Downhole Tools Market to Record CAGR of 4.95% Over 2025-2032; Urbanization and Industrial Development to Support Market Growth

The global downhole tools market size was valued at USD 3.90 billion in 2024 and is predicted to reach USD 4.10 billion in 2025. The market is anticipated to touch USD 5.75 billion by 2032, recording a CAGR of 4.95% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report 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, and Formation & Evaluation), By Location (Onshore, and Offshore {Shallow Water, Deepwater, and Ultra-Deepwater}), and Regional Forecast, 2025-2032”.

Downhole tools are specialized oilfield equipment used during drilling, completion, and intervention or workover operations. They help optimize oil well production by maintaining a consistent flow from the reservoir and reducing the costs of oil recovery. This improves the lifespan of the oil well, contributing to a stable and increased flow of fluid, which supports market growth.

The COVID-19 pandemic had a negative impact on the global market as many production and exploration projects were halted, and several companies worldwide delayed major oil and gas projects and investments in the sector.

Drilling Tools International Corp. Expands Global Reach with Strategic Acquisition

In January 2025, Drilling Tools International Corp., a prominent global oilfield services provider, finalized the acquisition of Titan Tools Services Ltd., a U.K.-based firm that rented downhole tools. The acquisition aims to expand DTI's product range and reinforce its market position in the North Sea, European, and African regions.

Urbanization and Industrial Development to Support Market Growth

The global rise in energy consumption driven by urbanization and industrialization is expected to boost exploration and production activities. In Asia Pacific, emerging markets are witnessing a sharp rise in energy demand due to economic growth and the proliferation of energy-intensive sectors. Major nations such as China and India are making significant investments in oil and gas exploration to satisfy their expanding domestic energy requiremnets. Consequently, the demand for specialized drilling equipment has increased as these tools are essential for optimizing operations and reducing costs, thereby supporting downhole tools market growth.

However, the volatility in oil prices generates uncertainty, making it challenging for companies to invest in advanced tools and technologies, potentially slowing the uptake of downhole tools.

NOV Enhances Oil & Gas Operations with Advanced Downhole Technologies

Schlumberger Limited (SLB), NOV, TechnipFMC, and others, are among the major companies in the global market. NOV stands out as a global supplier of drilling and intervention equipment dedicated to designing, manufacturing, and providing vital tools for the oil & gas sector. The company’s downhole technologies are instrumental in facilitating drilling, intervention, completion, and various other downhole operations.

Notable Industry Development:

• September 2024 – Through a strategic partnership with Alpha Oil Tools, Oilfield Service Professionals LLC now offers access to downhole drillable technologies, notably the Hydra-Set™ Hydro-Mechanical Bridge Plug and Cement Retainer developed by Alpha Oil Tools.

List of the Companies Profiled in the Report:

• National Oilwell Varco (U.S.)
• Schoeller-Bleckmann Sales (U.S.)
• Weatherford (Switzerland)
• Halliburton (U.S.)
• Core Laboratories (Netherlands)
• Baker Hughes (U.S.)
• Hunting PLC (U.K.)
• Schlumberger (U.S.)
• RPC, Inc. (U.S.)
• APS Technology Inc. (U.S.)
• Flotek Industries, Inc. (U.S.)
• TechnipFMC (U.K.)
• United Drilling Tools Ltd (India)
• Rival Downhole Tools (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/downhole-tools-market-102777

Further Report Findings

• The North America region is a major player in the global market largely due to its pioneering role in adopting innovative drilling technologies. Initiatives aimed at improving well efficiency and cutting operational costs have also encouraged the adoption of cutting-edge downhole equipment. The U.S. shale sector has witnessed considerable growth driven by advancements in drilling techniques, such as horizontal drilling and hydraulic fracturing, which enhance efficiency.
• The European region is expected to witness steady growth during the forecast period driven by efforts to optimize existing oil wells and enhance production through advanced recovery techniques, which, in turn, fuels the demand for specialized downhole tools.
• Based on the location, the onshore segment holds a significant downhole tools market share due to its easier accessibility and lower operational expenses compared to offshore operations. The cost-effectiveness of onshore drilling makes it attractive for companies to invest in onshore projects, thereby boosting the demand for downhole tools used in these operations.

Table of Segmentation