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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.
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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.
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.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
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.
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.
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:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Product
Market Segmentation by Application
Geographic Landscape
Vendor Landscape
Vendor Analysis
Appendix
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