The data business in the oil & gas market is anticipated to expand its roots at a steady CAGR of 16.7% during the forecast period. The market is likely to hold a revenue of US$ 36.43B in 2023 while it is anticipated to cross a value of US$ 171.18B by 2033.
Oil and gas companies have been able to operate efficiently in a low-cost environment by implementing and utilizing real-time analytics and predictive analytics systems. This has allowed them to focus on operating costs and capital expenditure.
What are the Key Dynamics Governing the Growth of the Data Business in the Oil & Gas Market?
In the data business in the oil & gas market, big data refers to a vast volume of data generated at a high rate in a variety of formats, including structured and unstructured data generated by various operations and financial activities.
The demand for data business in the oil & gas market is anticipated to rise as by using diverse analytical tools and approaches, big data is used to generate useful information for better decision making.
A key factor propelling the adoption of data business in the oil & gas industry includes the ability of big data to make efficient and better judgments, which can lead to enhanced operational efficiency, reduced risk, and cost savings. Oil and gas companies can move away from traditional real-time monitoring and toward faster real-time predictions with the best technology solutions.
The adoption of data business in the oil & gas industry is significantly expanding. This growth can be attributed to factors such as:
- A great reliance on information technology to increase oilfield recovery.
- Reduce non-productive activities.
- Increased research and development
The demand for data business in the oil & gas market is rising due to technological advancements and innovations, and the introduction of new products in this field to improve data management efficiency.
Several new oil and gas companies are entering the global market to provide niche solutions at competitive prices, which is expected to accelerate data business in the oil & gas market growth. However, certain factors are limiting the growth of the global data business in the oil & gas market, which include:
- A lack of understanding of the benefits of adoption of data business in the oil & gas industry.
- A high initial investment is required to implement a data management solution.
An increasing level of challenges arises from the growing volume and velocity of data, and the high time, costs, and risks associated with managing and moving data. To close the gap between supply and demand, oil exploration companies are looking for oilfields in remote and harsh environments.
Most oil and gas companies are following the trend of exploitation of offshore deep-water reserves and developing unconventional reserves. To optimize performance and maintain safety standards, this is anticipated to boost the demand for data business in the oil & gas market, IT infrastructure, data analysis, and consultation services.
A significant drop in the oil price index has an impact on companies' return on investment (ROI), resulting in a continuous reduction in headcount and capital expenditure. As a result, the demand for effective and efficient use of large amounts of data to make technical decisions has grown. Due to this, the demand for data business in the oil & gas market is increased.
Market players are likely to have new opportunities, as pervasive computing devices, advanced storage capabilities, and new analytic tools become widely adopted.
Oil and gas producers can now obtain real-time data from previously inaccessible areas at low costs to improve the performance of their oil fields and plants. For example, key players combine nearby good production with real-time down-hole drilling data to help them adapt their drilling strategy, particularly in unconventional fields. As a result of these factors, the adoption of the data business in the oil & gas industry is anticipated to grow notably during the forecast period.
Data management software for oil and gas companies is a type of advanced software that helps them manage and protect their data. Such companies' projects are complex in terms of operations, resource management, capital management, inventory management, and so on.
The adoption of data business in the oil & gas industry aids businesses in maximizing resources, tracking project progress, and increasing efficiency. The demand for data business in oil & gas is rising as it enables businesses to effectively manage and access their data in real-time.
Regulatory compliance management tools, data analytics, data warehousing, and other features, such as process design control, are all being integrated into data management software by several software development providers and vendors.
Increased adoption of data business in the oil & gas industry with IoT and AI is also expected to boost large-scale data management software implementation by small and large enterprises in the oil and gas industry.
Data management as a service is gaining traction in the oil and gas industry, thanks to the rising adoption of data business in the oil & gas industry, next-generation data center evolution, and cost-effective and flexible data management solutions.
- North American region is expected to dominate the data business in the oil & gas market, accounting for US$ 40.9B with a CAGR of 16.1% during the forecast period. This growth is due to an increase in production and drilling activities in the oil and gas sector. North America held a market share of 34.2% in 2022.
- Europe, followed by Asia Pacific, is expected to see increased demand over the forecast period as a result of increased focus on operational efficiency and increased usage. This region is also likely to dominate the market soon.
- Asia Pacific is expected to see healthy growth in countries such as India and China over the forecast period, which is expected to switch to big data for making any kind of strategic decisions, as well as growth opportunities in other Asia Pacific countries.
- India’s data business in the oil & gas market is anticipated to expand at a CAGR of 18.3%, while China’s market is projected to expand at a CAGR of 18.6%. The above-mentioned factors are anticipated to drive the demand for market growth.
- The market in Latin America, the Middle East, and Africa are set for expansion. This is due to an increase in oil production, which has been accompanied by increased drilling activity in countries such as Saudi Arabia, Iran, and Israel, which are expected to dominate the market.
Based on components, the data management segment is anticipated to dominate the data business in the oil & gas market as it held a market share of 45.4% in 2022. The data management segment is expected to be driven by the rising trend of cloud adoption in the coming years.
Data breaches are becoming common around the world, necessitating the modernization of existing enterprise infrastructure. As a result, global enterprise data management infrastructure modernization is expected to boost the demand for data business solutions in oil & gas in the forthcoming years.
The lack of complete data security assurance and misuse of collected data are stifling the adoption of data business in the oil & gas industry in both international and domestic markets.
Which Segment is likely to lead the Data Business in Oil & Gas Market by Application?
Based on the application, the upstream segment is anticipated to dominate the data business in the oil & gas market with a CAGR of 16.8%. The demand for data business in oil & gas solutions is rising due to various services and maintenance activities requiring data analysis in various natural gas and oil-producing companies.
The key strategy used by industry players to achieve growth in the data business in the oil & gas market is new product launches. This growth strategy accounted for 42.86 percent of all market players' growth strategies.
Market players are concentrating their efforts on expanding into new markets by launching technologically advanced and innovative oil and gas data management solutions and services in both established and emerging markets. The leading companies that have adopted this strategy are those developed innovative solutions for business needs.
- Quantzig, a global data analytics and advisory firm, might launch actionable analytics solutions to solve complex business problems in March 2020. The company has announced that its advanced big data analytics services for the oil and gas industry can assist businesses in developing effective strategies to target potential markets and reduce the risks associated with oil exploration and drilling.
- In September 2019, researchers in the North Sea oil and gas industry used artificial intelligence (AI) to help unlock a treasure trove of big data in a new project. The University of Aberdeen researchers wanted to close the gap between the vast amounts of big data available to the oil and gas industry. The Oil & Gas Innovation Centre (OGIC), software research and development company HyperDAP, and Scotland's data and AI innovation center, The Data Lab, co-founded the project.
- Hitachi Vantara Corporation has introduced its data system platform to help oil companies accelerate energy discovery. The platform is likely to deliver enhanced backup and recovery systems through Hitachi Data System Infrastructure with luster.
Key Players Operating in the Data Business in Oil & Gas Market
Accenture, Datameer, Datawatch, General Electric, Hitachi, Vantara Corporation
These insights are based on a report on the Data Business in Oil & Gas Market by Future Market Insights.