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The global reservoir analysis market size stood at USD 8.18 billion in 2018 is projected to reach USD 11.96 billion by 2026, exhibiting a CAGR of 4.9% during the forecast period.
The oil & gas industry plays a crucial role in the country’s economy, which is under the transition phase owing to growing energy demand and increasing government investment. Countries are investing heavily in equipment and services used for the oil & gas sector, which helps to leverage the growth of the oil & gas industry. Exploration and production in the oil & gas sector are the primary objectives that include various tools and services to increase production. Reservoir analysis is one of the prominent tools used to predict the performance that a reservoir will have over the production life of the field. It calculates the dynamic rock & fluid properties and mitigates the effects of uncertainties by optimizing reservoir performance by controlling & monitoring reservoir and fluid properties. It is used to explore oil, gas, and coal, which are used as energy and fuel across various applications such as power generation, automotive, aviation, and other application. The uptick in demand for energy, significant technological advancement in reservoir analysis, and increasing need to achieve higher accuracy in exploration activities fuels the demand for this market during the projected period.
Increasing Adoption of Advanced Drilling Technology
Significant progress in technology for drilling and exploration has enabled producers to adopt advanced tools for reservoir fluids and formation to optimize the production and recovery techniques. Precision pumps, formation response testers, Mechanical integrity testing, dynalink telemetry system are some of the advanced tools and equipment used in production purposes. It provides field performance, volumetric calculation, probabilistic models to achieve higher reliability, accuracy, and more ease in information accessibility, which is to be measured. Appropriate characterization of the reservoir is obtained by the process of acquiring, processing, and integrating several basic data such as well logging, core analysis, and fluid properties, which aims to deliver geophysical, geological, and engineering data for higher accuracy. Hence, advancement in technology for production and exploration activities is playing an essential role in the reservoir analysis market.
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Increasing Exploration of Unconventional Reserves to Bode the Market
Reservoir analysis is widely used in exploration projects to enhance productivity with accuracy. Exploration of the unconventional reserves involves the use of a reservoir analysis tool that helps to improve oil and gas field performance throughout the entire life cycle. For instance, according to the Australian Energy Statistics 2017 report, Australia accounted 25.51 billion cubic meters of coal bed methane production with a growth rate of 124.1%. Hence, the growing trend of exploration of unconventional resources drives the demand for the market during the projected period.
Significant Advancements in Technology for Reservoir Analysis Will Aid Growth
Transition in technology for analyzing the reservoir is evolving at a faster rate, which improves the precise description of hydrocarbon composition and efficiency of the field. Development in technology provides real-time monitoring solutions and actionable data, which enabled the producer for faster, easier, more effective decisions. For instance, traditional approaches of data assimilation into numerical simulation models are obsolete techniques; however, pressure transient analysis (PTA) and rate transient analysis (RTA) use the data efficiently and support decision making for on-time production management. Hence, significant advancements in technology and growing adoption to achieve higher accuracy drives the demand for the reservoir analysis market in the coming years.
Growing Demand For Energy and Hydrogen Recovery Will Open Up a Huge Potential for Market Growth
The increasing need for hydrocarbon recovery and an increase in power demand are the major factors attributed to the growth of this market. For instance, according to the B.P. statistical review of the world energy report 2019, the primary energy consumption per capita of North America increased by 1.9% from 235.3 Gigajoules per capita (G.J./Capita) in 2017 to 239.8 GJ/Capita in 2018. Additionally, oil production in North America increased from 20.16 million barrels per day (BPD) to 22.59 million BPD in 2018. Hence, increasing production and exploration activities of oil & gas upsurge the demand for energy and hydrogen recovery, which involves the extraction of fossil fuel in a large amount. Hence, increasing exploration and production activities in the oil & gas industry increases the demand for energy and hydrogen recovery, which in turn accelerates the demand for reservoir analysis market during the forecast period.
High Investment And Complicated Process Will Hamper Market Growth
The technological advancements in the reservoir analysis is upgrading at a faster pace, which led to spending higher by the end-user. The integration of advanced technology, such as sensor technologies, monitoring, data acquisition, and automated measurements, makes the reservoir analysis process more expensive. Hence, the availability of raw material, complicated process, and fabrication of various technologies make the reservoir analysis costlier, which hampers the market growth during the projected period.
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Data Acquisition & Monitoring Segment to Gain Momentum During the Forecast Period
Based on the service, the market is segmented into geomodeling & reservoir simulation, data acquisition & monitoring, and reservoir sampling. The data acquisition & monitoring segment is accounting for the maximum share owing to the extensive application of advanced technology, which enables the producer to predict appropriate real-time data, automated measurements, and communications capabilities. Hence, being technologically more advanced, it holds the largest market share in the global market. Reservoir simulation is also gaining the market due to wide application in completion degradation and pressure depletion within the oil & gas industry using detailed computerized models, which improves reservoir drainage and reserves recovery at lower drilling costs. Reservoir sampling is also used for completion and taking production decisions for reservoir rock and fluid analysis in conventional and unconventional reservoirs. Hence, increasing energy demand and significant advancement in technology leverage the demand for data acquisition & monitoring segment among other segments during the forecast period.
Deployment in Onshore Will Account for the Maximum Share During the Projected Period
By application, the market segments include onshore and offshore applications. The onshore segment is holding the largest market share in the global market, owing to increasing onshore exploration and production activities. Offshore application is deployed in low, medium, and high depths of the ocean, which requires significant investment. Hence, an increasing onshore project fuels the demand for reservoir analysis market during the projected period.
North America Reservoir Analysis Market Size, 2018 (USD Billion)
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The findings based on our research study indicate that North America will hold the largest share in the global market during the forecast period. The U.S. and Canada are strategically focused on exploring more onshore reservoirs to cater to the emerging demand for hydrocarbon recovery. According to B.P. Statistical Review of World Energy 2019, North America oil production increased from 20,157 thousand barrels per day in 2017 to 22,587 thousand barrels per day in 2018 with a growth rate of 12.1%. Hence, increasing production activities and growing energy demand, accelerates the demand for this market during the forecast period.
As per our market research, Asia Pacific is expected to witness healthy growth of the reservoir analysis market. Countries in the Asia Pacific such as China, India, and Indonesia, are majorly contributing to global oil & gas production, which led to growth in production and exploration activities. Increasing demand for hydrocarbon recovery and growing advancement in technology drives the demand for market. For instance, according to the EIA report 2019, consumption of natural gas is going to increase and primarily dominated by developing countries from Asia Pacific region. Hence, increasing energy demand and growing advancement in technology led to the reservoir analysis market growth in the forecast period.
The Middle East & Africa and Europe are continuously focusing on incorporating advanced technology for drilling and exploration projects. Significant development in technology for drilling & production of oil well has increased the demand for reservoir analysis tools in the global market. For instance, the oil production in Yemen and Saudi Arabia increased from 60 and 11,892 b/d in 2017 to 68, 12,287 b/d, with a growth rate of 12.8% and 3.3%, respectively. The Mittelplate field off the North Sea coast in Germany is producing 30 million metric tons of oil whereas, bockstedt oilfield is having a drilling production of 5 new well, which holds a strong emerging potential for reservoir analysis market. Hence, increasing oil production and growing exploratory projects, fuels the market during the forecast period.
Baker Huges Focuses on Developing Advanced Products and Achieving New Contracts in the Existing Devices to Strengthen its Product Portfolio for Reservoir Analysis
Competition landscape of reservoir analysis market depicts a strong competition among the leading players, achieving more number of contracts, along with constant innovations by the leading company, are prominent factors responsible for the dominance of the company.
At present, the global reservoir analysis market is prominently dominated by the players mentioned above, holding more than half of the share. The dominance of key players is dependent on their spending in the research & development activities, incorporation of advanced technologies with the existing technology, innovative strategic partnerships, and acquisitions.
The key players are primarily focused on developing technology such as deriving facies model from the outcome of seismic inversions and suitable communication capabilities, which leverages the operational efficiency and real-time data of the exploration activities. These are some technological advancements majorly provided by the key players in the global market.
The technological advancements in reservoir analysis for the oil & gas industry enhance the exploration and production capacity by optimizing hydrocarbon recovery and improve reservoir management more efficiently and accurately. This helps to reduce the risk in the oil field and improve the distribution of reservoir and pore fluids in subsequent wells. This is achieved by integrating advanced technologies such as amplitude-preserving, forward modeling of available well data, angle domain migration, model-based AVO(A) analysis, and among other technologies. Hence, a significant transition in technology for analyzing reservoirs in the oil & gas industry plays a crucial role in production and exploration activities with more accuracy and leverage the reservoir potential. Moreover, the exploration of the unconventional reservoir by integrating advanced technologies holds a promising opportunity for the growth of the reservoir analysis market.
The report offers qualitative and quantitative insights on the reservoir analysis and the detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging reservoir analysis market trends, and competitive landscape. Key insights offered in the report are the development in same technology by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.
An Infographic Representation of Reservoir Analysis Market
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Value (USD Billion)
As per the Fortune Business Insights study, the global market was valued at USD 8.18 Billion in 2018.
The global market is projected to grow at a CAGR of 4.9% in the forecasted period.
North America market was valued at USD 3.13 billion in 2018
The oil & gas industry is prominently using reservoir analysis tools on a large scale for hydrocarbon recovery.
In 2018, the global market was USD 8.18 Billion, and it is anticipated to reach USD 11.96 Billion by 2026 growing at a stellar CAGR of 4.9% during the forecast period (2019 -2026)
Based on Service type, the data acquisition & monitoring segment is holding the largest share in the global market.
Significant advancement in technology and growing demand for energy and hydrocarbon recovery, are the major factors fueling the demand for the market. However, high investment and complicated process restraints market growth in the projected period.
The top players in the market are Halliburton, Schlumberger, SGS, Baker Hughes (U.S.), and Weatherford (U.S.), among others.
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