Smart 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. The market growth is driven by the increasing offshore drilling activities, globally. The smart well technology is being adopted due to increased demand from the emerging economies around the world. Moreover, the extended oil drilling activities of Organization of the Petroleum Exporting Countries (OPEC) has provided an opportunity to the national oil companies and independent players to enhance upstream operations.
The global demand for smart well is driven by the increasing deep-water exploration and drilling operations and the rising adoption of IoT in oil & gas industry. Moreover, increasing ultra-deepwater discoveries, across the globe, have provided an opportunity for the market growth. However, growing concerns of data privacy and cybersecurity risks and rising investments in the renewable sector might restrain the growth of smart well market. The oil & gas companies operate in a geopolitically sensitive environment, which has always been vulnerable to cybersecurity risks. As the oil & gas companies are currently deploying IoT aggressively in the energy value chain ranging from exploration to the retail; there has been a growth in the risk of data theft and cyber intrusion. 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 to some extent, and machines become loaded with sensors and are connected to one network for easy accessibility. In addition to this, renewable energy sources such as solar and wind are the most rapidly growing in terms of technology in the renewable sector, as there are technological advancements related to the improvement of energy efficiency from these sources.
For the purpose of study, the global smart well market has been segmented based on technology, component, and application. On the basis of technology, the market has further been segmented as flow control equipment, monitoring system, and data transmission system. The flow control equipment segment had the largest market size in 2018, mainly owing to its applications in regulating pressure, temperature, flow, and liquid level in the pipe. On the basis of component, the market is segmented as software and hardware. The hardware segment held the larger share of the market in 2018, mainly due to wide range of variables including pressure, temperature, and flow, in the oil well. On the basis of application, the market is segmented as onshore and offshore. The onshore segment held the larger share of the market in 2018, mainly due to the larger number of oilfields located onshore. On the basis of region, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.