substantial revenue losses, AI is emerging as a key enabler for optimizing operations, enhancing productivity, and driving cost efficiencies across the oil and gas value chain.
Key Market Insights:
- The global AI in oil & gas market is forecasted to reach US$2.9 billion by the conclusion of 2030.
- In 2022, the predictive maintenance segment dominated the market, accounting for nearly 30.2% of the market share, while the upstream oil & gas sector held more than 51.8% of the market value share. The services segment constituted over 41.4% of the market.
- North America currently boasts a significant market value share of more than 38% in the global AI in oil & gas market. However, the Asia Pacific region is expected to witness the highest CAGR of 17.4% during the forecast period.
- Leading players in the AI in oil & gas market include Google, IBM, Intel Corporation, Microsoft, and Oracle Corporation.
Market Drivers:
Growing Need for Oil & Gas Value Chain Optimization:
Oil and gas companies are increasingly turning to AI technologies to optimize their operations and improve business performance. Downtime, especially unplanned downtime, can result in substantial losses. To proactively address issues and enhance productivity, major players like Shell, Exxon Mobil, BP, Chevron, Total, and Saudi Aramco are leveraging AI in conjunction with extensive networks of sensors and machine learning tools. Automation in drilling, powered by AI, is enabling better understanding of the drilling environment, accelerating results, and reducing maintenance and costs.
One-time Investment Costs with Improved RoI and Increased Revenue:
AI is gaining traction in the oil & gas sector due to its potential to increase productivity, reduce downtime, align with sustainability goals, and enhance automation. AI is helping oil and gas companies rethink their operations, improve stakeholder engagement, and develop new ways to realize and monetize value. Despite challenges related to data quality, seamless integration, and initial investment costs, AI adoption is imperative for organizations aiming to achieve critical business goals. Over the past year, the industry has achieved an average return on investment (RoI) of 32% by harnessing AI technologies, leading to a 3% expense reduction and 3% income gain over the past three years.
Upstream Sector to Register Maximum AI Utilization:
In 2022, the upstream sector dominated the global AI in oil & gas market, constituting more than 52% of the market share. AI in the upstream sector aids in optimizing well placements, improving drilling efficiency and safety, and enhancing oilfield performance. Meanwhile, AI in the midstream and downstream segments focuses on monitoring machinery, pumps, and compressors, optimizing process variables, and minimizing downtime in fractionating, purifying, and refining processes.
AI Service Packages Secure the Top Spot:
Among the market components, the services segment accounted for 41.4% of the market share in 2022. AI service packages, which combine hardware and software solutions tailored to specific needs and applications, are being adopted by oil and gas companies as a one-time investment with recurring revenue through service contracts.
Predictive Maintenance Leads Market Segmentation:
In terms of application, predictive maintenance emerged as the leading market segment in 2022, capturing 30.2% of the market share. Advanced analytics, including machine learning and IoT, are being used for predictive maintenance to proactively assess the condition of assets, allowing for more efficient and timely inspections and maintenance.
Growth Opportunities Across Regions:
North America and Asia Pacific Set for Strong Growth:
North America, with the United States as a major player, currently holds a significant market share of 38.2% in the global AI in oil & gas market. The US has been actively promoting the use of AI in various industries, including oil & gas, as part of the American AI Initiative. Meanwhile, Asia Pacific is expected to witness the highest growth potential, with China leading the market. China is exploring AI applications to enhance the safety and efficiency of crucial processes, such as fluidic catalytic cracking.
The Middle East and Africa also present promising opportunities for AI in the oil & gas sector. Governments in countries like the UAE, Saudi Arabia, Qatar, and Egypt are investing in AI to advance their industries. Despite the COVID-19 pandemic causing delays, a study in March 2022 suggested that Saudi Arabia should focus on using AI to strengthen key sectors, including oil & gas.
Global AI in Oil & Gas Market: Key Players
Leading players in the global AI in oil & gas market include Google, IBM, SAS, Accenture Plc, Baidu, Inc., H2O.ai, Microsoft Corporation, Oracle Corporation, Siemens, Intel Corporation, and GE.
Browse Global AI in Oil & Gas Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 (By Application Coverage, By Sector Coverage, By Component Coverage, By Geographical Coverage, Leading Companies): https://www.fairfieldmarketresearch.com/report/ai-in-oil-gas-market
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This press release first seen on Brilad
COMTEX_440958332/2840/2023-09-26T05:21:48
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