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The drilling data management systems market size is forecast to increase by USD 12.65 billion at a CAGR of 9.19% between 2022 and 2027. Market growth hinges on several key factors, notably the adoption of DDMS aimed at enhancing productivity and transparency within the industry. These systems play a crucial role in improving operational efficiency by streamlining data collection, analysis, and reporting processes, thereby enabling better decision-making and resource optimization. Additionally, the integration of advanced technologies into DDMS has significantly contributed to enhanced safety measures across drilling operations. These systems provide real-time monitoring and analysis capabilities, enabling early detection of potential risks and facilitating prompt corrective actions to mitigate hazards. Furthermore, the continuous advancements in well control techniques and technologies have further fueled market growth, driving innovation and efficiency improvements in the oil and gas sector.
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This market report extensively covers market segmentation by component (services, software, and hardware), application (oil and gas, and energy and power), and geography (North America, Middle East and Africa, Europe, APAC, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
In the Oil and Gas industry, DDMS plays a crucial role in Asset Optimization and Well Control, particularly in the context of Horizontal Multilateral Wells. These systems facilitate advanced Drill and Production Management, ensuring economically viable rates in Conventional Reservoirs and Shale Formations. Cybersecurity concerns are paramount in Drilling Data Management, safeguarding Drilling Engineering, Geoscience Systems, and Assetteam Members from potential threats during exploration and production. Real-time Data Management is essential for monitoring Drilling Parameters and addressing Gas Hydrates issues at Rig Sites. Manufacturing and Distribution industries also benefit from DDMS, as they rely on Wireless Data and Engineering Systems for efficient production and supply chain management. Database Administration and Management Systems ensure accurate and reliable data storage and accessibility for all stakeholders. In times of States of Emergency, such as Lockdowns, DDMS enables remote monitoring and control, ensuring uninterrupted Oil Rigs operations and Drilling Engineering processes. Software Systems and Drilling Data Management are integral components of Borehole Drilling and Management Systems, enhancing overall operational efficiency and productivity. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The usage of DDMS to improve productivity and transparency is the key factor driving the growth of the global market. The market in the oil and gas industry has experienced significant growth due to its ability to optimize assets and enhance operational efficiency. DDMS enables real-time data management and analysis of drilling operations, including drilling performance, parameters, and costs. This leads to improved productivity, reduced drilling time and cost, and increased efficiency in both conventional and unconventional resources. DDMS is particularly valuable in advanced drilling techniques such as horizontal and multilateral wells.
However, cybersecurity concerns are a growing requirement in the industry. DDMS can provide transparency in drilling operations for stakeholders, including drilling management, investors, and the power industry. In the context of increasing energy demand and exploration of economically viable coal, oil, and gas resources, DDMS plays a crucial role in handling large databases, predictive analytics, and production rate optimization. DDMS is essential for well control and asset optimization in the oil and gas industry. It can help identify inefficiencies and waste, reduce drilling time and cost, and improve production in various reservoirs, including conventional and shale resources. Therefore, these benefits will lead to the growth of the global DDMS market during the forecast period.
Increasing applications of data management systems in oil exploration is the primary trend in the global market. The Oil and Gas industry faces challenges such as aging wells, limited information on new drilling locations, and the need for environmental compliance. To address these issues, advanced technologies are employed, resulting in massive data generation. This data can optimize asset utilization through well control in conventional and unconventional resources, including horizontal and multilateral wells. Cybersecurity concerns are paramount in data management. In the Oil and Gas sector, data handling is crucial for predictive analytics and real-time production rate analysis.
Moreover, advanced drilling management systems use databases for production and drilling data, enabling forecasting and optimization. Shale oil and gas exploration and production assets require robust data management for economically viable extraction. The power industry and coal also benefit from data management for energy demand analysis. Crude oil investments rely on data management for rig count, remote area drilling, and formation characteristics. However, the cost reduction advantage is expected to be the major driver for the adoption of DDMS, resulting in the growth of the global DDMS market during the forecast period.
Change in the energy mix is a major challenge to the growth of the global market. The demand for energy is driven by the growing population and rising disposable income in developing countries such as India, China, and the Philippines. The energy mix is defined as the use of different proportions of energy sources, such as fossil fuels, nuclear energy, and renewable energy, to meet energy needs. However, this energy mix is changing globally with evolving policy measures and technological advances.
Moreover, the growing contribution of renewable energy sources in the global energy mix will lead to an increase in the number of solar PV installations, wind farms, and other renewable plants. This will negatively impact fossil fuel-based power generation, resulting in low demand for oil and gas products from the power sector, thereby hindering the growth of the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Halliburton Co.: The company offers drilling data management systems that are used for secure, customizable, and scalable data management solutions underpinned by industry leading oil and gas expertise.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the services segment will be significant during the forecast period. The market plays a crucial role in optimizing asset performance and ensuring well control in the oil and gas industry. With the increasing focus on horizontal and multilateral wells, the market offers services such as consultation, software updates, maintenance, and sensor replacement for continuous monitoring.
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The services segment was valued at USD 8.12 billion in 2017 and continued to grow until 2021. Post the 2014 oil price slump, the rig count decline led to a resurgence in the services segment due to the economically viable exploration and production of unconventional resources like shale oil and shale gas. However, cybersecurity concerns and the need for real-time analysis and predictive analytics call for advanced data management systems. The market caters to both conventional and unconventional resources, including the coal and power industry, and requires database administration for handling production data, drilling management, and formation characteristics. This, in turn, increases overall productivity and requires continuous data collection and analysis, which boosts the demand for drilling data management system services during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, oil rigs in the US and Canada, driven by the shale revolution and abundant oil resources, significantly contribute to the region's oil production and revenue. The upstream oil and gas industry has experienced a surge due to the commercialization of hydraulic fracturing technology, enabling numerous small and independent energy players to enter the market. DDMS are crucial in this context, with hardware and software solutions facilitating real-time data collection, exchange, and storage for drilling engineering, geoscience systems, and asset teams. These systems provide essential data on wellbore location, rig site parameters, and drilling progress. The financial industry, tourist industry, manufacturing industry, distribution industry, and governments rely on accurate and timely drilling data for decision-making. Hence, such factors are driving the market in North America during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is a crucial segment in the oil and gas industry. These systems enable efficient and effective management of drilling data, including well logs, drilling reports, and real-time data from drilling operations. The use of advanced technologies such as cloud computing, artificial intelligence, and the Internet of Things (IoT) is transforming DDMS. The market for DDMS is driven by several factors, including the increasing complexity of drilling operations, the need for real-time data analysis, and the growing importance of data-driven decision-making in the oil and gas industry. The market is also influenced by regulatory requirements, such as those related to safety and environmental compliance. Key players in the market include Halliburton, Schlumberger, Baker Hughes, and Geolog, among others. These companies offer a range of solutions, from standalone software applications to integrated drilling operations management systems. The market is expected to grow significantly in the coming years, driven by increasing demand for data-driven insights and operational efficiency in the oil and gas industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.19% |
Market growth 2023-2027 |
USD 12.65 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.82 |
Regional analysis |
North America, Middle East and Africa, Europe, APAC, and South America |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading companies, market positioning of companies, competitive strategies, and industry risks |
Key companies profiled |
Baker Hughes Co., Halliburton Co., Honeywell International Inc., International Business Machines Corp., NOV Inc., Oracle Corp., Pason Systems Inc., Schlumberger Ltd., Dell Technologies Inc., SAP SE, SAS Institute Inc., Accenture Plc, Capgemini Service SAS, Wipro Ltd., Infosys Ltd., Tata Consultancy Services Ltd., Trackem, and Teradata Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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