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Industry Insights, Market Size, CAGR, High-Level Analysis: Coiled Tubing MarketThe global coiled tubing market size was valued at USD 3.25 billion in 2019 and is predicted to expand at a significant CAGR of 4.8% from 2020 to 2027. Rising oil and gas production around the globe coupled with increasing penetration of Coiled Tubing (CT) in well intervention services is the key factor driving the growth. The main benefits of coiled tubing over wireline is that the former does not rely on gravity and therefore chemicals can be pumped into the wellbores of highly deviated wells through the use of the product. The need to maximize oil and gas production from highly deviated wells is expected to play a key role in driving the market growth. The U.S. represents one of the largest markets for coiled tubing. A steady increase in the capital expenditure for exploration, development, and production of tight oil has played a key role in driving the regional market growth. The production of tight oil in U.S. has ramped up significantly over the past few years and is projected to reach its peak until 2027. Coiled tubing finds extensive applications in upstream oil and gas activities such as drilling, well completion, well cleaning, and other activities. Moreover, it is a cost effective technology and is largely preferred for horizontal and highly deviated wells. Recent trend indicates oil and gas producers focusing on minimizing cost of oil production to sustain their profits. As result, the demand for CT has witnessed an upward trend over the last few years. The technology enables faster retrievability and deployment while allowing continuous circulation of fluids. Moreover it requires fewer service personnel and is highly compact and mobile.
Service Insights of Coiled Tubing MarketWell intervention service segment dominated the coiled tubing market in 2019 with a revenue share of 66.5%. According to OWI 2019, the leading well intervention conference, the globaloil and gas industry is currently focused on maintaining and/or boosting production from existing oil reserves. Therefore coiled tubing units are increasingly deployed for well intervention services. CT drilling is predicted to garner a significant CAGR of 4.6% from 2020 to 2027 owing to the significant advantages offered by the product. CT allows for better underbalanced drilling, higher speed of operation, improved safety, and has a lower environmental impact. It can also be combined with directional drilling order to enable oil production from non-vertical wells.
Operation InsightsCirculation is one of the most significant operations of coiled tubing. The segment acquired 17.5% revenue share in 2019. In an oil or gas well, the flow of formation fluids in the wellbore is inhibited by a column of fluid. This scenario is referred to as a well kill. In such a case, it is essential to circulate out the fluid. CT is used for pumping nitrogen gas into the bottom of the wellbore to force out the kill fluid to boost oil and gas production. Pumping operation segment is predicted to witness a significant CAGR of 5.6% from 2020 to 2027. Pumping operation through coiled tubing is a routine activity carried out by injecting a fluid in the well.The significant advantage of using the product for cementing perforations in pumping operation is that it avoids potential damage to critical components such as the downhole safety valve. Perforation activity is performed when the lining or casing of the oil well is connected to the reservoir. The activity is performed during the final completion stage by using string charges or perforating guns. Coiled tubing delivers high strength and rigidity thereby enabling greater tensile and compressive force endurance. This is a major advantage offered by the product for perforation operation in horizontal and highly deviated wells.
Application Insights of Coiled Tubing MarketOnshore was the dominant application segment in terms of demand in 2019. The application contributed to a significant market share of 61.5% in 2019. The primary reason contributing to the high demand for onshore coiled tubing units is due to the dominant position of the conventional onshore oil supply when compared to offshore. Offshore application is predicted to expand at the fastest CAGR of 5.6% from 2020 to 2027. The growth is attributed to the accelerated global production of oil and gas from offshore oil and gas wells. For instance, the undergoing expansion projects in Saudi Arabia include Marjan oil and gas field, Zuluf offshore oilfield, and Safaniya offshore oilfield are likely to propel the segment growth.
Regional Insights of Coiled Tubing MarketNorth America dominated the market for coiled tubing in 2019 with a revenue share of 46.2% in 2019. U.S. and Canada are among the top consumers of coiled tubing technology in the world. The sudden explosion in the production of tight oil in U.S. coupled with availability of skilled manpower, latest equipment and technologies and increased Exploration and Production (E&P) activities are the crucial factors supporting the regional growth. The Europe market is likely to witness steady growth over the forecast period. Russia accounts for the largest regional market share in 2019. European oilfield service market is expected to witness significant growth in the forthcoming years on account of the rising discovery of oilfields in the North Sea. The regional oilfield service companies are shifting their focus towards cost effective solutions such as coiled tubing to gain a competitive advantage over other industry participants and to maximize their revenues. In the forthcoming years, Middle East and Africa market for coiled tubing is anticipated to witness lucrative growth as the region is set to become more dominant in terms of conventional onshore oil production. The future outlook for oil production in Middle East remains positive owing to steady investments by the National Oil Companies (NOCs). For instance, Abu Dhabi National Oil Company plans to make substantial investments in the region over the next five years to increase its oil output capacity and intends offering extra 1 million barrels of oil per day by 2020.
Market Share Insights of Coiled Tubing MarketThe major market players include Schlumberger Limited, Baker Hughes Company, and Halliburton. Schlumberger operated 267 CT units in 2017 and emerged as the largest CT operator. Another major coiled tubing operator Halliburton, operated 206 CT units in the same year. In April 2016, Schlumberger Ltd. acquired CT drilling units from Xtreme Drilling and Coil Services Corp. in an attempt to advance overall drilling process and improve coiled tubing efficiency through technological integration. The company adopted this strategy in an attempt to reduce the production cost per barrel as CT drilling is one of the cost-effective technologies for drilling high deviated and horizontal oil and gas wells.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Coiled Tubing Market Research ReportThis report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global coiled tubing market report on the basis of service, operation, application, and region:
Services Outlook (Volume, Units; Revenue, USD Million, 2019 - 2030)
- Well Intervention
- Well Completion
- Well Cleaning
Operation Outlook (Volume, Units; Revenue, USD Million, 2019 - 2030)
Application Outlook (Volume, Units; Revenue, USD Million, 2019 - 2030)
Table of Contents Chapter 1 Methodology and Scope 1.1 Research methodology 1.2 Research scope and assumptions 1.3 List of data sourcesChapter 2 Executive Summary 2.1 Coiled tubing - Industry snapshot and key buying criteriaChapter 3 Coiled Tubing Market Variables, Trends, & Scope 3.1 Market segmentation & scope 3.2 Market size and growth prospects, 2016 - 2027 3.3 Coiled tubing - Value chain analysis 3.4 Coiled tubing technology outlook 3.5 Regulatory | read more...