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Downhole Tools Market


Energy & Power
Drilling Equipment

The global downhole tools market is estimated to reach $4.49 Billion by 2019, at a CAGR of 4.9%, signifying a high demand for these tools for well intervention purposes.

Downhole tools play an important role in oil & gas exploration and production activities. Downhole tools are employed for workover and completion activities of a well in the Bottom Hole Assembly (BHA). Downhole tools are selected based on the formation characteristics of the reservoir and the rate of penetration to be achieved. These tools find application in a variety of operations, such as fishing, casing, cementing, well bottom communication, drilling, logging, fracturing, and well measurements. The rising demand for advanced tools that function optimally in high pressure and temperature conditions has also been a driver of this market.

Discovery of shale gas reserves and ultra-deep drilling activities: Driver of downhole tools market.

North America dominated the global market with a share of 42% in 2013. However, Africa is expected to grow at a faster rate with the highest CAGR of 8.2% during the forecast period. This is mainly because of new hydrocarbons discoveries in Africa. Well intervention forms the major application of downhole tools and accounts for a market share of 29%.

Downhole Tools Market Share (Value), by Region, 2014

Downhole Tools Market

Source: MarketsandMarkets Analysis

The top players in the downhole tools market include National Oilwell Varco, Inc. (U.S.), Logan Oil Tools Inc. (U.S.), Halliburton (U.S.), Baker Hughes (U.S.), Schoeller Bleckmann Oilfield Equipment AG (Austria), and Schlumberger (U.S.).

New Product development: Key Strategy

Most of these companies mainly rely on growth strategies such as new product launch, joint ventures & contracts, mergers & acquisitions, and investments & expansions in diversified geographic areas. The risk of failure involved in the industry is high due to new and innovative technologies being introduced in the market. Hence, to enhance market penetration and share the expenditure along with risks, the companies have opted to develop new products.

The major downhole tools include flow and pressure control, impurity control, drilling, downhole control systems, and handling tools. Drilling downhole tools held the largest market share, in terms of value, in 2014.

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