The services segment of the digital oilfield stands to gain the most with the global digital oilfield market size projected to grow to US$32.33 billion by 2021, at a compound annual growth rate of close to five per cent, according to consultancy Technavio.
“The services segment of the digital oilfield market is expected to contribute over 40 per cent of the overall revenue by 2021, generating over US$13 billion,” Thanikachalam Chandrasekaran, one of the lead analysts at Technavio for oil and gas research, said in a statement.
“Energy services involve the design and implementation of digital oilfield solutions ranging from providing consultation on the use of appropriate tools, designing full end-to-end digital oilfield solutions, and vendor selections.”
The market segment offers exploration, drilling, production and completion services to end-users. Oilfield services providers are also investing in and developing new technologies such as enhanced oil recovery and vertical drilling to increase production, thereby driving market growth.
The need to update existing and new software will drive the demand for software services in the global digital oilfield market, said Technavio. The software component includes engineering applications such as petroleum data management, asset modelling, analysis and optimization, real-time surveillance and workflow integration, and collaboration. The availability of many vendors offering customized software with value-added services will likely increase the revenue of this segment.
The hardware segment includes pressure gauges, data management hardware, temperature and gas leak sensors, and field wireless connectivity systems. “These are required to keep pace with the advances in software to achieve optimal utilization of the available resources,” said Thanikachalam.
The growth in field experience and the constantly increasing demand for digital oilfield hardware will drive the growth of the market segment. The major hardware installations are surface systems such as sensors, meters, valves and actuators; and subsurface systems such as downhole gauges, fibre optic and distributed temperature sensors.