The global AI in Oil & Gas market is expected to grow at a CAGR of 12.66%, from 2017 to 2022, to reach a projected USD 2.85 Billion by 2022. The growth will be mainly driven by the rise in adoption of the big data technology, digitalization of the Oil & Gas industry, investments in AI-related start-ups, and rising pressure to reduce production costs and increase efficiency.

The report segments Artificial Intelligence in Oil and Gas market, on the basis of type, into hardware, software, and services. The software segment led market in 2016. Software in market are applicable in upstream Oil & Gas exploration and production activities. The hardware segment in market is expected to grow swiftly during the forecast period (2017 to 2022), mainly due to the increasing requirement for sophisticated hardware system configurations and components capable of handling massive data, including, but not limited to Tensor Processor Unit (TPU), Graphic Processing Unit (GPU), Resistive Processing Unit (RPU), Field Programmable Gate Array (FPGA), and Visual Processing Unit (VPU) to install software-based AI capabilities.

Artificial Intelligence in Oil and Gas market, by function, is segmented into predictive maintenance and machinery inspection, material movement, production planning, field services, quality control, and reclamation. Preventive maintenance is the largest and one of the fastest growing segment in market. Predictive maintenance aids in addressing costly downturn, by predicting maintenance schedules for equipment to prevent the possibility of equipment failures and, thus, save millions of dollars.

The report further segments Artificial Intelligence in Oil and Gas market, by application into upstream, midstream, and downstream. The upstream segment of market is expected to account for the largest market size and grow at the highest CAGR during the forecast period.

North America is projected to be the largest market for Artificial Intelligence in Oil and Gas market due to increasing adoption of AI technologies by oilfield operators and service providers and the strong presence of prominent AI software and system suppliers, especially in the US and Canada. The Middle East and Africa is the fastest growing market due to increasing investments in start-ups for AI implementation, which would further raise the demand for AI in the near future.

The major factor restraining the growth of market is the ambiguous regulatory guidelines for market.

Some of the global players in this AI in Oil & Gas market include IBM (US), Accenture (Republic of Ireland), Google (US), Microsoft Corporation (US), and Oracle (US). Together they hold a strong share of the global market.

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