The downhole drilling tools market share is expected to increase by USD 7.56 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 4.73%.
This downhole drilling tools 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 downhole drilling tools market segmentation by product (tubular, deflection and downhole motors, casing and cementing tools, drill bits, and others), application (onshore and offshore), and geography (North America, MEA, APAC, Europe, and South America). The downhole drilling tools market report also offers information on several market vendors, including Baker Hughes Co., Halliburton Co., NOV Inc., Nine Energy Service Inc., RUBICON OILFIELD PRODUCTS LTD., Schlumberger Ltd., Schoeller-Bleckmann Oilfield Equipment AG, Tasman Oil Tools Ltd., Weatherford International Plc, and Wenzel Downhole Tools among others.
What will the Downhole Drilling Tools Market Size be During the Forecast Period?
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Downhole Drilling Tools Market: Key Drivers, Trends, and Challenges
The increase in oil and gas e and p activities is notably driving the downhole drilling tools market growth, although factors such as the adoption of alternative energy sources 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 downhole drilling tools industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Downhole Drilling Tools Market Driver
One of the key factors driving growth in the downhole drilling tools market is the increase in oil and gas E&P activities. Exploration and production (E&P) are upstream oil and gas activities, which have undergone several improvements with recent technological advances. Furthermore, unconventional oil and gas exploration and production activities are increasingly becoming an alternative to conventional production. Major unconventional oil and gas reserves have been identified in the US, Canada, China, and Argentina. The US and Canada are carrying out various drilling activities to tap unconventional resources. The development of unconventional oil and gas fields is supported by the government in the country. Investments in the E&P of unconventional oil and gas have offered tremendous growth opportunities to the vendors in the market. The increase in drilling activities will increase the demand for drilling tools, thereby driving the growth of the global downhole drilling tools market during the forecast period.
Key Downhole Drilling Tools Market Trend
The increase in deep-water and ultra-deepwater upstream projects is another factor supporting the downhole drilling tools market share growth. With ongoing developments in many countries, the demand for energy is increasing. However, the depletion of easy-to-extract oil has resulted in an increase in the cost of hydrocarbon acquisition, along with the displacement of drilling operations geographically. Thus, with the depletion of resources in easily accessible locations, such as onshore, E&P companies are looking for less explored areas. As a result, the number of downhole drilling projects is increasing. Also, the economics of downhole drilling is becoming feasible with the increase in crude oil prices. The recovery in crude oil prices has encouraged companies to increase their E&P operations in places with large oil reserves, such as the Gulf of Mexico and Brazil. The number of deepwater and ultra-deepwater oil and gas projects has been rising over the years, subsequently, driving the growth of the global downhole drilling tools market
Key Downhole Drilling Tools Market Challenge
The adoption of alternative energy sources will be a major challenge for the downhole drilling tools market during the forecast period. The global energy demand, clean energy initiatives, and subsidies for power generation using sustainable sources promote the use of renewable energy sources such as solar, wind, and others. Governments of various countries are undertaking several initiatives to mitigate greenhouse gas emissions. Many countries are shifting their focus from conventional fuels to renewables to reduce the emission of hazardous gases affecting the environment. As clean energy initiatives, many countries are using fuels such as electricity and hydrogen fuels in the transportation sector. The rising dependency on renewable energy sources will negatively impact the use of conventional fossil fuels such as oil and gas. This, in turn, will hamper oil and gas drilling activities in the future. Thus, the adoption of alternative energy sources will challenge the growth of the global downhole drilling tools market.
This downhole drilling tools 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 2021-2025.
Parent Market Analysis
Technavio categorizes the global downhole drilling tools market as a part of the global oil and gas 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 downhole drilling tools market during the forecast period.
Who are the Major Downhole Drilling Tools Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- Baker Hughes Co.
- Halliburton Co.
- NOV Inc.
- Nine Energy Service Inc.
- RUBICON OILFIELD PRODUCTS LTD.
- Schlumberger Ltd.
- Schoeller-Bleckmann Oilfield Equipment AG
- Tasman Oil Tools Ltd.
- Weatherford International Plc
- Wenzel Downhole Tools
This statistical study of the downhole drilling tools market encompasses successful business strategies deployed by the key vendors. The downhole drilling tools market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
Product Insights and News
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Baker Hughes Co. - The company offers downhole drilling products such as Retrievable bridge plugs, STONEWALL V0-rated well barriers, and Cement retainers.
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 downhole drilling tools 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.
Downhole Drilling Tools Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the downhole drilling tools market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains 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.
The value chain of the oil and gas market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Distribution and logistics
- Marketing and sales
- Aftermarket and services
- Industry innovations
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Downhole Drilling Tools Market?
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42% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for downhole drilling tools in North America. Market growth in this region will be faster than the growth of the market in the European and South American regions.
The increase in oil and gas E&P activities will facilitate the downhole drilling tools 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 COVID-19 outbreak negatively impacted the global downhole drilling tools market in North America. The US was among the worst-affected countries by the pandemic in the region. In 2020, the rise in the number of deaths from COVID-19 in the region led to nationwide lockdowns in countries such as the US, Canada, and Mexico. However, with the lifting of lockdown restrictions in the second half of 2020, major downhole drilling operations resumed. Hence, the market is expected to recover and grow during the forecast period, owing to the increasing number of offshore exploration projects in the region.
What are the Revenue-generating Product Segments in the Downhole Drilling Tools Market?
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The downhole drilling tools market share growth by the tubular segment will be significant during the forecast period. The increase in E&P activities results in high demand for drilling tools. As tubular are used as the primary tools for drilling, increased exploration activities will mean an increase in the use of tubular.
This report provides an accurate prediction of the contribution of all the segments to the growth of the downhole drilling tools market size and actionable market insights on post COVID-19 impact on each segment.
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Downhole Drilling Tools Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.73% |
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Market growth 2021-2025 |
$ 7.56 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
3.48 |
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Regional analysis |
North America, MEA, APAC, Europe, and South America |
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Performing market contribution |
North America at 42% |
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Key consumer countries |
US, Saudi Arabia, China, Canada, and Russian Federation |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Baker Hughes Co., Halliburton Co., NOV Inc., Nine Energy Service Inc., RUBICON OILFIELD PRODUCTS LTD., Schlumberger Ltd., Schoeller-Bleckmann Oilfield Equipment AG, Tasman Oil Tools Ltd., Weatherford International Plc, and Wenzel Downhole Tools |
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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 the forecast period |
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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. |
What are the Key Data Covered in this Downhole Drilling Tools Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive downhole drilling tools market growth during the next five years
- Precise estimation of the downhole drilling tools market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the downhole drilling tools industry across North America, MEA, 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 downhole drilling tools market vendors
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