IT Spending in Oil and Gas Market Size, Share, Growth, and Industry Analysis, By Type (Hardware, Software and Services), By Application (Upstream, Midstream and Downstream), Regional Insights and Forecast From 2025 To 2034

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IT SPENDING IN OIL AND GAS MARKET OVERVIEW

Global IT Spending in Oil and Gas Market size is predicted to register USD 18.32 billion in 2025, rising steadily to USD 19.199 billion in 2026, with growth foreseen to touch USD 27.936 billion by 2034, sustaining a CAGR of 4.8% throughout the horizon period ranging from 2025 until 2034.

IT Spending on oil and gas industry covers all aspects, including labour, hardware, and software. The top five fastest growing technology market segments of IT Spending include: Enterprise software, IT services, Data centre systems, Devices and Communication services.

However, as businesses continue to reimagine the future of work, they continue to place a high importance on digital technology efforts, investing money in making their infrastructure impenetrable and providing employees with increasingly difficult hybrid jobs. Businesses will increasingly choose to develop new technologies and software rather than purchase and install it, which will cause total spending levels to slow.

KEY FINDINGS

COVID-19 IMPACT

Third Platform Technology To Provide Relief To The Market

The majority of businesses had to shift to accommodate the pandemic's requirements, and while some of them struggled, others prospered. The modern corporation will continue to need to adapt due to new technology and an increase in digital work environments. IT services are increasingly rising to the top of the list of assets that businesses must invest in. Many firms place a high importance on IT services since they are essential to the digital transformation.

All facets of how individuals and businesses operations are changing, hastened by the pandemic and made possible by third-platform technology. Even those who were most averse to remote workers suddenly had to deal with entire teams turning fully digital as the pandemic forced businesses to get inventive and operate outside of their regular comfort zones. IT communications software and services will therefore continue to be essential in the upcoming year.

LATEST TRENDS

Outdated Systems to be Replaced by New Technologies

The requirement for these systems will increase as a result of the multi-cloud and hybrid cloud settings, which are linked to one of the greatest IT trends of 2022. Midsize businesses up to global organisations will blend their on-premises solutions or data centres with a variety of cloud offerings. To repair or replace outdated systems or to expand their IT initiatives, large organisations are prepared and eager to invest in their technologies in the following year. In general, IT spending will rise compared to recent years, with executives concentrating on tools that improve and develop the digital workplace. Additionally, this IT spending surge has never been more welcome following the previous few years.

• According to the International Energy Agency (IEA), global oil demand reached 99.4 million barrels per day in 2022, driving more than 33% of IT budgets in the sector toward digital optimization of upstream operations.

• As per the U.S. Energy Information Administration (EIA), cloud-based IT solutions adoption in oil and gas grew by 28% in 2021, with over 40% of companies upgrading legacy systems to hybrid cloud models.

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IT SPENDING IN OIL AND GAS MARKET SEGMENTATION

By Type

Based on type; the market is divided into hardware, software and services.

In terms of product, software is the largest segment.

By Application

Based on application; the market is divided into upstream, midstream and downstream.

In terms of application, upstream is the largest application.

DRIVING FACTORS

Cost Effective IT Spending Technologies to Drive the Market

Artificial intelligence, the Internet of Things, and augmented/virtual reality are examples of emerging technologies that are revolutionising the way work is done globally and in all sectors of industry. The two industries that will spend the most on Future of Work technology over the forecast period, discrete and process manufacturing, are investing in key use cases like operational performance management, collaborative robotics [PS1] and 3D and digital product design and review for better cost control and higher process efficiency.

• According to the World Economic Forum (WEF), the oil and gas sector is responsible for 42% of global industrial energy use, pushing IT investments in AI and IoT technologies to enhance efficiency and reduce energy losses.

• As per the International Association of Oil & Gas Producers (IOGP), digitalization initiatives have cut operational costs by up to 25%, with nearly 38% of operators adopting advanced IT tools for predictive maintenance.

Advanced Work Environment to Instil Enthusiasm in the Market

Of course, the recent health crisis served to highlight this. To drive IT Spending in the oil and gas market growth and competitive differentiation, businesses will invest in technologies and services that enable automation, human-machine collaboration, new organisational structures and leadership styles, dynamic learning opportunities, a reimagined workplace, and a digital work environment that is not constrained by time or space.

RESTRAINING FACTORS

Lack of Solid Security to Constrain the Market Growth

IT spending in oil and gas lack military security and this may restrict the market growth. It will be vital to expand investments in cybersecurity, business intelligence, and cloud platforms as firms continue to move away from maintaining legacy systems and moving toward technology investments that will progress the enterprise.

• According to the European Union Agency for Cybersecurity (ENISA), cyberattacks on energy companies rose by 38% in 2022, with oil and gas representing 23% of targeted critical infrastructure, limiting IT adoption without stronger security.

• The U.S. Government Accountability Office (GAO) highlights that 27% of oil and gas firms still rely on outdated IT infrastructure, restricting the pace of digital transformation.

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IT SPENDING IN OIL AND GAS MARKET REGIONAL INSIGHTS

Adequate Manufacturing Facilities to Give North America an Upper Hand

North America is the largest it spending in oil and gas market [PS2] with about 36% in IT spending in oil and gas market share. The increased use of smartphone, laptops, and other electronic devices is predicted to drive the market's demand. Sales are expected to rise most in developing countries as a result of technology advancement and digitization. Market share is anticipated to rise as a result of the presence of major enterprises in the region. It is projected that the market share would expand due to the numerous manufacturing facilities existing in different countries. According to projections, nations would contribute the most to boosting market share. Through internet platforms, local businesses are interacting with and supplying customers, which is anticipated to boost demand for the IT spending in oil and gas.

KEY INDUSTRY PLAYERS

Strategies Implemented by Industry Players to Boost the Market

The reader can use the study to influence industry competitiveness and competitive environment strategies to increase potential profit. Additionally, it offers a straightforward framework for assessing and gaining access to the position of the corporate organisation. The global it spending in oil and gas market competitive landscape is another area that the report structure focuses on. This report introduces in detail the market share, market performance, product situation, operation situation, etc. of the major players, which aids readers in the industry in recognising the key rivals and better understanding the market's competitive landscape.

• IBM (U.S.): According to the U.S. Department of Energy, IBM provides IT solutions for over 45% of North American oil refineries, focusing on cloud and AI-driven operational efficiency.

• Siemens (Germany): As per Germany’s Federal Ministry for Economic Affairs and Climate Action, Siemens supplies digital oilfield automation technologies to more than 50 countries, covering nearly 29% of Europe’s upstream IT demand.

List of Top IT Spending in Oil and Gas Companies

• GE Oil and Gas
• SAP
• IBM
• Microsoft
• Oracle
• Dell
• ABB
• Hitachi
• Huawei Technologies
• Indra Sistemas
• Siemens
• TCS
• Capgemini
• Tech Mahindra
• Wipro
• HCL Technologies
• Infosys
• DXC Technology
• CGI Group
• Cisco Systems
• Alcatel-Lucent 

INDUSTRY DEVELOPMENT

June 2020: The tough 6B heavy-duty gas turbine introduced by GE Oil and Gas is a well-liked option for industrial power, liquefaction of natural gas, CHP applications, and refineries and offer the superior performance and flexibility typically associated with larger power plants. Recently it became their best investment and promoted the growth of the IT spending in oil and gas market. 

REPORT COVERAGE

The report gives detail on each product of IT spending in oil and gas as well as its corresponding CAGR for the forecast period. It talks about the items' possible future uses as well as the motivating and inhibiting factors for each application area. You can better grasp current market dynamics, the supply-demand imbalance, pricing trends, product preferences, consumer behaviours, and other factors with the aid of this research. Primary research with industry professionals and opinion leaders from several nations further validates the findings. Through a variety of market estimation and data validation procedures, the data is further collated and validated. Additionally, we have a model for internally generated data that forecasts market growth until 2028.