Oilfield Services Market to Reach 364.76 USD Million by 2028

Vantage Market Research

Mar 16, 2022

The Global Oilfield Services Market is expected to reach 364.76 USD Million by 2028, growing at a CAGR of 5.90% from 2022 to 2028. The increasing shale gas extraction along with the production and extraction activities in the oil & gas industry is anticipated to augment the growth of the market during the forecast period.

Key Findings:

  • The onshore segment held a significant share in 2021. This is attributable to the increasing need for crude oil and natural gas in Russia, China, and Saudi Arabia. Further, rising investment in R&D activities related to renewed projects in various onshore oilfields from major companies in the market, such as Schlumberger Limited, Halliburton, and Baker Hughes, Inc., is also expected to support segmental growth of the market.
  • The coiled tubing services segment is projected to grow at a considerable CAGR during the forecast period. This is attributable to the increasing demand for well intervention operations and redevelopment of mature oilfields demands coiled tubing units for production enhancement. Further, advancements in shale oil extraction require more coiled tubing operations which in turn are expected to support segmental growth of the market.
  • Asia Pacific is expected to grow at the fastest CAGR during the forecast period. China accounted for the largest share in APAC in 2021. This is attributable to the rise in energy consumption in the region owing to the growing population especially in China and India. Furthermore, the increased demand for crude oil and hydrocarbons owing to the increasing rate of urbanization is also anticipated to support the regional growth of the market.

Some of the key players in the Oilfield Services market include Baker Hughes Incorporated (US), Halliburton Company (US), Schlumberger Limited (US), Weatherford International, PLC (Switzerland), National Oilwell Varco, Inc. (US), China Oilfield Services Limited (COSL)(China), Superior Energy Services, Inc. (US), Technipfmc.PLC (U.K), Trican Well Service, Ltd. (US), Welltec International APS (Denmark), Nabors Industries, Ltd. (Bermuda), Nordic Well Services, LLC (UAE)..

The increasing shale gas extraction is anticipated to augment the growth of the Oilfield Services market in the years to come. This is owing to the advancements in technologies like directional drilling and hydraulic fracturing that help increase shale gas production from critical reservoirs. Shale gas is natural gas that is trapped within shale formations that are not able to flow into the well due to its low permeability and requires a wide range of equipment and services in the oilfield. For instance, China is considered to have the largest shale reserves, and the country is planning to increase its production up to 80-100 cm/per year by 2030, with the advanced tools for drilling and techniques adopted by shale gas exploration. Further, the increasing production & exploration activities in the oil & gas industry owing to rising energy demand and lucrative investment opportunities are also expected to propel the market growth.

However, the considerable decline in drilling activities and rig count and fluctuating crude oil prices, and increasing focus on renewable energy are expected to hamper the growth of the market in the years to come. Moreover, an increase in new oilfield discoveries along with the redevelopment of aging reservoirs is expected to create immense opportunities for the growth of the market within the forecast period.

North America held the largest shares in 2021. The US held the largest share in North America for the Oilfield Services market. This is attributable to the rising oil and gas production and the development specifically in the Gulf of Mexico and the North Sea in the region. Furthermore, the development of horizontal wellbores in the region is also expected to fuel the regional growth of the market. Additionally, the availability of advanced techniques, like multi-stage hydraulic fracturing in the region is also expected to support the growth of the Oilfield Services market in the region.