The global coiled tubing market size is expected to reach USD 4.72 billion by 2027, expanding at a CAGR of 4.8% over the forecast period, according to a new report by Grand View Research, Inc. The market is expected to grow on account of increasing need to maximize oil and gas output from existing oil and gas wells. Rising demand for primary energy for transportation, power generation, and household activities has resulted in increased consumption of oil and gas in major economies. As a result, there are increasing investments in exploration and production activities in unconventional oil and gas reserves.
Coiled Tubing (CT) plays a significant role in enabling upstream oil and gas players to produce oil in a cost effective way. It can be used on live wells as the product can be inserted into the well while the oil and gas production is ongoing. Moreover, there are number of well intervention operations such as well completion and well cleaning that can be performed in a cost effective way through utilization of coiled tubing. It can endure greater tensile and compressive forces when perforating highly deviated and horizontal wells.
North America was the largest regional market for coiled tubing in 2019. The region is predicted to maintain its dominance in the forthcoming years. Significant boost in the production of tight oil particularly in U.S has resulted in significant rise in demand for coiled tubing. Canada is yet another prominent regional market, as there are number of deviated wells in the country, for which CT is largely used for well intervention and drilling services.
The top three players in the global coiled tubing market include Halliburton, Baker Hughes Company, and Schlumberger Limited. These companies gain competitive edge in oilfield service market as the oil and gas exploration and production companies are aiming to minimize cost of production through innovative technologies like coiled tubing.
Further key findings from the report suggest:
- North America is expected to register the fastest CAGR of 5.5% in terms of revenue, from 2020 to 2027, owing to accelerating production of tight oil in the country
- Well intervention service is estimated to exhibit the fastest CAGR of 5.0%, in terms of revenue from 2020 to 2027. The growth is attributed to rising demand from oil and gas producers to maximize production from the existing wells
- Onshore application acquired the highest market share of 61.5% in 2019 owing to abundant production of oil and gas from onshore fields
- Offshore application is estimated to experience the fastest CAGR of 5.6% in terms of revenue, from 2020 to 2027, owing to rising investments in offshore fields on global scale
- In 2018, Baker Hughes Company was awarded the contract by Saudi Aramco for coiled tubing services and drilling for Marjan oilfield expansion