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The geophysical services market share is expected to increase by USD 3.55 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 3.91%.
This geophysical services market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers geophysical services market segmentation by type (land, marine, and aerial) and geography (North America, Europe, APAC, Middle East and Africa, and South America). The geophysical services market report also offers information on several market vendors, including Abitibi Geophysics, CGG SA, China National Offshore Oil Corp, Dawson Geophysical Co., EON Geosciences Inc., Fugro NV, Geophysical Survey Systems Inc., GeoTech, Halliburton Co., ION Geophysical Corp., PGS ASA, Phoenix Geophysics, Ramboll Group AS, SAExploration Holdings Inc., Schlumberger Ltd., Sea Geo Surveys Pvt. Ltd., Spectrum Geophysics, TGS NOPEC Geophysical Co ASA, Weatherford International Plc, and Xcalibur Multiphysics among others.
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Based on our research output, there has been a negative impact on the market growth during and post-COVID-19 era. The rising multi-client survey approach is notably driving the geophysical services market growth, although factors such as the slowdown in investments in the oil and gas industry may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the geophysical services industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Geophysical Services Market Driver
One of the key factors driving growth in the geophysical services market is the rising multi-client survey approach. A geophysical company acquires multi-client surveys for its own use, and the data is generally collected over large acreage. It then licenses the data to as many clients as possible, making the survey less expensive on a per-unit-area basis. The increasing cost of ownership of the data has resulted in a shift in the multi-client approach in the market. Most oil and gas companies find the interpretation of that data more important than exclusive ownership of data. Companies are focusing on multi-client-based services, which provide high revenue-generating opportunities for vendors. For instance, in January 2020, ION Geophysical Corp. signed a multi-client agreement for 2D and 3D programs in offshore Colombia. In June 2020, TGS-NOPEC Geophysical Company ASA announced the completion of the Santos Basin multi-client 3D survey.
Key Geophysical Services Market Trend
The 4D surveys increasingly using multi-sensors is a geophysical services market trend that is expected to have a positive impact in the coming years. The identification of mineral reserves traditionally involved 2D and 3D seismic techniques for acquiring seismic information. The process consists of the transmission of seismic waves through the Earth's surface to identify hydrocarbon and mineral deposits, and the waves are received using a geophone, which is connected to a truck designed specifically for this purpose. The emergence of 4D for the identification of hydrocarbon reserves benefitted E&P activities, and this technique is being widely used. Vendors such as Schlumberger and ExxonMobil offer 4D seismic solutions. Improvements in seismic technologies for analyzing the properties of the rock and for identifying hydrocarbon reserves will improve the efficiency of oil and gas extraction. The 4D technique is currently observing large adoption rates owing to an increase in oil and gas exploration projects, which is expected to drive the market during the forecast period.
Key Geophysical Services Market Challenge
The slowdown in investments in the oil and gas industry will be a major challenge for the geophysical services market during the forecast period. The need for continuous survey and exploration of the oil and gas upstream sectors makes the oil and gas industry highly valuable for the overall geophysical services market. Prior to 2014, crude oil prices were very high, which resulted in large-scale investments by oil and gas upstream companies in geophysical services. Though oil prices showed recovery in 2018 and Q1 2019, the prices have been fluctuating. Upstream companies are adversely affected by fluctuations in global crude oil prices, as the selling price of crude oil is determined by the market, while production costs are largely fixed. Thus, investment decisions and profits are affected adversely because of the capital-intensive nature of oil and gas operations, which resulted in slow growth or even a decline in oil and gas E&P activities, including delays and cancellations of oil and gas projects. Therefore, fluctuations in global crude oil prices pose a significant challenge to the growth of the oil and gas industry, including the global geophysical services market.
This geophysical services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global geophysical services market as a part of the global diversified metals and mining market within the global materials market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the geophysical services market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the geophysical services market encompasses successful business strategies deployed by the key vendors. The geophysical services market is fragmented and the vendors are deploying growth strategies such as constantly focusing on M&A activities to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The geophysical services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the geophysical services market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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40% of the market’s growth will originate from APAC during the forecast period. China is the key market for geophysical services in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The rapid industrialization and the increasing number of investments in the oil and gas industry in the region will facilitate the geophysical services market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the COVID-19 pandemic had a negative impact on many oil and gas companies due to reduced demand, which affected the demand for completion equipment and services in China. For instance, the CNOOC group, one of the major oil companies in China, trimmed its investment by up to 15% in 2020. In 2021, China was highly affected by the second wave of COVID-19. This impacted growth and development projects in the country, including those in the oil and gas industry.
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The geophysical services market share growth by the land segment will be significant during the forecast period. 2D seismic surveys are cheaper than 3D and 4D seismic surveys, but the quality of data obtained from this survey is low. Hence, oil and gas and mining companies generally prefer 3D and 4D seismic surveys for capturing data. The use of advanced survey techniques increases the cost of a seismic survey, but it provides adequate information based on which exploration activities can be executed.
This report provides an accurate prediction of the contribution of all the segments to the growth of the geophysical services market size and actionable market insights on the post-COVID-19 impact on each segment.
Geophysical Services Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.91% |
Market growth 2022-2026 |
$3.55 billion |
Market structure |
Fragmented |
YoY growth (%) |
2.98 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key consumer countries |
US, China, Russia, UK, and France |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Abitibi Geophysics, CGG SA, China National Offshore Oil Corp, Dawson Geophysical Co., EON Geosciences Inc., Fugro NV, Geophysical Survey Systems Inc., GeoTech, Halliburton Co., ION Geophysical Corp., PGS ASA, Phoenix Geophysics, Ramboll Group AS, SAExploration Holdings Inc., Schlumberger Ltd., Sea Geo Surveys Pvt. Ltd., Spectrum Geophysics, TGS NOPEC Geophysical Co ASA, Weatherford International Plc, and Xcalibur Multiphysics |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
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