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Intelligent Completion Market


Energy & Power
Drilling Services

The global intelligent completion market is estimated to be USD 1.61 billion in 2018 and is projected to reach USD 2.16 billion by 2023, at a CAGR of 6.05%. Increase in production of oil & gas wells and improved economical and operational benefits are the major drivers of the intelligent completion market.

The report segments the intelligent completion market, by application, into onshore and offshore. The onshore application segment is expected to dominate the market in 2018 owing to the rise in deepwater and ultra-deepwater drilling activities. Moreover, the cost incurred in the oil & gas activities such as drilling and well completion is less in onshore when compared to offshore applications.

Based on type, the intelligent completion market has been segmented into complex intelligent well completion and simple intelligent well completion. The simple intelligent well completion segment is expected to hold the largest market share in 2018. Simple intelligent well completion helps to enhance the performance of the wells and finds its application in horizontal and multilateral wells. It provides downhole monitoring system to facilitate reservoir monitoring. This type of intelligent completion includes pressure and temperature sensors, distributed & temperature profiling, and downhole flow meters. The adoption of simple intelligent well completion will drive the simple intelligent well completion segment.

Based on component, the intelligent completion market has been segmented into hardware and software. The hardware segment is estimated to lead the market in 2018 and is expected to grow at the fastest rate during the forecast period, as it consists of various components such as control devices, monitoring devices, and others. (progressing units and communication network).

In this report, the intelligent completion market has been analyzed with respect to 6 regions, namely, the Asia Pacific, Europe, North America, South America, the Middle East, and Africa. Europe is expected to hold the largest market share in 2018 and the Middle East is the fastest growing market during the forecast period. Factors such as increase in oil & gas activities and availability of several mature oilfields in the North Sea are driving the intelligent completion market in the European region.

Intelligent Completion Market

Exploration activities in offshore and arctic regions and increased adoption of data driven technologies for real-time monitoring in the oil & gas industry can create opportunities in the market. However, concerns regarding data privacy and high cybersecurity risks could restrain the growth of the market, leading to declining profits.

Some of the leading players in the intelligent completion market are Schlumberger (US), Halliburton (US), BHGE (US), Weatherford (US), and National Oilwell Varco (US). Contracts & agreements and new product launches were the most widely adopted strategies by players to ensure their dominance in the market.

Increased adoption of data-driven technologies for real-time monitoring in the oil & gas industry

Digital transformation and automation are emerging trends in the oil & gas industry. The rapid digitalization in the oil & gas industry has taken place by transforming traditional processes with innovative technology to deploy minimum workforce over remote onshore and offshore exploration sites. The decline in oil prices, frequent budget and schedule overruns, and climate change accountability are issues faced by the industry. The application of technologies such as robotics, process automation, DCS, intelligent completions, and SCADA systems in the upstream segment helps automate the control process and offers operators a real-time view for optimization. Benefits realized through this are process automation, production efficiencies, reduced costs, and elimination of the need for manual data collection. This provides better routine maintenance of equipment and spotting of areas for improvement, thus minimizing losses. Furthermore, the usage of cloud computing technologies is expanding in many applications or systems such as consumer-based applications to enterprise management systems. Cloud analytics is quickly gaining momentum and has become an essential need for oil & gas companies to deploy their business tools globally at low capital costs. The concept of storing data in the cloud and virtually displaying the data is becoming prominent because of the ease of availability and reliable service providers. These factors are expected to provide excellent opportunities for the intelligent completion market during the forecast period.

Challenges

Concerns regarding data privacy and increased cybersecurity risks

The increasing application of automation and use of connected technologies have increased the risk of cybersecurity and industrial espionage. Cybersecurity in the oil & gas sector is critical to protecting the confidential field data. Operational systems that include production line management and oil & gas monitoring in the oil & gas sector are used to monitor and control operations across the entire value chain. At the drilling, completion or production stage, the availability of confidential process data is the primary focus for most security engineers in the field. As automation and digitalization data is used for predictive maintenance, planning, and execution of many exploration and development activities, it requires access to multiple oil & gas data sets. This is a crucial task as most of the data platforms are consolidated and require extensive computing power, owing to which the machine data or parts of it are required to be stored at the vendor’s data center. In 2015, the US government placed a cybersecurity law that was passed by the Senate. The law allows the sharing of internet traffic information between the US government and oil & gas companies. Hence, the oil & gas-related data must be protected under the Federal laws, and any breaches or failure to maintain its integrity can result in legal and financial penalties.

Expansion

Mergers & Acquisitions


Date

Company Name

Development

November 2017

BHGE

Baker Hughes collaborated with Sonatrach to form a new company named Arzew Industrial Zone to strengthen Algeria’s position in the upstream oil & gas market.


Partnership & Collaboration

Mergers & Acquisitions


Date

Company Name

Development

November 2017

Weatherford

Weatherford partnered with Intel Corporation for utilizing IoT to enhance the efficiency and profitability of production operations in the oilfields.

September 2017

BHGE

Baker Hughes and KBC, a Yokogawa company, collaborated to provide integrated asset performance management and digital process simulation capabilities across the value chain.


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