Exploration and Production Software Market: Increasing Demand for Oil and Gas in Urban Areas Spikes Demand
Transparency Market Research states that the global exploration and production software market is quite fragmented. As of 2015, the top three companies, Schlumberger Limited, Paradigm B.V., and Landmark Solutions held a share of 16.4% in the overall market. The report states that the companies are expected to make investments toward research and development of revolutionary technologies. Making the products feature-rich is expected to be key strategy of these players to remain relevant in the cut-throat competition.
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According to Transparency Market Research, the global exploration and production software market was worth US$3,693.9 mn in 2016 and is expected to reach US$14,149.6 mn by the end of 2025 as the market expands at a CAGR of 16.3% between 2017 and 2025. Out of the various types of software, the production software segment is poised to make a mark on the global market. During the forecast period, this segment is expected to surge at a CAGR of 18.7%. Geographically,
The increased growth of the global oil & gas industry has led to growing demand for exploration and production (E&P) software. New oil and gas exploration activities, along with heavy investments in refineries and pipelines in the Americas, Asia Pacific, and the Middle East & Africa are the major factors driving the market’s growth. The market is also driven by the increasing exploration level of unconventional gas resources worldwide.
In recent years, the depletion of conventional gas sources (found in sandstone and requiring traditional methods for extraction) has resulted in a shift from conventional gas to unconventional sources. This is reducing the dependency of the global oil & gas industry on conventional gas sources. This emerging trend has shifted its focus toward unconventional gas sources, which require the use of latest software and technologies for the extraction of gas through horizontal drilling. This is also helping the oil & gas industry reduce its carbon footprint. Moreover, the growing rise in technological advancements has driven the usage of usage of oilfield equipment including E&P software across the globe. The market’s growth is currently restricted by the fluctuating oil & gas prices worldwide.
The report also highlights that the persistent rise in population, improving purchasing power, and rapid urbanization are also expected to contribute to the growing demand for oil and gas, thereby propelling market growth. Increasing investments and efforts by governments across the globe to find hidden reserves of un-conventional gas have also led to an increased adoption of exploration and production software market.