ID: MRFR/E&P/9122-HCR | June 2021 | Region: Global | 155 pages
Rotary steerable system market size is projected to reach a valuation of 7.01% CAGR between 2020 and 2027.
The global market of rotary steerable system is anticipated to grow substantially during the forecast period due to the increasing investments in the offshore drilling sector. Furthermore, the rising demand for energy across the globe is also expected to contribute to the growth of the global market during the forecast period. However, environmental concerns associated with the hydraulic fracturing processareexpected to restrain the growth of the market during the forecast period. Nevertheless, growing shale gas production projectsare expected to create lucrative opportunities for vendors in the rotary steerable system market.
The impact of COVID-19 on the worldwide economy is changing every day. It is proving to be a big challenge for the oil & gas industry, resulting in a shortage of raw material supply and impending job losses. In the oil and gas industry, companies are dealing with several challenges due to a decline in oil and gas prices post the COVID-19 outbreak. Moreover, the US is one of the largest markets for rotary steerable systems. Therefore, the slowdown in the country’s economic growth has affected the overall generation and oil and gas energy investment globally. Similarly, during the COVID-19 crisis, there has been an increased focus on renewable technologies; however, fewer power plants were working owing to labor constraints.
Additionally, the oil & gas sector’s financial and structural health is worse thanin previous crises. The developments of shale gas production, excessive supply, and supportive financial markets have overlooked the limited capital discipline, and all have contributed to poor returns.The rapid spread has led governments across the globe to take stricter actions for the operations of industrial plants and offices, leading to stricter lockdowns. Also, the lockdown had a notable impact on the energy sector overall as energy demand had decreased around 18% to 20% in 2020. Moreover, the virus also significantly impacted the oil and gassector, with a moderate impact on the production and drilling of new onshore and offshore projects. The impact was in terms of a slight decline in revenues and a challenging situation with managing the cash flow of the market players.
According to the International Monetary Fund (IMF), economic uncertainty due to the COVID-19 outbreak is much higher than the past outbreaks, such as severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and uncertainty about when the crisis is likely to come to an end. If the pandemic uncertainty lasts longer, then the world merchandise trade will likely decline steeply initially with a more prolonged recovery, which is expected to severely affect households and businesses.
The prominent players operating in the global rotary steerable systemmarketare Baker Hughes, a GE Company LLC (US), Halliburton (US), National Oilwell Varco (US), Schlumberger Limited (US), Weatherford (US), APS Technology Inc. (US), Double Barell RSS (US), Nabors Industries Ltd (US), Gyrodata Incorporated (US), Leam Drilling Systems LLC (US), Target Energy Inc. (US), and Huisman Equipment B.V. (Netherlands).
Segmentation: Global Rotary Steerable System Market
The global rotary steerable systems marketis classifiedbased ontype, application,and region. Bytype, the global market has been segmented into push the bit and point the bit.
The push the bit is expected to hold the larger share in the global market during the forecast period. Push-the-bit tools have pads on the outside surface of the tool, which press against the wellbore, thereby eventually causing the bit to press on the opposite side, causing a direction change.
By application, the global market has been segmented into onshore and offshore. However, the onshore application is expected to hold the larger share of the global market.
The global rotary steerable system markethas been segmented into five major regions, namely, North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The market in North America is estimated to account forthe highest share of the rotary steerable systemmarket.The region is one of the largest markets for oil & gas production. The rise of oil and gas investments and rising discoveries of oil and gas fields such as the North Sea drilling project will drive the growth of the regional market.
Additionally, the increased demand for energy in the region because of the growing population and rising per capita disposable income in the region is expected to drive the market during the forecast period.
A rotary steerable system is a form of drilling technology used in directional drilling operations; these systems employ specialized downhole equipment to replace conventional directional tools such as mud motors. The rotary steerable systems are mainly deployed when drilling horizontal, directional, or for extended-reach well. These systems are generally programmed by the drilling engineer (MWD) or directional driller responsible for controls using surface equipment to which the tool responds and steers gradually in the desired direction. Rotary steerable systemscan improve the drilling efficiency, reduce the drilling risk, and decrease the drilling cost as well.
The report for the global rotary steerable system marketof MRFRresearch covers extensive primary research. This is accompanied bya detailed analysis of qualitative and quantitative aspects by various industry experts and key opinion leaders to gain deeper insights into the market and industry performance. As a result, the report gives a clear picture of the current market scenario, including the historic and forecasted market size in terms of value and volume, technological advancement, macroeconomic, and governing factors of the global market. In addition, the report provides comprehensive information about the strategies of the top companies in the industry and a broad study of the different market segments and regions.
The primary factor driving the growth of the global rotary steerable system market is increasing investment in the offshore drilling sector. Conventional energy generation sources are primarily responsible for contributing energy requirements globally. However, with an increase in demand for hydrocarbons, the offshore drilling sector has witnessed several major investments in recent years to boost oil and gas production, which will support the market. For Instance: The offshore drilling sector has witnessed rapid in recent years. In North America, Offshore drilling activity in the US and Canada is expected to rise by 16.4%, to 85 wells in 2020. Additionally, according to a published report by World Oil in 2020, Global offshore drilling is forecast to rise by 4.7% in coming years.
Global energy demand has seen an exponential increase over the last few years due to rapid urbanization and a rapidly growing population across the world. Although most of the energy produced across the globe is from fossil fuels, the total fossil fuel-based energy supply in2020 was 77% of the global energy mix.
Additionally, as per the United Nations, the global population is expected to reach approximately 8.5 billion and 9.7 billion by 2030 and 2050, respectively. The growth in the world’spopulation results in increased energy demand and consumption. Hence, the rising demand for electricity for power generation is expected to fuel the growth of the rotary steerable systemmarket across the globe.
The environmental impact of the hydraulic fracturing process is one of the major concerns which is restraining the growth of the rotary steerable systems market. Fracturing processes include the contamination of ground and surface water, air pollution, methane emissions, migration of harmful gases, the spread of radionuclides to the surface, and groundwater quality degradation.
Thus, the high environmentalconcerns associated with the hydraulic fracturing process areexpected to restrain the demand for rotary steerable systems, consequently hampering the growth of the global market during the forecast period.
However, many impacts can be avoided or mitigated with the proper practices and adoption of developed technologies.
Recent advances and technological growth in rotary steerable systems will provide opportunities in the global market. However, recent developments such as adopting bi-center bits for rotary steerable systems are primarily preferred in deep-water applications as the casing strings used are more in number.
Moreover, technological growth, such as the integration of positive displacement motors with rotary steerable systems, will enhance the penetration rate of these systems. Adopting such technologies has resulted in giving six times better penetration than the conventional method of rotary steerable systems integrated with the standard motor.
|Market Size||2030: Significant Value|
|CAGR||7.01% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Baker Hughes, a GE Company LLC (US), Halliburton (US), National Oilwell Varco (US), Schlumberger Limited (US), Weatherford (US), APS Technology Inc. (US), Double Barell RSS (US), Nabors Industries Ltd (US), Gyrodata Incorporated (US), Leam Drilling Systems LLC (US), Target Energy Inc. (US), and Huisman Equipment B.V. (Netherlands).|
|Key Market Opportunities||Recent Advancements and Technological Growth|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Rotary Steerable System market is predicted to grow at 7.01% through forecast period of 2020-2027.
The forecast period for Rotary Steerable System market research report is 2020-2027.
Global Rotary Steerable System Market is dominated by North America region.
The rising demand for energy across the globe is also expected to contribute to the growth of the Global Rotary Steerable System market during the forecast period