Artificial Intelligence (AI) in Oil and Gas Market Size and Trends

The Artificial Intelligence (AI) in Oil and Gas Market size was valued at US$ 2.99 Billion in 2023 and is expected to reach US$ 7.65 Billion by 2031, growing at a compound annual growth rate (CAGR) of 12.5% from 2024 to 2031. Artificial Intelligence (AI) is playing an increasingly important role in the oil and gas industry.

Artificial Intelligence (AI) in Oil and Gas Market Trends:

Rising deployment of machine learning and deep learning technologies

The deployment of machine learning and deep learning technologies is significantly influencing the artificial intelligence (AI) in oil and gas market. These advanced technological capabilities are allowing oil and gas companies to derive unprecedented insights from vast amounts of operational data. Machine learning algorithms can analyze sensory, geospatial, and operational data from distributed assets to predict equipment failures, detect anomalies, and optimize production and field operations. This helps companies reduce non-productive time, maintain business continuity, and increase productivity.

A prime example of where AI is delivering results is in predictive maintenance. By using machine learning models that are trained on operational history from sensors, companies can identify patterns that indicate impending mechanical failures or sub-optimal performance. This helps schedule maintenance at optimal times to avoid unexpected breakdowns. Major oil producers are reporting average savings of over 15% in maintenance costs by leveraging AI for predictive diagnostics. Deep learning is also enabling more precise analysis of seismic data to improve success rates of Greenfield exploration activities. Companies have a better chance of discovering commercial reserves which can potentially lead to substantial valuation increases.

Growth in data volumes from IoT networks

Proliferation of internet of things (IoT) networks across oil and gas operations has opened up new possibilities for leveraging artificial intelligence (AI). As oil and gas companies deploy more sensors and edge devices to monitor their offshore rigs, pipelines, refineries and other infrastructure, there has been a massive growth in real-time operational data. This growth in data volumes from oilfield to refinery is fueling the demand for AI-powered analytics solutions.

Oil and gas companies are using AI techniques like machine learning, deep learning and predictive analytics to gain meaningful insights from their IoT data. AI models can analyze vast amounts of historical data, uncover intricate patterns and correlations that human analysts might miss, and enhance safety standards. For instance, AI solutions are helping operators optimize drilling operations and production based on real-time data from wellheads. Downhole sensors generate petabytes of data daily on parameters like pressure, vibration and casing wear. AI uncovers anomalies and hidden patterns in this data to predict equipment failures. This helps companies schedule proactive maintenance and avoid unplanned downtime. Edge AI is also being used with industrial vision systems to automatically inspect pipelines and storage tanks for defects or leaks.

Figure 2. Artificial Intelligence (AI) Oil and Gas Market Share (%), By Component, 2024