By Solutions :

The solutions segment is categorized into hardware, software and service and data storage solutions. In 2022, the software and service segment accounted for the highest market share and is expected to grow with the fastest CAGR in the smart oilfield market. Oil and gas industries often require software for the development and depletion of mineral deposits. This process requires high levels of safety and costs for the hydrocarbon's recovery. These types of software are used for operations such as production, drilling, and for the simulation of extraction processes. Furthermore, the adoption of services such as the Internet of Things (IoT), machine learning, artificial intelligence, and big data processing, among others help oil and gas companies to track the real time data of the field to ensure production efficiency, improve performance and ensures safety at the workplace. Thus, due to the above beneficial properties, the adoption of software and services to ensure superior performance benefits is increasing, which, in turn, is benefiting the market growth.

By Process :

The process segment is categorized into production optimization, reservoir optimization, drilling optimization, safety optimization, and others. In 2022, the production optimization segment accounted for the highest market share of 35.50% in the overall smart oilfield market. Production optimization technologies provide advanced reservoir management capabilities, which allow operators to optimize production across the reservoir of the oil and gas industry. As a result, improving the overall production capabilities of the oilfield products. Furthermore, production optimization also improves operational efficiency. The overall running cost of the oil and gas industry is high. The increasing innovations in production optimization technologies are expected to drive segment growth across the globe over the forecast period. For instance, in February 2023, Baker Hughes, an oilfield service providing company announced the launch of AI software that allows oilfield operators to track real-time production data. Hence, the ongoing innovations in production optimization will increase the demand for smart oilfield demand growth to ensure protection from chemicals. This, in turn, will boost the segment growth in the market.

However, the reservoir optimization segment is expected to grow with the fastest CAGR during the forecast period owing to the demand for water management across the oilfield, increasing government regulation, and others.

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By Application :

The application segment is categorized into onshore and offshore. In 2022, the onshore segment accounted for the highest market share in the smart oilfield market. Smart oilfield technologies enable onshore operators to optimize production processes. Various processes such as real-time data monitoring and analytics help to identify production insufficiencies, allowing operators to make data-driven decisions to enhance the overall oilfield output.

The increasing onshore oilfield discoveries are the major factors driving the segment growth. For instance, in May 2022, ADNOC (Abu Dhabi National Oil Company) announced the discovery of three new onshore oil reserves that will add 650 million barrels of oil to the UAE's hydrocarbon reserves.

However, the offshore segment is expected to be the fastest-growing segment during the forecast period owing to the increasing offshore oilfield investments, offshore oilfield discoveries, and others.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

In 2022, North America accounted for the highest market share at 38.50% and was valued at USD 643.86 million and is expected to reach USD 1,018.69 million in 2030. In North America, the U.S. accounted for the highest market share of 65.05% during the base year of 2022. This is due to the expansion of the oilfield projects across the country. For instance, in February 2022, BP Plc. announced the expansion of its Herschel Project in the Gulf of Mexico. The expansion of this project comprises the development of a new subsea oil and gas production system with an annual production capacity of 10,600 barrels of oil per day. Henceforth, the increase in the oilfield expansion strategies across the North America region is proliferating the growth of the market.

Furthermore, Asia Pacific is expected to witness significant growth over the forecast period, growing at a CAGR of 6.4% during 2023-20230. This is due to the increasing energy consumption, the launch of new offshore and onshore oilfield projects, and government initiatives for the development of the oil and gas industry across the region.