The downhole tools market share will post an incremental growth of USD 11.38 billion, progressing at a CAGR of 5.5% during the forecast period. The rise in unconventional oil and gas resources will offer immense growth opportunities to market vendors. The downhole tools market is fragmented, and the vendors are deploying growth strategies such as low-pricing strategies and strengthening the local customer base to compete in the market.
Technavio’s report on “Downhole Tools Market by Application and Geography - Forecast and Analysis 2022-2026” provides a detailed analysis of the prevalent market forces, trends, and challenges likely to impact the market in focus.
The downhole tools market is segmented by the following:
The growth of the downhole tools market size in the drilling segment will be significant during the forecast period. The growth of the segment is attributed to the increase in crude oil extraction owing to the growing popularity of hydraulic fracturing and horizontal drilling techniques.
By geography, the rise in the number of drilling activities owing to an increase in the number of rig counts will facilitate the downhole tools market growth in North America. 46% of the market's growth will originate from North America during the forecast period. The US is the key market for downhole tools in North America.
The rise in unconventional oil and gas resources such as shale gas, coalbed methane, and tight oil will directly influence the sales of downhole tools. In addition, the new-generation automated drilling rigs are the major downhole tools market trends that will positively impact the market growth. However, the volatility in crude oil prices will hamper the downhole tools market growth.
The market is fragmented due to the presence of several players. Some of the major downhole tools market vendors are Aker Solutions ASA, AKITA Drilling Ltd., American Oilfield Tools Inc., Archer Ltd., Baker Hughes Co., Dril Quip Inc., General Electric Co., Halliburton Co., Hunting Plc, Innovex, NexTier Oilfield Solutions Inc., Nine Energy Service Inc., NOV Inc., Schlumberger Ltd., Schoeller Bleckmann Oilfield Equipment AG, Superior Energy Services Inc., Tasman Oil Tools Ltd., The Weir Group Plc, Tryton Tool Services, and Weatherford International Plc
To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their position in the slow-growing segments. To survive and succeed in such an intensely competitive market, players must distinguish their product and service offerings through clear and unique value propositions.
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Precise market size estimation during the forecast period 2022-2026.
CAGR of the downhole tools market forecast during 2022-2026.
Market-level data on units, average selling prices, and values of the downhole tools market share.
Prediction on the upcoming trends, drivers, and factors that challenge the growth of the downhole tools market.
Downhole tools industry growth across North America, Middle East and Africa, Europe, APAC, and South America.