Downhole Drilling Tools Market: Current Analysis and Forecast (2022-2028)

Downhole tools are the component that is utilized during the process such as well drilling, well completion, and well intervention with other. The downhole drilling tools operations enable the oil well to enhance the oil well production and maintain the optimized rate during the operation. The downhole tools provide the opportunity for the oil field to tap the untapped oil and gas below the earth. The downhole drilling tools help the operator to reduce the operational cost of the activity and achieve maximum efficiency. These tools are widely used for variable pressure conditions and elevated temperatures. Additionally, it helps to recover oil & gas at a higher rate and maintain the constant flow of the material. The increasing demand for energy coupled with the rapid urbanization and industrialization along with increasing country-specific demand for oil & gas for the strategic reserve is expected to propel the downhole drilling tool market during the forecast period. The increasing investment and digitalization such as IoT, AI, and digital oil wells with others will positively impact the downhole drilling tool market.

The Downhole Drilling Tools Market is expected to grow at a steady rate of around 6% owing to the increasing exploration and production activities of mature and unconventional oil fields due to the increasing demand for energy. There are several measures that have been taken by the individual organization and governments in recent times across the world to explore offshore oil fields, deep-water oil fields, and mature oil fields owing to the increasing demand for energy and requirement for the safer operational activities and optimize production rate increases the demand for the downhole drilling tools. Technological advancement and increasing investment will enhance the downhole drilling tools market in the future. For instance, in 2021, ADNOC drilling was awarded a contract worth 3.8 B from its parent company ADNOC onshore for drilling, workover & other well services.

Based on the location of deployment, the market is segmented into onshore and offshore segments. The onshore segment contributes significantly to the market for the year 2020 and is expected to remain the same during the forecast period owing to the higher availability of the oil field on the onshore location which is approximately 70% compared to the offshore segment which accounts for nearly 30%. Additionally, the increasing number of mature oil fields and technological advancements such as horizontal drilling will also propel the downhole drilling tools market. However, the increasing deep water and ultra-deepwater exploration activities will increase the offshore downhole drilling tool market share during the forecast.

Based on application, the market is categorized into well drilling, well intervention, well completion, formation & evaluation, and oil & gas production. The well drilling segment shows a significant growth in the year 2021 and is expected to remain the same during the forecast period owing to the discoveries of the new oil & gas field and increasing offshore exploration activities coupled with the increasing population and demand for energy. The downhole tools have the ability to drill without friction and clear the blockage which provides added advantage over the other segments.

Based on the type, the downhole drilling tools market is segmented into handling tools, downhole control tools, drilling tools, impurity control tools, and flow & pressure control tools. The drilling tools are expected to show significant growth during the forecast period owing to the increasing drilling activities and discoveries of the new oil field. The downhole tools are deployed to probe, extract, and perform other surface applications which allow the companies to reduce the overall cost by analyzing the onsite data in less time.

For a better understanding of the market adoption of the downhole drilling tools industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the presence of the unconventional oil and gas field as well as the boom in the shale oil fields. For instance, as per World Energy Council, the US has 1161 trillion cubic feet of recoverable unconventional gas which is the higher in the world. In addition, technological advancements such as the integration of the IoT, AI, and the requirement of horizontal drilling for optimized output are propelling the downhole drilling tools market.

Some of the major players operating in the market include: Baker Hughes A GE Co., Saint Gobain, Schoeller Bleckmann Oilfield Equipment AG, United Drilling tools, Weatherford International, Oil States International Inc., National-Oilwell Varco Inc., Schlumberger Limited, Hunting PLC, and Halliburton Company.