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The well testing services market size is forecast to increase by USD 2.69 billion, at a CAGR of 6.69% between 2023 and 2028. The report includes historic market data from 2018 - 2022. The market is witnessing a growing demand for the growing adoption of IoT by the oil and gas industry, the rise in unconventional oil and gas resources, and the growing consolidation in the oil and gas industry.
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The growing adoption of IoT by the oil and gas industry is an emerging trend in the market. Advances in technology have resulted in the rise in the adoption of the Internet of Things (IoT) in the upstream oil and gas sector. Therefore, IoT has been widely adopted for automation, processing, and evaluation of well performance. Furthermore, there are many areas of oil and gas activities where IoT is very useful.
For instance, in wells, sensors are deployed in the bottom hole, which provides real-time monitoring access from a remote location. In addition, the integration of technology with E&P activities provides quantitative and effective solutions in the upstream sector. Therefore, such integration provides accurate data in real-time, which reduces the risk involved and enables maximum recovery of the hydrocarbons from the reserves. Hence, such factors are driving the market growth during the forecast period.
The onshore segment is estimated to witness significant growth during the forecast period. The onshore segment comprises the exploration and extraction of gas from reservoirs located on land. In addition, these projects are typically more accessible and cost-effective than offshore ventures. Furthermore, the demand for the onshore segment is increasing because onshore reserves are more abundant and can be exploited with relatively lower operational complexities.
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The onshore segment was the largest segment and was valued at USD 3.69 billion in 2018. Moreover, the onshore segment of the global well-testing services market is driven by the rising demand for energy and the subsequent increase in demand for petrol and gas to fulfill the energy demand. In addition, according to the IEA, global energy demand is expected to grow by 30% between 2017 and 2040. Furthermore, natural gas use is expected to increase by 45% between 2017 and 2040. In addition, the demand for petroleum and gas is high from the industrial sectors in fast-paced emerging economies like India and China. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 29% 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. Several countries across the region, such as the US and Canada, have been investing in deepwater and ultra-deepwater exploration after the recovery of crude oil prices after 2016-17. In addition, the well-testing services market in the US is growing steadily, with a large number of deepwater and ultra-deepwater petroleum and gas fields along the Gulf of Mexico being identified as potential reserves. For instance, in December 2023, the US oil and gas company announced its plan to proceed with the Willow project in Alaska. Moreover, the Willow project is anticipated to yield about 600 million barrels of oil during its lifetime. Government support is also propelling offshore projects in the country. Furthermore, the US government has also loosened offshore drilling regulations that were enforced after the Deepwater Horizon oil spill in 2010. In addition, the US government is also planning to allow oil and gas drilling in almost all its offshore areas along the Atlantic, Arctic, and Pacific coasts. Hence, such factors are driving the market growth in North America during the forecast period.
The rise in deepwater and ultra-deepwater E&P projects is notably driving the market growth. Companies operating in the oil and gas upstream sectors have a long history of extracting oil and natural gas from onshore wells. In parallel, offshore wells have emerged as significant sources for oil and gas exploration and production (E&P) activities. Within offshore E&P, the industry is witnessing a strategic shift from shallow waters to deepwater and ultra-deepwater resources, driven by the vast untapped reserves present in these areas. However, the production of oil in the subsea environment poses higher costs compared to conventional offshore settings.
Conducting data acquisition and drilling in offshore locations introduces additional challenges, particularly due to the harsh environment characterized by extreme weather conditions, corrosive saltwater exposure, and intricate logistics. Offshore operations demand specialized equipment and technology, leading to elevated costs and technical complexity. Moreover, drilling in deep-sea environments involves handling greater depths and pressures, necessitating sophisticated techniques. The depletion of easily accessible oil resources, such as onshore wells, has raised the cost of hydrocarbon acquisition, prompting exploration and production (E&P) companies to focus on less explored areas. This shift has resulted in a notable increase in offshore drilling projects, supported by the economic feasibility driven by rising crude oil prices. Hence, such factors are expected to drive market growth during the forecast period.
Growing demand for renewable energy sources is a major challenge hindering the market growth. The use of renewable energy sources has increased across the world, due to the rise in clean energy initiatives and subsidies for power generation from sustainable sources. For instance, according to the European Environment Agency (EEA) early estimates, 22.5% of energy consumed in the EU in 2022 was generated from renewable sources. In addition, in the US, renewable energy generated 21% of utility-scale electricity output and 8.4% of total primary energy production in 2022, according to the EIA.
Moreover, renewable energy sources include wind, geothermal, solar, biomass, and waste. In addition, the demand for harnessing renewable energy sources such as solar, wind, and hydropower has increased significantly. Furthermore, according to the Global Wind Energy Council (GWEC), the EU is working toward achieving the target of using renewable energy sources to generate 35% of the total power generated by 2030. Hence, such factors are hindering 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 well testing services such as Automated foam cement systems, Casing and tubing running services, Catenary CT services, and Aperio electro magnetic defectoscope.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative 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 report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The well testing services market stands at the forefront of energy exploration, addressing the evolving landscape of oil and gas resources. Amidst increasing demand for unconventional resources like shale gas, tight gas, and coalbed methane (CBM), the industry plays a crucial role in evaluating reserves and facilitating production.In the context of a dynamic market, the International Energy Agency (IEA) and its World Energy Outlook underscore the importance of unconventional resources alongside conventional reservoirs. Exploration activities, oilfield discoveries, and the crucial aspects of plug and abandonment span both onshore and offshore regions, influencing the market's trajectory. Against the backdrop of geopolitical considerations and the evolving landscape of onshore drilling, the market remains a crucial player in meeting global oil demand efficiently. As the industry adapts to renewable energy sources like solar energy, biomass energy, hydroelectric power, and geothermal power, well-testing services contribute significantly to sustainable energy solutions and the continued exploration of unconventional oil and gas resources.
As the industry grapples with pressure drops, fluid velocities, and the complexities of onshore and offshore drilling, well-testing services become indispensable in determining wellbore characteristics. The market also responds to the supply-demand gap and geopolitical considerations, navigating challenges posed by worldwide oil production and discoveries. In this context, well-testing services contribute significantly to understanding remedial work requirements and ensuring the efficient extraction of hydrocarbon resources. Against the backdrop of liberalization in the industry and a global shift towards renewable energy, the market remains pivotal in optimizing oil and gas extraction processes, fostering sustainable energy solutions, and meeting the world's energy needs.
The global market stands at the forefront of addressing the dynamic landscape of oil and gas resources. With increasing demand for unconventional resources such as shale oil, tight oil, and natural gas hydrates, the industry plays a pivotal role in evaluating reserves and facilitating production. Balancing conventional oil and gas resources with proven reserves, the market addresses the challenges posed by renewable energy resources and the imperative to reduce greenhouse gases. From the offshore segment to wellbore length considerations and drilling activities, well testing services are integral in determining reservoir characteristics and optimizing extraction processes.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.69% |
Market Growth 2024-2028 |
USD 2.69 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.09 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 29% |
Key countries |
US, Canada, China, Russia, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., China Oilfield Services Ltd., EXALO Drilling SA, Expro Group Holdings NV, Gulf Energy SAOC, Halliburton Co., MB Petroleum Services LLC, Minerals Technologies Inc., National Energy Services Reunited Corp., Oil States International Inc., OiLSERV, Rays Well Testing Service Inc, Schlumberger Ltd., SGS SA, Stuart Wells Ltd., TechnipFMC plc, TETRA Technologies Inc., Weatherford International Plc, Well Services Group, and WellMax Oilfield Technologies Pvt. Ltd. |
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. |
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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
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