AI and ML in Oil and Gas Market Revenue to Attain USD 5.39 Bn by 2035

Published: 25 Feb 2026

Author: Precedence Research

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AI and ML in Oil and Gas Market Revenue and Trends 2026 to 2035

The global AI and ML in oil and gas market revenue was valued at USD 2.70 billion in 2025 and is expected to attain around USD 5.39 billion by 2035, growing at a CAGR of 7.15% during forecast period.This market is experiencing unprecedented growth, driven by the rapid digital transformation, growing demand for data-driven decision-making, and increasing global capital expenditure on oil and gas exploration activities.

What Factors Contribute to the Growth of the AI and ML in Oil and Gas Market?

Artificial intelligence (AI) and Machine Learning (ML) are actively reshaping the oil and gas sector from predictive maintenance to production optimization.  AI and ML are transforming the oil and gas industry across upstream (Exploration & Production), midstream (Transportation & Storage), and downstream (Refining & Distribution) sectors by reducing operational costs, optimizing production, and improving safety. Major factors contributing to the market include the industry's increasing need for operational efficiency, cost reduction, and enhanced safety across exploration, drilling, production, and refining processes. 

Segment Insights

• By operation, the upstream segment held the largest market share of 45.8% in 2025, owing to the rising integration of advanced analytics and the growing need for AI-driven insights for exploration and production optimization. The surge in data from seismic surveys, drilling sensors, and production operations has led upstream companies to increasingly adopt AI and ML to reduce downtime, enhance reservoir discovery, and minimize environmental impacts. 
• By technology, the machine learning segment held a dominant market share of nearly 49.2% in 2025. Machine Learning (ML) is widely adopted in Upstream (Exploration & Production), Midstream (Transportation & Logistics), and Downstream (Refining & Marketing). By analyzing vast amounts of sensor and operational data, Machine Learning (ML) assists companies in reducing costs, increasing operational efficiency, decreasing unplanned downtime, and optimizing complex processes.
• By application, the predictive maintenance segment captured the highest share of nearly 29.2% in the AI and ML in oil and gas market. Predictive maintenance is the most critical application of AI and ML in the oil and gas market. AI and ML-driven predictive maintenance analyze equipment health in real-time, identifying patterns indicative of failure before they become critical. Predictive maintenance significantly reduces unscheduled downtime, thus increasing the life span of equipment and saving the cost incurred on repairs.
• By component, the software segment contributed the highest market share of nearly 47.1% in 2025, owing to the rising need to process vast and complex datasets and increase safety measures through predictive analytics. The software is the core foundation to develop, deploy, and regulate AI/ML models for critical tasks.

Regional Insights

North America led the global AI and ML in oil and gas market in 2025. The region has a mature infrastructure of data analytics, IoT sensors, and cloud computing providers that facilitates the early adoption of AI/ML tools. The region also has a strong presence of leading AI and ML suppliers and oilfield service leaders, which creates an environment for rapid technological innovation. The strict government environmental regulations push firms to use AI and ML for emissions tracking and sustainability compliance. 

On the other hand, Asia Pacific is anticipated to expand at the fastest CAGR in the market. The region’s fastest growth is driven by the growing demand for predictive maintenance to reduce downtime, rising need for AI-powered exploration to boost oil and gas production, strong government initiatives supporting digitalization across upstream and downstream operations, and significant investment in investments by national oil companies (NOCs) in China, India, and Southeast Asia.

AI and ML in Oil and Gas Market Coverage

Recent Development

• In November 2025, Abu Dhabi National Oil Company (ADNOC) and SLB jointly launched an advanced artificial intelligence (AI)-powered Production System Optimization (AiPSO) platform, marking a major milestone for the use of AI in large-scale energy operations. The AiPSO platform integrates millions of real-time data points from ADNOC’s network of wells and processing facilities. By leveraging AI and ADNOC’s proprietary machine learning algorithms, the system can proactively monitor and optimize production processes, allowing engineers to identify and resolve issues in minutes instead of days.(Source: https://egyptoil-gas.com)

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