The Global "Downhole Tools Market" is expected to grow at a CAGR of 4% during the forecasting period (2022-2029).
The growth of the market is primarily driven by the ongoing increase in drilling activities worldwide. Crude oil and natural gas found in shale and tight sand formations are known as unconventional oil and gas reserves. Unconventional oil is petroleum produced or extracted using techniques other than the conventional (oil well) method. Oil industries and governments across the globe are investing in unconventional oil sources due to the increasing scarcity of conventional oil reserves. This has resulted in an increase in the exploration of unconventional resources.
The report covers all the major trends and drivers playing a vital role in the growth of the global downhole tools market. The market has been segmented by application, tool type, and by region.
Downhole tools play an important role in oil & gas exploration and production activities with applications in a variety of operations such as fishing, casing, cementing, well bottom communication, drilling, logging, fracturing, and well measurements. Moreover, the cost incurred in the extraction process has declined with the advent of technological innovations and operational efficiencies. This has resulted in an increase in the exploration of unconventional resources. Therefore, fueling the growth in the downhole tools market.
In addition, Significant oilfield developments coupled with supportive governmental regulations for unconventional reserves are projected to boost the growth in the market. With the increase in demand for Oil & gas all around the world, there has been a significant rise in the development of new sites for exploration. Therefore, resulting in significant growth in the downhole tools market over the forecast period.
By tool type, the global Downhole Tools market is Flow & Pressure Control Tools, Drilling Tools, Impurity Control Tools, Downhole Control Tools, and Handling Tools. In 2018, the drilling tools segment accounted for the largest market share in the downhole tools market. The segment is expected to maintain its dominance over the forecast period owing to the evolution of various sensor technologies and increasing investments from cross-industry players which have enhanced drilling equipment efficiencies. The introduction of laser drilling will be one of the key downhole tools market trends that will gain traction in the market during the forecast period. Laser drilling is a modernized method that works on the principle of transferring light energy from the surface through fiber optic cabling.
By application, the global Downhole Tools market is segmented into Well Intervention, Well Completion, Well Drilling, Oil & Gas Production, and Formation & Evaluation. In 2018, the well intervention segment is estimated to hold the largest market share. Well, intervention helps in entering a well safely with well control technologies. These technologies are mainly used for performing various activities other than drilling. Well, intervention tasks are carried on oil & gas wells, with the aim to increase the production span. Besides this, well intervention technology optimizes the performance and offers access to additional hydrocarbon reserves. Oil & gas well needs intervention owing to different reasons including excess sand production, flow restrictions, and mechanical failure.
By geography, the global Downhole Tools Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
North America holds the largest market share for Downhole Tools Market Owing to the increased number of rigs in the US, the drilling activities are expected to increase which in turn increases the requirement of the downhole tools. In September 2019, according to the U.S. Energy Information Administration Drilling Productivity Report, U.S. oil output from seven major shale formations was about 8,843 thousand barrels/day in October 2019. A combination of hydraulic fracturing and horizontal drilling technology as well as large-scale commercial exploitation in key basins, such as the Permian and Appalachian, have pushed overall crude oil and natural gas production in the United States to an all-time high.
Global Downhole Tools Market is a concentrated market with the major share held by key players in the market. The market is quite competitive and to gain a competitive advantage, the major downhole tools manufacturers adopt several strategies such as M&A, joint ventures, contracts, and agreements to help them sustain the market’s competitive environment.
The major players include General Electric, Halliburton, National Oilwell Varco, Schlumberger, Weatherford, Aker Solutions, American Oilfield Tools, Archer, Drill-Quip, C&J Energy Services, Hunting, Superior Energy Services, Tryton Tool Services, Vortex Tools, Weir Group, Xtreme Drilling, and among others.
**The global Downhole Tools market report would provide access to an approx., 53 market data table, 41 figures, and 150 pages.
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