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The casing and cementation hardware market size is forecast to increase by USD 2.44 billion at a CAGR of 4.36% between 2023 and 2028. The market thrives on the back of rising investments in upstream oil and gas operations worldwide. As global demand continues to climb, the market experiences a surge in activity, reflected in the increasing active rig count. Essential for oil and gas extraction processes, casing and cementation hardware play a pivotal role in ensuring the integrity and efficiency of wells, making them indispensable components in the energy sector's infrastructure. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges.
The market is buoyed by the demand for floating equipment, stage tools, centralizers, and scratchers in the oil and gas industry. Major players like Petroleos Mexicanos, Vedanta, and Cairn Oil and Gas are driving innovation in this sector, with projects like the Surat Gas project and exploration in coal seam gas fields. These companies prioritize operational maintenance and sales monitoring to ensure the efficiency and reliability of casing and cementation hardware, essential components in the extraction processes.
The application segment of the market encompasses various sectors, with a significant focus on the offshore segment. Oil & gas offshore projects drive demand, supported by new revenue pockets and ongoing oilfield discoveries. This segment serves both conventional and unconventional resources, including shale reservoirs and deepwater reservoirs. With the increasing importance of renewable energy, the market adapts its offerings to meet evolving needs. Steel tubular products play a crucial role in deepwater projects, facilitating horizontal drilling and supporting shale and condensate extraction. Floating equipment, stage tools, centralizers, and scratchers are essential components in offshore operations, ensuring efficient well construction and maintenance. Projects like the Surat Gas project and coal seam gas initiatives further fuel demand for casing and cementation hardware, underscoring the market's importance in facilitating energy exploration and production across diverse environments.
The market share growth by the onshore segment will be significant during the forecast period. In this segment, the oil and gas exploration and production activities will enhance the drilling and completion operations, thereby driving the expansion of the onshore segment of the global casing cement market during the forecast period.
The onshore segment was valued at USD 6.89 billion in 2017 and continued to grow by 2022. Onshore oil and gas exploration and production (E&P) operations play a key role in the growth of the upstream oil and gas industry. The operating cost of drilling activities in onshore E and P operations is substantially lower than in offshore E and P operations since drilling deeper wells in harsh, subsea environments requires more modern technology and equipment. To increase profit margins and production, many countries invest in these activities. Such factors will increase the segment growth during the forecast period.
The market is vital for the offshore segment and oil & gas offshore projects, serving as the backbone for operational maintenance and sales monitoring. With new revenue pockets emerging from oilfield discoveries and unconventional resources, the market witnesses steady growth. It caters to both conventional and unconventional oil & gas sectors, supporting drilling activities in shale reservoirs and deepwater projects. As global crude oil production continues, the demand for casing and cementation hardware remains robust. Companies like Petroleos Mexicanos, Vedanta, and Cairn Oil and Gas drive innovation, especially in deepwater and shale gas exploration, ensuring the market's sustained momentum. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investments in upstream oil and gas operations is the key factor driving the growth of the global casing cementation hardware market. With global population growth and industrialization, energy security is becoming increasingly important to meet energy demand. Technological breakthroughs in the oil and gas industry have made exploring untapped resources possible. Additionally, their production is declining in many conventional oilfields. To solve this problem and maximize profits from these fields, the producers are increasing their investment in mature fields.
Moreover, increased investments in the upstream oil and gas sector will also increase oil drilling and production. Casing cementation devices are crucial pressure control tools that are utilized during the drilling and completion process. Hence, the increase in upstream investments, which drives oil and gas well drilling and completion activities, will boost the need for casing cementation hardware and contribute to the growth of the global casing cementation hardware market over the forecast period.
The development of intelligent well-completion technologies is the primary trend in the global casing cementation hardware market growth. Smart or intelligent completion is an oil and gas well completion technology that involves the use of permanent downhole sensors and surface-controlled downhole flow control valves. By applying this cutting-edge technology, well operators can remotely monitor reservoir and completion integrity data, as well as analyze and manage output in real-time without the need for well intervention. Intelligent complete refers to remotely monitoring and controlling the well operations by installing remote control devices during the good completion process. These devices collect, transmit and analyze data from wells to ensure well integrity.
Moreover, throughout the lifespan of the well, the system provides operators with access to real-time fiber-optic monitoring of the entire wellbore. This function optimizes reservoir performance and reduces the risk of equipment failure. Hence, the integration of intelligent good completion technology provides a cost-effective alternative for maximizing hydrocarbon recovery, reducing non-productive time, and increasing the reservoir's production potential. Such factors will increase the market growth during the forecast period.
Fluctuations in oil and gas prices are a major challenge to the growth of the global casing cementation hardware market. Since 2014, the crude oil supply surplus has triggered instability in global crude oil prices. Significant price declines and rises adversely affect the financial and profit margins of companies that are involved in the upstream of oil and gas. As a result, the oil and gas industry has failed to attract considerable investments, resulting in a massive loss of market potential. Since oil and gas are produced from the same exploration wells, fluctuations in crude oil prices affect oil E and P activity, which in turn impacts the global case that solidifies the hardware market.
While the price at which crude oil is sold is decided by market forces, production expenses for oil and gas E&P companies are largely fixed, and therefore, upstream oil and gas companies are negatively impacted by a decline in global crude oil prices. Hence, the volatility in global prices will hamper the growth of the global casing cementation market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Baker Hughes Co.: The company offers cementing equipment which is being designed to execute oil and gas exploration where casing pipe is installed at various depth while drilling.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, the United States, Canada, and Mexico will make the largest contributions to the regional market. These countries are the world's largest producers. The production in these countries has expanded dramatically due to unconventional E and P activities, such as shale drilling in the United States and oil sands exploration in Canada. Increased E and P activity are projected to trigger operations such as well drilling and completion activities, which will increase the need for casing cement hardware in the region. Such factors will increase the segment growth during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In the market, the offshore segment stands out as a crucial arena, driven by oil & gas offshore projects and the exploration of new revenue pockets through oilfield discoveries. This market encompasses a wide array of elements, from conventional oil & gas to unconventional resources like shale reservoirs and deepwater reserves. As global crude oil production evolves, technologies such as horizontal drilling and steel tubulars become increasingly pivotal, especially in deepwater projects. Companies like Petroleos Mexicanos, Vedanta, and Cairn Oil and Gas play significant roles alongside projects like the Surat Gas project and coal seam gas exploration, all contributing to operational maintenance and consumer goods sales monitoring in this dynamic industry. In fast developing nations, where energy consumption is soaring due to industrial expansion and automotive growth, the demand for efficient casing and cementation hardware in the this sector is experiencing a substantial upsurge.
The market is a vital component of the energy sector, with a significant presence in regions like the Middle-East. This market caters to various needs, from traditional exploration to emerging sectors like renewable energy. Shale reservoirs and Deepwater reservoirs reserves represent key areas of focus, driving demand for specialized equipment such as steel tubular and floating equipment. Projects involving shale and condensates, as well as the deepwater project, require advanced tools like centralizers and scratchers for efficient operation. Casings and liners play essential roles in well construction and integrity. Additionally, innovations like smart storage and decentralized networks are shaping the future of this industry, ensuring streamlined operations and enhanced efficiency. The Well casing & cementing market is a crucial segment within the energy industry, catering to diverse needs such as shale reservoir exploration and the deepwater project. Steel tubulars and stage tools are essential components for these operations, ensuring the integrity and efficiency of drilling processes. As the demand for energy continues to rise, driven by factors like increasing disposable incomes and post-pandemic economic recovery, the market witnesses growth. However, stringent regulations, varying standards, and growing competition pose challenges. Intelligent automation plays a significant role in streamlining operations and enhancing productivity. Additionally, factors like inflation and fluctuating raw material prices impact market dynamics. Cementing operations, reservoir engineering, and hydraulic fracturing are pivotal processes supported by advanced downhole tools.
The market plays a critical role in upstream activities, particularly in high-pressure, high-temperature ultradeep environments like the Pars Oil and Gas fields such as South Pars and Kish gas fields. Companies such as Eni rely on robust hardware solutions, including steel tubular casing, for effective cementing operations. These components and services are vital for remedial actions and support shale developments, enhancing exploration and production activities globally. Market data tables and figures in industry reports highlight the growth and forecast trends. The market landscape depends on the Zubair oil field, Exploration & production activities, Cementing segment, Primary cementing, Secondary cementing, IEA, Energy exporter, Shale revolution, MarketsandMarkets, B2B research, GEM, MicroQuadrants, Knowledgestore, BHGE, Contracts and agreements. The comprehensive table of contents (TOC) includes segments like cementing segments (primary, secondary, and stage cementing) that cater to energy exporters. In summary, the market provides essential equipment and services to ensure efficient and reliable cementing operations in challenging oil and gas exploration environments, fulfilling the stringent requirements of high-pressure and high-temperature conditions prevalent in ultradeep fields worldwide.
Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 2.44 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 46% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Centek Holdings Ltd., DRILLING TOOLS INTERNATIONAL, Drillstar Industries, Ferro-Tube Oil Tools Co. LP, Forum Energy Technologies Inc., Halliburton Co., Innovex, Inrock Drilling Systems Inc., Nabors Industries Ltd., Neoz Energy Pvt Ltd., NOV Inc., Sledgehammer Oil Tools Pvt. Ltd., Summit Casing Equipment, Techint, TMK, Trican Well Service Ltd., Vallourec SA, Weatherford International Plc, and WellPartner AS |
Market dynamics |
Parent market analysis, market research and growth, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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