About AI in Oil and Gas
Artificial intelligence is projected to be a key influencing factor for the growth of the oil and gas sector in the upcoming years. The technology revolution in oil and gas industry is taking off because of improvising safety and productivity that can be achieved by automation. With increasing challenges faced by the oil and gas industry in the past for exploration and exploitation of hydrocarbons, a cross-disciplinary approach is being rendered which requires some critical processes to be semi-automated and some to be fully automated. It can also reduce the risk to human workers. According to Motorola Solutions, the demand for the AI in the global oil sector is expected to increase by about 33%, by 2035.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Billion) |
CAGR | 11.09% |
"The next generation of competitive advantage in the energy marketplace will go to forward-thinking players who invest a lot on digital IoT and artificial intelligence capabilities like Cerebra from Flutura” Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global AI in Oil and Gas market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
IBM (United States), Intel (United States), Accenture (Republic of Ireland), Google (United States), Microsoft (United States), Oracle (United States), Sentient technologies (United States), Inbenta (United States), General Vision (United States) and Cisco (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are FuGenX Technologies (United States), Infosys (India), Hortonworks (United States) and Royal Dutch Shell (Netherlands).
Segmentation Overview
AMA Research has segmented the market of Global AI in Oil and Gas market by Type (Hardware, Software and Services), Application (Upstream, Midstream and Downstream) and Region.
On the basis of geography, the market of AI in Oil and Gas has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Function Type, the sub-segment i.e. Material Handling will boost the AI in Oil and Gas market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Service Type, the sub-segment i.e. Professional will boost the AI in Oil and Gas market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Investment in Start-Ups for AI Implementation in Oil & Gas Industry in Various Regions Including Middle East, Africa and Others
Market Growth Drivers:
The Surging Incidents of Oil & Gas Leakage from Storage Tanks and Pipelines at Production Facilities and Increasing Safety Concerns Among the Workforce, Especially the Maintenance of Aging Pipeline Infrastructure
Challenges:
Increasing Cyber Attack and Data Breaches Across the World
Restraints:
Ambiguous Regulatory Guidelines for AI in the Oil & Gas Market
Opportunities:
The Rising Adoption of Smart Sensing Technology as a Part of Industrial IoT
Market Leaders and their expansionary development strategies
In January 2024, SLB entered an investment and technology partnership with Geminus AI, marking a significant leap in the realm of artificial intelligence (AI) applications for oil and gas operations.Per the terms of the alliance, SLB, a prominent player in the energy sector, gains exclusive rights to leverage Geminus AI’s innovative model builder. The unique feature of the Geminus model builder is that it combines physics-based methods with process data to create accurate AI models.
In June 2020, Hortonworks Inc. launched Hortonworks Data Platform (HDP) 3.0, which delivers significant new enterprise features, including containerization for faster and easier deployment of applications and increased developer productivity. The new version of HDP enables customers to quickly, reliably, and securely obtain value from their data at scale, to drive business transformation
The US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has implemented Liquids Mega Rule in which it is important to install leak detection systems in all dangerous liquid pipelines.
Analyst View
"The digital revolution in oil and gas industry is increasing rapidly. Improved safety and productivity can be achieved by automating routine manual activities, which can also reduce the risk to human workers. Artificial Intelligence (AI) also has the potential to free scientists and engineers from repetitive and time-consuming tasks, and can assist in decision making."
Key Target Audience
AI system providers, Environmental research institutes, AI manufacturers and suppliers, National and local government organizations, Government and research organizations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.