Oilfield Services Market – Growth, Trends, COVID-19 Impact and Forecast (2022 to 2029)

Oilfield Services Market was valued at US$ 104.7 Bn. in 2021. The Global Oilfield Services Market size is estimated to grow at a CAGR of 3.4% over the forecast period.
Oilfield Services Market Overview:
Oilfield services are the service provider which provides services to the oil & gas industry. These industries include services like drilling and formation evaluation, well construction, and completion services. The oilfield equipment & service industry comprises companies that provide services such as exploration, drilling, and production of oil & petroleum-based resources.

The report explores the Oilfield Services Market's segments (Type, Service Type, Application, and Region). Data has been provided by market participants and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). This market report provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2017 to 2021. The report investigates the Oilfield Services Market's drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Oilfield Services Market's contemporary competitive scenario.

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Oilfield Services Market Dynamics:
The growth in production activities and deep-water exploration in the Gulf region is expected to propel the demand for the drilling sector. Technological innovation and advancement has led to increased efficiencies in resource extraction and management. Major companies also shifted to technology-based services to fulfill the rise in demand in this sector. High accuracy, precision, and reduction in time and labor costs are the other factors that boost the technologically advanced oilfield services market extensively.

Oilfield Services industry firms are large integrated businesses that provide an array of services. The equipment and services represent a globally-wide and lucrative market for upstream equipment, components, and other supplies with professional services. The equipment includes offshore and land drilling rigs, power systems, cement equipment casting tools, centrifuges, generators, turbines, and engines, as well as water injection pumps, gas injection pumps, blowers, down-hole equipment, and many others. From an economic perspective, the profitability of the industry depends entirely on engineering expertise and efficient production operations.

The market of oilfield services is increasing on account of the major players in the U.S and the growing requirement for energy. According to BP's Energy Outlook 2021, the demand for natural oil is projected to witness the maximum growth rate from 2022 to 2029, with a majority of this growth reported in non-OECD countries.

Significant growth in oil demand is predicted to be supported by the global economy. Strong economies are predicted to use more oil, with demand expected to expand at a significant rate of 1.2 million barrels per day per year during the estimated year. By 2023, India and China are estimated to account for roughly half of world demand. Increased pressure on oil and gas companies to increase production and meet rising energy demand. As a result, some exploration and production companies have turned their focus to unconventional reservoirs. As a result, the market for oilfield services such as onshore drilling, measurement while drilling (MWD), and logging while drilling (LWD) is likely to increase.

For instance- China has the largest shale reserves and a considerable percentage of its production. They are planning to escalate its production up to 30bcm/per year by 2023 and 80-100bcm/per year by 2029, with the help of advanced tools for drilling and techniques adopted by shale gas exploration, which is associated with oil production.

Oilfield Services Market Trends:

To fulfill the growing demand, new oil and gas fields are being explored, particularly in businesses such as transportation, power plants, and other industries. Operators can now extract oil from tough sources because of technological developments. Extraction of gas from shale and oil beneath bituminous sand, for example, was highly costly. New technologically enhanced processes, on the other hand, have made it cost-effective.

The adoption of laser drilling techniques in the oil and gas industry is another market development because of the advantages of great accuracy, precision, and a single-diameter borehole. Oilfield projects in regions are becoming more competitive due to improved efficiencies and tightening of the supply chain. The recent developments of shale plays, horizontal drilling of well, and fracking have resulted in a massive increase in the oilfields service market, mainly in the U.S region.

Halliburton launched a smart fleet, the first intelligent automated fracturing system, in October 2021. Smart fleet integrates subsurface measurement, real-time 3D visualization, and real-time fracture commands to give operators with real-time fracture control while pumping.
Oilfield Services Market Restraints & Challenges:
The high initial cost of investment is expected to serve as a market challenge during the forecast period. The initial cost includes the ability to operate in a harsh and remote environment, manpower, equipment, and research. The immense use of unconventional fuels in the production of crude oil and the rise in energy prices are among the factors that could hamper the growth of the offshore segment of the oilfield service industry. In the forecasted period, the oilfield service market may be affected by the volatility of crude oil prices. The rising price of oil prices results in delays in new investments and projects, which suspends drilling projects which suspends drilling projects and causes a downtown in the oilfield service market.

The other major factor which is a challenge for the oilfield service market is the environmental effect of E&P activities and stringent government regulations are expected to hinder the Oilfield Services Market growth through the forecast period.
Oilfield Services Market Segment Analysis:
Based on Type, the Global Oilfield Services Market is segmented into Equipment Rental, Field Operation, and Analytical Services. Equipment Rental segment held the largest market share accounting for 48% in 2021. Equipment rental, also called plant hire in some countries, is a service industry providing machinery, equipment, and tools of all kinds and sizes, from earthmoving to powered access, from power generation to handheld tools, etc., for a limited period to final users, mainly to construction purposes. The reasons the equipment rental market is approaching are based on financial and economic, operations, and environmental factors. It minimizes the financial risk of owing equipment fleets.

The Analytical services segment is expected to witness a significant growth at a CAGR of 3.3% through the forecast period. Analytical services provide accurate, unbiased analysis of research performance by combining high-quality samples with technical and research metrics expertise. It is a process of taking numerous small grabs of oil and gas-filled and performing variety to test the quality.

Based on Service Type, the Global Oilfield Services Market is segmented into Production, Drilling, Completion & Workover, Processing & Separation, and Geophysical. The production segment is estimated to hold a larger position in market share accounting for 34% in 2021, owing to the growth of the oilfield industry or initiatives for oil recovery and well testing in current oilfields. In production, various types of oilfield services are there, such as artificial lift systems, floating production vessels, support vessels, well testing services, subsea equipment, enhanced oil recovery, digital oilfield, and other services.

The drilling segment is estimated to be the second-largest share owing in the market because of its increase in good offshore drilling to explore, clean, extract, store, and process petroleum. The segment is analyzed by granular level covering services such as oil country tubular goods (OCTG), managed pressure drilling, waste management, and other services.
Oilfield Services Market Regional Insights:
North America region held the largest market share accounting for 41% in 2021. The trend is anticipated to have the increasing production of oil & gas in the region leads to drive the growth of the market in this region. The U.S is one of the largest producers and consumers of oil & gas globally. In addition, it reaches horizontal good bores and completion techniques such as multi-stage hydraulic fracturing technologies.

Asia- Pacific is also on the list of growth because of their increasing exploration activities, and many countries are involved in these, like China, India, Malaysia, etc. In February 2021, Respol, a global energy company announced the largest gas recovery in Indonesia, which holds more than 2 trillion cubic feet of recoverable resources.

Europe holds the considerable position in the market and is projected to grow in the forecasted year because their country Norway the operating cost of oil wells has reduced by 30% from 2029-to 2021, which results in the reduction in the cost of drilling.

The objective of the report is to present a comprehensive analysis of the Global Oilfield Services Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear, futuristic view of the industry to the decision-makers.

The reports also help in understanding the Global Oilfield Services Market dynamic and structure by analyzing the market segments and projecting the Global Oilfield Services Market size. Clear representation of competitive analysis of key players by Design, price, financial position, product portfolio, growth strategies, and regional presence in the Oilfield Services Market make the report investor’s guide.
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Oilfield Services Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US$ 104.7 Bn.


Forecast Period 2022 to 2029 CAGR:
3.4%
Market Size in 2029:
US$ 136.80 Bn.


 Segments Covered:
by Type
• Equipment Rental
• Field Operation
• Analytical Services


by Service Type
• Production Segment
• Drilling Segment
• Completion & Workover Segment
• Process & Separation Segment
• Geophysical Segment


by Application
• Offshore
• Onshore



Oilfield Services Market by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• SouthAmerica
Oilfield Services Market, Key Players:
• Schulumberger Ltd.
• Halliburton Ltd.
• Baker Hughes Incorporate
• Weatherford International Ltd.
• Nabors Industries Ltd.
• Saipem
• Petrofac
• Trican Well Services Ltd.
• Precision Drilling CO.
• SGS S.A.
• Superior Energy Services Inc.
• Fluor
• Transocean
• Oil States industries

Frequently Asked Questions:

Q.1 How much is the Oilfield service market worth?
Ans. The Global Oilfield Services Market was valued at US$ 104.7 Bn. in 2021 and is projected to reach US$ 136.80 Bn. in 2029.

Q.2 What is the CAGR expected for the forecasted year 2022-2029?
Ans. The Global Oilfield Services Market size is estimated to grow at a CAGR of 3.4% over the forecast period.

Q.3 What is the Global Oilfield Service Market?
Ans. Oilfield services are the service provider which provides services to the oil & gas industry. These industries include services like drilling and formation evaluation, well construction, and completion services.

Q.4 What is the value of the market in North America in 2021?
Ans. In 2021, the value of the market in North America is U.S $104.7 Bn.

Q.5 What are the key rising factors of these markets?
Ans. Increasing pressure among the oil & gas operating companies to increase their production and meet energy demand. As a result, several operating companies have shifted their focus toward exploiting unconventional reserves.