Borehole Enlargement System Market size is estimated to cross USD 8 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of USD 565 Million. The increase in oil and natural gas consumption is one of the key factors driving growth in the market for borehole enlargement systems. In the last few years, driven by a strong economy, global energy demand has been growing rapidly. Emerging markets and developing economies, such as India and China, where demand is projected to increase by 3.4% above the level of 2019, represent almost 70% of global energy demand growth projections. As oil and gas demand increases, new reservoirs need to be explored and exploited for the production of oil and gas as existing reservoirs are beginning to mature or become exhausted. Global natural gas consumption has also increased significantly over the last decade due to the increasing use of natural gas as a source of energy. In addition, the demand for gas is expected to increase as a result of increasing fuel consumption in emerging economies like India and China.
In hydraulically fractured wells that can be horizontal or inclined, borehole enlargement systems are increasingly used. The worldwide borehole enlargement system market will be driven by the rising number of horizontal and vertical wells, as well as the need to enlarge existing boreholes.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024- 2036 |
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CAGR |
~8% |
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Base Year Market Size (2023) |
~USD 565 Million |
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Forecast Year Market Size (2036) |
~USD 8 Billion |
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Regional Scope |
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Application (Onshore, Offshore)
Based on application, the onshore segment in the borehole enlargement system market is set to hold the highest share of 80% share during the period 2024-2036. Its lower cost of exploration and development compared to offshore oil and gas production is the key factor driving increased onshore oil and gas output. To increase the efficiency of survey activities, which are driving oil exploration around the world, offshore oil and gas equipment companies have developed technology for Seismic surveys as well as increased investment in R&D. The growth of the onshore segment during this forecast period will be driven by an increase in exploration activities on land and at very deep locations for geothermal energy and shale gas.
Type (Fixed Diameter Reamers, Hydraulically Expandable Reamers)
Based on type, the hydraulically expandable reamers segment in the borehole enlargement system market is poised to hold a significant share by the end of 2036. The hydraulically Expandable Reamers are intended for expansion and adjustment of its diameter in the course of operation using hydraulic pressure. To ensure the desired diameter and quality of boreholes, these tools shall be used for drilling and excavation. These factors are set to drive the growth of the segment in the studied period.
Our in-depth analysis of the global borehole enlargement system market includes the following segments:
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Application |
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Type |
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North American Market Forecasts
The North American region is set to dominate the borehole enlargement system market growing at a CAGR of 35% during the forecast period. The market in North America is expected to expand as a result of the increased exploration efforts. The majority of the region's exploration efforts are focused on the onshore shale gas sites. Hydraulic fracturing is becoming more and more popular, with horizontal wells accounting for the majority of its application. Borehole enlargement systems will need to be expanded to accommodate the growing production of natural gas, crude oil, and refinery products for a variety of users. According to the EIA's short-term energy outlook, US crude oil production is expected to reach 13.21 million barrels a day this year. This year, it had previously projected that oil production would increase by 290,000 barrels per day.
European Market Statistics
The borehole enlargement system market in the European region is predicted to grow significantly during the period between 2024-2036. Europe’s growing energy demand is mendorong exploration and production activities in the oil and gas industry. Borehole enlargement systems are essential for creating wider wellbores, which can accommodate larger production pipes and increase oil and gas recovery rates. European Union regulations are becoming increasingly stringent regarding greenhouse gas emissions and environmental protection. This is leading to a growing focus on cleaner energy sources, such as geothermal energy. Geothermal drilling requires precise and reliable borehole enlargement to ensure efficient heat extraction. In more than 30 countries around the world, geothermal energy will provide around 16 gigawatts of installed capacity in 2021, according to the International Renewable Energy Agency. This year, the EU's gross electricity generation capacity was little more than 1 gigawatt.
Author Credits: Payel Roy, Dhruv Bhatia
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