Global Oil and Gas Cloud Application Market 2024–2033

Reports Description

Global Oil and Gas Cloud Application Market was valued at USD 9 Billion in 2023 and is expected to reach USD 21.5 Billion by 2032, at a CAGR of 15.1% during the forecast period 2023 – 2032.

Oil and gas cloud applications refer to software solutions and services that are specifically designed and deployed in cloud computing environments to address the needs and challenges of the oil and gas industry.

Cloud computing enables remote monitoring and control of oil and gas assets, including wells, pipelines, and refineries. This can help improve oil and gas efficiency by reducing the need for manual intervention and enabling companies to monitor and optimize operations in real time.

Oil and Gas Cloud Application Market – Significant Growth Factors

Growing demand for data management and analytics from the oil & gas industry

The growing demand for data management and analytics is a key driver for the adoption of oil and gas cloud applications. With the industry generating vast volumes of data, cloud solutions offer scalable, cost-effective platforms for storing, processing, and analysing this information.

Cloud applications leverage advanced analytics and machine learning, enabling companies to extract actionable insights from their data. This capability enhances operational efficiency, facilitates predictive maintenance, and optimizes production processes, ultimately meeting the industry’s increasing need for data-driven decision-making and providing a competitive edge in the dynamic oil and gas landscape.

For instance, in September 2023, article published by AVEVA Data Hub, in today’s rapidly evolving oil and gas industry, companies grapple with significant challenges stemming from market fluctuations, geopolitical influences, and economic uncertainties.

In response to these complexities, a powerful solution has emerged: sharing industrial data through a connected ecosystem. This has led to an unprecedented surge in data generation. To streamline this data and enhance decision-making, industry-wide initiatives such as the Open Subsurface Data Universe (OSDU) and the Pipeline Open Data Standard (PODS) have gained momentum.

Cloud applications facilitate remote monitoring and control of oil and gas facilities

The growing demand for data management and analytics is a key driver for the adoption of oil and gas cloud applications. With the industry generating vast volumes of data, cloud solutions offer scalable, cost-effective platforms for storing, processing, and analysing this information.

Cloud applications leverage advanced analytics and machine learning, enabling companies to extract actionable insights from their data. This capability enhances operational efficiency, facilitates predictive maintenance, and optimizes production processes, ultimately meeting the industry’s increasing need for data-driven decision-making and providing a competitive edge in the dynamic oil and gas landscape.

For instance, in August 2022, an article published by Offshore Technology, cloud computing within the filings of companies in the oil and gas industry rose 50% between the first and second quarters of 2022. In total, the frequency of sentences related to cloud computing between July 2021 and June 2022 was 175% higher than in 2016.

Oil and Gas Cloud Application Market – Restraints

Data privacy and security concerns pose significant obstacles

Data privacy and security concerns pose significant obstacles to the growth of oil and gas cloud applications. The industry deals with sensitive information, including proprietary technologies, exploration data, and production strategies.

The potential risks associated with storing such critical data in the cloud, including unauthorized access, data breaches, and cyber threats, make companies hesitant to fully embrace cloud solutions. Regulatory compliance, particularly in regions with stringent data protection laws, adds complexity to cloud adoption.

The fear of compromising intellectual property, trade secrets, or falling victim to cyberattacks limits the willingness of oil and gas companies to migrate operations to the cloud.

Addressing these concerns requires robust encryption, authentication measures, and compliance frameworks, making it crucial for cloud service providers to demonstrate and continually enhance their security protocols to build trust and encourage wider adoption in the oil and gas sector.

Stringent rules for approval of Oil and Gas Cloud Application

The approval of Oil and Gas Cloud Applications is subject to stringent rules and regulations to ensure the security, privacy, and reliability of critical data within the industry. Several key considerations and rules typically govern the approval process:

• Data Protection and Privacy Compliance: Cloud applications must comply with data protection laws and regulations to safeguard sensitive information. Compliance with standards such as GDPR, HIPAA, or industry-specific regulations is crucial to ensure the privacy and confidentiality of data.

• Regulatory Compliance: Approval processes often involve demonstrating compliance with regulatory requirements specific to the oil and gas sector. This includes adherence to standards set by organizations such as the American Petroleum Institute (API) or regional regulatory bodies overseeing energy operations.

• Service Level Agreements: Clear and comprehensive SLAs between the cloud service provider and the oil and gas company are essential. These agreements outline performance expectations, security measures, and responsibilities, ensuring a transparent and accountable relationship.

Oil and Gas Cloud Application Market – Opportunities

Integration of digitalization and the Internet of Things

The integration of digitalization and the Internet of Things (IoT) is a driving force behind the growth of the oil and gas cloud application market. Digitalization involves the transformation of traditional processes into data-driven, automated, and interconnected systems.

The implementation of IoT devices, such as sensors and actuators, throughout the oil and gas value chain, generates vast amounts of real-time data. Cloud applications serve as the ideal platform to manage, process, and analyze this data efficiently and at scale.

This integration enables predictive maintenance, remote monitoring, and optimization of operations, enhancing asset performance and overall productivity. Cloud applications provide the agility and scalability required to accommodate the diverse data streams from IoT devices, facilitating advanced analytics and decision-making.

Oil and Gas Cloud Application Market – Segmentation Analysis

The oil and Gas Cloud Application market is segmented by component, operation, deployment type and region.  Based on components, the market is classified into solutions and services. Solutions dominated the market in 2022 with a market share of 68% and is expected to keep its dominance during the forecast period 2024-2032.

The solutions segment consists of enterprise asset management (EAM), enterprise applications, environmental, health and safety (EHS), security and others. Enterprise Asset Management (EAM) solutions play a pivotal role in driving the oil and gas cloud application market.

These cloud-based applications enhance efficiency in managing and maintaining critical assets such as drilling equipment, pipelines, and production facilities. Cloud-based EAM solutions offer real-time visibility into asset performance, enabling predictive maintenance, reducing downtime, and optimizing operational workflows.

Based on operation, the market is classified into upstream, midstream, and downstream. The upstream segment dominated the market in 2022 with a market share of 45% and is expected to keep its dominance during the forecast period 2024-2032.

Upstream operations play a pivotal role in driving the growth of the oil and gas cloud application market. In the upstream sector, which encompasses exploration, drilling, and production, there is a substantial need for advanced data management, analytics, and collaboration tools.

Cloud applications offer scalable and cost-effective solutions to handle vast amounts of exploration and production data efficiently. They enable real-time monitoring of drilling operations, reservoir management, and equipment health, enhancing decision-making processes.

Cloud applications also facilitate seamless collaboration among geographically dispersed teams, contractors, and partners, improving overall operational efficiency.

Based on deployment type, the market is classified into private and public. The public segment dominated the market in 2022 with a market share of 70% and is expected to keep its dominance during the forecast period 2024-2032. The adoption of public cloud services significantly drives the growth of the oil and gas cloud application market.

Public Cloud offers a scalable, cost-effective, and flexible infrastructure, enabling oil and gas companies to manage and analyse vast amounts of data, conduct complex simulations, and enhance collaboration. Public Cloud providers invest heavily in advanced security measures and compliance certifications, addressing industry concerns about data protection.

Report Scope

Oil and Gas Cloud Application Market – Regional Insight

By region, oil and gas cloud application market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. Europe dominated the global market in 2022 with a market share of 40% in 2022 and is expected to keep its dominance during the forecast period 2024-2032.

Europe drives the oil and gas cloud application market through a combination of factors that prioritize efficiency, sustainability, and technological innovation. Stringent environmental regulations and a commitment to reducing carbon emissions incentivize the industry to adopt cloud applications for streamlined operations and optimized resource utilization.

European countries, recognizing the potential of digital technologies, actively encourage the deployment of cloud solutions to enhance data management, analytics, and collaboration in the oil and gas sector. Additionally, the region’s emphasis on energy security and diversification compels companies to invest in advanced technologies, making cloud applications a strategic choice.

Government initiatives, such as the European Green Deal, further promote the digitalization of energy processes, making cloud solutions integral to achieving sustainability goals. Europe’s forward-looking approach and regulatory frameworks position it as a driving force in shaping the future of the oil and gas industry through the widespread adoption of cloud applications.

Oil and Gas Cloud Application Market – Recent Developments

• In November 2019, ExxonMobil is partnering with Microsoft to improve its analyses and enhance operational efficiencies at its Permian Basin acreage, making it the largest-ever oil and gas acreage to use cloud technology. The partnership includes an integrated cloud environment that securely and reliably collects real-time data from oil field assets spanning hundreds of miles.

• In October 2021, ABB and Enovate Upstream signed a memorandum of understanding to apply their complimentary digital platforms, ABB Ability™ Wellhead Manager and Enovate Upstream’s Digital Production™, to create a fully automated and scalable, digital oilfield solution.

• In May 2023, Dassault Systèmes and Envision Digital announced their partnership to optimise the performance of sustainable energy solutions, at an international business summit.

List of the prominent players in the Oil and Gas Cloud Application Market:

• Oracle Corporation
• Microsoft Corporation
• Tableau Software
• SAP SE
• Capgemini S.A.
• Accenture PLC
• Citrix Systems
• Hewlett-Packard Company
• Cisco Systems Inc.
• IBM Corporation
• Salesforce
• Dassault Systèmes
• ABB
• IFS
• RiskEdge Solutions
• Seven Lakes Technologies
• Bentley Systems
• Aucerna
• TIBCO
• PetroDE
• Sage Software Solutions
• HPE
• Quorum Software
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The Oil and Gas Cloud Application Market is segmented as follows:

By Component

• Solutions
• Enterprise Asset Management (EAM)
• Enterprise Applications
• Environmental, Health and Safety (EHS)
• Security
• Others
• Services
• Consulting and Implementation
• Training, Support and Maintenance

By Operation

• Upstream
• Midstream
• Downstream

By Deployment Type

• Private
• Public

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America