Downhole Equipment Market Size & Share, by Equipment Type (Flow & Pressure Control, Drilling, Impurity Control, Downhole Control); Well Application (Drilling, Completion, Intervention, Formation & Evaluation); End-user (Government, Private) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3827
  • Published Date: Jun 27, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

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.

Downhole Equipment Market
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Downhole Equipment Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 5 Billion

Forecast Year Market Size (2035)

~ USD 17 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Downhole Equipment Sector: Growth Drivers and Challenges


Growth Drivers

  • Surging Hydrocarbons Exploration and Production- The increase in exploration of hydrocarbon gas liquids with the growing demand for ethane, propane, and natural gas used in every end-use sector is leading in onshore & offshore exploration undertakings across the globe. Moreover, with the rapid development of onshore activities, there is a rise in the demand for downhole equipment for wellbore drilling.
  • Increasing Production of Unconventional Gases – Owing to the rising focus on future energy security, the investment in the drilling operations to discover conventional gases such as shale gas and others is growing rapidly. Moreover, the rising need for shale gas processing equipment and the development of a wide variety of downhole tools potentially for their use in unconventional shale gas development is anticipated to propel the market growth.
  • Growth in Drilling Activities – The surge in the number of explorations, extractions, and increase in oil companies’ production is all backed by the elevated drilling activities worldwide. Since 2022, the drilling activities by U.S. oil companies grew by ~60%. This upsurge is estimated to boost the demand for drilling tools.


  • Fluctuating Oil Prices - the disruption in demand & supply of oil globally owing to the sudden outbreak of a pandemic, economic recessions, and market inflation in many countries of the world is responsible for volatile crude oil prices. The volatility of the global oil industry is discouraging investment in downhole operations and is hampering the growth of the downhole equipment market.
  • Stringent Engineering Regulations
  • Concern About Adverse Effects on the Environment

Downhole Equipment Segmentation

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:

         Equipment Type

  • Flow & Pressure Control
  • Drilling
  • Impurity Control
  • Downhole Control

          Well Application

  • Drilling
  • Completion
  • Intervention
  • Formation & Evaluation

           End User Industry

  • Government Sector
  • Private Sector

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Downhole Equipment Industry - Regional Synopsis

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.

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Downhole Equipment Market Size
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Companies Dominating the Downhole Equipment Landscape

    • Schlumberger Limited
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Schoeller-Bleckmann Oilfield Equipment AG
    • Baker Hughes Company
    • Halliburton Company
    • Logan Oil Tools Inc.
    • NOV Inc.
    • American Block Manufacturing Co.
    • WV Jet Drilling, LLC
    • Scientific Drilling International
    • FMC Technologies, Inc.


In The News

  • Schlumberger Limited and AVEVA announced an agreement to jointly develop advanced digital solutions for oil & gas production operations.
  • NOV Inc. announced its joint venture with Schlumberger to accelerate the adoption of automated drilling solutions in the oil and gas industry.

Author Credits:  Payel Roy, Dhruv Bhatia

  • Report ID: 3827
  • Published Date: Jun 27, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing oil production and the expanding onshore and offshore exploration owing to increasing demand for hydrocarbons and shale gas are the major factors driving the growth of the downhole equipment market.

The market size of downhole equipment is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2023-2035.

The major players in the market are Schlumberger Limited, Schoeller-Bleckmann Oilfield Equipment AG, Baker Hughes Company, Halliburton Company, Logan Oil Tools Inc., NOV Inc., American Block Manufacturing Co., WV Jet Drilling, LLC, Scientific Drilling International, FMC Technologies, Inc.

The drilling segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Downhole Equipment Market Report Scope

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