USD 285.5 billion
Oilfield Service Market Size, Share, Growth Analysis, By type.(rental, field operation, and analytical services), By Services(geophysical, drilling, completion & workover, production), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10B2042 |
Region:
Global |
Published Date: April, 2024
Pages:
178
|Tables:
65
|Figures:
77
Oilfield Service Market Insights
Global Oilfield Service Market size was valued at USD 285.5 billion in 2022 and is poised to grow from USD 304.34 billion in 2023 to USD 507.48 billion by 2031, growing at a CAGR of 6.60% during the forecast period (2024-2031).
Oilfield services include a range of oilfield-related activities that take place over the course of a well's life cycle, including exploration, drilling, stimulation, completion, intervention, and production. Controlling subsurface pressures, reducing borehole erosion, minimising formation damage, optimising drilling parameters, and analysing penetration rate and hole cleaning are all tasks that oilfield services help operators with. Oilfield equipment technological advancements have increased efficiency in resource extraction and management. Furthermore, to meet the increased demand for oil and gas, major corporations have turned to technology-based services. Increased accuracy and precision, as well as lower time and labour costs, are other factors driving the increased use of technologically enhanced oilfield services. As a result, the oilfield service market is expected to grow rapidly in the coming years as oil and gas production and shale gas extraction spread across the globe.
Production and exploration activities are increasing as a result of increased energy demand and lucrative investment opportunities in the oil and gas industry. Furthermore, by 2035, unconventional onshore oil production will have more than doubled to approximately 22 Mbpd, accounting for nearly 30% of global crude oil production. As a result, increased production and development operations in the oil and gas industry are expected to drive future growth in the oilfield service market. In addition, Increased exploration and production activities are driving the oilfield service market as the global demand for energy rises. Growing urbanisation and industrialization, as well as rapid technological advancements, have all contributed significantly to the growth of the oilfield service market.
US Oilfield Service Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
equipment rental
Fastest Growth
equipment rental
Growth Rate
6.60% CAGR
oilfield service market, 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
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Oilfield Service Market Segmental Analysis
Oilfield service market is segmented based on the type, service and region. Based on type, Oilfield service market is segmented into equipment rental, field operation, and analytical services. Based on service, the Oilfield service market is segmented into geophysical, drilling, completion & workover, production, and processing & separation segment. Based on Region Oilfield Service Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.
Oilfield Service Market Analysis by Type
Based on type, The equipment rental segment has a sizable market share and is expected to expand slowly due to rising demand for field optimization and analytical services. Due to the large number of services deployed on the field for project execution, the field operation segment is increasing its market share. The analytical services segment is expected to grow as a result of a wide range of applications in real-time analytics, software solutions, monitoring services, routine quality control, and sample analysis, among other services, which helps to increase output from the existing field.
Oilfield Service Market Analysis by Service
Based on service, The production segment is expected to account for a larger share of the market due to the growing initiative for oil recovery and well testing in existing oil and gas fields. This segment includes a variety of oilfield services such as artificial lift systems, floating production vessels, support vessels, well testing services, subsea equipment, Christmas trees, enhanced oil recovery, digital oilfield, and other production services. Due to an increase in offshore well drilling to explore, extract, store, and process petroleum and natural gas, the drilling segment is expected to hold the second-largest market share. Because of the wide range of applications for hydraulic fracturing and wireline logging services in the oilfield, the completion and workover segment is expected to grow during the forecast period. The completion and workover segment is accelerated by the production and exploration of oil and gas resources, as well as the provision of solutions for stimulation performance evaluation, water shutoff determination, tubing and multiple casing integrity in oil wells. Other important services investigated in this segment include well intervention, completion fluid, sand control, and mud logging. In the OFS industry, processing and separation services are critical. These services are expected to grow significantly over the forecast period due to the industry's broad range of oil, water, and gas treatment to improve recovery and reduce the environmental impact of hydrocarbon production. This segment includes water treatment, oil treatment, gas treatment, solid treatment, and other services. Because of its efficient technologies and solutions in petroleum field development and oil and gas transportation, the geophysical segment is expected to grow. Technology advancement has enabled high-quality subsurface illumination for conventional and unconventional reservoirs at significantly lower costs. As a result, the growing demand for investment in the oil and gas industry drives demand for the OFS market over the forecast period.
oilfield service market By Type, 2021 (%)
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Oilfield Service Market Regional Insights
North America is expected to have the largest market share in the global market, followed by Asia Pacific and Europe, in that order. The trend is expected to continue during the forecast period, with significant activity expected in offshore assets in the Gulf of Mexico and the North Sea, driving demand for oilfield services. Schlumberger Limited completed the acquisition of Peak Well System, a specialist in the design and development of advanced downhole tools for flow control, well intervention, and well integrity. Europe is also expected to have a larger market share, which is expected to grow over the forecasted period.
Rising production and exploration activities to meet rising energy demand are expected to boost the Asia Pacific market. Countries such as China, Thailand, Indonesia, Malaysia, and Myanmar have seen an increase in production and exploration activities, as well as the discovery of oil and gas reserves. As a result, rising investment in new oilfields and discoveries drives demand for the oilfield service industry. The Middle East and Africa markets have significant market potential to explore untapped capacity for hydrocarbon development and non-complex formations to effectively drill the wells that will drive the oilfield services market growth in the coming years. Countries in the Middle East and Africa, including the UAE, Saudi Arabia, Kuwait, Bahrain, and others, are members of the Organization of Petroleum Exporting Countries (OPEC), and are thus focused on meeting the organization's production targets. Oman, Algeria, Qatar, and Nigeria are also important players in the region's market.
oilfield service market By type, 2021-2028
- Largest
- Fastest
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Oilfield Service Market Dynamics
Oilfield Service Market Drivers
Shale Exploration to Bolster Market Growth
- Shale gas is a type of natural gas that is trapped within shale formations. Because of the low permeability of the shale formation, these trapped gases cannot flow into the well. However, technological advancements such as directional drilling and hydraulic fracturing have aided in increasing shale gas production from such critical reservoirs. Shale exploration necessitates a wide range of oilfield equipment and services. China, for example, has the most shale reserves, with the Sichuan Basin in the Chongqing area accounting for a sizable portion of its output. With the help of advanced drilling tools and shale gas exploration techniques, the country intends to increase production to 30 billion cubic metres per year by 2020, and 80-100 billion cubic metres per year by 2030.
- rising energy demand and lucrative investment opportunities in the oil and gas industry, production and exploration activities are expected to increase in the coming years. For example, in July 2019, 13 Energy PLC awarded Baker Hughes GE an oilfield service contract to drill at the Liberator and Serenity assets in the North Sea. Conventional onshore oil is expected to account for a significant portion of total global oil production. According to the DNV GL Energy-Transition-Outlook, oil production will rise by 83 million barrels per day (Mbpd) in 2022. Furthermore, unconventional onshore oil production is expected to double to around 22 Mbpd by 2035, accounting for nearly 30% of total global crude oil production. As a result, increased production and exploration activities in the oil and gas industry are expected to drive market growth in the coming years.
Oilfield Service Market Restraints
Fluctuation in Market to Hinder its Growth
- The oil and gas industry is experiencing crude oil price inflexibility, which is attributed to variations in crude oil demand and supply. This fluctuation significantly disrupts market demand while also intensifying competition between the US, OPEC countries, and non-OPEC countries. Higher oil prices cause delays in upcoming projects and investments, which causes drilling projects to be halted, resulting in a drop in oilfield services. As a result, volatility in crude oil prices is expected to stymie market growth.
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Oilfield Service Market Competitive Landscape
Oilfield service market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. Because of the strong portfolio of services and a remarkable distribution network of major companies in developed and emerging markets, the market is consolidated. Schlumberger Limited, Halliburton Company, Baker Hughes, and Weatherford currently control the majority of the market. Other key players have entered the market to provide innovative oilfield services to various end-users, including hydratight, Muntajat, Protiviti Inc., ESG Solutions, Cyntech, Fugro, Hytera, Geokinetics, and other small players.
Oilfield Service Market Top Player's Company Profiles
- Schlumberger Limited
- Halliburton
- Baker Hughes
- Weatherford International
- National Oilwell Varco
- TechnipFMC
- Saipem
- Petrofac
- Subsea 7
- Wood Group
- KBR Inc.
- McDermott International
- SGS S.A.
- Aker Solutions
- Transocean Ltd.
- John Wood Group PLC
- Seadrill Limited
- Nabors Industries Ltd.
- Expro International Group Holdings Ltd.
- Precision Drilling Corporation
Oilfield Service Market Recent Developments
- In 2022, Baker Hughes announced partnership and investment in NET Powers. The partnerships will enable the company to accelerate the oilfield service market development of zero-emissions power plant.
- In April 2021, Nov Inc and Chevron announced their collaboration. The collaboration will accelerate and enhance the delivery and development of technologically advanced products and services. Nov Inc will benefit from this collaboration in the development of the next-generation subsea systems.
Oilfield Service Key Market Trends
- The increasing number of oil and gas discoveries, as well as technological advancements for higher yield in oilfield reserves, can have a significant impact on market growth. For example, Alaska in the United States, Golan Heights in Israel, Alpine high in West Texas, oil discoveries in the Stabroek block Tilapia, Yellowtail (oil), and Haimara (gas-condensate), an offshore gas discovery with the Lang Lebah-1RDR2 exploration well, and so on. According to the Energy Information Administration (EIA) 2020, in the second quarter of 2020, China and Brazil are leading with three new oil and gas discoveries each, followed by Egypt, Norway, the United States, and Mexico, each with two discoveries. Furthermore, 23 oil and gas discoveries were made globally in Q2 2020. 15 of these are oil discoveries, with the remaining 8 being gas discoveries. As a result, the increasing number of offshore discoveries is promoting market development.
Oilfield Service Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Oilfield service market analysis, in terms of type, the equipment rental segment held a larger market share because of enhancing demand for field optimization and analytical services. And in terms of services, the production segment contributes to the market expansion owing to growing initiative for oil recovery. Moreover, rising shale gas extraction and increasing production boost the Oilfield service market growth. Whereas, volatility in crude oil prices can hamper the market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 285.5 billion |
| Market size value in 2031 | USD 507.48 billion |
| Growth Rate | 6.60% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Oilfield Service Market Recent Developments
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Oilfield Service Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Oilfield Service Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Oilfield Service Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Oilfield Service Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Oilfield Service Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Oilfield Service Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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