Driving Efficiency Europe's Digital Oilfield Market

Posted 2024-05-03 11:21:05

Europe's digital oilfield market is experiencing rapid growth driven by advancements in technology and the need for efficient operations. With a focus on enhancing productivity and reducing costs, European oil companies are increasingly adopting digital solutions across their operations. The market is characterized by a growing emphasis on data analytics, cloud computing, and IoT devices to optimize production processes and asset management. Countries like Norway, the UK, and Germany are at the forefront of this digital transformation, leveraging innovative technologies to overcome challenges and stay competitive in the global energy market. As the demand for energy continues to rise, Europe's digital oilfield market is poised for further expansion, with companies investing in digital infrastructure to streamline operations and maximize resource recovery.

Europe Digital Oilfield solutions are offered to the oil & gas industry for lowering the carbon footprint and using advanced tools for proactive management of oilfields. The report on the Europe Digital Oilfield market by Market Research Future (MRFR) uncovers relevant opportunities for streamlining the upstream process amid massive demand for process automation and production optimization for the forecast period (2024-2032). The effects of the COVID-19 pandemic on the market value are discussed in high detail.

Market Scope

The Europe Digital Oilfield market size can reach USD 33.5 billion by 2032. It can exhibit 3.15% CAGR during the forecast period.

Improved Returns on Investment to Drive Market Demand

The ability to integrate operational technology with information technology to glean insights on production in the oil & gas industry can drive market demand significantly. Optimization of reservoirs and overlooking performance of facilities can induce demand for Europe Digital Oilfield services. The oil & gas sector is expected to undergo digital transformation to lower overhead expenses and increased competition from renewable energy projects. For instance, Noble Corporation and General Electric have entered a partnership for development of digital drilling vessels to curb operational expenditure and improve efficiency.

Accumulation, Analysis, and Retrieval of Data to Hamper Market Growth

Collection of real-time data, retrieval, and analysis can pose a challenge to market leaders owing to lack of solutions to make the data cross-functional. Moreover, use of analytical tools can make it a vulnerable target to cyberattacks. Lack of technically skilled personnel and continuous demand for monitoring solutions to glean valuable insights can be cost-intensive to the market.

Segmentation Analysis

Production to Gain Major Market Share

The production segment is expected to capture a huge market share owing to continuous demand for oil and gas. Huge need to improve profit margins and production efficiency can drive segment growth. Companies can leverage on simulation and analytic tools for prediction of production allocation through conditions in all facilities.

Onshore Application to Highly Lucrative in Global Market

The onshore application is poised to be lucrative in the Europe Digital Oilfield market owing to increasing number of oilfields and existing mature wells. Implementation of digital solutions for improving production efficiency, reduction in non-productive drilling time, and investments in health, safety, and environment (HSE) aspects.

Hardware Solution to Take the Lead

The hardware solution is set to display the fastest growth rate during the forecast period owing to need for external equipment for monitoring and transfer of data in onshore and offshore fields. Huge demand for data management solutions in North America and Europe can drive segment growth.

Regional Analysis

North America to Lead Europe Digital Oilfield Market

North America is presumed to lead in market demand over the forecast period owing to inclination towards digital solutions and services as well as plans for optimization of processes by oil & gas providers. Increase in oilfield discoveries and modernization of solutions through integration of AI can augur favorably for the market. The U.S. is expected to showcase the highest growth rate in the region due to a surge in public and private partnerships and efforts to control oil prices.

Competitive Analysis

National Oilwell Varco (US), Rockwell Automation, Inc. (US), Schlumberger Limited (US), Weatherford International plc (Switzerland), Emerson Electric Co. (US), Kongsberg Oil & Gas Technologies Inc. (UK), Halliburton (US), Baker Hughes Incorporated (US), and Siemens AG (Germany) are prominent players of the Europe Digital Oilfield market. Europe Digital Oilfield service companies are collaborating with software developers to increase the benefits of technologies and gain the edge in the market.

Industry Update

Shell Group has signed an agreement with Hiber to utilize its HiberHilo product for well integration and monitoring purposes.