How Has the Generative Artificial Intelligence AI In Oil And Gas Market Evolved Historically and What is its Current Size?
The generative artificial intelligence ai in oil and gas market has seen considerable growth due to a variety of factors.
• The size of the generative artificial intelligence (AI) in the oil and gas market has been expanding vastly in the past few years. The market is expected to rise from $0.45 billion in 2024 to $0.53 billion in 2025, registering a compound annual growth rate (CAGR) of 17.3%.
The growth during the historical phase can be credited to improved efficiency, optimization of exploration and production, digital transformation drives, the urge to cut operational expenses during times of depressed oil prices, and the escalating amount of data produced by sensors and exploration tasks.
What Is The Projected Growth Of The Generative Artificial Intelligence AI In Oil And Gas Template Market?
The generative artificial intelligence ai in oil and gas market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of generative artificial intelligence (AI) in the oil and gas sector is anticipated to witness swift expansion. It is forecasted to reach $0.99 billion by 2029, growing at a compound annual growth rate (CAGR) of 17.0%.
The escalation during the predicted time frame can be ascribed to operational effectiveness, resource extraction and management optimization through AI-induced insights, adherence to environmental regulations, supply chain enrichment, and the AI's ability to offer superior risk evaluation and alleviation strategies. The key trends during the forecast period comprise advanced predictive maintenance, AI-led exploration, automated optimization of drilling, AI models that evaluate and mitigate risks efficiently, and sophisticated supply chain management.
What Are The Key Drivers Fueling Growth In The Generative Artificial Intelligence AI In Oil And Gas Market?
The continual movement towards cloud technologies is anticipated to boost the development of generative AI in the oil and gas market. Cloud technologies incorporate services such as storage, processing, and platforms facilitated via the internet, as opposed to relying on local servers or individual devices. The increasing demand for cloud technologies originates from the requirement for scalable IT solutions, cost reductions, improved collaboration, and the growth in remote work and digital transformation. Cloud technologies aid generative AI in the oil and gas field by providing the computational strength and storage required to manage vast data units, resulting in superior predictive analysis, optimum resource extraction, and improved decision-making. For instance, in December 2023, as stated by Eurostat, a Luxembourg-oriented intergovernmental organization, a total of 45.2% of EU enterprises procured cloud computing services. Additionally, the purchase of cloud computing services by EU enterprises rose by 4.2 percentage points in 2023 when compared to 2021. Thus, the continual movement towards cloud technologies is fueling the expansion of generative AI in the oil and gas market.
What Are The Principal Market Segments In The Global Generative Artificial Intelligence AI In Oil And Gas Industry?
The generative artificial intelligence (AI) in oil and gas market covered in this report is segmented –
1) By Deployment: On-Premise, Cloud-Based
2) By Function: Data Analysis And Interpretation, Predictive Modelling, Anomaly Detection, Decision Support, Other Functions
3) By Application: Asset Maintenance, Drilling Optimization, Exploration And Production, Reservoir Modelling, Other Applications
4) By End User: Oil And Gas Companies, Drilling Contractors, Equipment Manufacturers, Service Providers, Consulting Firms
Subsegments:
1) By On-Premise: Infrastructure Management, Data Security Solutions, Legacy System Integration, Customizable AI Models
2) By Cloud-Based: Software as a Service (SaaS), Data Storage and Analytics, Real-Time Monitoring Solutions, Scalable AI Solutions
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Which Emerging Market Trends Are Altering The Generative Artificial Intelligence AI In Oil And Gas Industry?
Leading firms in the generative AI segment of the oil and gas industry are increasingly leveraging cutting-edge AI tools for data-informed decision-making. These tools, such as large generative AI language models, enhance data evaluation, streamline operations, and provide predictive intelligence for improved decision-making. These advanced AI systems have the capacity to process and yield 250 billion parameters, thereby providing highly accurate and flexible predictions and outputs. For example, in March 2024, Saudi Aramco, an oil and gas company based in Saudi Arabia, introduced Aramco Metabrain AI. This comprehensive language model is specifically created for the oil and gas sector. It utilizes Aramco's several decades worth of accumulated data to scrutinize drilling plans, geologic data, and historical drilling performance in order to propose optimal well alternatives. Furthermore, it delivers precise forecasts concerning the prices of refined products, market fluctuations, and geopolitical factors.
Who Are the Key Players In The Generative Artificial Intelligence AI In Oil And Gas Market?
Major companies operating in the generative artificial intelligence (AI) in oil and gas market are:
• Exxon Mobil Corporation
• Google LLC
• Chevron Corporation
• TotalEnergies SE
• Microsoft Corporation
• Equinor ASA
• Siemens AG
• International Business Machines Corporation
• Honeywell International Inc.
• ABB Ltd.
• Tata Consultancy Services Limited
• Cognizant Technology Solutions Corporation
• Infosys Limited
• DXC Technology Company
• Emerson Electric Co.
• Wipro Limited
• Rockwell Automation Inc.
• AVEVA Group plc
• Aspen Technology Inc.
• C3.ai Inc.
• Altair Engineering Inc.
What Are The Regional Insights Into The Generative Artificial Intelligence AI In Oil And Gas Market?
North America was the largest region in the generative artificial intelligence in the oil and gas market in 2024. The regions covered in the generative artificial intelligence (AI) in oil and gas market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
