The global digital oilfield solutions market is expected to grow from $28.31 billion in 2016 to reach $40.61 billion by 2022 with a compound annual growth rate of 6.1 per cent, according to London-based Stratistics MRC.
Expanding exploration and production activities, increasing demand to minimize production costs and raising safety concerns are some of the factors fueling the market growth, bolstered by recent technological developments in oilfield solutions.
However, fluctuating oil prices and low adoption of new technologies are limiting implementation of these systems, Stratistics MRC said.
The automation and instrumentation segment is expected to witness a highest growth rate during the forecast period due to limited human capital in industry and optimizing the costs of automated oilfield processes.
The Middle East is one of the key markets for digital oilfield solutions, Stratistics MRC said.
North America has a significant share in the overall global market and is anticipated to provide lucrative growth opportunities for the market in the next few years.
Asia Pacific is expected to be the fastest growing region as a result of industrialization and expansion of the oil and gas industry, according to Stratistics MRC.
As the digital oilfield advances, the cyber security sector that seeks to protect digital assets will similarly grow. The latest report by business intelligence provider visiongain assesses that oil and gas cyber security spending will reach $31.45 billion in 2017.
Operational technology like use of supervisory control and data acquisition system (SCADA), OPC servers, field devices and distributed control systems is more prone to cyber attacks.
There have been number of incidents that have caused significant damage to the oil and gas industry that is prompting more companies to invest in the security of their data and systems, according to Stratistics MRC.