Sand Control Solutions Market: By Location, Application, Type, and Region

Market Synopsis

Global Sand Control Solutions Market is valued at USD 2.48 Billion in 2021 and estimated to reach a value of USD 4.46 Billion by 2028 at a Compound Annual Growth Rate (CAGR) of 8.76% during the forecast period, 2022–2028. Growth in the oil and gas industry is driving up demand for gravel packing services worldwide. This is creating a market opportunity for companies which are looking to commercialize their gravel packing technologies. This has resulted into growing demand for Sand Control Solutions as the industry shifts its focus toward more complex wells, such as those with horizontal or extended reach sections. As well as this, new ultra-Deepwater and harsh environment fields pose greater challenges than ever before and require advanced techniques and tools to ensure safe drilling operations. Traditionally, coiled tubing has been used to package sands in oil wells; however, wireline fluids become increasingly popular due to their ability to seal permeable zones.

Market Segmentation

Global Sand Control Solutions Market is segmented by Location (Onshore, Offshore), Application (Cased hole, Open hole), Well Type (Horizontal, Vertical), Type (Gravel Pack, Frac Pack, Sand Screens, Inflow Control Devices, Others), and Region. North America is projected to continue leading the global sand control solution market and Asia Pacific is expected to witness fastest growth in the years to come.

Growing Focus on Advanced Technology to Improve Oil Recovery to Drive Growth of Sand Control Solution

This comes as Drillers are moving away from what they call "conventional wells" with vertical sections, limited exploration prospects. They are now looking to more complex wells with extended reach sections and deeper targets. As well, ultra-deep-water fields pose greater challenges than ever before. Thus, the focus is shifting to more advanced techniques where it is believed new technologies will play a vital role in achieving success on challenging projects. Also, new tools are being needed for these deep-water applications that don't compromise on the safety of the drilling operation. Sand control involves ensuring that fine sands or clays do not enter the wellbore by using either a fluid or gas to carry those particles, which would otherwise obstruct production.

At this point of time sand control accounts for 7%-10% of total drilling costs and 10%–15% of all wells drilled present a challenge with respect to sand management. This proportion is only going up as more ultra-deep-water projects are being sanctioned or planned.

By Type, Gravel Pack and Wireline Hold Prominent Share of the Sand Control Solution Market

It has been estimated that nearly 50–60% of the oil – bearing formations have some sort of clay content. The complexity involved in conventional well construction also affects Sand Control Solutions. They create problems such as gravel packing requiring short interval completions and multiple screens. These can affect production from lower zones severely due to interference from the well fluid.

Comparatively, wireline fluids have the ability to seal permeable zones without compromising production. They also provide an additional barrier of protection against plugged perforations, high-pressure gas (HP/HT) and water injection wells, lost circulation zones (LCZs), open hole sections and remote locations with limited access. Wireline operations are based on three components: the wire itself, tools at the end of the wireline, and methods of deploying or running these tools into or through a wellbore safely. The base line is made up of oil resistant steel wires that can be attached to either slick joint or coil tubing drills. Friction between drill pipe and mud causes it to lose strength; hence the drill string may fracture, resulting in complete loss of the drill string and drilling tools. Thus, wireline methods are widely accepted as a safer alternative to coiled tubing for well construction.

By Application, Onshore Segment Dominates the Sand Control Solution Market

Adoption of sand control solution in onshore application is projected to remain high during the forecast period. The demand for Sand Control Solutions will be the highest from deep-water wells followed by ultra-deep-water wells. However, onshore wells are expected to witness slowest growth rate over the forecast period due to economic slowdown in certain regions. Application wise, oilfield service industry will remain dominant throughout the period as it accounts for majority share of overall Sand Control Solutions compared with production field services which consist of artificial lift technologies.

North America is the Largest Consumer of Sand Solutions Market

Geographically, North America is leading the global sand control solution market, which is mainly attributed to presence of large number of contractors offering sand control services coupled with low cost of labor & availability of raw material. Asia Pacific is projected to account for the highest growth rate of 15.18%, followed by Middle East and Africa (MEA) during the forecast period due to surge in demand from new exploration activities, development of productive fields and induction of advanced technological advancements in oil & gas industry. In North America, the US is holding higher market share due to presence of several oil & gas players and investments from exploration & production companies in shale formations.

Key Players

Tahe Oil Field (China)

Sand Control Solutions Market Segmentation can be described as below:

Sand Control Solutions Market Segmentation can be tabulated as follows: