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Global Downhole Tools Market to Grow at a CAGR of 4.3% During 2021-2026, Driven by Technical Integration to Reduce Greenhouse Gas Emissions

According to a new report by EMR titled, ‘Global Downhole Tools Market Report and Forecast 2021-2026’, the market attained a value of about USD 4.05 billion in 2020. The industry is further expected to grow at a CAGR of 4.3% in the forecast period of 2021-2026 to reach a value of nearly USD 5.2 billion by 2026.

Downhole tools are deployed optimising oil and gas extraction from a well beneath the earth's surface using products like drilling tools and flow and pressure control tools, among others. In recent years, unconventional oil and gas production has witnessed robust growth, which includes shale gas, tight gas, gas hydrates, and coalbed methane gas. This has invigorated investments by major players in research activities focused on efficient extraction of unconventional gas, owing to which the demand for downhole tools is bolstering the market growth. The subsequent demand has resulted in advanced manufacturing practices to equip downhole tools with modern technology to aid in cost-cutting and efficient production. Moreover, the worldwide rising oil prices due to depletion of resources have necessitated the need for technology that reduces navigation costs and wastage. Hence, technical integration like Artificial Intelligence (AI), geocoding and the Internet of Things (IoT) is giving rise to ‘intelligent drilling’ solutions, which are anticipated to augment industry growth.

Maersk Drilling (CPH: DRLCO), one of the companies in the downhole tools industry, recently announced its first low emission drilling operation with hybrid technological integrations in Maers Intrepid in December 2020. The Maers Intrepid is an ultra harsh environment CJ70 jack-up rig designed for year-round operations around the North Sea. The installation of low-emission technology is equipped with data intelligence to monitor energy consumptions and CO2 emissions. The cloud-based Energy Emission Efficiency (EEE) uses real-time data to monitor energy consumption which aids in optimising utilisation. In addition, the Selective Catalyst Reduction (SCR) system is designed with features that convert NOx emissions into harmless water and nitrogen before releasing.  The technological integration was funded by Norwegian NOx funds and Equinor’s decision to introduce compensation formats to stimulate emission reductions. The ongoing research and development project aims to explore methods to further limit greenhouse gas emissions from drilling operations. Thus, such innovations and government initiatives are positively impacting the growth of the industry.

Market analysis by Product, Application and Region:

  • The market, based on product, is segmented into drilling tools, flow and pressure control tools, control tools, and handling tools, among others.
  • On the basis of application, the market can be categorised into well drilling, well intervention, formation and evaluation, and production and well completion.
  • The major regional markets for downhole tools are North America, Latin America, Europe, the Asia Pacific, and the Middle East and Africa.

Key Findings of the Report:

  • Deployment of downhole tools for drilling, controlling and well formation, production and completion activities in oil and gas extraction is driving the market growth.
  • Government investments in manufacturing practices to reduce wastage, ensure safety, and boost productivity is augmenting the industry growth.
  • Technical integration into manufacturing advanced autonomous drilling equipment is anticipated to positively impact the exploration and development of hydrocarbons, hence bolstering the market growth.
  • Deployment of downhole tools to extract unconventional gas like shale gas and tight gas, owing to a global rise in oil prices, is augmenting the market growth.

Key Offerings of the Report:

  • The EMR report gives an overview of the global downhole tools industry for the periods (2016-2020) and (2021-2026).
  • The report also offers historical (2016-2020) and forecast (2021-2026) markets for products, applications, and major regions of downhole tools.
  • The market report also analyses the trade data by covering the major importing and exporting countries.
  • The report analyses market dynamics, covering the key demand and price indicators in the market along with an assessment of the SWOT and Porter’s Five Forces Model.

The major players in the global downhole tools market are Weatherford International plc, Ulterra Drilling Technologies, L.P., Varel International Energy Services, Inc., Baker Hughes Company, and National Oilwell Varco, Inc., among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

About Us:

Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

EMR leverages its state-of-the-art technological and analytical tools, along with the expertise of its highly skilled team of over 100 analysts and more than 3000 consultants, to help its clients, ranging from Fortune 1000 companies to small and medium sized enterprises, easily grasp the expansive industry data and help them in formulating market and business strategies, which ensure that they remain ahead of the curve.

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*We at Expert Market Research always thrive to give you the latest information. The numbers in the article are only indicative and may be different from the actual report.

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