ID: MRFR/E&P/6551-CR | April 2020 | Region: Global | 155 pages
The downhole cables market is evolving continuously over the years and targeting to reach optimum levels in the upcoming years. By the end of 2024, market valuation is presumed to attain 900 million USD. The cumulative annual growth rate (CAGR) of the downhole cables market for the period of 2019 to 2024 is estimated to be 5.45 percent.
The downhole cables are utilized mostly in oil and gas industries as the cables are built to sustain in harsh environments. The market provides cables that are used in pipelines, oil wells, and underwater regions for driving the centrifugal pumps. These cables are helpful in data transmission and are utilized for the same purpose. The rising production and exploration of oil and gas industries and modern advancements in drilling activities influence the downhole cables market growth. The developments in drilling activities require an immense amount of data cable production, which will eventually increase the downhole cables market value. The increase in global oil and natural gas production will improve the economic conditions worldwide.
There is a significant increase in electricity generation using natural gas as it provides greater output and emits less harmful gases compared to diesel and coal power plants. As per the report of BP Statistical Review of World Energy in 2019, the electricity generation using natural gas rise from 5952.8 Terawatt-hour in the year 2017 to 6,182.8 Terawatt-hour in the year 2018. The production will further grow in the forecast years and will increase the downhole cables market share to a greater extent.
Several oil and gas companies are investing a large amount in the exploration and production of oil and gas globally, which leads to expanding the downhole cables market size. The downhole cables market allows access to better drilling activities in the oil and gas industries. In oil and gas industries, the downhole cables are used for various applications such as gas and oil extraction, reservoir analysis, improved monitoring. Modern technological advancements in downhole cables market trends provide the advantages of reduced drilling costs and enhance the production of oil and gas.
The technological advancements in drilling activities of oil and gas industries integrate with the internet of things (IoT), data collection equipment, data analysis tools and provides real-time data of well. The data processing is real-time due to new communication technologies which can be accessed remotely. The downhole cables industry provides cables that have greater versatility and longer life. Such modern technological advancements in drilling activities will lead to an increase in the demand for the market.
The report highlights the insights of the downhole cables market and provides valuation in the forecast period. It provides an analysis of COVID19 impact on the market and describes the market dynamics along with the major key players that drive the market growth. The report includes a segment overview that represents the market segmentation on a different basis and covers several geographical regions that can influence the market growth in the forecast period.
The global economy has faced extreme challenges during the outbreak of the COVID19 pandemic. The growth rate in economies took a downturn and will take several years to maintain its momentum again. Different industries, as well as working sectors, were severely affected during the lockdown, and the world has seen the worst phase in both health and economy. The lockdown restrictions shut down working practices and industrial processes. Much operational work and manufacturing units were shut down for an uncertain time period. It created a significant gap in the demand and supply graph and disturbed the supply chain.
The oil and gas industries were also got affected by the harsh circumstance. The manual operational processes were put at a halt due to the lockdown measures, which led to heavy financial losses. However, the market growth was quite steady as industries opted for more smart technologies for drilling activities. The dependence of oil and gas companies on automated equipment increases the demand for downhole cables, which will eventually increase the market size. The developments in hardware and software of drilling equipment will escalate the potential of the downhole cables market in the near future.
The oil and gas industries are the primary driving force of the market and influence the market for further improvement and development. The downhole cables are utilized for data transmission and are mostly used in pipelines, oil wells, and underwater regions for driving the centrifugal pumps. The demand for the downhole cables market is rising due to the increase in drilling activities and exploration as well as production activities in the oil and gas industries. The market enhances the production rate and reduces the drilling cost.
Many oil and gas companies have started producing more electricity through natural gas as it has greater output and less emission compared to diesel and coal-based power plants. The elevation in the production of oil and gas industries will improve the economic conditions as well as raise the demand for the downhole cables industry. The downhole cables market provides cables that allow easy monitoring activities, extraction of oil and gas, and reservoir analysis. Technological advancements in drilling operations increase the market value to the optimum level. The real-time data access and a longer lifetime of downhole cables enhance the downhole cables market growth potential in the forecast period.
The downhole cables market share is growing exponentially at a rapid pace over the past few years and will reach greater heights in the forecast years. The increase in market size is a result of increasing demand for exploration and production activities in the oil and gas industries. Significant growth is seen in the production rate of oil and gas companies which leads to market growth. Electricity generation using natural gas is escalating day by day as it provides high output and less emission in comparison with fossil fuel-based power plants.
Modern technological advancements like the internet of things (IoT) integration, data collection equipment, data analysis tools, and real-time data of well in drilling activities is a great opportunity for the market growth. The downhole cables market revenue will elevate more and more as the cables reduce the operational cost and increase the durability. These technological advancements will definitely impact the market growth and drive it to the optimum level.
The COVID19 pandemic outbreak acted as a major market restraint for the market growth. The pandemic slowed down the growth rate of the global economy as working premises were strictly closed. Oil and gas industries faced challenges in performing manual operations and shifted more towards automated systems. The downhole cables market value still maintained a steady growth due to the increasing exploration and production activities of the oil and gas industries and various technological advancements. The downhole cables market size will spurge more in the forecast period.
The market outlook represents that the market growth can be hampered due to the high process complexity of downhole cables. The challenges can hinder the downhole cables market value for the forecast years. However, the increasing demand for the market will sustain the growth rate, and changes in market trends will reduce the issues in the future.
Value Chain Analysis
The market revenue generation will upsurge in the upcoming years and escalate to the maximum limit. The market value will reach to highest levels and surpass the growth rate of previous statistics. A market analysis suggests that the demand for downhole cables is not going to lessen sooner and will rise immensely in the next many years.
Segmentation: Global Downhole Cables Market
The downhole cables market is fragmented on the basis of application, type, installation, and region. The application segment contains oil and gas production, pressure sensing, instrumentation and control, well monitoring, data collection, and supporting downhole equipment. By type, the market is divided into fiber optic cable, tubing encapsulated cable, electrical subversive pump cable, and many more. The installation segment of the market includes onshore and offshore, whereas the region segment includes areas like North America, South America, Europe, Asia Pacific, Middle East, and Africa.
The downhole cables market analysis is studied in several areas such as North America, South America, Europe, Asia Pacific, Middle East, and Africa. The North American region holds the majority in downhole cables market share due to heavy per capita energy consumption and increasing E&P activities. As per the report of the Annual Energy outlook in 2019, the United States can be the net energy exporter by the year 2020, which will improve the downhole cables market growth rate during the forecast period.
Competitive Landscape for the downhole cables market
The major players in the downhole cables market are
Frequently Asked Questions (FAQ) :
The downhole cables market is expected to reach a signficant market value of USD 900 million by 2024.
The global downhole cables market is maturing at a whopping 5.45% CAGR over the review period of 2019 to 2024.
A few significant players of the global downhole cables market are Eland Cables (UK), Nexans (Denmark), NKT Cables (Denmark), ABB (Switzerland), and National Oil Varco (US), among others.
The offshore segment is likely to witness the highest demand in the downhole cables market.
The oil and gas industry segment is slated to witness higher growth over the assessment period.