Enjoy complimentary customisation on priority with our Enterprise License!
The Oilfield Services (OFS) Market size is forecast to increase by USD 43.46 billion at a CAGR of 5.5% between 2023 and 2028. One of the key factors driving the market growth is the rise in unconventional oil and gas resources. Unconventional energy resources can be referred to as the crude and natural gas found in shale formations, tight oil formations, and the oil sands that can be used feasibly to extract crude and natural gas. In addition, coalbed methane is another unconventional source of energy that has gained prominence in recent years.
A key factor shaping the market growth is the technological innovations to drive productivity in the market. Oilfield service providers are increasingly seeking new technological innovations and technical breakthroughs to improve productivity and profitability, as the industry is facing pricing pressures from oilfield operators and E&P companies. In addition, they are driving productivity by automating oilfield processes and equipment, investing in high-performance tools and systems, and using the data-driven approach to optimize activities such as exploration, drilling, and production.
Moreover, ensuring geopolitics stability is crucial for sustaining oil and gas production and facilitating transportation and offshore sector operations, particularly in OPEC countries and the subsea oil & gas industry. This involves managing production cost effectively, as well as ensuring efficient drilling fluids, completion fluids, and remedial fluids management, along with sand and mud cleaning and transportation of water. Additionally, equipment maintenance, manufacturing, maintenance, equipment repair, and oil extraction play vital roles in supporting oilfield production and oilfield equipment and services..
For More Highlights About this Report, Download Free Sample in a Minute
The onshore segment is estimated to witness significant growth during the forecast period. The onshore segment is characterized by the presence of several large to small-scale oilfield service companies, as the capital investment needed to operate in onshore fields is considerably lower than in offshore fields. In addition, the growth of the onshore segment is attributed to the increasing upstream activities, including new drilling and implementation of enhanced recovery technologies, propelled by the global rise in energy demand.
Get a glance at the market contribution of various segments Download PDF Sample
Moreover, oil and gas E&P companies in North America and the Middle East are focused on developing new greenfield projects as older fields reach the end of their project lifespan. In addition, the US has also imposed sanctions on Iran, which led to a significant cut down in the global crude supply, prompting new drilling activity in various countries to counter the increase in crude costs. Furthermore, increased focus on unconventional reserves such as shale gas and tar sands reserves is another factor stimulating the growth of the onshore segment Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
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. The recovery in crude prices and the significant growth in shale production in the US were the key factors fuelling the market growth in North America. In addition, advancements in automation and IoT technology are encouraging rig operators in the region to adopt automated drilling solutions in onshore and offshore oil and gas projects. Moreover, companies operating in the oil and gas industry are increasingly adopting semi-automated technologies to gain access to remote offshore oil wells that pose several logistical hurdles, such as harsh weather conditions. Furthermore, through automation, offshore oil rigs can operate efficiently in harsh mid-water and deep-water oil and gas drilling environments and reduce human errors and the risk of accidents. Hence, such factors are driving market growth in North America during the forecast period.
The Oilfield Services Market is driven by the rise in unconventional oil and gas resources, necessitating advanced materials and equipment to meet growing demands. A notable trend in this market is the adoption of technological innovations to drive productivity, with a focus on enhancing efficiency in oil and gas production, drilling, and exploration. However, the industry faces challenges such as the growing use of alternate energy sources, which impact oil prices and create a supply-demand gap.
Despite challenges, oilfield services providers continue to invest in new technologies and tools to optimize production cost and address complexities in hydrocarbons extraction. From providing drilling fluids and completion fluids to facilitating sand and mud cleaning and transportation of water, companies in the oilfield equipment and services sector play crucial roles in supporting oil extraction and transportation operations, particularly in offshore sectors and OPEC countries where geopolitical factors further influence market dynamics.
One of the key factors driving the market growth is the rise in unconventional oil and gas resources. Unconventional energy resources can be referred to as the crude and natural gas found in shale formations, tight oil formations, and the oil sands that can be used feasibly to extract crude and natural gas. In addition, coalbed methane is another unconventional source of energy that has gained prominence in recent years.
Moreover, natural gas is found in coal seams or coal deposits. In addition, countries such as the US, Canada, China, and India have shown considerable interest in these unconventional reserves to limit their dependency on imported oil and gas. Furthermore, a rise in investments in the extraction of these unconventional resources is expected to provide significant growth opportunities to oilfield service providers. Hence, suhc factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the technological innovations to drive productivity in the market. Oilfield service providers are increasingly seeking new technological innovations and technical breakthroughs to improve productivity and profitability, as the industry is facing pricing pressures from oilfield operators and E&P companies. In addition, they are driving productivity by automating oilfield processes and equipment, investing in high-performance tools and systems, and using the data-driven approach to optimize activities such as exploration, drilling, and production.
For instance, some oilfield service providers are investing in automated drilling capabilities to reduce labor headcount and cut the cost of operations. In addition, other than automated drilling, companies are also investing in high-speed, precision drilling capabilities such as laser drilling and innovative drilling tools. Furthermore, laser drilling offers various advantages such as increased rate of penetration, high accuracy, precision drilling, single diameter borehole, and reduction in drilling time when drilling through hard formations. Hence, such factors are driving the market growth during the forecast period.
Growing use of alternate energy sources globally is one of the key challenges hindering market growth. The global oil and gas industry is expected to be challenged by ongoing investments in alternate renewable and non-renewable energy sources, including solar energy, geothermal energy, small hydroelectric energy sources, biofuels/bioenergy, nuclear/thermal energy, and other energy sources. In addition, factors such as environmental pollution, geopolitical risks, and growing foreign deficits are encouraging many countries to invest heavily in the development of alternate energy resources, thereby reducing investments in the oil and gas industry.
Moreover, countries are focusing more on the diversification of energy sources rather than relying on a single or few energy sources, an international energy agency with a growing need to ensure energy security. In addition, this limits the investment opportunities for oil and gas in the global energy landscape and consequently has a negative impact on demand. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research 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.
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 drilling services, well integrity and intervention, plug and abandonment, and decommissioning of oil and gas infrastructure.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative market growth 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.
The market is intricately linked to global dynamics such as advanced technology, volatile oil prices, and geopolitical factors. As the industry grapples with a supply-demand gap, companies are intensifying their focus on new technologies and innovative methods to enhance production efficiency and reduce costs. With hydrocarbons playing a crucial role in the global economy, oilfield services providers, including top oil and gas operating companies, are crucial in meeting the worldwide crude oil demand, which currently stands at millions of barrels per day.
In this landscape, the development of unconventional resources, such as shale fields, has become pivotal. Framework agreements between oilfield providers and conventional fields contribute to maintaining a steady crude oil production capacity. Offshore contract drilling services leverage technological advancements in drilling and logging tools, directional drilling services, measurements while drilling, performance drilling, and well engineering. The industry also faces challenges, including drilling costs, supply chain complexities, and breakeven prices in shale and tight reserves. The development of shale plays involves horizontal drilling and fracking, with oil sand reserves presenting unique challenges, including high-density and sand particle content. The providers play a critical role in ensuring efficient wellbore intervention and the development of gas reserves, addressing the growing demand for energy resources.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
Oilfield Services Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.5% |
Market Growth 2024-2028 |
USD 43.46 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.13 |
Regional analysis |
North America, Middle East and Africa, APAC, Europe, and South America |
Performing market contribution |
North America at 46% |
Key countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Calfrac Well Services Ltd., Caterpillar Inc., Champion Oilfield Service, China Oilfield Services Ltd., Expro Group Holdings NV, Helmerich and Payne Inc., Huawei Technologies Co. Ltd., Key Energy Services Inc., Nabors Industries Ltd., Nexans AmerCable, Oil States International Inc., Patterson UTI Energy Inc., Proserv UK Ltd., Saipem S.p.A., Schlumberger Ltd., Superior Energy Services Inc., Archer Ltd., Halliburton Co., NOV Inc., and TechnipFMC plc |
Market dynamics |
Parent market analysis, Market forecasting, 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.