ID: MRFR/E&P/7206-CR | January 2020 | Region: Global | 155 pages
Insulation within transformers is essential to avoid harmful accidents. Thus, insulating oil or oil well cement is used as a coolant in the components of the electrical transformers. By fractional distillation, oil well cement is extracted from the crude oil. The chemical properties of oil well cement, which make them highly useable, include high resistivity, excellent di-electricity, thermal conductivity, chemical stability, minimal power loss, and other benefits.
The significant factors involving the market growth are the rising demand for energy grids in the emerging economies of the Asia-Pacific regions, shift towards renewable and biodegradable sources of energy, modernization, technical upgrade, and improvement of the already present transformers, and manufacturing of new transformers as per consumer's demand in the North American region, rising investments in the power sector, rising investments in the power sector because of the introduction of advanced technological electronic devices, and others. However, the dynamically changing and fluctuating costs of trading, exporting, importing raw materials, and changing consumer preferences towards dry transfers might challenge the market to a great extent.
With demand and supply focused and studied, the global oil well cement Market will be able to reach the market value of more than 2.6 billion U.S. dollars by the end of the ongoing forecast period in 2027. As a result, the global oil well cement market is expected to register a CAGR of 8% by 2027.
The outbreak of the ongoing coronavirus pandemic has severely affected human lives globally. With the first case that originated in Wuhan, China to the global pandemic, the COVID-19 has proven fatal. All the countries saw the loss of life, power, revenue, and others. The world went to a halt seeing the global pandemic and is still in the phase of misery with the outbreak of new strains and developing mutants. With the vaccine under testing to control the adverse effects, the outbreak of the pandemic will likely prevail for a longer duration. The utilization rate has decreased enormously, which resulted in the shortage of supply for a significant number of end-users. The oil well types of cement market saw a downfall in various segments and regions.
However, the trends suggest the global demand for the market operations and hence, investments in both cash and kind are being demanded and accepted. An increase in the funding of the processes to be conducted by the research and development departments will have a positive outlook for the market during the ongoing forecast period.
There is an extensive demand for energy grids in the emerging economies of the developing nations of India and China. However, there have been efforts to rely on renewable and biodegradable energy sources. Modernization, technical upgrade, improvement of the already present transformers, and manufacturing new transformers per consumer demand in the North American region. Other market factors like rising investments in the power sector. The high power consumption to meet the requirements of increasing electricity demands and the introduction of advanced technological electronic devices drive the global market towards exceptional growth during the continuous period.
The oil well cement market is witnessing the rise of significant factors that challenge the projected growth for the global market during the ongoing forecast period that ends in 2027. The dynamically changing and fluctuating cost of trading, exporting, importing raw materials. MSR is preferred in hot water due to less heat generation. High sulfate-resistant (HSR) cement is used when concrete is exposed to highly alkaline soil or water with high sulfate content. Such cement is used where soils or groundwaters have a high sulfate content as HSR is not resistant to acids and other highly corrosive substances.
Several grades of these cement products are categorized majorly into ordinary, moderate sulfate resistant (MSR), and high sulfate resistant (HSR). The global market is further segmented into onshore and offshore based on application. Ordinary (Grade 0), also known as standard Portland cement, is one of the widely used types of Portland cement, which is the most common cement type for general use as an essential ingredient of non-specialty grout, mortar, stucco, and concrete.
Moderate sulfate resistance (MSR), also called type II cement, is used where precaution against moderate sulfate attack is essential. MSR usually generates less amount of heat of hydration at a slower rate than cement Type I, and thus, the cement is used in mass structures such as retaining walls, large piers, and heavy abutments.
The oil well cement market has been segmented based on the following to meet the rising needs of the global target audience. Therefore, the market segment is mentioned as follows:
Based on the Market Products:
Based on the Market Applications:
Geographically the global oil well types of cement market are segmented in the regions of The U.S. and Canada in the North American region, Russia, Germany, Italy, The U.K., Spain, and others like France in the European region, the Indian subcontinent, China, and Japan in the Asia-Pacific region, Argentina, Mexico in the Latin American region, Turkey, Iran in The Middle East, Africa, and South Africa. The Asia-Pacific region has emerged as the paramount market leader per regional analysis collected over the period. With the rising demand for the global market functions and trends in the emerging economies of the developing nations of India and China, supply is expected to rise to an eye-raising amount. The region is expected to register a CAGR worth 10.57% of the total market through the forecast period. China is the leading manufacturing hub in the region due to the industrial revolution, which augmented the trading of oil well cement. North America accounts for 30% of the total market value, and share-making is the second leader of the world in the global oil well cement market. Modernization, technical upgrade, and other developments like the market improvements of the already present substances and manufacturing new transformers per consumer's demand are on the rise in the North American region, giving rise to the interest of investors and manufacturers in the region.
The association of fundamental market players, followed by the rise of other market factors like the revenue generated, application dominance, new market initiatives, pricing analysis, trade analysis, company financials, investors interest, market width and breadth, and robust nature of the manufacturing unit is analyzed, studied, and stockpiled under the competitive analysis section of the report for the ongoing period ending in 2027.
These products set slowly due to their organic retarders, preventing them from setting too fast. Due to all these characteristics, it is used in the building of the oil wells where the pressure is around 20,000 PSI and the temperature is around 500 degrees Fahrenheit.
The cement slurry is forwarded into the wellbore through the casing and fills the space between the wellbore and casing. Then, a cementing plug is inserted into the casing to seal and remove debris from the casing. The leading service-providing companies include Halliburton, Schlumberger, Tristan services, and Baker Hughes, the end-use segments of the oil well cement value chain.
The onshore drilling operations segment accounted for the largest market in 2017, with a share of 67.3% of the oil well cement market in 2017. Demand from offshore oil well drilling operations is anticipated to witness significant growth and account for a 32.7% share of the global oil well cement market during the ongoing forecast period that will be ending in 2027. Increasing exploration & production activities from offshore oil and gas reserves are expected to drive product demand in the present industry space. However, the trends suggest that there have been ongoing investments in onshore matured and old wells that can be considered a consistent source of product demand.
|CAGR||7.42% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||LafargeHolcim (Switzerland), HeidelbergCement AG (Germany), Cemex SAB de CV (Mexico), Anhui Conch Cement Co., Ltd (China), TPI Polene Public Company Limited (Thailand), Buzzi Unicem SpA (Italy), Raysut Cement Co. (Oman), Kerman cement (Iran), Colacem SpA (Italy), Oman Cement Company (Oman), Omran Anarak Cement Co. (Iran), Cebo International BV (the Netherlands), Kardisi Co (Syria), Dalmia Bharat Ltd. (India), and Petrovietnam (Vietnam).|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The market growth rate in the years ahead can be 6.02%.
The global market for oil well cement can note substantial growth by 2027.
The prominent companies in the market are LafargeHolcim (Switzerland), Cemex SAB de CV (Mexico), Raysut Cement Co. (Oman), Kardisi Co (Syria), Buzzi Unicem SpA (Italy), Dalmia Bharat Ltd. (India), Kerman cement (Iran), Colacem SpA (Italy), Oman Cement Company (Oman), Omran Anarak Cement Co. (Iran), HeidelbergCement AG (Germany), Petrovietnam (Vietnam), TPI Polene Public Company Limited (Thailand), Cebo International BV (the Netherlands), Anhui Conch Cement Co., Ltd (China), and others.
The strength of the oil well cement is dependent on the slurry design as well as the use of additives.
Surge in the number of drilling activities, and rising focus on oil and gas among leading players induce market growth in APAC.
The primary applications covered in the report are onshore and offshore.
North America can seize the largest share in the market during the review period.