|
Forecast Period
|
2024-2029
|
|
Market Size (2023)
|
USD 5.85 Billion
|
|
CAGR (2024-2029)
|
10.02%
|
|
Fastest Growing
Segment
|
Upstream
|
|
Largest Market
|
Eastern Province
|
Market Overview
Saudi Arabia Oil and Gas Analytics Market
has valued at USD 5.85 Billion in 2023 and is anticipated to project robust
growth in the forecast period with a CAGR of 10.02% through 2029. The oil and
gas industry is undergoing a digital transformation, embracing Industry 4.0
principles to enhance operational efficiency and decision-making. Advanced
analytics solutions enable companies to harness the power of real-time data,
optimizing exploration and production processes, minimizing downtime, and
improving overall asset performance. Predictive maintenance has emerged as a
critical trend within the oil and gas sector. Analytics tools analyze equipment
performance data to predict potential failures before they occur, allowing for
proactive maintenance and minimizing downtime. This approach not only reduces
operational costs but also enhances safety and reliability. With the increasing
volume and variety of data generated in the oil and gas industry, integrating
and visualizing this data becomes crucial. Analytics platforms that facilitate
seamless data integration and provide intuitive visualizations empower
decision-makers with actionable insights, enabling them to make informed
choices in real time. In the upstream segment, advanced reservoir
characterization through analytics is gaining prominence. By analyzing
geological and geophysical data, companies can optimize reservoir management,
improve drilling efficiency, and maximize hydrocarbon recovery.
The Saudi Arabia oil and gas
analytics market is predicted to proliferate during the forecast period due to
the rise in demand for analytics, rapid growth in digitalization and increasing adoption of
advanced technologies by enterprises to meet the need for growing oil & gas
business. The process of identifying, evaluating, and
presenting significant trends in data is known as analytics. The
application of analytics in the oilfields allows for the identification of
patterns among hundreds of variables that are constantly changing by utilising
many of the same statistical techniques used in other sectors. It
gives businesses the opportunity to understand data spread across several
positions while enhancing performance, dependability, and scalability.
Additionally, oil and gas analytics helps increasing the emphasis on process
digitalization. Businesses are increasingly utilising oil and gas analytics
solutions to control traffic and monitor the performance, increased production
and oil recovery rates, better operations, innovation in exploration. Numerous
innovations carried out in cloud computing,
machine learning and artificial intelligence are expected to enhance the
specifications of analytics.
In the last few years, the
market for oil and gas analytics has experienced rapid expansion.
Unconventional oil and gas production is increasing as a result of
technological development and rising oil demand. Organizations are additionally
growing more in dire require unstructured data management simplification, and
consumers are becoming more interested in businesses that tend to be flexible
and responsive. This can be related to the increasing demand of people and
companies for cloud-based solutions and visibility support within the company
as distant servers hosted on servers has grown greater in recent years.
Additionally, increased demand for predictive analytics and real-time
visualisation analytics will expected cause a significant demand in the
future. Furthermore, as companies enable crucial applications through
dependable and high-performance connections, oil and gas analytics are becoming
more popular. Moreover, also give a competitive advantage when it comes to
latency problems, enhancing application performance, and boosting workplace
safety in difficult circumstances. Oil and gas analytics allow businesses to
provide prompt services at lower rates.
Rise in Demand for Analytics in Oil & Gas
Industry
The
current surge of digital innovation, remote work, and cloud usage has increased
the demand for oil and gas analytics with security, which has caused businesses
to reevaluate their infrastructure and network architecture. Analytics such as
big data analytics and advance analytics are becoming increasingly popular
among organizations that are eager to embrace digital transformation. Companies
are now looking forward to a data-driven strategy through a connected
environment as the digital oilfield expands its roots. Oil and gas firms are
increasingly looking for real-time actionable information for equipment
performance improvement and future operational failure prediction, which is why
oilfield analytics is gaining strength. As the requirement for connection
increases, oil and gas analytics are assisting businesses in making financial
savings and allowing a more flexible infrastructure by automating more and more
network functions.
Moreover,
real-time visualization, analyzing large data sets, high accuracy in drilling
methods and efficient performance of machines can be gained0020with the
adoption of big data analytics during the oil extraction process. Furthermore, the analytics helps reduce
unstructured data, accelerate innovation, reduce risks, minimize the downtime,
and reduce additional expense by makes it possible to immediately identify a
security assault, manage the machinery breakdown or failure. Therefore, the rise
in demand for analytics in the oil & gas industry is expected to grow the
adoption of oil and gas analytics in the US market.
Saudi Arabia Growing Oilfield Projects
In 2018, the United States
overtook other countries as the world's largest producer of crude oil, and it
held that position in 2019 and 2020. In 2020, it produced 15% of the world's
crude oil. For instance, according to BP PLC, the Herschel Expansion project in
the Gulf of Mexico was launched in February 2022. The first of the four main
projects to be completed globally in 2022 is Herschel. The creation of a new
subsea production system is the project's first phase. The first well is
anticipated to boost platform annual gross output by an estimated 10,600
barrels of oil equivalent per day at its peak.
Additionally, in December 2021, ConcoPhillips began oil
production at its GMT-2 oil project in the National Petroleum Reserve-Alaska.
At its peak, the project is anticipated to produce 30,000 b/d. The project's
development expenses totaled USD 1.4 million. The upstream segment is therefore
expected to experience significant expansion during the projection period
because of the considerations. Owing to these factors the demand for oil &
gas analytics is growing rapidly, due to which the market is expected to
register a high CAGR in the forecast period.
Adoption of Cloud-Based
Solutions in oil & Gas industry
Companies are incorporating cloud-based solutions into their
infrastructure at an increasing pace due to the expanding benefits. A reliable
cloud connection is being made available to the network due to technology.
To satisfy the requirements, oil and gas analytics help to simplify secure
site-to-cloud communications. The extensive use of cloud services connected via
the Internet has increased analytical possibilities. Effective branch
networking is becoming increasingly necessary as cloud services accessible over
the internet gain popularity. Enterprises are constrained to rely more on cloud
analytics than on private MPLS to deliver scalable cloud computing and
the internet to support their cloud-based applications.
Additionally, more
people are using the internet, which is leading to a growth in demand for
cloud-based services. Due to the utilization of cloud-based services, which
also facilitate faster network management, high application performance,
improve bandwidth and network availability, and lower overhead costs, the oil
and gas analytics sector has more possibilities. As a result, the rise of the
US oil and gas analytics market during the projection period is being
attributed to an increase in cloud-based solutions.
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Key Market Challenges
Data Complexity
and Integration:
The oil and
gas industry generates massive volumes of data from various sources, including
exploration, production, refining, and distribution. Integrating diverse
datasets and ensuring their accuracy and consistency pose significant
challenges. Inconsistent data quality can lead to flawed analytics outcomes,
impacting decision-making processes.
Legacy
Infrastructure:
Many companies
in the oil and gas sector still rely on legacy systems and infrastructure that
were not designed to handle the complexities of modern analytics. The
integration of advanced analytics solutions with existing systems poses
compatibility and scalability challenges, hindering the seamless implementation
of data-driven insights.
Cybersecurity
Threats:
With the
increasing digitization of processes and the interconnectedness of systems, the
oil and gas industry is more susceptible to cybersecurity threats. Protecting
sensitive data and ensuring the security of critical infrastructure has become
a paramount concern, requiring robust cybersecurity measures to mitigate
potential risks.
Talent
Shortage:
The rapid
evolution of analytics technologies requires a skilled workforce capable of
harnessing the full potential of these tools. However, the oil and gas industry
is facing a shortage of data scientists, analysts, and professionals with
expertise in advanced analytics. Bridging this talent gap is essential for the
successful implementation of analytics solutions.
Cost Pressures
and ROI Concerns:
While
analytics solutions offer the promise of improved efficiency and cost savings,
the initial investment and ongoing maintenance costs can be substantial. Oil
and gas companies, especially in times of volatile oil prices, are cautious
about investing in analytics without a clear demonstration of return on
investment (ROI). Convincing stakeholders of the long-term benefits remains a
significant challenge.
Regulatory
Compliance:
The oil and
gas industry operates in a highly regulated environment, with stringent
compliance requirements. Implementing analytics solutions while adhering to
these regulations adds complexity to the deployment process. Ensuring that
analytics systems comply with data protection, environmental, and safety
regulations is a critical challenge for companies in the sector.
Complex
Geopolitical Landscape:
The oil and
gas industry is deeply influenced by geopolitical events, trade tensions, and
regulatory changes. Unpredictable geopolitical shifts can impact market
dynamics, affecting investment decisions, supply chain management, and overall
business strategies. Analytics systems must be adaptable to navigate these
uncertainties.
Strategies for
Resilience:
Investment in
Data Quality and Integration:
Addressing
data complexity requires a comprehensive approach. Companies should invest in
data quality management tools and establish robust data integration processes.
Implementing data governance frameworks ensures that data remains accurate,
consistent, and reliable across the organization.
Modernization
of Infrastructure:
To overcome
challenges associated with legacy infrastructure, oil and gas companies need to
prioritize the modernization of their IT systems. Adopting cloud-based
solutions, upgrading software, and implementing scalable architectures enable
seamless integration with advanced analytics tools, fostering a more agile and
efficient ecosystem.
Enhanced
Cybersecurity Measures:
Mitigating
cybersecurity threats requires a proactive and multi-layered approach. Oil and
gas companies should invest in state-of-the-art cybersecurity solutions,
conduct regular risk assessments, and implement robust protocols for data
protection. Employee training on cybersecurity best practices is also crucial
to create a security-aware workforce.
Strategic
Talent Development:
To address the
talent shortage, companies should invest in training programs and partnerships
with educational institutions to nurture a skilled workforce. Additionally,
collaborating with analytics service providers and leveraging external
expertise can fill immediate skill gaps while building internal capabilities
over time.
Demonstrating
ROI and Cost Management:
Demonstrating
the return on investment is essential for gaining stakeholder confidence.
Companies should conduct thorough pilot programs, showcasing the tangible
benefits of analytics in specific use cases. Cost management strategies, such
as phased implementations and resource optimization, can also alleviate
concerns related to the financial implications of analytics adoption.
Adherence to
Regulatory Compliance:
Companies
should proactively align their analytics initiatives with regulatory
requirements. This involves working closely with regulatory bodies,
incorporating compliance checks into analytics processes, and regularly
updating systems to accommodate evolving regulations. Transparency in
compliance practices builds trust among stakeholders and regulatory
authorities.
Scenario
Planning for Geopolitical Uncertainties:
Given the
unpredictable nature of geopolitical events, companies must integrate scenario
planning into their analytics frameworks. Analyzing potential geopolitical
impacts on supply chains, market dynamics, and investment decisions enables
organizations to develop contingency plans, ensuring resilience in the face of
geopolitical uncertainties.
The Saudi
Arabia oil and gas analytics market, while experiencing rapid growth and
innovation, is not without its challenges. From data complexity to talent
shortages and geopolitical uncertainties, the industry must navigate these
obstacles to fully realize the potential of analytics. Strategic investments in
data quality, infrastructure modernization, cybersecurity, talent development,
and regulatory compliance are crucial for building resilience in the face of
challenges. As the industry continues its digital transformation, addressing
these hurdles will be key to unlocking the transformative power of analytics
and ensuring a sustainable future for the Saudi Arabia oil and gas sector.
Key Market Trends
The COVID-19
pandemic had a detrimental effect on the U.S. economy in recent years. Most of
the industries experienced disruptions due to strict government lockdown
measures that led to operational shutdowns. The pandemic enforced retailers to
cease their
business operations for a certain period where, refineries operated at reduced
capacity and declined its sales performance. However, the United States oil
& gas analytics market has since rebounded, with full-capacity operations
worldwide creating an ideal environment for oil and gas companies to invest in
digitalization.
Oil and Gas
Activities Trends
The oil &
gas industry has witnessed a significant transformation toward digitization
over the past few years, where analytics has gained a clear recognition. Cost
reduction, workforce productivity, operational optimization and better
decision-making are some of the key results offered by advanced analytical
solutions. The companies are generating massive amounts of data through
investments in big data platforms, IoT devices, and sensors that are required
to be analyzed to draw meaningful insights. Moreover, increasing awareness
about digital oilfields and the transformation of exploration, drilling, and
transportation operations will propel U.S oil & gas analytics market.
Furthermore, the continued oil production growth is being simultaneously
reinforced with several other factors sustaining the investment potential in
the oil & gas industry
Segmental Insights
Deployment
Mode Insights
The cloud analytics services captured a
dominant market share of more than 30% in 2022. The utilization of these
services in the oil and gas industry assists companies in gathering and
interpreting insights that support to make investment decisions and reducing
costs. The industry's complex ecosystem, unstructured operations, and
inefficient use of resources have influenced toward the oil & gas analytics
market development. The cloud deployment model allows the industry to leverage
analytical services without setting up digital infrastructure, resulting in
cost-efficient operations. The U.S. held a 24% of the Saudi Arabia oil &
gas analytics industry share in 2022. Ongoing investments in digitalization
tools in line with deployment of highly efficient technology systems by several
companies will bolster the product penetration in the market. Increasing
espousal of analytical solutions to boost cost-effectiveness and labor
productivity coupled with rising capital expenditure in the O&G industry
will positively influence the market growth.
The hosted segment held a striking
market value of over USD 800 billion in 2022. The utilization of big data has
led to better management of assets, operations, manufacturing, and worker
safety. In recent years, the industry has experienced a notable shift toward
the adoption of hosted services for collecting real-time data at a reduced
cost, thereby enhancing production efficiency. Key players in oil & gas
analytics market are investing heavily in research and development to increase
digitalization in their operations, which is expected to lead to production
methods and optimal exploration. The industry is often confronted with supply-demand
imbalances due to the absence of proper analytical tools to aid demand
forecasting. The oil & gas analytics industry is anticipated to witness a
favorable growth as companies strive to achieve reduced maintenance and
operational expenses. The sector has witnessed a rise in the utilization of
analytical services owing to strict government regulations and mandates that
emphasize safety during upstream, midstream, and downstream operations.
Additionally, escalating private and public investments in digitalization and
analytical tools to enhancing workforce efficiency and reducing costs will
further sway the industry scenario
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Regional Insights
Eastern Province to dominate
market share during the forecast period. Overall, the Oil and Gas Analytics
market is poised for continued expansion in the coming years due to the
increasing demand for sustainable and innovative products, as well as the
widespread adoption of technology.
Recent Developments
- Saudi Arabia has the second-largest
proven oil reserves in the world. Saudi Aramco, one of the world's largest
integrated energy and chemicals companies, operates across the upstream,
midstream, and downstream segments. In 2022, Aramco's average hydrocarbon
production was 13.6 mmbpd, including 11.5 mmbpd of crude oil.
- In the near term, oil production will
remain under pressure from the OPEC+ production cut deal, with the combined
impact of the 2.00mn b/d November 2022 cut, the 1.16mn b/d May 2023 cut and the
unilateral 1.00mn b/d July 2023 cut (subsequently extended to December 2023)
driving declines in output this year. However, the balance of risk to the
long-term forecast is skewing increasingly to the upside, with Saudi Arabia
signalling greater willingness to raise its own supplies in order to plug gaps
in the market elsewhere. The kingdom is also investing to expand its maximum
sustainable production capacity by 1mn b/d 2026-2027, up from around 12mn b/d
currently, and has recently initiated the largest capital spending program in
its history, targeting capital expenditures in a range of USD45-55bn in 2023.
Key Market Players
- SAP SE
- Tableau Software
- Microsoft
Corporation
- Hitachi America,
Ltd.
- Oracle Corporation
|
By Component
|
By Deployment Mode
|
By Application
|
By Region
|
|
Professional
Cloud
Integration
|
On-premises
Cloud
|
Upstream
Exploration and
Drilling
Field Surveillance
and Monitoring
Production Planning
and Forecasting
Equipment Maintenance
Management
Asset Performance
Workforce Management
Midstream
Pipeline SCADA
Fleet
Storage Optimization
Downstream
Commodity Trading
Demand Forecasting
Pricing
Refining
|
Riyadh
Makkah
Eastern Province
Rest of Saudi Arabia
|
Report Scope:
In this report, the Saudi Arabia Oil
and Gas Analytics Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Saudi
Arabia Oil and Gas Analytics Market, By Service:
o
Professional
o
Cloud
o Integration
- Saudi
Arabia Oil and Gas Analytics Market, By Deployment Mode:
o On-premises
o Cloud
- Saudi
Arabia Oil and Gas Analytics Market, By Application:
o Upstream
§
Exploration
and Drilling
§
Field
Surveillance and Monitoring
§
Production
Planning and Forecasting
§
Equipment
Maintenance Management
§
Asset
Performance
§
Workforce
Management
o Midstream
§
Pipeline
SCADA
§
Fleet
§
Storage
Optimization
o Downstream
§
Commodity
Trading
§
Demand
Forecasting
§
Pricing
§
Refining
- Saudi
Arabia Oil and Gas Analytics Market, By Region:
o Riyadh
o Makkah
o Eastern Province
o Rest of Saudi Arabia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Oil and Gas Analytics Market.
Available Customizations:
Saudi Arabia Oil and Gas Analytics Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Oil and
Gas Analytics Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]