- The software segment is expected to grow at a decent pace AI in Oil & Gas Industry.
- North America will be the leading regional market for AI in Oil & Gas.
- The predictive maintenance and machinery inspection segment is expected to be the largest segment in AI in Oil & Gas.
AI in Oil & Gas market is expected to grow from an estimated $1.57 billion in 2017 to $2.85 billion by 2022, at a CAGR of 12.66%, from 2017 to 2022. The growth of AI in Oil & Gas market will be mainly driven by the rise in adoption of the big data technology in the Oil & Gas industry to augment E&P capabilities, a significant increase in venture capital investments, and growing need for automation in the Oil & Gas industry, and tremendous pressure to reduce production costs.
Software in AI in Oil & Gas market is applicable in upstream Oil & Gas exploration and production activities. The hardware segment in AI in Oil & Gas market is expected to grow swiftly during the forecast period (2017 to 2022), mainly due to the increasing requirement for sophisticated hardware system configurations and components capable of handling massive data, including, but not limited to Tensor Processor Unit (TPU), Graphic Processing Unit (GPU), Resistive Processing Unit (RPU), Field Programmable Gate Array (FPGA), and Visual Processing Unit (VPU) to install software-based AI capabilities.
The upstream AI in Oil and Gas Market is set to grow in the next five years. AI systems are capable of automating and optimizing initial stages of the E&P life cycle such as seismic, geology, drilling, petrophysics, reservoir, and production. They have the potential to reduce risks, enhance productivity, and minimize operational costs. Precise targeting and ability to identify drilling locations can help to maximize the Return on Investment (ROI) on any drilling activity.
North America: The leading regional market for AI in Oil & Gas
North America is currently the largest market for AI in Oil & Gas, followed by the Europe and Asia Pacific. North America is projected to be the largest market for Artificial Intelligence in Oil and Gas market due to increasing adoption of AI technologies by oilfield operators and service providers and the strong presence of prominent AI software and system suppliers, especially in the US and Canada. Growing investments in the Oil & Gas infrastructure and increased focus toward automation and digitalization are expected to drive AI in the Oil & Gas market during the forecast period.
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The Middle East and Africa is expected to be the fastest growing market due to increasing investments in start-ups for AI implementation during the forecast period. Most of the reserves in the country are maturing and starting to show a decline in production. Hence, with declining production and the search for new unconventional resources, AI in oil & gas market in the country is expected to grow at a fast pace.
The predictive maintenance and machinery inspection segment is expected to be the largest segment in AI in Oil & Gas
The predictive maintenance and machinery inspection segment is expected to be the largest in AI in Oil & Gas market, by function, in 2017. Predictive maintenance solutions are used in analyzing operational data such as drill maintenance or downtime and real-time decision making and then develop models that can predict equipment failure modes. Predictive maintenance is applicable across all the streams of the Oil & Gas sector and is extremely crucial in running uninterrupted operations by predicting accurate equipment status to avoid costly downturn.
The field services segment mainly includes coiled tubing services, well completion, equipment and services, drilling and completion, drilling waste management services, pressure pumping services, well intervention services, and wireline services. The global demand for field services in the function segment is driven by some of the largest oil & gas reserves in Venezuela, Saudi Arabia, Canada, and Iran. The discovery of new reserves is also increasing the demand for oil & gas field services in areas such as Brazil and West Africa. Thus, this would create opportunities for the adoption of AI technologies in these countries, thereby, increasing the demand for AI in Oil and Gas Market during the forecast period.
AI in oil & gas ecosystem comprises service providers such as IBM (US), Intel (US), Microsoft (US), Accenture (Republic of Ireland), Google (US), Microsoft (US), Oracle (US), Numenta (US), Sentient technologies (US), Inbenta (US), General Vision (US), Cisco (US), FuGenX Technologies (US), Infosys (India), Hortonworks (US), and Royal Dutch Shell (Netherlands).