Our-in depth analysis of the global wire line services market includes the following segments:
On the basis of regional analysis, global wire line services market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is accounted for largest share in wire line services market on the heels of increased shale gas exploration and drilling activities across the region. Additionally, maintenance work on old producing oil and gas wells are anticipating the growth of wire line services market in a significant rate.
Asia Pacific is also expected to showcase the modest growth for wire services market on heels of increasing CBM gas exploration in countries such as Australia, China and India. Europe region is also expected to grow significantly in market due to rising demand for energy by various industries to execute their operations.
Global wire line services Market is further classified on the basis of region as follows:
The global wireline services market is expected to account for a market value of around USD 12 billion at a CAGR of 2.6% till the period of 2018-2027. North America is expected to hold the largest market share in terms of value for well services market till the forecast period 2018-2027. Additionally, Rise in demand for energy and increased development of shale gas reservoirs across the North America region vigorously propelled the growth of wire line services market in forecasted p eriod. On the basis of regional platform, global wire line services market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Additionally, the United Kingdom of Europe region got the approval for 11 blocks in Norwegian continental shelf by the 29th round of licensing in March 2017, which is expected to positively support the growth of wire line services market in forecast period. Asia Pacific is also salted to account for the growth of wire line services market on the rise of increased work over operations on producing oil and gas wells. Additionally, increased maintenance work on coal bed methane field is anticipating for the successive growth of wire line services market in expected forecast period.
Development of mature reservoir fields in countries such as Saudi Arabia, UAE and Oman has raised the demand for well servicing operations. Increasing demand for oil and gas wells is expected to fuel growth in the market.
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Demand for energy
Increase in demand of energy resources forced the operators of oil and gas to drill and explore new wells to overcome the need of energy is driving the growth of market.
Increased work over operations
Despite of the fact that oil and gas industry has witnessed less operational activities in recent years, the need for work over operations to enhance the productivity of old wells is driving the growth of wire line services market.
Shale gas development
Increase in exploration of shale gas across the North America region backed by new developed reservoir, which requires more drilling and work over operations to produce gas is driving the growth of market in expected forecast period.
High cost of installation
One of the key restraints, which are expected to hamper the growth of wire line services market is decreased oil and gas drilling activities due to fluctuations in crude petroleum prices.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.