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The casing cementation hardware market is estimated to grow at a CAGR of 4.25% between 2022 and 2027. The size of the market is forecast to increase by USD 2,277.34 million. The growth of the market depends on several factors, including the increasing investments in upstream oil and gas operations, the rise in global demand for oil and gas, and the increasing active rig count.
This report extensively covers market segmentation by application (onshore and offshore), type (casing hardware and cementation hardware), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing investments in upstream oil and gas operations are notably driving the market growth, although factors such as the fluctuation in oil and gas prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investments in upstream oil and gas operations is the key factor driving the growth of the global casing cementation hardware market. With global population growth and industrialization, energy security is becoming increasingly important to meet energy demand. Technological breakthroughs in the oil and gas industry have made exploring untapped oil and gas resources possible. Additionally, oil and natural gas production is declining in many conventional oilfields. To solve this problem and maximize profits from these fields, oil and gas producers are increasing their investment in mature oil and gas fields.
Moreover, increased investments in the upstream oil and gas sector will also increase oil drilling and production. Casing cementation devices are crucial pressure control tools that are utilized during the drilling and completion process. Hence, the increase in upstream oil and gas investments, which drives oil and gas well drilling and completion activities, will boost the need for casing cementation hardware and contribute to the growth of the global casing cementation hardware market over the forecast period.
Development of intelligent well-completion technologies is the primary trend in the global casing cementation hardware market growth. Smart or intelligent completion is an oil and gas well completion technology that involves the use of permanent downhole sensors and surface-controlled downhole flow control valves. By applying this cutting-edge technology, well operators can remotely monitor reservoir and completion integrity data, as well as analyze and manage output in real-time without the need for well intervention. Intelligent complete refers to remotely monitoring and controlling oil and gas well operations by installing remote control devices during the good completion process. These devices collect, transmit and analyze data from wells to ensure well integrity.
Moreover, throughout the lifespan of the well, the system provides operators with access to real-time fiber-optic monitoring of the entire wellbore. This function optimizes reservoir performance and reduces the risk of equipment failure. Hence, the integration of intelligent good completion technology provides a cost-effective alternative for maximizing hydrocarbon recovery, reducing non-productive time, and increasing the reservoir's production potential. Such factors will increase the market growth during the forecast period.
Fluctuations in oil and gas prices are a major challenge to the growth of the global casing cementation hardware market. Since 2014, the crude oil supply surplus has triggered instability in global crude oil prices. Significant price declines and rises adversely affect the financial and profit margins of companies that are involved in the upstream of oil and gas. As a result, the oil and gas industry has failed to attract considerable investments, resulting in a massive loss of market potential. Since oil and gas are produced from the same exploration wells, fluctuations in crude oil prices affect oil E and P activity, which in turn impacts the global case that solidifies the hardware market.
While the price at which crude oil is sold is decided by the market forces, production expenses for oil and gas E&P companies are largely fixed, and therefore, upstream oil and gas companies are negatively impacted by a decline in global crude oil prices. Hence, the volatility in global crude oil prices will hamper the growth of the global casing cementation market during the forecast period.
The 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.
Global Casing Cementation Hardware Market Customer Landscape
Vendors 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 cementing equipment which is being designed to execute oil and gas exploration where casing pipe is installed at various depth while drilling.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the onshore segment will be significant during the forecast period. In this segment, the oil and gas exploration and production activities will enhance oil and gas drilling and completion operations, thereby driving the expansion of the onshore segment of the global casing cement market during the forecast period. .
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The onshore segment was valued at USD 6,631.59 million in 2017 and continue to grow by 2021. Onshore oil and gas exploration and production (E&P) operations play a key role in the growth of the upstream oil and gas industry. The operating cost of drilling activities in onshore oil and gas E and P operations is substantially lower than in offshore oil and gas E and P operations since drilling deeper wells in harsh, subsea environments requires more modern technology and equipment. To increase profit margins and production, many countries invest in oil and gas E and P activities. Such factors will increase the segment growth during the forecast period.
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North America is estimated to contribute 44% 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. In 2022, the United States, Canada, and Mexico will make the largest contributions to the regional market. These countries are the world's largest oil and gas producers. Oil and gas production in these countries has expanded dramatically due to unconventional E and P activities such as shale drilling in the United States and oil sands exploration in Canada. Increased oil and gas E and P activity are projected to trigger operations such as well drilling and completion activities, which will increase the need for casing cement hardware in the region. Such factors will increase the segment growth during the forecast period.
The outbreak of COVID-19 had a detrimental impact on the North American casing cementation hardware market in 2020. However, with the lifting of lockdown restrictions, manufacturing operations for casing cementation hardware resumed, while oil and gas prices gradually recovered since 2021. In addition, the decline in the number of COVID-19 cases boosted mass mobility and transportation, hence raising the need for crude oil. This will assist E and P firms in recouping and increasing investments in oil and gas projects, which, in turn, will drive the demand for casing cementation hardware in North America during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global casing cementation hardware market as a part of the global oilfield equipment and services within the global oil and gas market. The global oilfield equipment and services market covers products and companies engaged in upstream exploration and production (E and P) operations, production of equipment or service contracts, and is an important manufacturing sector that caters to the needs of the oil and gas upstream sector. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Casing Cementation Hardware Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.25% |
Market growth 2023-2027 |
USD 2,277.34 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.1 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 44% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Centek Holdings Ltd., DRILLING TOOLS INTERNATIONAL, Drillstar Industries, Ferro-Tube Oil Tools Co. LP, Forum Energy Technologies Inc., Halliburton Co., Innovex, Inrock Drilling Systems Inc., Nabors Industries Ltd., Neoz Energy Pvt Ltd., PAO TMK, Sledgehammer Oil Tools Pvt. Ltd., Summit Casing Equipment, Techint, Trican Well Service Ltd., Vallourec SA, Weatherford International Plc, WellPartner AS, and NOV Inc. |
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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