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The global downhole tools market size is projected to reach USD 5.30 billion by 2027. The increasing hydrocarbon exploration activities will have a positive impact on the growth of the overall market in the coming years. According to a report published by Fortune Business Insights, titled “Downhole Tools Market Size, Share & Industry Analysis, By Tool Type (Drilling Tools, Pressure & Flow Control Tools, Handling Tools, Impurity Control Tools, and Others), By Application (Well Drilling, Well Completion, Well Intervention, Well Production, Formation & Evaluation), By Location (Onshore and Offshore {Shallow Water, Deepwater and Ultra-Deepwater}) and Regional Forecasts, 2020-2027,”. the market was worth USD 4.06 billion in 2019 and will exhibit a CAGR of 8.6% during the forecast period, 2020-2027. The market growth will decline in 2019 due to the ongoing coronavirus outbreak. The hesitancy among working professionals in this sector will have an adverse effect on the market.
Downhole tools are devices that are used in drilling and well intervention activities in the oil and gas industry. The huge investment in the research and development of downhole tools is consequential to the massive potential held by hydrocarbons. Increasing demand for oil and gas will encouraged companies across the world. Besides hydrocarbons, the constantly rising adoption and subsequent demand for oil and gas in numerous countries across the world will have a positive impact on the growth of the overall market in the coming years. The emphasis on optimization of exploration activities will create several opportunities for market growth. The huge investment in product R&D, coupled with the efforts put in by companies to introduce technologically sound devices will aid the growth of the overall market in the coming years.
Coronavirus Pandemic to Have a Huge Impact on Businesses Across the World
The coronavirus outbreak has forced companies to shutdown manufacturing units. Due to the spread of the disease at a rapid pace, governments across the world are putting in constant efforts to curb its spread. Trade activities have come to a standstill in several major countries across the world. Moreover, oil and gas activities are put on hold or brought down in numbers. Strict government policies, coupled with the awareness among people to control the disease will have an adverse effect on the market in the coming years.
To get a detailed report summary and research scope of this market, click here:
https://www.fortunebusinessinsights.com/downhole-tools-market-102777
Maersk Drilling Gets Contract Terminated; Covid-19 Pandemic Shutdowns Drilling Activities
The recent coronavirus outbreak has had a huge impact on the global economy. The lockdowns imposed by governments and public authorities have brought businesses to a standstill. As a result, several large scale companies have stopped their oil and gas exploration activities. A few companies have also had their contracts with huge firms, terminated, with the hopes of recovery not likely anytime soon. In April 2020, Maersk Drilling announced that its contract with BG International has been immediately terminated due to the negative impact of the Covid-19 pandemic. This contract was aimed at drilling and rigs. The company further announced that Aker BP, another company that was collaborating with it, terminated the contract for jack-up rigs. It is evident that the coronavirus outbreak has had a negative influence on the downhole tools market. Having said that, the efforts put in by governments across the world, coupled with the advances in treatment options for the disease, will eventually create new opportunities for market growth.
Major Companies Are Focusing on Optimizing Oil and Gas Production
Accounting to the growing demand for oil and gas resources, several companies are looking to integrate devices that will help them maximize the production of these resources. It is observed that adoption of technologically advanced equipment, coupled with the emphasis on sustainable products, is a growing trend among major companies operating across the world. Moreover, these companies are looking to adopt newer strategies that will eventually help them establish a stronghold in the market.
List of companies profiled in the report:
Industry Developments:
The global downhole tools market is segmented on the basis of:
ATTRIBUTE | DETAILS |
Study Period | 2016-2027 |
Base Year | 2019 |
Forecast Period | 2020-2027 |
Historical Period | 2016-2018 |
Unit | Value (USD Billion) |
By Segmentation | By Tool Type
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By Application
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By Location
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By Region
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