Oilfield Services Market Size was valued at USD 303.49 billion in 2023. The Oilfield Services Market industry is projected to grow from USD 322.83 Billion in 2024 to USD 540.97 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.90% during the forecast period (2024 - 2032). Rapidly expanding shale gas development and rising demand for improved oil recovery are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
July 2024: Schlumberger announced a strategic partnership with an AI technology firm to enhance its digital and data analytics capabilities in oilfield operations. This move aims to improve predictive maintenance and operational efficiency.
The upstream part of the oil and gas business places a high value on oilfield services, particularly for offshore assets. The market is anticipated to grow more quickly as a result of increased shale gas extraction and increased oil and gas output. Reduced oilfield service costs and higher production output are the primary forces behind market expansion. The extraction of shale gas by hydraulic fracturing and other forms of market stimulation is increasing, which is speeding up market growth. The market's increased demand for oil and gas from offshore regions is what is driving the demand for oilfield services. Moreover, technology developments for improved production yield in oilfield reserves and the rising number of oil and gas discoveries can both have a significant impact on market growth.
April 2023
Liberty Power Innovations (LPI), an integrated alternative fuel and power solutions provider for distant applications, made its commercial debut. LPI's initial areas of focus are well site fuelling and logistics, field gas processing and treatment, and compressed natural gas (CNG) supply. With Liberty at the vanguard of this revolution, the oilfield is going through a generational technological shift in fuel consumption from dirty burning diesel to clean-burning natural gas. Natural gas is used by Liberty's suite of digiTechnologiesSM to remotely generate electricity and power the company's digiFleetSM services of the future.
Oilfield services are highly valued in the upstream sector of the oil and gas industry, especially for offshore assets. The market is expected to expand faster due to the rising shale gas extraction and the rising oil and gas output. The main drivers of market expansion are a decrease in the price of oilfield services and an increase in production output. The market is expanding more quickly because to increased shale gas extraction from hydraulic fracturing and other stimulation techniques. The market's need for oilfield services is being driven by an increase in demand for oil and gas coming from offshore regions.
The global market for oilfield services is anticipated to expand at a 5.1% CAGR from 2021 to 2038. The expansion of the oil and gas sector and the quickening pace of shale gas development are two major factors driving the oilfield services market. The demand for oil and gas services is stimulated by increased oil and gas investment in the prospective region, including the Middle East and Africa. However, the main obstacles to the expansion of the oilfield services industry are the rising emphasis on the creation of renewable energy sources and the erratic crude oil prices.
Moreover, New oil and gas fields are being investigated to meet the demand, especially in sectors like transportation, power generation, and other industries. Thanks to technical advancements, operators can now extract oil from challenging sources. For instance, it was very expensive to extract oil and gas from bituminous sand and shale, respectively. On the other side, new technologically advanced techniques have reduced the cost.
Well-completion equipment and services, well intervention services, coiled tubing services, pressure pumping services, OCTG, wireline services, and drilling waste management are included in the market segmentation for oilfield services based on service type.
Offshore and onshore are two application-based segments of the oilfield services market. The forecast period anticipates the offshore category to experience the strongest growth.
April 2023
The UK-based Coil Tubing and Pumping business of Baker Hughes has been acquired by Oslo-listed offshore oil and gas services company Archer. When Baker Hughes' CT&P business in the UK was officially sold to Archer Limited in February, the company stated that the deal contained four complete CT&P packages with accompanying equipment that was tailored and optimized for the UK market.
The global oilfield services market segmentation, based on service type, includes Well Completion Equipment & Services, Well Intervention Services, Coiled Tubing Services, Pressure Pumping Services, OCTG, Wireline Services, drilling waste management. A larger oilfield services market revenue is anticipated for the drilling segment due to the expanding initiatives for oil recovery and well testing in the current oil and gas fields. This segment includes a number of distinct types of oilfield services, including artificial lift systems, floating production vessels, support vessels, well testing services, subsea equipment, Christmas trees, enhanced oil recovery, digital oilfield, and other production services.
The global oilfield services market segmentation, based on application, includes offshore and onshore. Offshore segment is expected to be the fastest-growing segment during the forecast period, owing to growing investment in subsea oil & gas assets. Various oil field service providers are investing deeply in offshore assets to increase their well productivity, reservoir performance, and overall life cycle of the well. The onshore location requires more reliable and flexible equipment and services, which boosts the demand for this market.
For instance, in May 2022, Baker Hughes Norge, Halliburton, and Schlumberger each held contracts with Equinor for integrated drilling and well services on the Norwegian continental shelf (NCS). The contracts have a two-year term beginning on June 1, 2022. About NOK 20 billion is the contract's entire estimated worth.
Figure 2: Oilfield Services Market, by Application, 2024 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Oilfield Services Market accounted for USD 128.2 billion in 2021 The oilfield services sector is anticipated to expand as a result of the region's increasing oil and gas production as well as the emergence of shale plays. Additionally, both in terms of consumption and production, the United States is among the top nations in the world's oil and gas market. The advancement of horizontal well bores as well as the accessibility of cutting-edge completion methods like multi-stage hydraulic fracturing may further contribute to the expansion of the oilfield services sector in the area.
Further, the major countries studied in the market report are: The U.S, Germany, South Korea, France, UK, Italy, Spain, China, Japan, India, Canada, Australia, and Brazil.
Figure 3: Oilfield Services Market share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Oilfield Services Market accounts for the second-largest market share and is anticipated to increase since, in their home nation of Norway, the operational costs of oil wells decreased by 30% between 2029 and 2021, which decreased the cost of drilling. Further, the Germany oilfield services market held the largest market share, and the UK Oilfield Services Market was the fastest growing market in the European region
The Asia-Pacific Oilfield Services Market is expected to grow at the fastest CAGR from 2022 to 2030. Due to the region's expanding exploration efforts, which involve numerous nations including China, India, Malaysia, and others, Asia-Pacific is also on the list of regions that will experience growth. Indonesia, which contains more than 2 trillion cubic feet of recoverable resources, saw the biggest gas recovery in February 2021, according to Respol, a worldwide energy business. Moreover, China Oilfield Services Market held the largest market share, and the India Oilfield Services Market was the fastest growing market in the Asia-Pacific region
Major business players are investing a lot of money in R&D to expand their product portfolios, which will spur further development in the oilfield services market. With significant industry changes like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking a variety of strategic activities to expand their global presence. Oilfield services providers must provide affordable goods to grow and thrive in a market that is becoming more and more competitive.
Manufacturing locally to cut operating costs is one of the main business methods used by manufacturers in the worldwide oilfield services industry to benefit customers and increase the market sector. The oilfield services industry has recently given medicine some of the most important advantages. Major players in the oilfield services market like Schlumberger Limited (US), Halliburton (US), Weatherford International plc (US), National Oilwell Varcos (US), and China Oilfield Services Limited (China) are putting money into R&D to increase market demand.
Baker Hughes Company, based in Houston and incorporated in Delaware, is one of the world's major oil field services firms. The company offers oil well drilling, formation appraisal, completion, production, and reservoir consulting goods and services. It has research and manufacturing centers in Australia, Singapore, Malaysia, India, Dubai, Saudi Arabia, Italy, Germany, Norway, Oklahoma, Louisiana, and Missouri, among other places. General Electric (GE) held the bulk of the corporation from 2017 to 2020; however, GE no longer has a meaningful position in the company. In March 2021, A joint venture between Baker Hughes and Akastor ASA was established to unite the Subsea Drilling Systems (SDS) business of Baker Hughes with the fully owned subsidiary of Akastor, MHWirth AS (MHWirth).
TechnipFMC is a French-American worldwide oil and gas firm headquartered in the United Kingdom that offers full project life cycle services to the energy industry. Engineering News-Record placed it 23rd among the world's Top 225 International Design Firms in 2017. FMC Technologies of the United States and Technip of France merged to form the firm, which was announced in 2016 and completed in 2017. TechnipFMC works in three areas: subsea, offshore/onshore, and surface projects.In July 2021, Technip FMC purchased the remaining 49% of Island Offshore Management AS shares. In 2018, Technip FMC and Island Offshore Management AS launched TIOS AS, a joint venture. TIOS has serviced over 740 wells internationally since 2005, providing fully integrated Riserless Light Well Intervention (RLWI) services including as project management and engineering for plug and abandonment, coiled tubing, and well completion and intervention operations.
In May 2021: Halliburton has installed a large coiled tubing intervention system at its new Louisiana training site. The system features Halliburton's V135HP coiled tubing injector, a reel capable of handling 36,000 feet of 2-3/8-inch coiled tubing, and a tension lift frame with a 750-ton capacity.
In September 2020: Subsea 7 had landed a contract off the coast of Trinidad and Tobago. The contract covers the project management, engineering, procurement, installation, and pull-in of one subsea rigid flowline and one flexible riser, as well as the associated subsea infrastructure and umbilical system. The installation activities are set to begin in 2021.
In August 2020: DOF Subsea has announced four new contracts worth USD 110 million with Petrobras. The contract calls for three DOF vessels to be mobilised to inspect flexible pipelines, risers, and subsea equipment in the Campos, Santos, and Espirito Santos basins, as well as the Marlin field.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 303.49 billion |
| Market Size 2024 | USD 322.83 billion |
| Market Size 2032 | USD 540.97 billion |
| Compound Annual Growth Rate (CAGR) | 5.90% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Service Type, Application, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Schlumberger Limited (US), Halliburton (US), Weatherford International plc (US), National Oilwell Varcos (US), Asian Energy Services Limited (India), Superior Energy Services Inc (US), China Oilfield Services Limited (China) and Others. |
| Key Market Opportunities | Increasing spending on oil and gas in the MENA region |
| Key Market Dynamics | Increasing interest in improved oil recovery |
Oilfield Services Market Highlights:
Frequently Asked Questions (FAQ) :
The Oilfield Services Market size was valued at USD 303.49 Billion in 2023.
The market is projected to grow at a CAGR of 5.90% during the forecast period, 2024-2032.
North America had the largest share in the market for oilfield services.
The key players in the market for oilfield services are Schlumberger Limited (US), National Oilwell Varcos (US), Halliburton (US), Superior Energy Services Inc (US), China Oilfield Services Limited (China) and Others.
The drilling waste management category dominated the market in 2021.
Offshore had the largest share in the market for oilfield services.
Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
