Oilfield Services Market Growth By Application and Geography - Forecast and Analysis - 2022-2026

According to the research report, the oilfield services market will witness a growth of 2.92% at a CAGR of 4.36 which is expected to increase by USD 31.18 billion.

This oilfield 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 oilfield services market segmentations by application (onshore and offshore) and geography (North America, Middle East and Africa, APAC, Europe, and South America). The oilfield services market report also offers information on several market vendors, including Archer Ltd., Baker Hughes Co., Calfrac Well Services Ltd., Caterpillar Inc., China Oilfield Services Ltd., Expro Group Holdings NV, Halliburton Co., Helmerich and Payne Inc., Key Energy Services Inc., Nabors Industries Ltd., NOV Inc., Oil States International Inc., Patterson UTI Energy Inc., SAIPEM SpA, Schlumberger Ltd., Superior Energy Services Inc., TechnipFMC plc, Transocean Ltd., Trican Well Service Ltd., Weatherford International Plc, and Welltec International ApS among others.

What will the Oilfield Services Market Size be During the Forecast Period?

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Oilfield Services Market: Key Drivers, Trends, and Challenges

Our researcher studied the historical data for years, with 2021 as the base year, and 2022 as the estimated year, and produced drivers, trends, and challenges for the oilfield services market. In the COVID-19 pandemic, the demand for the oilfield services market has impacted a lot accelerating but a holistic analysis of drivers will help in exact demands and refining marketing strategies to gain a competitive advantage.

Key Oilfield Services Market Driver

One of the major factors driving the oilfield services market growth is the growth in global oil and natural gas demand.  As developing countries are urbanizing rapidly, the demand for energy is also increasing significantly. Thus, the consumption of liquid fuels and natural gas has increased.  According to the World Bank Group, the percentage of the urban population in China increased from 49.23% in 2010 to 64.7% in 2021. According to the US EIA, global liquid fuel consumption increased to 98.3 mbpd in March 2022, an increase of 2.4 mbpd from March 2021. Thus, to cater to the growing energy demand, major oil and gas companies are increasing their E&P activities. Moreover, with the increasing consumption of fuel in developing economies such as India and China, the demand for natural gas is also likely to rise during the forecast period. With the growing demand for energy, oil and gas, E&P companies will increase their seismic activities to identify new prospects at both onshore and offshore locations. Therefore, the growing demand for oil and natural gas is expected to drive the growth of the global oilfield services market during the forecast period.

Key Oilfield Services Market Trend

One of the major trends driving the oilfield services market growth is the technological innovations to drive productivity in the oilfield services market. Oilfield service providers are increasingly looking for new technological innovations and technical breakthroughs to drive productivity and profitability, as the oilfield services industry is facing pricing pressures from oilfield operators and E&P companies. 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. Other than automated drilling, companies are also investing in high-speed, precision drilling capabilities such as laser drilling and innovative drilling tools. 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. Laser drilling uses about 15 times less power than conventional drilling rigs, hence ensuring huge savings on energy costs. To further develop such technologies, many major oilfield service companies are also investing in in-house R&D centers. The use of advanced technology in oilfield services is expected to become a critical factor for the growth of service providers in the market during the forecast period.

Key Oilfield Services Market Challenge

The major challenge impeding the oilfield services market growth is the fluctuations in crude oil prices. Fluctuations in crude oil prices impact the profitability and performance of upstream oil and gas companies. The average crude oil price in 2019 was $64.4 per barrel, which declined to $41.96 per barrel in 2020, and in 2021, the price reached $70.68 per barrel. The falling crude oil and natural gas prices have had a negative impact on the oil and gas upstream sector. Many oil and gas E&P projects were canceled or postponed across the world due to the outbreak of COVID-19 in 2020. Fluctuations in crude oil prices also affect investment decisions in new and existing projects, leading to project abandonment, delays, and a cut down in investment outlays. The global oilfield services market is a critical part of the upstream industry and is also directly affected by such decisions. Fluctuations in crude oil prices can directly affect contract prices for oilfield service providers, resulting in low profitability or unsustainable operations. This has been a major challenge for the oilfield services industry, as the fluctuations in prices can have a huge impact on the demand for oilfield services.

This oilfield 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.

Parent Market Analysis

Technavio categorizes the global oilfield services market as a part of the global oilfield equipment and services. 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 oilfield services market during the forecast period.

Who are the Major Oilfield Services Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Archer Ltd.
• Baker Hughes Co.
• Calfrac Well Services Ltd.
• Caterpillar Inc.
• China Oilfield Services Ltd.
• Expro Group Holdings NV
• Halliburton Co.
• Helmerich and Payne Inc.
• Key Energy Services Inc.
• Nabors Industries Ltd.
• NOV Inc.
• Oil States International Inc.
• Patterson UTI Energy Inc.
• SAIPEM SpA
• Schlumberger Ltd.
• Superior Energy Services Inc.
• TechnipFMC plc
• Transocean Ltd.
• Trican Well Service Ltd.
• Weatherford International Plc
• Welltec International ApS

This statistical study of the oilfield services market encompasses successful business strategies deployed by the key vendors. The oilfield services market is fragmented and the vendors are deploying organic and inorganic growth strategies 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 oilfield 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.

Oilfield Services Market Value Chain Analysis

Our In-house experts produce extensive information on the value chain, and parent market of the oilfield services market which vendors can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-end understanding of product insight and profit and also optimization and evaluation of business strategies The players across the value chain includes selective data and analysis from entire research findings as per the scope of the report.

The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Oilfield Services Market?

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46% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for the oilfield services market in North America. Market growth in this region will be faster than the growth of the market in other regions.

Recovery in crude oil prices and the significant growth in shale oil production will facilitate the oilfield services market growth in North America 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

During the COVID-19 pandemic in 2020, the reduction in oil and gas prices intensified the pressure on the oil and gas industry to boost productivity and minimize production costs. The US Energy Information Administration (EIA) forecasted in 2020 that the crude oil production would fall to 11.7 million barrels per day (b/d) that year and further to 10.9 b/d in 2021, compared to a 2019 average of 12.2 b/d. The US active rig count fell from 796 at the beginning of 2020 to an all-time low of 251 at the end of July 2020. These trends, thus, have negatively impacted the oilfield services market in the region. 

What are the Revenue-generating Application Segments in the Oilfield Services Market?

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The oilfield services market share growth in the onshore segment will be significant during the forecast period. The growth of the onshore segment is attributed to the increasing upstream activities, including new drilling and implementation of enhanced oil recovery technologies, propelled by the global rise in energy demand. 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 which will facilitate growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the oilfield services market size and actionable market insights on the post-COVID-19 impact on each segment.

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What are the Key Data Covered in this Oilfield Services Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive oilfield services market growth during the next five years
• Precise estimation of the oilfield services market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the oilfield services industry across North America, Middle East and Africa, APAC, Europe, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of oilfield services market vendors

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