The artificial intelligence (AI) in oil and gas market is estimated to be valued at US$3.5bn in 2024 and is expected to reach US$13bn by 2034, according to a new report from Future Market Insights on AI in the Oil and Gas Market
From 2019 to 2023, the market registered a CAGR of 17.0%, and during the forecast period, the demand for AI in oil and gas is projected to be strong, with a CAGR of 14.1%.
The oil and gas industry has been increasingly adopting AI technology in recent years, and this trend is expected to continue in the coming years. Several factors are driving the growth of AI in the oil and gas market.
The need to optimise production and reduce costs: The oil and gas industry is highly competitive, and companies are always looking for ways to increase efficiency and reduce costs. AI technology, such as machine learning and data analytics, can help companies optimise production and reduce costs by identifying inefficiencies and implementing solutions to address them.
Increasing the need to improve safety and reduce environmental impact: The oil and gas industry is inherently risky, and accidents can have severe consequences for both workers and the environment. AI technology can help companies improve safety by identifying potential hazards and implementing measures to mitigate them. Additionally, AI can help companies reduce their environmental impact by identifying opportunities to reduce waste and emissions.
The increasing availability of data is also driving the growth of AI in the oil and gas market: With the proliferation of sensors and other data-gathering technologies, companies have access to more data than ever before. AI technology can help companies make sense of this data and extract insights that can inform decision-making and drive operational improvements.
"The sophistication of AI technology and its potential to deliver increased assets itself is driving its adoption in the oil and gas industry. As AI becomes more affordable and reliable for several industries, they can address increasingly complex problems and deliver more accurate predictions and recommendations even in the oil and gas sector," says Nikhil Kaitwade, Associate Vice President at Future Market Insights, Inc.
The AI in the oil and gas market is estimated to register a CAGR of 14.1% with a valuation of US$13bn by 2034.
The solution segment is anticipated to dominate the global market by registering a 13.8% CAGR from 2024 to 2034.
With a 13.6% CAGR, the upstream segment is estimated to drive the global market in 2024.
The United States market for AI in oil and gas is expected to grow 14.5% through 2034.
Numerous companies are investing significantly in AI technologies to optimise their operations, reduce expenses, and enhance safety. Companies are heavily investing in AI-powered solutions that can analyse data from sensors and other sources to improve efficiency and minimise downtime. In addition, many startups and smaller organisations are developing cutting-edge AI solutions specifically for the oil and gas industry. In general, the market is fiercely competitive for established players.
In 2022, C3 AI released the C3 Generative AI Product Suite, which includes C3 Generative AI for Enterprise Search as its debut product. The package consists of pre-built AI apps that may be utilised in various industries, including oil and gas.