Downhole Equipment Market size is expected to reach USD 17 Billion by the end of 2035, witnessing around 10% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of downhole equipment was over USD 5 Billion. The rise in global economic growth is leading to a rise in the demand for oil and is predicted to escalate the need for an oil recovery system, which is expected to propel market growth. International Energy Agency (IEA) estimates that in 2023, the global oil demand to grow by 2.2 mb/d year-on-year.
The demand for downhole equipment is expanding with the growing global oil & gas production owing to the augmenting demand for petroleum products such as gasoline and diesel fuel with the expansion of the global transportation sector. According to the data, per day over 18 Million barrels of petroleum are produced in the United States. Downhole equipment is used for workover rigs. It is a mechanism that facilitates a tool body.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 17 Billion |
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Regional Scope |
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Well Application (Drilling, Completion, Intervention, Formation & Evaluation)
The drilling segment is set to hold 40% share of the global downhole equipment market by the end of 2035. The growth in investments worldwide to extract fossil fuel deposits with their augmenting demand is boosting the segment growth. Drilling or hydraulic fracturing facilitates the production of underground resources.
The intervention segment is anticipated to pool notable revenue during 2035. The growth is backed by the rising need to maintain oil wells over time. The well intervention aid in repairing & restoring wells that are damaged and flounder.
End-User Industry (Government Sector, Private Sector)
The private segment is expected to hold a significant share of the downhole equipment market. The rising energy demand with the emergence of new economic players is influencing the exploration of oil and natural gas wells, geothermal energy, and water. The process of obtaining these resources is becoming complex, and capital-intensive, but it is also expected to harvest enormous profits. Hence, owing to all such lucrative opportunities, private companies acquired a huge number of permits and escalated private investment in the oil sector.
Our in-depth analysis of the global market includes the following segments:
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Equipment Type |
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Well Application |
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End User Industry |
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North American Market Forecast
The market share of downhole equipment in North America is projected to be the largest with a share of about ~32% by the end of 2035. The increasing investment in oilfields in the U.S. and Canada for the optimization of the production levels with the rising demand for crude oil is escalating the employment of downhole equipment, propelling the regional market. According to the statistics by the U.S. Energy Information Administration (EIA), the estimated crude oil production to hike from 720,000 bpd to 12.61 million bpd in 2023.
Additionally, the growing exploration of shale oil fields with the rapidly expanding demand for petroleum products is augmenting the demand for downhole tools in the region.
Middle East and African Market Statistics
The downhole equipment market in the Middle East and Africa is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The existence of many of the world's largest oilfields in the Middle East, specifically in Saudi Arabia and other North African countries is leading to the expansion of downhole operations in this region. Saudi Arabia is the second most prosperous country after the U.S. with 212 billion barrels of untapped oil.
Moreover, the growing interest of private players to gain profit from the oil reserves in the region with globally rising demand for oil is further pushing the downhole operations in the region.
Author Credits: Payel Roy, Dhruv Bhatia
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