Global Smart Well Market 2017-2021

Overview of the global smart well market

Technavio’s market research analyst predicts the global smart well market to grow steadily at a CAGR of above 4% by 2021. One of the primary drivers for this market is the migration of drilling into unconventional areas. The most striking outcomes of the current generation of oil and gas exploration is the reaffirmation of the fact that the era of easy oil is coming to an end. This has resulted not only in inflated costs of hydrocarbon acquisition, but has also displaced operations geographically. The generally established areas such as the Middle East, Gulf of Mexico, and North Sea areas have started witnessing reduction in the rates of production in the past few years. This has led the energy companies, with an insatiable thirst for new resources, to move out to areas like Yamal basin in Russia, Andaman Sea in the Indian sub-continent, and most significantly, regions in the Arctic and Antarctic.  The high dependence of the global economy on hydrocarbons will augment the growth of this market during the forecast period.

One of the latest trends gaining traction in this market is the IT integration and digitization of oil fields. The recent fall in oil prices has reduced the profit margins for oilfield services companies. This has induced companies to leverage the use of IT to improve efficiencies and reduce operational losses. Integrating IT with software such as total asset managers, has allowed for continuous monitoring to find any irregularities in the performance of equipment that can be fixed immediately. This tracking method has substantially reduced the maintenance time and devices failures, which resulted in monitory losses and delay in the completion of projects. Digital oilfield technologies are gaining importance, as they allow decision making and remote executions with the objective to maximize production, improve capital efficiency, and minimize safety hazards.

Competitive landscape and key vendors

At present, the global smart well market is concentrated in nature with large players having the least regional presence occupying larger market share. The market players involved in the smart well market adopt multiple strategies to gain a competitive advantage over other players in the market. The drilling sector is one of the core pillars of the upstream oil and gas sector. This strategic positioning in the global market space has influenced the investment outlook for the sector by making it dependent upon the overall state of the entire oil and gas value chain. The recent collapse of the global oil market, driven by the imbalance in the demand-supply dynamics, has compelled the profitability of upstream activities to the brink. However, the market is expected to correct itself from 2017 onwards, the long-term survival in the market is highly contingent upon the business decisions taken in the current timeframe.

Leading vendors in the market are –

• Baker Hughes
• Halliburton
• National Oilwell Varco
• Schlumberger
• Weatherford International

The other prominent vendors in the smart well market include Statoil, Salym Petroleum, Woodside Energy, Emerson process management, INTECH process automation, Nabors Completion & Production Services, RPC Inc., Superior Energy Services, Trican Well Services, and Welltec International AS.

Segmentation by application and analysis of the smart well market

• Offshore
• Onshore

During 2016, the onshore segment dominated the smart well market and accounted for a major part of the overall market share. This dominance is attributed to the increasing drilling activities in oil fields propelled by the global rise in energy demand. To bridge this rising demand for oil and gas, the vendors are compelled to explore and drill deeper and more remote reservoirs with varied and harsh geographical environments. Furthermore, the rising trend to focus on unconventional reserves such as shale gas and tar sands reserves will also stimulate the growth of the segment in the coming years. 

Geographical segmentation and analysis of the smart well market

• Americas
• APAC
• EMEA

In this market study, analysts have estimated the Americas to dominate the smart well market during the forecast period. The US is the major revenue contributor to the smart well market in this region. Owing to the fall in oil prices, major companies in the region have increased the production from existing reserves. They are also making fewer investments in new drilling processes. The high exploration and production (E&P) activities due to technological developments have been producing greater quantities of oil and gas from unconventional sources. Sources such as deep water productions will drive the smart well market in the Americas over the next few years.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global smart well market?
• What are the key market trends impacting the growth of the smart well market global smart well market?
• What are the challenges to market growth?
• Who are the key vendors in the global smart well market?
• What are the market opportunities and threats faced by the vendors in the global smart well market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global smart well market?

Technavio also offers customization on reports based on specific client requirement.

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