The Global “Downhole Tools Market” is expected to grow at a CAGR of 4% during the forecasting period (2021-2028).
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.
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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, by 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.
Market Segment Analysis
By Tool Type
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, Dril-Quip, C&J Energy Services, Hunting, Superior Energy Services, Tryton Tool Services, Vortex Tools, Weir Group, Xtreme Drilling,
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