- North America leads the global downhole tools market.
- Downhole tools market for Well intervention application held the largest share.
- Drilling tools held the largest share within the global market.
Downhole Tools are the basic tools employed at the bottom hole level for various applications like Well Drilling, Well Completion, Well Intervention, Formation & Evaluation, and Oil & Gas Production. These tools are essential for all the services that are related to oil and gas industry.
The global Downhole Tools Market is expected to reach $4.49 Billion by 2020, at a CAGR of 4.9%, signifying a high demand for these tools. The rising demand for advanced tools that function optimally in high pressure and temperature conditions has also been a driver of Downhole Tools market. The increase in exploration activities for shale and other resources, especially in the North American region, followed by South & Central America and Asia-Pacific have led to a widespread need for downhole tools. However, the current oil price decline has impacted the downhole tools market growth. Oil price is expected to increase per barrel, delayed and cancelled projects are likely to resume and push the downhole tools market growth.
Downhole Tools play an important role in oil & gas exploration and production activities with applications in a variety of operations such as fishing, casing, cementing, well bottom communication, drilling, logging, fracturing, and well measurements. Downhole tools are employed for workover and completion activities of a well in the Bottom Hole Assembly (BHA).
North America: The Leading Market for Downhole Tools
North America leads the global downhole tools market owing to drilling activities and shale exploration activities in the U.S. and Gulf of Mexico region. Asia-Pacific stood at the second position in terms of market size, followed by the Middle East and Europe. However, the sharp decline in the oil prices slowed the market growth for downhole tools all over. However, Africa is expected to grow at a faster rate with the highest CAGR of 8.2% during the forecast period. This is mainly because of new hydrocarbons discoveries in Africa. Well intervention forms the major application of downhole tools and accounts for a market share of 29%.
- Oil & Gas Production
- Well Drilling
- Well Completion
- Well Intervention
- Formation & Evaluation
Well Intervention: The Largest Segment of Downhole Tools
Downhole tools are segmented by application into well intervention, well completion, well drilling, Oil & gas production and formation and evaluation. Downhole tools market for Well intervention application held the largest share in 2014 driven by the demand from large number of matured wells across the globe. Some of the downhole tools used in well intervention process include fishing tools, tubing tools, wireline tools and others.
Drilling tools segment the fastest growing segment of downhole tools market
Downhole tools are also segmented on the basis of tools application type into flow & pressure control tools, drilling tools, impurity control tools, downhole control tools and handling tools. Drilling tools held the largest share within the global market driven by the increasing drilling activities worldwide. The rise in unconventional drilling methods and explorations in deep waters have also pushed the demand for more robust drilling tools. Flow & pressure control tools are the second largest market and is expected to grow at a highest CAGR during the forecast period.
Some of the leading players in the downhole tools market include Schlumberger (U.S.), Halliburton (U.S.), Saint Gobain (France), Baker Hughes (U.S.), and Weatherford International (Ireland), and others.