ID: MRFR/E&P/0533-HCR | 120 Pages | Published By Priya Nagrale on March 2023
The global wireline services market is projected to grow at a CAGR of 6.7% during the ongoing period 2022-2030, with a market size of USD 9.15 Billion by the end of the period. The global market growth is attributed to increasing oil production and maturing oilfields.
The report segments the wireline market into cased-hole and open-hole based on hole type. The cased-hole segment is projected to dominate the wireline service market and is expected to grow at the highest CAGR from 2021 onwards.
The wireline services market is segmented into electric lines and slacklines based on wireline type. The electric line segment accounted for the largest market share in 2015 and is expected to grow at the highest CAGR during the forecast period. The prominence of the electric line services over the slick line services can be mainly attributed to the wide application of electric lines for well logging purposes which prove very helpful for reservoir understanding and field development activity.
The outbreak of the coronavirus pandemic has been a major functional restraint for global sectors and Wireline Services Market, and the wireline services market is one of them. The global market report discusses that the outbreak has resulted in the rise of factors that are hampering the demand of the market and further challenging the ability of the key market players to maintain a proper mechanism of the supply chain functions. In addition, the rising restrictions and lockdown imposition in various places have disrupted the production and manufacturing departments of the places and market sectors. Therefore, there is a significant need for market operations to bounce back through investments, research, and global development.
The report segments the wireline service market based on applications onshore and offshore. The offshore segment is expected to grow fastest during the forecast period, owing to wireline services for good service and completion applications. Asia-Pacific is the critical market for offshore applications due to discovering new reserves in the Gulf of Thailand, Great Australian Bight, Turkmenistan, and the South China Sea.
The global upstream oil and gas investments stood at approximately USD 476 billion in 2018, representing a 6% increase compared to the previous year. According to the Oil & Gas U.K. estimates, the oil and gas exploration and production companies in Europe are expected to spend about USD 265 billion between the continuous period that ends in 2027. Factors such as increasing demand for oil and natural gas and increasing investments in the upstream oil and gas sectors worldwide are expected to drive the number of exploration and production activities, thereby driving the wireline services market during the forecast period.
However, crude oil forms a major component of the market and the prices for the dame have been highly volatile in 2018, fluctuating between USD 85 per barrel and USD 50 per barrel by the end of the year. This functional and constant volatility of oil prices remains a growing concern for the upstream industry. Hence, this is a prominent market factor that is expected to hinder the market during the forecast period that ends in 2030.
The have been a rise in the increasing exploration activities in the offshore region are expected to boost the demand for the wireline services market during the forecast period. There has been a gradual shift of the projects from onshore to offshore, shallow waters to deep waters and ultra-deep waters is an opportunity for the wireline service providers to innovate and come up with products suitable and customized to the harsh climatic conditions of offshore basins. Furthermore, as the demand for oil and gas increases, there is a need to find and produce new oil and gas reservoirs. Existing hydrocarbon reservoirs have either started to mature or have reached their decommissioning stage. This results in the finding of new resources. Therefore, new oil & gas wells are being drilled in countries that have not been significant producers of hydrocarbons in the past.
Further, the offshore oil & gas reservoirs are more significant than onshore reservoirs, and the product life of offshore wells is higher than that of onshore wells, companies are shifting towards the adoption of offshore E&P activities. The immediate funding of market processes is another factor that presents the market with a positive outlook for the ongoing period.
Looking at the latest research analysis, the Wireline services industry can be bifurcated based on well-type, service, application, and location type. Out of all the segments of this market, the cased holes segment will witness tremendous growth during the forecast period. It offers many advantages, such as determining perforation, cement status, and corrosion. On the other hand, the open-hole segment will experience a growth at a steady rate due to the usage of sensors in it for determining and measuring reservoirs. Also, due to the rising adoption of shale gas to reduce carbon emissions, the onshore segment will witness more growth than the offshore segment. If we look at the application segment, the increase in demand for crude oil and shale gas logging is expected to witness significant progress during the research period.
Let's look at Wireline services market share and other details. This industry is remarkably working in five major regions: Asia Pacific, Europe, North America, Latin America, the Middle East, and Africa. During the forecast period, the North American region will dominate this market as it has the most significant oilfield discoveries of all time, and according to some reports in 2020, the growth of this market reached 12 million barrels a day which is expected to increase much more from 2021 to 2028. Canada and the United States of America will act as flag holders in the context of the growth of this market in the North American region as a lot of drilling processes have been initiated in these two countries. The Middle East and African region will also come across a tremendous growth rate as they are receiving significant investments from companies involved in the gas and oil industry.
The prime players of the Wireline Services market are applying various types of strategies such as mergers, acquisitions, partnerships, collaboration, and others to boost their businesses. These steps taken by the companies are creating a competitive environment among key players present all around the world. Based on the data obtained from the Wireline Services industry analysis, the prominent players of this market are:-
In April 2019, under Trump's control, the administration announced to allow more than a million acres of private and public land in California and other parts of the state for fracking purposes, which will enhance the wireline services application.
In May 2019, a multi-billion-euro merger between DEA and BASF (an energy unit of a chemical group based in Germany). As a result, the largest oil and gas company was formed in Europe.
In March 2019, a product named ELECT FRAV SLEEVE, a mono bore sleeve solution, was introduced by Halliburton Company, which provides unlimited stage counts in fracturing operations (multistage operations). It was considered to be the most revolutionary step taken by a company.
The Wireline Services market report presents a shift analysis about the various market drivers, opportunities, and restraints accessible in the global market. This market report also tells its readers how this market was affected during the covid-19 period. Furthermore, the report also discusses how this market has been categorized into different segments, how a healthy competitive environment is evolving among the different key players of this market, and what factors this market will grow in different world regions. Lastly, this report shares some recent developments in this market in the last few years.
|Market Size||2030: Significant Value|
|CAGR||6.7% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Application, Type, Well Type and Location|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||GE Oil and Gas (U.S.), Weatherford International (U.S.), Schlumberger (U.S.), Superior Energy Services (U.S.), Pioneer Energy Services Corp. (U.S.), C&J Energy Services Ltd. (U.S.), and National Oilwell Varco, Inc. (U.S.). Halliburton (U.S.), Basic Energy Services, Inc. (U.S.), Expro International Group Holding Ltd. (UK), Wireline Engineering Ltd. (UK), Oilserv (UAE), and SGS (Switzerland)|
|Key Market Opportunities||New product launches and R&D amongst major key players|
|Key Market Drivers||Oil price recovery Increasing oil exploration and field development activities Rising number of mature oil wells|
During the forecast period, it is estimated that wireline services market growthwill achieve a CAGR of 6.7%
Key market players include Baker Hughes (US), Halliburton (US), Weatherford (US), Weir Oil and Gas (UK), National Oilwell Varco (US), FMC Technologies (US), Emerson (US), Siemens (Germany), Schneider Electric (France), Petrofac (Jersey), Archer Limited (UK), Superior Energy Services (US).
Due to the pandemic prices of crude oil are reduced which be recovered in the upcoming years. During the forecast, investments will increase offshore production. The use of EOR thermal technologies will be another driving factor.
The crashing of oil prices will hinder market growth in the medium and long term.
The segment overview is based on good type, service, location, application.
Market growth has declined to own to reduced demand, business instability, price along ensuring high employee safety. Also, the wireline services industryis witnessing degrowth associated with businesses like manufacturing, automotive, aviation, and others.
It is divided into five regions, it includes North America, Europe, Asia, Latin America, Middle East, Africa.
It is estimated thatNorth America will capture the highest market share. Due to the largest oilfield discoveries. Also, the year 2020, reached a market growth of 12.2 million barrels each day.
Companies have taken a merger strategy in Europe. While Halliburton introduces Elect Frac.
Over the years, there has been increasing focus on the operational performances of equipment. Besides, the equipment industry is witnessing a reduction in capital expenses due to whichoil field companies have reaped opportunities foradopting digitized devices, solutions, and other services. Also, there have been increasing investments in product launches to improve wireline services. Due to this, there has been increased continuous development of technology.