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The production testing market share is expected to increase by USD 2.31 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6%.
This production testing 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 production testing market segmentation by application (onshore and offshore) and geography (North America, APAC, Middle East and Africa, Europe, and South America). The production testing market report also offers information on several market vendors, including Baker Hughes Co., Expro Group Holdings N V, Fesco LTD., Grant Production Testing Services Ltd, GREENE S ENERGY GROUP, Halliburton Co., Hamdon Energy Solutions Ltd., PROFLO Production Testing Ltd., Roska DBO Inc., Schlumberger Ltd., Skyline Well Testing Inc., TC Mobile vessels LTD, testwells Ltd., TETRA Technologies Inc., Weatherford International Plc, WELLMAX, and Wespro Production Testing Ltd. among others.
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The rising global oil and gas consumption is notably driving the production testing market growth, although factors such as the change in energy mix 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 production testing industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Production Testing Market Driver
The rising global oil and gas consumption is one of the key drivers supporting the production testing market growth. The demand for fuel is rising in developing economies such as China and India. Rising industrialization and urbanization are attributed to the increased requirement for crude oil in the region. Also, the rapid growth in mobility services such as Didi Chuxing and Uber is increasing fuel consumption. Significantly, the smartphone application-based ride services vastly improved mobility in the countries such as India and China. Thus, the growth in such mobility services is likely to increase the demand for fuel in the region, which requires more production from oil and gas companies. Such factors will drive the growth of the global production testing market during the forecast period.
Key Production Testing Market Trend
The rise in deepwater and ultra-deepwater E and P activities is one of the key production testing market trends that is contributing to the market growth. For instance, in December 2017, the US government passed the $1.5-trillion tax overhaul bill, which increased the fiscal competitiveness of the deepwater Gulf of Mexico drilling activities significantly compared with other offshore basins. The tax bill also includes a reduction in the corporate tax, which allows oil and gas companies to invest more in offshore oil and gas projects. These factors will increase deepwater and ultra-deepwater E and P activities during the forecast period. Therefore, the rise in E and P activities in offshore deepwater and ultra-deepwater oil and gas wells will stimulate the demand for production testing, which, in turn, will drive the growth of the market during the forecast period.
Key Production Testing Market Challenge
The change in the energy mix is one of the factors hindering the production testing market growth. For example, the US government supports the adoption of renewable energy by implementing solar investment tax credit (ITC). The solar ITC allows residential and commercial users to deduct 30% of the cost of installing solar energy systems from their federal taxes. Such initiatives by the government have increased the adoption of solar PV as an energy source. However, the rising dependence on renewable energy sources will negatively impact the consumption of conventional fossil fuels, such as oil and gas, which will lead to a redirection of investments from oil and gas toward renewable energy sources during the forecast period. Thus, the growing emphasis on renewables will pose a challenge to the growth of the global production testing market, during the forecast period.
This production testing 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 production testing market as a part of global oil and gas drilling 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 production testing 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 production testing market encompasses successful business strategies deployed by the key vendors. The production testing market is concentrated 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 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 production testing 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 production testing 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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39% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for the production testing market in North America. Market growth in this region will be faster than the growth of the market in Europe and South America.
The rise in unconventional E and P activities will facilitate the production testing 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
In 2020, the outbreak of COVID-19 negatively impacted the growth of the global production testing market in North America. However, the reducing number of COVID-19 cases and the lifting of lockdowns will increase the mass movement and transportation, which, in turn, will increase the demand for crude oil in the region during the forecast period. Such factors are driving the market growth.
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The production testing market share growth by the onshore segment will be significant during the forecast period. The onshore segment is expected to grow at a moderate rate during the forecast period. The growth is attributed to the increasing drilling activities propelled by the global rise in energy demand. This factor has forced the oil and gas companies to explore and drill deeper and more remote reservoirs with varied and harsh geographical environments. Increased focus on unconventional reserves such as shale gas and tar sands reserves will also stimulate the growth of the segment during the forecast period. Many oil and gas companies are increasing their E and P activities across the world. Therefore, the increase in oil and gas E and P activities in onshore wells will fuel the demand for production testing, which, in turn, will drive the growth of the onshore segment of the global production testing market during the forecast
This report provides an accurate prediction of the contribution of all the segments to the growth of the production testing market size and actionable market insights on post COVID-19 impact on each segment.
Production Testing Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6% |
Market growth 2022-2026 |
$ 2.31 billion |
Market structure |
Concentrated |
YoY growth (%) |
5.0 |
Regional analysis |
North America, APAC, Middle East and Africa, Europe, and South America |
Performing market contribution |
North America at 39% |
Key consumer countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Baker Hughes Co., Expro Group Holdings N V, Fesco LTD., Grant Production Testing Services Ltd, GREENE S ENERGY GROUP, Halliburton Co., Hamdon Energy Solutions Ltd., PROFLO Production Testing Ltd., Roska DBO Inc., Schlumberger Ltd., Skyline Well Testing Inc., TC Mobile vessels LTD, testwells Ltd., TETRA Technologies Inc., Weatherford International Plc, WELLMAX, and Wespro Production Testing Ltd. |
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, 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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