The oil and gas drilling automation market share is expected to increase by USD 206.7 million from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 1.64%.
This oil and gas drilling automation market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers oil and gas drilling automation market segmentation by application (onshore and offshore) and geography (North America, Europe, APAC, MEA, and South America). The oil and gas drilling automation market report also offer information on several market vendors, including ABB Ltd., Akastor ASA, Ensign Energy Services Inc., Honeywell International Inc., Kongsberg Gruppen ASA, Nabors Industries Ltd., National Oilwell Varco Inc., Rockwell Automation Inc., Schlumberger Ltd., and Siemens AG among others.
What will the Oil And Gas Drilling Automation Market Size be During the Forecast Period?
Download the Free Report Sample to Unlock the Oil and Gas Drilling Automation Market Size for the Forecast Period and Other Important Statistics
"Offshore rigs are equipped with cybernetics systems to improve equipment manipulation and automate key processes such as pipe handling, jacking, and fixation. Therefore, the recovery in crude oil prices is expected to drive the adoption of O&G drilling automation solutions globally during the forecast period."
Oil And Gas Drilling Automation Market: Key Drivers, Trends, and Challenges
The O&G price recovery is notably driving the oil and gas drilling automation market growth, although factors such as high ownership costs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the oil and gas drilling automation industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Oil And Gas Drilling Automation Market Driver
O&G price recovery is a major driver fueling the oil and gas drilling automation market growth. Since 2019, the moderate recovery in crude oil prices has spurred growth in oil and gas (O&G) extraction projects in countries such as the US, Saudi Arabia, Oman, and Kuwait. Rapid fluctuations in crude oil prices adversely impacted the economic activities in oil-dependent regions such as the Middle East during 2016-2019. Owing to factors such as the limited production of crude oil in key oil-producing countries, such as the US and Russia, and geopolitical factors, such as the US-China trade war, oil prices witnessed considerable stability in 2019. Additionally, the restoration of oil production facilities in Saudi Arabia to full capacity is expected to cater to the global demand for O&G at stable prices during the forecast period.Owing to rapid advances in automation and system integration technologies, automated drilling solutions are finding increased adoption in onshore and offshore oil and gas sites. Offshore rigs are equipped with cybernetics systems to improve equipment manipulation and automate key processes such as pipe handling, jacking, and fixation. Therefore, the recovery in crude oil prices is expected to drive the adoption of O&G drilling automation solutions globally during the forecast period.
Key Oil And Gas Drilling Automation Market Trend
The adoption of IoT technology is the major trend influencing the oil and gas drilling automation market growth. The adoption of the internet of things (IoT) devices for in-depth monitoring and data capturing in the O&G industry is improving the overall efficiency of O&G operations. With crude oil prices registering considerable recovery over the last two years, rig operators and oil producers are emphasizing optimizing the energy efficiency of oilfields. IoT devices are being increasingly used in the O&G industry for a range of applications, including drilling management, pipeline testing, and monitoring, among others. IoT enables oil rig operators and refineries to monitor key performance parameters such as pipe pressure and flow rate. Additionally, IoT ensures accurate and real-time data collection at locations that are not easily accessible. Smart devices provide notifications in advance to operators about any drilling errors or incorrect measurements, thereby minimizing the requirement for routine manual inspections. Advances in connected technologies such as low-power wide-area networks (LPWAN) enable connectivity between monitoring sensors in remote offshore applications. Therefore, the rising adoption of IoT in drilling activities is expected to drive the growth of the global O&G drilling automation market during the forecast period.
Key Oil And Gas Drilling Automation Market Challenge
High ownership costs are a major hindrance to the oil and gas drilling automation market growth. The high costs of automated equipment and technologies have been a significant limitation to the growth of the global O&G drilling automation market in the last few years. Drilling automation involves considerable initial costs related to the installation of equipment and software. Additionally, owing to factors such as the lack of equipment standardization and limited software interoperability, several rig operators opt for semi-automated drilling operations that require the retention of trained manpower. Subsequently, although drilling automation improves operational efficiency and minimizes the requirement of human labor, especially in remote offshore environments. The lack of interoperability between different equipment in a specific system also contributes to the overall ownership costs for rig operators. Several vendors offer semi-automated systems for various applications, such as drill floor optimization, and the equipment installed in these semi-automated systems are vendor-specific and only compatible with the automation solutions provided by the same equipment manufacturing vendors. Thus, the high ownership costs associated with the setup, installation, and replacement of automated equipment and software are expected to continue to restrict the growth of the global O&G drilling automation market during the forecast period.
This oil and gas drilling automation market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Parent Market Analysis
Technavio categorizes the global oil and gas drilling automation market as a part of the global industrial machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the oil and gas drilling automation market during the forecast period.
Market Overview
The parent global industrial machinery market covers companies engaged in manufacturing of industrial machinery and components covering presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings, and other metal fabrications. The global industrial machinery market was valued at $2,561.67 billion in 2020 and is expected to grow at a moderate pace.
Who are the Major Oil And Gas Drilling Automation Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- ABB Ltd.
- Akastor ASA
- Ensign Energy Services Inc.
- Honeywell International Inc.
- Kongsberg Gruppen ASA
- Nabors Industries Ltd.
- National Oilwell Varco Inc.
- Rockwell Automation Inc.
- Schlumberger Ltd.
- Siemens AG
This statistical study of the oil and gas drilling automation market encompasses successful business strategies deployed by the key vendors. The oil and gas drilling automation market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The oil and gas drilling automation market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Oil And Gas Drilling Automation Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the oil and gas drilling automation market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global industrial machinery market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Oil And Gas Drilling Automation Market?
For more insights on the market share of various regions Request for a FREE sample now!
31% of the market’s growth will originate from North America during the forecast period.The US and Canada are the key markets for oil and gas drilling automation market in North America. Market growth in this region will be faster/slower than the growth of the market in regions.
Recovery in crude oil prices and the significant growth in shale oil production in the US will facilitate the oil and gas drilling automation market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
What are the Revenue-generating Application Segments in the Oil And Gas Drilling Automation Market?
To gain further insights on the market contribution of various segments Request for a FREE sample
The oil and gas drilling automation market share growth in the onshore segment will be significant during the forecast period. As onshore drilling involves the setting up of oil rigs and drilling of oil wells on land surfaces, these projects require lower initial costs and lesser time in comparison to offshore drilling. Additionally, the availability of a diverse range of drilling equipment for onshore O&G applications has been boosting the growth potential of automated onshore drilling solutions.
Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast-tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the oil and gas drilling automation market size and actionable market insights on post COVID-19 impact on each segment.
|
Oil And Gas Drilling Automation Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
120 |
|
Base year |
2020 |
|
Forecast period |
2021-2025 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 1.64% |
|
Market growth 2021-2025 |
USD 206.7 million |
|
Market structure |
Fragmented |
|
YoY growth (%) |
0.96 |
|
Regional analysis |
North America, Europe, APAC, MEA, and South America |
|
Performing market contribution |
North America at 31% |
|
Key consumer countries |
US, Canada, China, Saudi Arabia, and Australia |
|
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
|
Key companies profiled |
ABB Ltd., Akastor ASA, Ensign Energy Services Inc., Honeywell International Inc., Kongsberg Gruppen ASA, Nabors Industries Ltd., National Oilwell Varco Inc., Rockwell Automation Inc., Schlumberger Ltd., and Siemens AG |
|
Market dynamics |
Parent market analysis, 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. |
What are the Key Data Covered in this Oil And Gas Drilling Automation Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive oil and gas drilling automation market growth during the next five years
- Precise estimation of the oil and gas drilling automation market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the oil and gas drilling automation industry across North America, Europe, APAC, MEA, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of oil and gas drilling automation market vendors
We can help! Our analysts can customize this report to meet your requirements. Get in touch