Digital oilfield market to grow to $5.4 billion by 2028

11 September 2018 Consulting.us

A new report from research consultancy Future Market Insights (FMI) projects the digital oilfield solutions market to grow at a health CAGR of 6.3%, reaching $5.4 billion in 2028. Digital IoT-powered monitoring systems and automation software are expected to be adopted by firms as they seek to drive efficiency and profitability in their firms amid resurgent oil prices.

Like many other industries, oil and gas is looking to make its operations more efficient through the leveraging of digital technology. Oilfields and refineries require a high degree of supervision and monitoring in order to optimize output rate, find and neutralize errors, avoid spills and losses, track inventory levels, and prevent theft through the supply chain.

Digital oilfield solutions have been emerging over the past two decades as an attractive option to heighten accuracy in measurement, make operations easier in remote areas, and decrease the overall lead time of operations. The digital solutions market for oilfield includes digitally operating measuring instruments, automation and software systems, and services related to hardware components and automation systems.

Some of the key benefits include access to real time data, ease of data integration and analysis, minimal physical size, sound shelf life, and ease of installation and functioning in remote areas. Firms can maximize oilfield recovery while increasing profitability with the use of digital systems – including integrated workflows that combine process management with advanced IT, streamlining and automating tasks performed by numerous teams.Digital oilfield market to grow to $5.4 billion by 2028A report from research consultancy Future Market Insights projects the high value digital oilfield market to grow at a healthy rate over the next decade. The report projects a compound annual growth rate of 6.3% through to 2028, reaching a market size of $5.4 billion.

According to FMI, the Middle East and Africa region is expected to dominate the digital solutions market, with many oil and gas firms looking to adopt the solutions in new installations and expansions. The report, however, identifies the US as the region with ‘maximum opportunities’ for investment.

Meanwhile, expanding telco network capabilities are helping drive digital oilfield solutions. The first Offshore LTE network is enabling the operations and maintenance efficiencies of digital solutions in the Norwegian North Sea. Meanwhile, the coming rollout of advanced 5G networks will help power the emerging market of connected devices across the Internet of Things – including onshore oilfield IoT solutions.

FMI expects partnerships between IT providers and oil and gas players to proliferate in the near term. Haliburton and Microsoft, for example, are collaborating on intelligent cloud solutions in the industry. Tech players are already providing end-to-end products to the oil industry, with integrated automation and AI, in order to build ‘smart’ oil fields.

However, the trade-off of improved efficiency from digital solutions is, as always, the heightened threat of cyber-breaches. The stakes are high in the oil and gas industry, on which many countries base their economies. “Any threat to the oil and gas companies will have a direct impact on the economy and security of a country,” commented an analyst from FMI. “This is an important concern that IT service providers need to address to invite more oil and gas companies to adopt automation solutions.”

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Publicis Sapient named a leader in digital transformation

21 March 2019 Consulting.us

A recent analysis and ranking from Forrester on digital transformation firms has placed Publicis Sapient in the leader category, alongside other top performers including McKinsey and Accenture.

Paris-based advertising and PR giant Publicis purchased digital marketing firm Razorfish from Microsoft for more than $500 million in 2009. In 2015, it put down $4 billion to buy Boston-based digital transformation firm Sapient. In 2016, Publicis fused Sapient’s advertising and marketing arm SapientNitro with Razorfish to create SapientRazorfish. Earlier this year, Publicis merged the latter entity with Sapient Consulting to create Publicis Sapient, an end-to-end digital transformer that combines strategy, consulting, and customer experience to drive successful digital change.

The unified brand has now been recognized as a leader in market research firm Forrester’s Q1 analysis of digital transformation accelerators. The other firms recognized as leaders were Accenture, EY, McKinsey & Company, PwC, and IBM.

Forrester’s report helps executives select the right consultancy for their needs. According to the market researcher, many digital transformations stall when they target short-term gains in customer experience and operational efficiency without tying the effort to true market understanding and a broader business strategy. The digital leaders on Forrester’s list are more likely to deliver the full package needed for success.

Publicis Sapient named a leader in digital transformation

The top firms are also more likely to provide the “speed of design and execution” vital to digital success. According to the Forrester analysis, the leaders “blend strategy and execution chops and couple them with the soft skills for inspiring leadership and training teams. CIOs and digital executives should look for providers that: have the capabilities to design business for change [and] can seamlessly integrate emerging technologies to design new experiences.”

Publicis Sapient was lauded for its effective customer research in support of digital transformations, its world-class digital experience design capabilities, and its performance-driving outcome-based contracts. The analysis did, however, find room for improvement in the company’s ability to advise on strategy at the CEO level.

With the creative and marketing roots of SapientNitro and Razorfish – and the resources of Publicis – the firm is a top consultancy on the customer experience front. “Publicis Sapient is an especially strong partner where the transformation emphasis is on creating world-class digital customer and employee experiences,” the report states.

"We are honored to be recognized as a Leader in this space and believe that it is a proof point of the success of our unique approach to helping clients on their constantly evolving digital transformation journeys," Nigel Vaz, Public Sapient CEO, said.The integration of our capabilities across strategy and consulting, experience and engineering, along with creative problem-solving, provides us with a unique view of both the company and the customer to enable end-to-end transformation."

Among those placed in the “Strong Performers” category were Deloitte, KPMG, Capgemini, Cognizant, Wipro, and Atos. TCS, Infosys, and DXC Technology ranked in the “Contenders” category.