The global AI in oil & gas market is projected to achieve a substantial valuation of approximately US$2.9 billion by the end of 2030, showcasing an impressive compound annual growth rate (CAGR) of 16.9% between the years 2023 and 2030.
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Addressing downtime is a critical challenge for oil firms, as it can lead to revenue losses from idle barrels. The impact of unplanned downtime is even more significant, resulting in extended periods of unavailability and reduced output. Ensuring efficient operations is crucial for maintaining field health and financial performance. In response to these challenges, oil & gas companies are embracing digital transformation and innovative strategies to navigate the evolving business landscape. Artificial Intelligence (AI) has emerged as a pivotal tool in optimizing the value chain and achieving crucial objectives, including the reduction of operating costs and the enhancement of automation.
Key Report Findings:
The global AI in oil & gas market is anticipated to reach a valuation of US$2.9 billion by the end of 2030.
In 2022, the predictive maintenance segment emerged as the market leader with a significant share of 30.2%. The upstream oil & gas sector accounted for over 51.8% of the market value share, while the services segment held a notable 41.4%.
North America maintained a prominent market value share of over 38%, with the Asia Pacific market poised to experience the highest CAGR of 17.4%.
The top players in the AI in oil & gas sector include Google, IBM, Intel Corporation, Microsoft, and Oracle Corporation.
Oil & gas companies are strategically investing in AI for value chain optimization. Industry giants like Shell, Exxon Mobil, BP, Chevron, Total, and Saudi Aramco are leveraging AI technologies to enhance operational efficiency and proactively address challenges.
Globally, AI investments in the industry account for 1-2%, resulting in an average 32% Return on Investment (RoI) achieved over the past year through AI technologies.
The COVID-19 pandemic underscored the importance of agility and resilience in the oil & gas sector, driving rapid adaptation to changing market dynamics and sustainability goals.
Application of AI across Different Sectors:
The global AI in oil & gas market is categorized into upstream, midstream, and downstream sectors. In 2022, the upstream sector held a dominant share exceeding 52%.
Upstream AI technologies optimize well placements, drilling efficiency, and oilfield performance. Midstream and downstream AI technologies focus on regulating process variables, estimating product flow, demand, pricing, and enhancing overall operational efficiency.
Prominence of AI Service Packages:
The market components encompass hardware, software (deep learning, machine learning, others), and services.
The services segment accounted for a significant share of 41.4% by value in 2022, with AI projected to claim the largest share of technology budgets (14% to 17%) over the next three years.
Service packages, combining hardware and software, are offered through annual contracts with oil & gas companies.
Leading Application: Predictive Maintenance:
In terms of applications, the predictive maintenance segment held a share of 30.2% in 2022.
Predictive maintenance leverages advanced analytics, including machine learning and IoT, to proactively assess asset health and prevent costly downtime.
Growth Opportunities by Region:
North America and the Asia Pacific exhibit robust growth potential through 2030.
The US leads AI adoption across sectors, representing approximately 38.2% of the global AI in oil & gas market in 2022.
The Asia Pacific region, led by China, is poised for substantial growth. Research underscores AI's potential to enhance safety and efficiency in crucial oil refining processes.
Governments in the Middle East and Africa, including the UAE, Saudi Arabia, Qatar, and Egypt, have unveiled comprehensive AI plans for the oil & gas sector.
Key Market Players:
Leading players in the global AI in oil & gas market include Google, IBM, SAS, Accenture Plc, Baidu, Inc., H2O.ai., Microsoft Corporation, Oracle Corporation, Siemens, Intel Corporation, and GE.
Browse Global AI in Oil & Gas Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - (By Application Coverage, By Sector Coverage, By Component Coverage, By Geographical Coverage, Leading Companies): https://www.fairfieldmarketresearch.com/report/ai-in-oil-gas-market
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