Vertical: EnP
Market Size (2016)
$1.46B
Projected (2023)
$2.18B
CAGR (2016–2023)
5.9%
Key Players
12+
The global smart well market is expected to grow at 6.09% CAGR during the forecast period, 2017–2023. The major factor that drives the smart well market is the drilling and completion activities in offshore platforms. Most of the oil & gas companies use smart well technology such as permanent downhole measurement equipment and in-well reservoir monitoring systems, which include mechanical and electronic devices, such as pressure transmitter, sensors and monitoring systems. These devices are used to control the pressure and temperature in the downhole of drilling in order to optimize production performance and improve oil reservoir recovery. A fundamental type of equipment used in smart wells is the down-hole mechanical valve called an interval control valve (ICV), which is present with orifices with different hole sizes. The ICV is used to control the flow of oil from the well and to stop unwanted fluids from entering the wellbore.
The global smart well market is segmented based on technology, component, application, and region. On the basis of technology, the market is further classified as flow control equipment, monitoring systems, and data transmission system. On the basis of component, the market is segmented into hardware and software whereas on the basis of application, global smart well market is segmented into onshore and offshore
· Middle East & Africa: 5.11%
· South America: 10.08%
Key Leading Countries
· US
· Norway
· Indonesia
· China
· Saudi Arabia
Key Market Drivers
· Rising deep water and ultra-deep-water exploration and drilling operations
· Increasing Adoption of IoT in Oil & Gas Industry
Key Vendors
· Schlumberger Ltd
· Halliburton
· Weatherford International
· Emerson Electric Co.
The Smart Well Market market is projected to grow at a CAGR of 5.9% from 2016 to 2023.
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View Subscription PlansSmart well is a non-conventional advanced well with sensors, valves, and inflow control devices installed on the production tubing, which helps evaluate, and actively manage production in real-time without any well intervention. It allows continuous monitoring of fluid flow rates, pressure, and regular adjustments of downhole valves to gather and transmit information to the surface on production or fluid injection profiles.
Smart well technology helps monitor, regulate, and control the well operation with advanced monitoring systems, digital infrastructure, down-hole control and communication, well instrumentation systems with higher reliability, resolution, accuracy, and stability. Permanent down-hole gauge, internal control valves, packers, digital hydraulic, direct hydraulic, accu-pulse, flow meters, fiber optics are some of the essential controlling and monitoring devices used in smart wells. Moreover, the smart well uses advanced technological devices for data analysis, interpretation, and modelling application for communications and data transmission purpose. The emergence of horizontal and multi-lateral wells and increase in drilling and completion activities, globally, are the primary factors driving the market. It has economic and environmental benefits, as it allows reduction in the number of well pads and the associated field requirements.
Smart well technology is predominantly useful in its ability to regulate different branches or segments of the well, which are used in viable application. It is used in oil rims, down hole production test, intelligent multilateral wells, water or gas shut-off, intelligent water flooding, and even in the event of pressure change in oil wells. Besides the technological advantages, the smart well technology involves many operational and economic benefits. Some of the major advantages include accelerated production, enhanced oil recovery, and reduced operating costs.
The global smart well market is categorized based on technology, component, application, and region. On the basis of technology, the global smart well market is further segmented as flow control equipment, monitoring system, and data transmission system. On the basis of component, the market is classified as hardware and software.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
—
Historical Period
2016 – 2023
Forecast Period
2016 – 2023
Primary Interviews
150+
Historical performance and future projections
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
In competitive landscape, the report covers growth strategies adopted by the companies between 2017 and 2018. The companies adopted various strategies to achieve leading positions in the global smart well market. The key strategies followed by most companies within the global smart well market were new product development and the contracts & agreements.
The key players of global smart well market are Weatherford (US), Halliburton (US), Schlumberger Limited (US), Nabors Industries Ltd (Bermuda), Salym Petroleum Development N.V. (Netherlands), Novomet (Russia), L&T Technology Services Limited (India), INTECH Process Automation (US), Rockwell Automation Inc (US), Emerson Electric Co (US), ABB (Switzerland), and Baker Hughes, a GE company (BHGE) (US).
The global smart well market is primarily dominated by top companies, namely Halliburton (US), Schlumberger Limited (US), Baker Hughes, a GE company (US), Weatherford (US), Emerson Electric Co (US), and Rockwell Automation Inc (US). Halliburton held the largest market share of 21.95%, followed by Schlumberger with 19.44% and BHGE with 7.51%. The key strategies adopted by these companies are new product development and partnerships & collaborations.
New product development is one of the strategies, primarily adopted by the companies, such as Weatherford and Schlumberger Limited to gain leading positions in the market. For instance, in February 2018, Weatherford launched a new product ForeSite, which combines physics-based models and data analytics to improve performance across assets. Companies such as Emerson Electric Co and Novomet also adopted product development in the global smart well market. In October 2018, Emerson Electric Co launched a magnetic flow meter, that can deliver process insight and reliable flow measurement.
Partnerships & collaboration are among the key strategies adopted by the companies, such as BHGE and L&T to enhance their position in the market. These two companies together held a share of 50%, during the period 2017–2018. For instance, in October 2018, BHGE in collaboration with Larsen & Toubro Limited (India) and McDermott (US) have signed a contract with Oil & Natural Gas Corporation (ONGC) Ltd (India) for the development of a deepwater project in the Krishna Godavari basin. The three companies are expected to provide end to end project delivery and will be using the latest drilling technologies to obtain a higher recovery rate from the wells.
In January 2018, L&T signed a contract with ONGC to provide subsea services in the Daman field and are providing subsea services to increase production rate and reduce operating costs.
Market estimates by geography (2023)
InsightNorth America leads with $986.50M by 2023.
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View Subscription Plans| REGION | 2016 | 2016 | 2023 | CAGR | SHARE |
|---|---|---|---|---|---|
| South America | $74.70M | $87.40M | $110.50M | 5.0% | 5% |
| North America | $658.60M | $774.70M | $986.50M | 5.2% | 45% |
| Europe | $270.60M | $317.30M | $402.40M | 5.1% | 18% |
| Asia Pacific | $308.20M | $362.30M | $461.10M | 5.2% | 21% |
| Middle East and Africa | $147.20M | $172.40M | $218.30M | 5.0% | 10% |
| Total | $1.46B | $1.71B | $2.18B | 5.9% | 100% |
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View Subscription PlansTotal Market Size
$2.18B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Flow Control Equipment | $855.00M | 6.0% | 39% |
| Monitoring System | $798.40M | 6.0% | 37% |
| Data Transmission System | $525.50M | 5.6% | 24% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Smart Well Market covering market dynamics, competitive landscape, and strategic outlook.
The Smart Well Market market is projected to reach $2.18B by 2023, growing at 5.9% CAGR. The Flow Control Equipment segment holds the largest share.
Global smart well market is expected to witness excellent growth during the forecast period with the changing trends of the oil & gas industry. There is a continuous rise in offshore drilling activities, the oil & gas players in the upstream sector are focusing on the automation and internet of things (IoT) to upgrade their industrial processes and system for improving the operational efficiency of the smart wells.
The global oil & gas industry has been developing very fast after the major oil price downturn of 2014. There has been a rise in oil demand from the emerging economies. Moreover, the OPEC’s extended production cut has provided an opportunity to the national oil companies and independent players within upstream operations to gain profit margins. This has directly enhanced the service quality of the oilfield service providers.
The total number of wells drilled in Canada in 2017 was 7,550 and according to the Petroleum Services Association of Canada, that the number of wells drilled is expected to reach up to 7,900 in 2018. Similarly, in 2017 the total number of wells drilled in the US was estimated to be 24,186, while according to World Oil, the number of wells is expected to increase up to 27,095 in 2018. Moreover, the rising offshore rig count supports the growth of smart well market. The upstream operators are focusing on offshore locations at the farthest and the deepest areas to produce oil as the offshore locations are appropriate for maximum reserve optimization. Hydrocarbon exploration and production operators are focusing on expanding their production rate from the existing wells and by drilling new wells. For instance, in October 2018, INTECH Process Automation Inc announced that it will help upgrade major offshore production fields in Nigeria. Additionally, it will help reduce flared gas and increase in natural gas recovery.
The scope of the project includes engineering, installation, integration and commissioning of the flow stations and facilities, such as safety control systems, process control systems, fire and gas control systems, package PLC control systems, network & communication systems, and other instrumentation. Thus, smart well technologies such as oil & gas flow metering, wellhead automation, alarm management, and so on are being deployed in the offshore region in order to ensure that all systems are fully integrated with facility. According to a study conducted by Rigzone, the total count of offshore rigs in January 2018 was around 1,300.
The oil & gas industry is focusing on discoveries in remote offshore areas. Deepwater discoveries are those discoveries that are located in water depths of more than 1,000 feet. The discovery of the new field is assumed to follow the historical pattern. Advancements in the cutting-edge technology and specialized drilling equipment are changing the scenarios for oil & gas industry.
Moreover, the use of automation, data analysis on real-time basis, and implementation of IIoT smoothen the oil & gas processes with maximum operational efficiency. Recently, various discoveries are being made by the leading oil & gas operators, globally. For instance, In January 2018, Shell Offshore Inc. announced one of its largest discoveries in the Gulf of Mexico. The encountered well has more than 1,400 net feet of oil-bearing pay. Also, in January 2018, Total announced one of its major discoveries in Gulf of Mexico, US. This discovery gave Total, the access to large oil reserves and helped in raising its potential of Norphlet play. Thus, the growing ultra-deepwater activities from emerging economies, such as Argentina, China, India, South Africa, and Mexico, provides opportunities to oil & gas operators to implement automation solutions in the new oil & gas fields.
The oil & gas companies operate in a geopolitically sensitive environment, which has always been vulnerable to the cybersecurity risks. As the oil & gas companies are currently deploying IoT aggressively in the energy value chain ranging from exploration to the retail; the risk of data theft and cyber intrusion is growing parallelly. The Industrial Internet of Things (IIoT) in the oil & gas industry involves the use of big data to improve operational efficiencies across the oil & gas value chain. With IIoT, costs can be slashed up to some extent, and machines become loaded with sensors and are connected to one network for easy accessibility. Digital advances from big data and analytics in smart wells play an important role in the oil & gas industry. However, cyber attack is one of the serious issues that may cause prolonged outages of services, environmental damages, and loss of human life. Cybercrime and data privacy concerns have grown over the last few years. A hacker with proper tools can access the data, identify the loopholes, and control systems for data theft. According to Insurance Information Institute, Cyber Crime, IT Failures, Espionage risk held 17% share in global business in year 2015. Below is the graph that depicts the global business risk in year 2015
As the technologies evolve, companies of all sizes are exposed to greater risks. For instance, cloud computing is adopted primarily because of security concerns to manage and process the data. As per Insurance Information Institute, the companies with revenue less than USD 100 million reduced their security spending in 2014 whereas, companies with USD 100 million or more increased their security spending by 5 percent.
Oil & gas industry is dependent on Information & Technology including sensors, network, and data centers. Therefore, the capital-intensive nature of the oil & gas industry, makes it is very important for organizations to protect and raise concerns about data privacy to avoid losses. The oil & gas industry participants assume potential threats, and the necessity to tackle cybersecurity problems by creating new initiatives. This might restrain the global smart well market.
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Profiles of 106 companies operating in the Smart Well Market market, including revenue, employee count, and market positioning where available.
Showing 106 of 106 companies
Company Headquarters: Vadodara Founded: 2012 Workforce: ~ 23,000 Company Working: L&T Technology Services Limited (LTTS) is a global leader in Engineering and R&D (ER&D) services. With 976 patents filed for 57 of the Global Top 100 ER&D spenders, LTTS lives and breathes engineering and technology. Its innovations speak for themselves – World’s 1st Autonomous Welding Robot, Solar ‘Connectivity’ Drone, and the Smartest Campus in the World, to name a few. Its expertise in engineering design, product development, smart manufacturing, and digitalization touches every area of users’ lives - from the moment the user wakes up to when the user goes to bed. With 90 Innovation and R&D design centers globally, it specializes in disruptive technology spaces such as EACV, Med Tech, 5G, AI and Digital Products, Digital Manufacturing, and Sustainability. It is a publicly listed subsidiary of Larsen & Toubro Limited, the $21 billion Indian conglomerate operating in over 30 countries. It specializes in Mechanical Engineering Services, Embedded Systems Services, Product Lifecycle Management (PLM), Engineering Analytics, Power Electronics, M2M, Internet of Things (IoT), and Digital Engineering.
Company Headquarters: Hamilton, Bermuda, UK Founded: 1952 Workforce: ~15,000 Company Working: Nabors Industries Ltd is one of the leading global drilling rig (offshore and onshore) fleet providers. It offers directional drilling services, innovative technologies, and performance tools for itself and third parties. The company is well positioned in the competitive market with its seamlessly integrated downhole hardware, equipment, and software solutions, which are required for designing rigs. It offers a variety of software solutions to its clients for drilling data analytics, RigCLOUD platform, equipment condition monitoring software, fuel management, and directional drilling. Additionally, in the equipment segment, the company offers automated surface equipment, downhole tools, and automated floor systems. Its rig instrumentation software systems help enhance drilling performance and wellbore placement. Nabors Industries Ltd has smart drilling techniques, which provide benefits such as real-time monitoring, user-friendly interface design, intelligent alarms, synchronized top drive operating data, and integration with other downhole technologies for streamlined management. Its overall smart well systems include wiring, sensing, and decoding devices that are integrated with the value chain. As a global player, the company is currently working with approximately 407 marketed rigs for land-based operations in the US and Canada and 23 other countries across the world. Nabors Industries Ltd. specializes in wellbore placement solutions and offers directional drilling and Measurement While Drilling (MWD) systems and services for clients all over the world.
Company Headquarters: Texas, US Founded: 1941 Workforce: ~29,500 Company Working: Weatherford International is one of the largest multinational in oil field and service companies, which offers innovative solutions, technology and pioneer services to the oil and gas industry. The company operates through the following product and services segments: formation evaluation, drilling, completions, productions, abandonment, tubular running services, rigs, rig equipment and software. It offers a variety of drilling services including surface logging systems, closed-loop drilling, rental tools and services, drilling waste management, pressure control, liner system, cementing and drilling optimization. Weatherford’s product and services provides includes Artificial Lift Systems, Testing and Production Services, Completion Systems, Cementing Products, Surface Logging Systems, Intervention Services, and Reservoir Solutions. Weatherford offers MPD of two types, namely semi-automated and automated. The company has a wide operational portfolio, which is segmented regionally as western and eastern hemisphere, across the globe. It is embracing automation, and digitalization, including technologies such as big data, Internet of Things, and machine learning to enhance the exploration and production process. It operates in over 90 countries and has facilities in over 860 locations, which include research and development, service, manufacturing, and training. The companies MPD product portfolio includes subsea and surface rotating control devices.
Company Headquarters: Houston, United States Founded: 1992 Workforce: ~500 Company Working: INTECH Process Automation provides system integration and automation solutions for the oil % gas industry across the world. INTECH Process Automation operates through five segments, namely, integrated control system (ICS), instrumentation control and electrical, well head solutions, metering storage and fuel systems and advance software solutions. Smart wells are offered under the well head solutions segment. The company has its R&D centers in Kazakhstan, Pakistan, and Nigeria, which offer highly customized, innovative, best-in-class packaged solutions for customers. It currently has presence in different countries, such as the Russia, China, France, Singapore, Iraq, Pakistan, Nigeria, Columbia, Peru, Indonesia, the US, and the UA. It has established its service divisions across the world in regions such as North America, Asia-Pacific, the Middle East, and Europe. Some of its competitors are SoftDEL (US), KROHNE (UK), BALDWIN (US),and YOKOGAWA (Japan).
Company Headquarters: Perm, Russia Founded: 1991 Workforce: ~4,000 Company Working: Novomet is one of the leading companies that provides innovative oil lifting services in the oil &gas industry. Using drilling technologies, the company offered oil lifting services, including sizing of equipment to suit well condition for oil production services. It offers services such as ESP system, water injection system, upgradation and maintenance for oil production equipment. Its key investments include working capital injection, and expansion of international service operations. Novomet has its business in two manufacturing facilities, which include modernized manufacturing techniques and the identification performance standard. The identification performance technique includes the assessment and management of environmental pollution, community health, safety and security. These facilities have added value to the business, giving an advantage to the company’s growth. Novomet offers proprietary technologies for applications including high gas-to-oil ratios, high temperatures, abrasive and corrosive fluids, heavy oil and highly deviated wells. It has operations in countries such as the Russia, CIS countries, Argentina, Romania, Egypt, Iraq, Ecuador, Kuwait, Indonesia, and the US. It has established its service division with a network so that company can tackle customers queries. The R&D centre has conducted various tests both, internally and externally These tests include abrasive and corrosive tests, high viscous fluids, tests on gassy fluids, and low flow rate/ high flow rate stages for the benefit of the oil well production. Recently Novomet has shipped 8000 units of permanent magnet motor for the oil industry.
Company Headquarters: The Hague, Netherlands Founded: 1996 Workforce: ̃1000 Company Working: Salym Petroleum Development N.V., an oilfield service provider is a joint venture between Shell Salym Development B.V. and Gazprom Neft. The company is engaged in well construction, well testing, oil production, new drilling technologies, and enhanced oil recovery. Under oil production segment, smart well technology is delivering less number of well pads and improved field infrastructure. The company has 410 contractors, 90% of which are Russian. The company had started the pilot operation of smart wells in 2006. The company holds four exploration and production licenses, which improve the economic development of the company and the region. Salym Petroleum Development N.V. oilfields developed by Salym Petroleum Development is located in the Nefteyugansk district of the Khanty-Mansi Autonomous Okrug - Ugra. The company operates in Moscow, Tyumen, Nefteyugansk, Khanty-Mansiysk, and Salym in Russia. The company had successfully explored 96 million tonnes oil reserve in West Saylm, 25 million tonnes in Upper Saylm, and 18 million tonnes oil reserves in Vadelyp, which were approved by Russian Federation State Committee.
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Historical performance and future projections (2020–2030, USD Billion)
Market Size (USD Mn)
