[155 Pages Report] The downhole tools market is estimated to be USD 3.53 Billion in 2014 and is projected to grow with a CAGR of 4.9% from 2014 to 2019. Downhole tools play an important role in oil & gas exploration and production activities with applications in a variety of operations such as fishing, casing, cementing, well bottom communication, drilling, logging, fracturing, and well measurements.

Market growth for downhole tools has been strongly impacted by the oil price decline. E&P capital expenditures in 2015 have witnessed more than 20% investment dip in comparison to 2014. This is further expected to decline in 2016 by another 5 to 10%. However, from the end of 2017 and after, oil price is anticipated to stabilize and start climbing to reach at least $80 a barrel by 2018 rejuvenating the overall market growth.

Research Methodology

This research study involves extensive usage of secondary sources, directories, and databases (such as Hoovers, Bloomberg, Businessweek, Factiva, and OneSource) to identify and collect information useful for this technical, market-oriented, and commercial aspects of downhole tools. The below explain the research methodology.

Ongoing exploration and production activities in various regions is studied

Exploration and production spending historical trend and current years� spending is studied

Major regions were identified along with countries contributing the maximum share to drilling

Key market players were identified; revenues and industry trends along with top down approach were used to estimate market value.

Oil price decline across regions and key countries is analysed and impact on downhole tools market is analyzed

Overall market size is determined by forecasting techniques based on number of investments, developments of downhole tools, expected product launch and demand of downhole tools for different applications.

After arriving at the overall market size the total market has been split into several segments. The figure below shows the break-down of the primaries on the basis of company designation, and region, conducted during the research study.

Study answers several questions for the stakeholders which include downhole tool manufacturers, oil & gas field operators, consulting firms in oil & gas sector, offshore production and exploration associations and other stakeholders. It gives them information about market segments to focus in next two to five years for prioritizing the efforts and investments.

Scope of the Report:

The global downhole tools market has been analyzed in terms of revenue ($million) for the aforesaid applications, types, and by regions.

By Region

Asia-Pacific

Europe

North America

South & Central America

Middle East

By Application

Well Drilling

Well Completion

Well Intervention

Formation & Evaluation

Oil & Gas Production

By Type

Flow & Pressure Control Tools

Impurity Control Tools

Drilling Tools

Downhole Control Tools

Handling Tools

Available Customization

With the market data provided above, MarketsandMarkets offers customizations as per the company�s specific needs. The following customization options are available for the report:

Detailed analysis and profiling of additional market players (Up to 5)

The global downhole tools market is estimated to reach $4.49 Billion by 2019, at a CAGR of 4.9%, signifying a high demand for these tools for well intervention purposes.

Downhole tools play an important role in oil & gas exploration and production activities. Downhole tools are employed for workover and completion activities of a well in the Bottom Hole Assembly (BHA). Downhole tools are selected based on the formation characteristics of the reservoir and the rate of penetration to be achieved. These tools find application in a variety of operations, such as fishing, casing, cementing, well bottom communication, drilling, logging, fracturing, and well measurements. The rising demand for advanced tools that function optimally in high pressure and temperature conditions has also been a driver of this market.

Discovery of shale gas reserves and ultra-deep drilling activities: Driver of downhole tools market.

North America dominated the global market with a share of 42% in 2013. However, Africa is expected to grow at a faster rate with the highest CAGR of 8.2% during the forecast period. This is mainly because of new hydrocarbons discoveries in Africa. Well intervention forms the major application of downhole tools and accounts for a market share of 29%.

Downhole Tools Market Share (Value), by Region, 2014

Source: MarketsandMarkets Analysis

The top players in the downhole tools market include National Oilwell Varco, Inc. (U.S.), Logan Oil Tools Inc. (U.S.), Halliburton (U.S.), Baker Hughes (U.S.), Schoeller Bleckmann Oilfield Equipment AG (Austria), and Schlumberger (U.S.).

New Product development: Key Strategy

Most of these companies mainly rely on growth strategies such as new product launch, joint ventures & contracts, mergers & acquisitions, and investments & expansions in diversified geographic areas. The risk of failure involved in the industry is high due to new and innovative technologies being introduced in the market. Hence, to enhance market penetration and share the expenditure along with risks, the companies have opted to develop new products.

The major downhole tools include flow and pressure control, impurity control, drilling, downhole control systems, and handling tools. Drilling downhole tools held the largest market share, in terms of value, in 2014.