Geochemical Services Market Size, Share & COVID-19 Impact Analysis, By Type (Laboratory-based, and Infiled-based), By Service Type (Sample Preparation, Mixed Acid Digest, Hydrogeochemistry, Fire Assay, X-ray Fluorescence, Aqua Regia Digest, and Others), By End-user (Mineral & Mining, Oil & Gas, Archaeological Survey, and Others) and Regional Forecasts, 2021-2028

The global geochemical services market size was USD 0.95 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with geochemical services witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a decline of -11.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 1.01 billion in 2021 to USD 1.41 billion in 2028 at a CAGR of 4.9% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Geochemical is a study of the origin, evolution, and distribution of various chemical elements on earth that are contained in rock-forming minerals. These services help to analyze where petroleum, metals, water, and commercially valuable minerals are located. It is also being used to trace leaks from waste disposal sites and track and understand fluctuations in the earth’s climate.

Limited Investment Opportunities amid COVID-19 to Impede Market Growth

The global health emergency caused by the sudden outbreak of the COVID-19 viral infection has significantly affected numerous verticals. This coronavirus pandemic has put a halt to global productions and trades. Nearly all the countries across the world have witnessed a huge expansion in the number of affected cases since the starting of 2020.

As the global pandemic outbreak has affected all the countries across the world, different governments and organizations have introduced significant plans to cope with the ‘new normal’ in the post-COVID world. Strategies are drafted to empower companies to continue operations with fiscal benefits effectively. Accordingly, the revival of industry verticals is set to unveil new possibilities for the integration of geotechnical services and solutions to maximize efficiency and mitigate operational risks.

For instance, in April 2020, Canada's government published its COVID-19 relief package titled ‘Economic Response Plan.’ For the oil & gas sector, the Prime Minister of Canada declared the total federal funding of about Canadian Dollar (CAD) 2.5 million to rejuvenate the national industry. The total funding allots above CAD 1.7 million to the Alberta Orphan Well Association and Saskatchewan's administrations, British Columbia, and Alberta to clean up inactive hydrocarbon assets in the provinces. Additionally, its new Emissions Reduction Fund will provide CAD 750 million support as loans to oil & gas companies to check on methane and other harmful emissions from onshore and offshore wells.

LATEST TRENDS

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Increasing Investments in Asia Pacific’s Mining Sector is a Vital Trend

In Asia Pacific, several countries, such as India, Australia, Singapore, and Malaysia, have started investing in mineral production. According to the India Brand Equity Foundation (IBEF), in 2019, India stood at 729.10 million tons in terms of mining. India produces 95 minerals- 4 fuel-related minerals, ten metallic minerals, 23 non-metallic minerals, three atomic minerals, and 55 minor minerals. This factor is anticipated to drive the global geochemical services market share during the forecast period.

Manufacturers in the Asia Pacific region have started investing in geochemical services technology and its equipment. For instance,

• On August 11, 2020, SGS SA opened its new geochemical laboratory in Townsville, Queensland, Australia. The newly developed laboratory is ISO 9001 accredited, and it will offer sample processing capacity for sample preparation, fire assay, and chemical analysis, ensuring faster and more efficient turnaround times. The company also introduced X-ray fluorescence analytical services, as well as new Field Analytical Services and Testing (FAST) services.


• On June 14, 2019, Fugro completed the Malaysian seep hunting and geochemical campaigns for the Provision of Surface Geochemical Survey for Domestic Waters for Petroliam Nasional Berhad (PETRONAS). These campaigns acquired geophysical data, including multibeam echosounder (MBES) and sub-bottom profiler (SBP) data used to interpret geologic features and optimize target selection for geochemical sampling.

DRIVING FACTORS

High Growth in Archeological Survey Industry to Fuel Market Growth

Construction activity in North America and Europe has increased dramatically in the residential, commercial, infrastructural, industrial, and utility sectors. Several countries, including Germany, the United Kingdom, France, Canada, and Russia, have extensive ongoing construction activities, and a large number of construction projects are scheduled to begin. With countries such as Germany and the United Kingdom looking to strengthen their infrastructure, government aid and subsidies are expected to attract significant investment in the construction industry. In addition, certain countries, such as Canada, Spain, Italy, and the United Kingdom, are promoting tourism. As a result, the construction of hotels, resorts, parks, and other commercial structures is rapidly increasing. This factor is expected to drive the demand for an archeological survey.

The geochemical survey helps to detect human occupation beyond the archaeological remains due to anthropogenic activity, including food preparation, fireplaces, or craft-working. According to the Deloitte Global Construction report 2020, the Canadian construction industry stood at USD 153 billion in 2019, employing 5.8% of the active population and is expected to reach USD 192 billion by 2025. This is set to propel the overall market for geochemical type of services.

Increasing Exploration & Production and New Discoveries in Offshore Hydrocarbon Assets to Boost Growth

The Middle East & Africa owns a vast capacity of oil & gas reservoirs. Owing to these, numerous oil & gas companies across the region are propelling their forces to find new assets to suffice energy needs. For instance, On December 27, 2020, the Kingdom of Saudi Arabia discovered four new oil and gas fields with the help of the country’s biggest oil company Saudi Aramco.

Oil & gas reserves have been discovered in the Al-Reesh oil field, northwest of Dhahran, containing 4,452 barrels per day of light crude oil. It also has reserves of 3.2 million standard cubic feet of natural gas. The Kingdom of Saudi Arabia is attracting foreign investments across all economic sectors due to factors such as growing population, regulatory environment, tax favorability, stable political system, and proximity to key markets. This factor is likely to drive the geochemical services market growth during the forecast period.

RESTRAINING FACTORS

Higher Cost of Geochemical Services to Hinder Market Growth

The cost of geochemical instrumentation and monitoring equipment rises in direct proportion to range, resolution, accuracy, precision, and repeatability. Geochemical services become more expensive as advanced sensors, software, and complex data acquisition systems are used. Furthermore, the cost of geochemical instrumentation and monitoring solutions, as well as associated services, is primarily determined by the complexity of structures. As a result, the high cost of these services acts as a barrier to market growth.

SEGMENTATION

By Type Analysis

Laboratory-based Segment to Grow at a High Pace in Near Future

Based on type, the market is segregated into laboratory-based and infield-based. The laboratory-based segment accounted for the major market share in 2020. In geochemical services, laboratory analysis is performed on the collected samples of minerals and soil to determine the presence, absence, or concentration of various substances on the earth’s crust. Laboratory analysis consists of the collection of samples, chemical analysis of samples, and interpretation of analytical results.

Infield analysis is also the key segment of the market, as it is a method of data collection that helps to observe and analyze in a natural environment. It encompasses a diverse range of research methods, including direct observation, limited participation, and the analysis of documents and other information.

By Service Type Analysis

Sample Preparation Segment Accounted for Largest Market Share in 2020

Based on the service type, the market is categorized into sample preparation, fire assay, X-ray fluorescence, mixed acid digest, aqua regia digest, hydrogeochemistry, and others.  The other segment consists of carbon and sulfur analysis and mobile metal ion analysis.

The sample preparation segment accounted for the major share of the market in 2020. In sample preparation, microwave digestions are used for preparing the samples for instrumental analysis. These techniques accurately hold temperatures to +/- 0.5 degrees to ensure quality digestion.

The fire assaying method is also expected to grow at a medium pace during the forecast period, as this method is primarily used in the minerals and metal sector. It is one of the most reliable methods for the quantitative analysis of gold and silver. The method is used for both ores and process products.

X-ray fluorescence is the fastest-growing segment of the market in 2020, As it is widely used for the determination of the major and minor elements, as well as some trace elements. This method has several advantages, which include its accuracy, precision, rapid analytical time, the ability to present the sample as solid, not liquid, and its multi-element nature.

By End-user Analysis

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Mineral & Mining Segment to Hold Highest Position in the Upcoming Years

Based on the end-user, the market is classified into oil & gas, mineral & mining, archeological survey, and others. The mineral & mining segment accounted for the leading share of the market.

Geochemical services for the mining industry consist of a collection of samples, chemical analysis of samples, and interpretation of analytical results. This type of analysis is expected to identify the ore deposits that are buried underneath the earth’s surface. It is done through the examination and analysis of the type and scale of metals discovered in various geographical materials.

Geochemical analysis of the oil & gas sector is conducted to reduce several risks associated with the development and production of oil & gas fields. Geochemicals detect the molecular and isotopic composition of gases and oil, reservoir continuity, which helps in surging petroleum discovery rates and efficiency of reservoir development plans.

REGIONAL INSIGHTS

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The market has been analyzed across five key regions, namely, North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America.

Asia Pacific accounted for a 28.6% share of the market in 2020.  The region dominated the global market in 2020 and is expected to grow significantly during the forecast period, owing to the government regulations that support the oil and gas and mining sectors with renewable resources. China, India, and Southeast Asian countries are poised to be potential markets.

In North America, the U.S. holds the potential market share for oil & gas and renewable energy. The availability of favorable government policies, encouraging tax benefits for renewable deployment, and growing allocation of funds to advance the prevailing renewable energy are some of the key parameters promoting the expansion of the regional market size. For instance, in February 2020, the U.S. Department of Energy (DoE) declared to provide about USD 125.5 million in funding to progress the research of solar technologies. The Office of Energy Efficiency and Renewable Energy (EERE) aims to develop cost-effective solar technologies to increase grid reliability in the country. 

In Europe, various organizations present across the region are also actively supervising the effective implementation of geochemical services technologies for multiple purposes. For instance, in April 2020, the U.K.-based Carbon Trust, which is concentrated on promoting clean energy, issued guidelines to conduct geotechnical surveying to support the installation of subsea cables to streamline the working of offshore wind farms.

During the forecast period, the Middle East and Africa are expected to grow significantly. The region's major markets are the UAE, Saudi Arabia, Qatar, and Nigeria. Saudi Arabia has the most mineral resources of any country in the Gulf region. Saudi. Arabia's soil is rich in gold, copper, phosphate, and a variety of industrial minerals. The development of the mining sector is a key component of the country's plan to diversify its economy away from oil.

KEY INDUSTRY PLAYERS

Fugro to Focus on Expanding Its Product Line and Utilize Its Channels to Market New Products

Fugro is the leading geochemical services company that specializes in collecting and analyzing comprehensive information about the Earth and its structures. It also provides geochemical engineering solutions in automation and control, power, medical diagnosis, and transportation for various end-use industries, such as healthcare, transportation, communication, and power, among others. It has an extensive global presence across North America, Asia Pacific, the Middle East & Africa, and Latin America. On March 10, 2021, Fugro conducted a seep survey and geochemical campaign in Block 48, offshore Suriname, for PETRONAS Suriname E&P B.V. (PSEPBV). This survey involves geophysical data collection, heat flow measurements, core sampling, and onboard geochemical analysis.

LIST OF KEY COMPANIES PROFILED:

• Fugro (Netherlands)


• Schlumberger (United States)


• Bureau Veritas Group (France)


• SGS (Switzerland)


• ALS (Australia)


• Saudi Aramco (Saudi Arabia)


• Capital Limited (Mauritius)


• Intertek (United Kingdom)


• FLSmidth (Denmark)


• Chinook Consulting Services (Canada)

KEY INDUSTRY DEVELOPMENTS:

• March 2021 - Fugro has opened new state-of-the-art marine chemistry and biology laboratories within the Heriot-Watt University Research Park in Edinburgh, the U.K. These newly developed laboratories would analyze a wider range of environmental contaminants in marine sediments, biota, and water, from background trace levels to more contaminated sources.


• July 2020 - SGS SA opened its new state-of-the-art commercial geochemistry laboratory in Tarkwa, Ghana. The new laboratory is ISO/IEC 17025 accredited, and it provides atomic absorption spectrometry (AAS), microwave plasma emission spectrophotometry (MP-AES), and portable X-ray fluorescence spectroscopy (pXRF).

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The geochemical services market research report presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches have been adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis and information as per market segments, including type, service type, end-user, and regions, helping our readers to get a comprehensive overview of the global industry.

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