E&P Software Market Will Grow to $9.9 Billion by 2026, Report Says
The US represents the largest regional market, while China is expected to emerge as the fastest-growing market.
A new market study projects that the global exploration and production (E&P) software market will reach $9.9 billion by 2026. The report Exploration and Production Software—Global Market Trajectory and Analytics, published by Global Industry Analysts (GIA), says the market will grow at a compounded annual growth rate (CAGR) of 14.5% for the analysis period of 2020—when the annual market was estimated at $4.5 billion—to 2026. The report says the market is expected to grow steadily and evolve as a major regional market for E&P software, supported by various factors conducive to healthy growth.
The US represents the largest regional market, with 25.1% share of the global total in 2020. China is expected to emerge as the fastest-growing regional market with a CAGR of 19.2%.
- Production software is likely to enjoy robust growth driven by long-term increase in production in global upstream operations.
- Adoption of simulation software is likely to rise because it offers tentative results on the basis of available data and can be used with a company’s current software.
- Cloud deployment is projected to grow from an estimated $1.4 billion in 2020 to $3.9 billion by 2026. The US constitutes the largest regional market for cloud deployment, accounting for 27.1% of global sales in 2020.
- Digitalization efforts by oil and gas players have helped the companies reduce costs by approximately 10–25%, while improving productivity by around 8–10%.
- Digitalization is increasingly providing a safe and environmentally sound operating environment. The increasing need for safety is driving oil and gas companies to rely extensively on advanced technologies and software solutions to improve operations.
The GIA study was based on information from 97 companies including Baker Hughes, Computer Modelling Group, eDrilling, Halliburton, IHS Markit, Ikon Science, Interactive Network Technologies, Ion Geophysical, Kongsberg Gruppen, OVS Group, RockFlow Dynamics, and Schlumberger.