Dublin, Oct. 18, 2022 (GLOBE NEWSWIRE) -- The "Oil Drilling Automation Market - Forecasts from 2022 to 2027" report has been added to ResearchAndMarkets.com's offering.
The oil drilling automation market is evaluated at US$350.683 million for the year 2020, growing at a CAGR of 10.14% reaching a market size of US$689.301 million by the year 2027.
Oil drilling automation refers to the automation of sub-processes of operational as well as downhole activities that are necessary for the drilling of oil. In other words, it refers to the integration of surface and downhole measurements with the help of modernized machinery, and systems as well as predictive models to improve operational efficiency in a cost-efficient and effective manner. There are growing requirements for safety as well as efficiency during the drilling process.
Therefore, these tools and equipment further offer enhanced safety and efficiency with the help of predictive tools and models. Automation of drilling is being increasingly adopted due to the fact that it also helps to optimize surface activities. For this, a combined system is required with a comprehensive understanding of the subsurface and its interactions with the drilling systems that operate under surface drilling.
The market for oil drilling automation is primarily driven by the fact that there has been a significant increase in exploration activities owing to increased demand.
Furthermore, the increasing focus on the development of new oil fields with reduced risks and enhanced safety and efficiency is a major factor that is playing a significant role in shaping the market growth throughout the course of the next five years. Additionally, the up-gradation of the existing infrastructure in the oil fields coupled with the growing penetration of automation processes across several industry verticals is further bolstering the oil drilling automation market growth throughout the forecast period.
However, the market may be restrained by the fact that the initial upfront costs of these solutions are further leading to a reluctance in the adoption of these solutions. Also, security risks coupled with the volatile nature of the oil industry are some of the additional factors that are projected to inhibit the market growth.
High Upfront Costs
The initial requirements and the time consumed for the installation of both hardware and software solutions are comparatively high. This makes the firm reluctant to adopt these solutions since they have been operating without them for many years. Also, the maintenance, as well as running costs, are also added up to keep them working constantly.
Moreover, costs associated with the software used also add up to the cost burden of the end-user who uses them, thus restraining the market growth. Though these solutions often offer operational efficiency, they also add to the operating costs as workers with special skill sets are also required to read and analyze the predictive models and data which are generated. Maintenance costs might exceed the revenue generated, hampering the growth of the market.
Onshore to account for a sizable share by application.
The oil drilling automation market has been segmented as onshore and offshore. The onshore segment is projected to hold a considerable share in the market owing to the fact that onshore oil production dominates offshore drilling and accounts for a larger share of oil production at the global level. Also, the increased spending on onshore oil exploration is a key factor supporting the onshore oil drilling automation market growth in the coming five years. For example, the Oil and Natural Gas Corporation of India announced an investment worth3,500 crores in an onshore oil exploration project in Assam in December 2020. However, the offshore segment is expected to witness promising growth in the near future.
Market Segmentation:
By Application
- Offshore
- Onshore
By Offering
- Hardware
- Software
By Geography
- Americas
- USA
- Canada
- Europe Middle East and Africa
- Russia
- Saudi Arabia
- Norway
- Asia Pacific
- China
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Oil Drilling Automation Market Analysis, by Application
6. Oil Drilling Automation Market Analysis, by Offering
7. Oil Drilling Automation Market Analysis, by Geography
8. Competitive Environment and Analysis
9. Company Profiles
Companies Mentioned
- Huisman Equipment B.V.
- Sekal AS
- Drillform Technical Services Ltd.
- NOV Inc.
- Rigarm Inc.
- Automated Rig Technologies Ltd.
- Nabors Industries Ltd.
- ABB
- Emerson Electric Co.
- Honeywell International Inc.
For more information about this report visit https://www.researchandmarkets.com/r/jryc6c
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