ARTIFICIAL INTELLIGENCE (AI) IN OIL AND GAS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

• North America has established itself as the dominant region in the AI in oil and gas market. U.S. is home to many of the largest oil and gas companies as well as tech giants that are developing AI solutions specifically for the industry. The region accounted for around 38.2% of the global market for AI market for the oil & gas. These companies have deeply integrated AI technologies into their day-to-day operations to maximize efficiency and profits from exploration and production activities. Several national oil companies are also headquartered in the region and actively collaborate with AI providers to improve productivity across the value chain. Moreover, the rapid increase in unconventional oil and gas production has compelled producers to leverage big data analytics and machine learning to optimize performance. The large-scale roll-out of digital oilfield technologies over the past decade has further strengthened the region's leadership in deploying AI.
• The Middle East is expected to emerge as the fastest-growing regional market for AI in oil and gas. Countries in the Gulf possess a bulk of the world's hydrocarbon reserves and aim to extract more value from each barrel produced. National governments are aggressively funding startups and partnering with global tech majors to commercialize AI locally. For instance, AI research centers have been established through partnerships between Saudi Aramco and international universities. Meanwhile, the NEOM (New future) project will serve as a test bed for various emerging technologies including autonomous drilling and remote operations powered by artificial intelligence. While adoption is at a relatively nascent stage, extensive ongoing digital transformation initiatives point towards rapid growth of AI-driven solutions in the near future.
• Asia Pacific market is likely to witness strongest growth. By country, China is expected to lead the market. In 2023, researchers from China propose that the use of AI can enhance the safety and efficacy of fluidic catalytic cracking, a crucial process in converting heavy crude oil into gasoline and other products.