PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1756472
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1756472
Enhanced Oil Recovery Market size was valued at US$ 48,987.54 Million in 2024, expanding at a CAGR of 3.1% from 2025 to 2032.
Enhanced Oil Recovery (EOR) Market deals with a set of advanced techniques used to extract additional oil from a reservoir after primary and secondary recovery methods have been exhausted. In primary recovery, natural reservoir pressure drives oil to the surface, and in secondary recovery, water or gas injection helps maintain pressure and push more oil out. EOR methods go beyond these by altering the properties of the oil or reservoir to improve extraction efficiency.
Common EOR techniques include thermal recovery, where heat is applied to reduce oil viscosity; chemical flooding, which uses chemicals to improve oil flow; and gas injection, where gases like CO2 are injected to increase pressure and mix with the oil. EOR helps maximize the amount of oil recovered from a field, extending its productive life. It is especially valuable in mature fields where easy-to-recover oil is depleted. These techniques often require specialized technology and can be more expensive but are crucial for meeting energy demands and improving resource utilization. Overall, EOR plays a vital role in the oil industry by enhancing recovery rates and optimizing the use of existing reservoirs.
Enhanced Oil Recovery Market- Market Dynamics
Rising demand for unconventional oil drives advanced enhanced oil recovery techniques.
The increasing demand for unconventional oil sources is a key driver for the enhanced oil recovery (EOR) market. As easily accessible oil reserves deplete, the industry is turning toward more challenging reservoirs, such as heavy oil, shale oil, and tight formations. These unconventional sources often have lower natural pressure and higher viscosity, making traditional extraction methods less effective. EOR techniques, like thermal recovery and chemical flooding, help overcome these challenges by improving oil flow and increasing extraction efficiency.
This shift to unconventional reserves pushes companies to adopt advanced EOR technologies to maximize production. Additionally, growing global energy needs and efforts to reduce dependence on imports further encourage the use of EOR. By unlocking trapped oil in difficult reservoirs, EOR supports sustained energy supply and economic growth. Thus, the focus on unconventional oil is a significant market driver fueling innovation and investment in enhanced oil recovery methods.
Enhanced Oil Recovery Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 3.1% over the forecast period (2025-2032)
Based on Technique segmentation, Thermal Recovery was predicted to show maximum market share in the year 2024
Based on application segmentation, onshore was the leading application in 2024
Based on end-user segmentation, Oil & Gas Companies was the leading end-user in 2024
On the basis of region, Asia Pacific was the leading revenue generator in 2024
The Global Enhanced Oil Recovery Market is segmented on the basis of Technique, Application, End-user, and Region.
The market is divided into Four categories based on Technique: Thermal Recovery, Chemical Flooding, Gas Injection, Miscellaneous. Thermal Recovery is the most dominant segment in the enhanced oil recovery market. It primarily involves applying heat to heavy and viscous oil reservoirs to reduce oil viscosity, making it easier to flow and extract. Techniques like steam injection and in-situ combustion are widely used, especially in regions with substantial heavy oil reserves. This method is preferred because it significantly improves oil mobility and recovery rates compared to other techniques. Its effectiveness in mature fields with challenging oil properties drives its extensive adoption globally. Thermal recovery remains crucial for maximizing output in aging reservoirs where conventional methods fall short.
The market is divided into two categories based on application: Onshore, and offshore. The onshore segment is the most dominant in the enhanced oil recovery market. This dominance is due to the large number of mature onshore oil fields worldwide that require advanced recovery techniques to maintain production levels. Onshore operations generally have lower costs and easier access compared to offshore, making EOR methods more economically viable. Many onshore fields contain heavy and viscous oil, which benefits significantly from thermal and chemical EOR techniques. The extensive presence of onshore reservoirs in regions like Asia-Pacific and North America further strengthens this segment's market share. Overall, onshore EOR remains critical for sustaining oil output from aging fields.
Enhanced Oil Recovery Market- Geographical Insights
The APAC region is rapidly expanding its enhanced oil recovery market as many oil fields mature and require advanced techniques to maintain production. Countries like China, India, and Malaysia are focusing on EOR methods such as thermal and chemical recovery to extract more oil from aging reservoirs. Government support and technological innovations, including combining carbon capture with EOR, are driving this growth. Additionally, offshore fields in Southeast Asia are increasingly utilizing EOR to sustain output. Overall, the region is prioritizing energy security and sustainability through enhanced oil recovery strategies.
China is a leading player in the enhanced oil recovery market, driven by its vast heavy oil reserves in regions like Xinjiang and Shandong. The country heavily relies on thermal EOR techniques such as steam injection and in-situ combustion to improve oil extraction from these challenging fields. Strong government support, including financial incentives and streamlined approvals, encourages the adoption of advanced recovery methods. Additionally, China is investing in integrating carbon capture and storage with EOR to reduce environmental impact. These efforts position China as a key contributor to the growth and innovation within the EOR market.
The competitive landscape of the enhanced oil recovery (EOR) market is characterized by the presence of several global and regional players who continuously invest in research and development to advance EOR technologies. Major oilfield service companies like Schlumberger, Halliburton, and Baker Hughes dominate the market by offering comprehensive EOR solutions, including thermal, chemical, and gas injection methods. National oil companies, such as Saudi Aramco and China National Petroleum Corporation, also play a significant role by integrating EOR techniques in their large-scale oilfields to maximize production.
Collaboration between technology providers and oil producers is common to tailor solutions for specific reservoir conditions. Companies are increasingly focusing on sustainable practices by combining carbon capture and storage with EOR. Innovation, strong technical expertise, and government support are key competitive factors. Additionally, emerging players and technology startups are entering the market with specialized chemical formulations and advanced monitoring systems, adding to the competitive dynamics. Overall, competition is intense as companies strive to improve recovery efficiency while managing environmental and economic challenges.
In March 2025, Cairn Oil & Gas announced its plan to extract up to 300 million additional barrels of oil from its Mangala-Bhagyam-Aishwarya (MBA) fields in Rajasthan, India, using advanced enhanced oil recovery (EOR) techniques.
In May 2024, XTO Energy, a subsidiary of ExxonMobil, announced an innovative enhanced oil recovery (EOR) pilot project in North Dakota. The project involves using a combination of surfactants, water, and produced natural gas as a CO2 simulator to enhance oil extraction.