According to a new market report published by Transparency Market Research the global process simulation software in oil & gas market was valued at US$ 927.7 Mn in 2018 and is expected to expand at a CAGR 4.3% from 2019 to 2027, reaching US$ 1,349.3 Mn by the end of the forecast period. According to the report, North America was the largest contributor in terms of revenue to the process simulation software in oil & gas market in 2018. This growth is mainly attributed to the growing need for process simulation software among oil and gas companies to efficiently design and analyze each process during exploration and production of oil and gas in the region.
Increase in global drilling activity and rise in overall expenditure by oil and gas companies
Drilling activity has significantly increased from the past year, thus increasing the demand/ requirement for designing, modeling, visualization, and data capturing tools. E&P companies are in greater need for simulation tools and services that can help them maximize production and minimize errors in order to efficiently conduct the drilling process. For instance, according to the worldoil.com report, the U.S. was expected to drive the overall global drilling activity with around 18,552 drilled wells in the year 2017. Hence, this is a major factor which is boosting the growth of process simulation software in oil & gas market across the world. Furthermore, increase in overall expenditure by oil and gas companies around the globe is also likely to fuel the growth of this market. This is primarily due to the growing number of approved oil and gas projects around the globe. In order to efficiently accomplish these projects, oil and gas companies are investing in various technologies including simulation and 3D technology which plays a vital role in overall project initiation