The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The market for geophysical equipment & services is expected to grow at a CAGR of approximately 2.8% during 2020– 2025. Factors such as growing applications in environmental geophysics and oil and gas exploration activities in emerging countries due to increasing demand from oil and gas industry, benefits the growth of geophysical equipment and services market. Clean energy transition has driven the demand for metals and minerals, which is expected to boost the need for geophysical equipment and services. Decreasing investments in seismic surveys are expected to restrain the growth of geophysical equipment & services market during the forecast period.
- The oil and gas sector accounted for the largest share in geophysical equipment and services market by end-user, owing to the demand for seismic surveys that helps to obtain accurate and precise mapping of hydrocarbons.
- Incorporation of advanced technologies for various geophysical studies are expected to open up new avenues for the market studies.
- North America is expected to dominate the market with majority of the demand coming from the countries such as the United States and Mexico.
Key Market Trends
Increasing Demand from Oil and Gas Industry
- The oil and gas industry is expected to maintain its dominance in the market over the forecast period. The global geophysical equipment & services market has been negatively affected by the downturn in the oil & gas industry in the past few years.
- The oil & gas market started to recover after mid-2016 and gained significant momentum in 2017. In 2018, the crude oil prices have touched USD 75 per barrel mark, as a result of which investors are expected to invest in the exploration for unconventional reserves due to declining conventional reserves to meet the increasing global oil & gas demand.
- As of 2018, the global consumption by fuel i.e. oil and gas accounted for 4662.1 and 3309.4 in million tonnes oil equivalent (MTOE) respectively. Solar, wind, energy storage system, and lithium-ion battery are expected to witness a high growth due to their increasing adoption in a carbon-constrained environment, resulting in huge demand for wide range of minerals and metals.
- With the increasingly depleting sources of oil and gas, the necessity for finding new sources for hydrocarbons is becoming huge as well as valuable. With this necessity comes the rise of geophysical services in the oil and gas industry.
- Seismic technology is expected to use extensively in oil & gas and mining industry. Therefore, the demand for geophysical equipment and services market is expected to increase over the forecast period.
North America to Dominate the Market
- North America is expected to dominate the geophysical equipment and services market during the forecast period. This is primarily on account of huge investment in exploration activities in shale oil plays.
- The number of geophysical surveys is increasing in the United States, which further boosts the market in this region. Moreover, the geophysical survey budget in the country is estimated to receive USD 1.16 billion, according to a proposed plan for the financial year 2019.
- Mexico’s crude oil production has been on the declining trend since 2005 and to address this, the government in 2014 had introduced energy reforms, thereby ending the 75-year monopoly of PEMEX, a state-owned oil & gas company.
- The Mexican government has offered several blocks for exploration in the past few years. The liberalization of the upstream sector has led to enter 70 oil & gas operators in the country after several biddings for blocks and has increased the demand for geophysical equipment to carry out several operations.
- Therefore, these factors are expected to create ample opportunities for geophysical equipment and services market during the forecast period.
The global geophysical equipment and services market is consolidated. Some of the major equipment manufacturers and service providers include Schlumberger Limited, Ramboll Group A/S, Sercel SA, IRIS Instruments, and DMT GmbH & Co. KG.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support