The Asia-Pacific Coiled Tubing Market is expected to grow at a CAGR of more than 5.69% over the period of 2020-2025. Factors such as the rising number of mature fields in several countries clubbed with increasing energy demand is driving the coiled tubing industry at a regional level. As the coiled tubing units are used while drilling, completion and intervention operations, new discoveries and oil & gas are promulgating the Asia-Pacific coiled tubing service market. However, the volatile crude oil prices and high maintenance cost are the factors which are playing a crucial role in restraining the growth of coiled tubing services market.
- The coiled tubing services market is expected to be majorly driven by well intervention segment during the forecast period, which is preferred being done through coiled tubing technique.
- Development of the deep-water and ultradeep water is expected to create an opportunity for the studied market.
- China is anticipated to grow significantly during the forecast period. China is estimated to grow considerably due to its strong economic growth along with an increase in manufacturing capacities.
Key Market Trends
Well Intervention Segment to Dominate the Market
- Coiled tubing well intervention is preferred as the coiled tubing unit allows for operations such as stimulation, re-perforation, fluid pumping, fishing, sand control, and zonal isolation.
- The increasing capital expenditure on well performance enhancement and well cleaning is expected to drive the well intervention segment.
- Likewise, for depleting reservoirs, the well requires completion or mechanical operation such as fishing, perforation of producing wells, scale removing, setting a plug or packer and finally increasing the production. Demand for these services is driving the well intervention segment for coiled tubing.
- Moreover, the shale activities in Asia-Pacific countries, with the presence of major upstream operators is presenting long-term contract opportunity for a coiled tubing market.
- Therefore, the coiled tubing services market is driven by rising well intervention operations demand which is expected to account for substantial share amongst different applications.
China to Dominate the Market
- A large number of shale reservoirs are present in China which require a high number of coiled tubing units, which creates opportunities for the coiled tubing services market. China happens to be the largest shareholder of this market with a value of USD 408.2 million approximately, in 2020.
- China is considered to be the ground for new technology, with a consequential large build-up of coiled tubing units, and related companies keeping the rates competitive, making coiled tubing workovers more viable.
- Well, Intervention is the most used application in coil tubing compare to other applications for high operations.
- The matured oil fields are required intervention operations to increase the productivity of the wells. Therefore, the coiled tubing services market in China is primarily growing by high drilling activities and redevelopment of matured fields.
The Asia-Pacific coiled tubing market is moderately fragmented. Some of the key players in this market include Baker Hughes Co, Halliburton Company, Schlumberger Limited, and Weatherford International Inc.
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