Downhole Tools Market: Current Analysis and Forecast (2022-2028)

Report Description

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Global Downhole Tools Market is expected to grow at a significant rate of around 6% during the forecast period. A downhole tool is defined as a piece of oilfield equipment used during operations such as drilling, completion, and intervention, or well drilling. They are used to increase production levels and maintain a steady flow of oil from the reservoir. Additionally, the use of downhole equipment is primarily used to perform workup operations, improving the completion process by allowing rock, sand, and fluid parameters of the reservoir to be investigated. In addition, downhole tools help extend well life and ensure a steady flow of fluid while reducing the costs of performing operations associated with extracting oil from wells.

Weatherford International plc, Ulterra, Varel International Energy Services, Baker Hughes Company, NOV Inc., Bilco Tools Inc, Halliburton Company, Schlumberger Limited, United Drilling Tools Ltd., Wenzel Downhole Tools are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst tools type, drilling category to witness the highest CAGR during the forecast period”

Based on tools type, the market is segmented into drilling, handling, flow & pressure, control, and others. The drilling category is to witness the highest CAGR during the forecast period owing to the growing demand for directional, conventional, and other types of drilling wells. Additionally, the drilling tool type is made to be productive and to keep an oil reservoir’s flow steady. Furthermore, Bottom hole assemblies (BHA) include drilling tools such as drill bits, mud motors, stabilizers, drill shears, drill pipes, and reamers. This arrangement not only aids in the efficient drilling of wells but also ensures the safety of personnel working on site. Similarly, hydrocarbon exploration and production (E&P) requires a wide variety of downhole tools. Thus, drilling offers better control capability and performance in the field.

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“Amongst application, the well drilling to hold a significant share in the market in 2020”

On the basis of application, the market is segmented into well drilling, well intervention, formation and evaluation, and production and well completion. Among these, well drilling hold a large market share in 2020. This is mainly because oil and gas extraction can be done with different types of drilling techniques such as horizontal, lateral, and directional. Downhole tools are increasingly being used in the oil and gas sector where horizontal wells, directional wells, and other wells are drilled. In addition, downhole tools are mainly used for drilling wells as they optimize production from wells and are used for well fishing services. These factors will therefore increase the demand for water well drilling during the forecast period.

“North America to hold a significant share in the market”

In 2020, North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing prevalence of unconventional hydrocarbon development and increased drilling activity in the U.S. is driving the growth of the market. For instance, as per World Energy Council, the US has 1161 trillion cubic feet of recoverable unconventional gas which is the higher in the world. Moreover, the exponential investment in shale gas discovery is further expected to support the market growth. In addition, technological advancements such as the integration of the IoT, AI, and the requirement of drilling for optimized output are propelling the downhole tools market. For instance, in Mar 2022, Enteq launched the technology center to drive SABER Tool development, an innovative alternative to traditional rotary steerable systems (RSS) for directional drilling.

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Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

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Research Methodology

Research Methodology for the Downhole Tools Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global downhole tools market were the three major steps undertaken to create and analyze the adoption of the downhole tools market in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global downhole tools market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

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Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the downhole tools market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the downhole tools market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as tools type and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the downhole tools market. Further, we conducted factor analysis using dependent and independent variables such as various tool types and applications of the downhole tools market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the downhole tools market sector across the globe.

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Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global downhole tools market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the downhole tools market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global downhole tools market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global downhole tools market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of tools type and application in the global downhole tools market.

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The main objective of the Global Downhole Tools Market Study

The current & future market trends of the global downhole tools market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the downhole tools market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of tools type and application.
• Define and analysis of the regulatory framework for the downhole tools industry.
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the downhole tools market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, Middle East & Africa, and the Rest of the World.
• Company profiles of the downhole tools market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

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