Downhole Equipment Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Downhole Equipment Market in 2025 is evaluated at USD 6.55 billion. The global Market size exceeded USD 6.06 billion in 2024 and is set to expand at a CAGR of over 10.2%, surpassing USD 21.42 billion revenue by 2037. North America is anticipated to secure USD 6.85 billion by 2037, fueled by rising crude oil demand and investment in oilfield production.
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 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.
Challenges
- 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 Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.2% |
|
Base Year Market Size (2024) |
USD 6.06 billion |
|
Forecast Year Market Size (2037) |
USD 21.42 billion |
|
Regional Scope |
|
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 2037. 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 2037. 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 |
|
|
Well Application |
|
|
End User Industry |
|
Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Downhole Equipment Industry - Regional Synopsis
North American Market Forecast
North America is projected to be the largest with a share of about 32% by the end of 2037. 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
Middle East and Africa is estimated to be the second largest, registering a share of about 28% by the end of 2037. 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. 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 with globally rising demand for oil is further pushing the downhole operations in the region.
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.
Recent Developments
- 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: Ipseeta Dash
- Report ID: 3827
- Published Date: May 08, 2025
- Report Format: PDF, PPT
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Downhole Equipment Market Report Scope
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