Market Research Future (MRFR) presumes the Coiled Tubing Market size to expand at 5.37% CAGR from 2018 to 2023 (forecast period). The global market for coiled tubing is expected to see significant growth during the forecast period. The coiled tubing industry is powered by growing efforts by upstream companies to increase production from mature fields.
COVID-19 Impact on the Global Coiled Tubing Market
The outbreak of COVID-19 has impacted the global economy of various sectors, including the oil and gas, automotive, manufacturing, and power generation industries in a number of ways. The COVID-19 pandemic disrupted the supply chain of the oil and gas industry and adversely affected the exploration and production activities of the industry. Lockdown restrictions have sharply decreased global demand for oil and gas as the transportation sector has come to a standstill. Moreover, the disruption in demand and supply of oil and gas, which has resulted in significant financial losses in the industry, has led to job losses and pay cuts. However, as per the BP Statistical Review of World Energy 2019, the global production of oil and natural gas increased from 92,502 thousand barrels per day (TBPD) in 2017 to 94,718 TBPD in 2018, while natural gas production rose by 5.2% in 2018 with 3,677,7 billion cubic meters (bcm) in 2017 to 3,867,9 bcm in 2018. Nevertheless, the COVID-19 pandemic has been considerably disrupted this momentum. As coiled tubing is a required equipment for oil and gas production activities, the decline in demand for oil and gas has disrupted global demand for the coiled tubing industry.
In addition, major oil-producing countries such as the US, Russia, and Saudi Arabia have seen a sharp decline in demand and supply of oil and gas, which has had a direct effect on the global oil and gas market. The effects of the global oil price drop and the uncertainty in the policies and measures taken by the government authorities have caused a catastrophic blow to the worldwide economy, disruption of supply chains, and choking off demand and the supply of oil and gas. However, as the market stabilizes, demand for coiled tubing is expected to steadily regain its average growth rate by early 2021.
Notable players in the global coiled tubing market are Schlumberger (US), Halliburton (US), Weatherford (US), Baker Hughes, a GE Company LLC (US), Nabors Industries Ltd (UK), C&J Energy Services, Inc (US), Trican (Canada), Calfrac Well Services Ltd (Canada), RPC Inc (US), Step Energy Services Ltd (US), and Key Energy Services Inc (US).
Rising demand for well intervention operations is driving the coiled tubing market
High expenditure in global upstream and operational activities has begun to grow from the NOCs and integrated oil firms. In addition, with the growing demand for oil & gas, the oil & gas upstream sector is enhancing its operating activities and increasing production. All of these factors drive demand for the coiled tubing market.
Risks linked with coiled tubing operations and regulations associated with operational safety are restraining the market growth
Coiled tubing is a subtle piece of equipment, and the tubing is relatively thin-walled. As the tubing is continuously bent and straightened, frequently at high internal pressure, which can create a minor flaw, whether caused by corrosion or mechanically, due to which there are high chances for operational damage. Surveys show that over the last two decades, 80–90% of coiled tubing string failures have been associated with corrosion, human error, mechanical damage, and string manufacturing problems.
Global Coiled Tubing Industry has been segmented into Service Type and Application.
The well intervention segment is leading the market due to the increasing number of aging wells. The well intervention segment is divided into well completion, well cleaning, and others, including well perforation, well simulation, pumping, and circulation.
The onshore segment held a greater market share in 2018 as it is more feasible and cost-effective than offshore applications due to the use of smaller service rigs and mobile, self-contained coiled tubing rig for light operations. Furthermore, the rise in shale gas exploration, especially in the US, and the increase in drilling activities are estimated to drive the growth of onshore applications worldwide.
North America is expected to be the largest market between 2018 and 2023, led by the rise in unconventional resources in the US and Canada. Furthermore, demand for coiled tubing operations in offshore fields in the Gulf of Mexico and other offshore fields in the US is expected to boost the market growth
Eminent market players are focused on ventures and acquisitions to meet the competitive edge in the coiled tubing industry. Mergers and acquisitions are one of the main tactics adopted by leading players to gain market share. In addition, product upgrades, along with the development of a robust supply network, are some of the other major strategies pursued by global players to improve their current market shares. As a result, the global market trend for coiled tubing will see substantial growth over the forecast period.
In June 2020, Weatherford introduced the Velox Wellhead System, a solution for operators who need to lock in pressure integrity while improving safety and enhancing efficiency.
In January 2020, Halliburton was given seven contracts for drilling and completion services for the next stage of field development of the INPEX-operated Ichthys Project in the Browse Basin offshore northern Australia.
This research report examines vital factors, constraints, and challenges in the global coiled tubing market, regional and segment revenue estimates, and evaluations. The base year is 2018; the prediction period is 2018-2023. The segmentation of the market is represented in the following manner.
|Market Size||2027: Significant Value|
|CAGR||5.37% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Service Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Schlumberger (US), Halliburton (US), Weatherford (US), Baker Hughes, a GE Company LLC (US), Nabors Industries Ltd (UK), C&J Energy Services, Inc (US), Trican (Canada), Calfrac Well Services Ltd (Canada), RPC Inc (US), Step Energy Services Ltd (US), and Key Energy Services Inc (US)|
|Key Market Opportunities||High expenditure in global upstream and operational activities|
|Key Market Drivers||Rising demand for well intervention operations is driving the coiled tubing market|
Frequently Asked Questions (FAQ) :
The coiled tubing market is poised to reach USD 7970 Mn by 2025.
The coiled tubing market is projected to strike 5.37% CAGR.
Rising investments in upstream operations are poised to drive the expansion of the coiled tubing market.
High technological complexity is projected to check the augmentation of the coiled tubing market.
The contributing participants are Schlumberger (US), Weatherford (US), Halliburton (US), Baker Hughes, a GE Company LLC (US), Step Energy Services Ltd (US), C&J Energy Services, Inc (US), Nabors Industries Ltd (UK), Trican (Canada), RPC Inc (US), Calfrac Well Services Ltd (Canada), and Key Energy Services Inc (US).
The service type-based segments of the coiled tubing market are drilling, well intervention, and others.
The sub-segments of the well intervention are well cleaning, well completion, and others.