Coiled Tubing Market Outlook - 2030
The global coiled tubing market size was valued at $3.0 billion in 2020, and is expected to reach $4.7 billion by 2030, registering a CAGR of 4.5% from 2021to 2030. Coiled tubing is a long metal pipe and surface equipment initially developed for working on producing (live) wells. The application of coiled tubing has continued to rise beyond traditional applications such as well cleanout and acid stimulation. It is growingly used in the applications such as coiled tubing drill, fracturing, subsea, deeper wells, pipeline, and others. This growth is attributed to technical advancements, which have increased the utilization of coiled tubing in well intervention, drilling, and completion applications.
The growth of the global coiled tubing market is driven by rise in demand for conventional fuels from the developing economies across the globe. However, implementation of stringent government regulations toward environmental pollution from oil & gas products and rapid development of the electric vehicle industry are the key factors that hamper the growth of the market. On the contrary, rapid transition from coal power station to gas power station and rise in use of gas in the vehicles are anticipated to provide lucrative growth opportunities for the key players to maintain the position in the market in the upcoming years.
The coiled tubing market is segmented into operation, location, application, and region. Depending on operation, the market is segmented into pumping, circulation, logging, and others. On the basis of location, it is categorized into onshore and offshore. As per application, it is classified into well intervention, drilling, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global coiled tubing market analysis covers in-depth information of the major coiled tubing industry participants. Some of the major players in the market include Altus Intervention, Calfrac Well Services Ltd., Baker Hughes Company, Halliburton, Step Energy Services, Key Energy Services, LLC, Oceaneering International, Inc., Schlumberger Limited, Trican, and Weatherford International PLC.
Other players that operate in the value chain of the global coiled tubing market are Basic Energy Services, Weltec, Expro Group, Superior Energy Services, Inc., Deepwell AS, and Hunting Energy Services.
The key players have adopted numerous strategies such as product launch, agreement, partnership, acquisition, and business expansion, to stay competitive in the coiled tubing market.
For instance, in January 2021, Altus Intervention AS, a subsidiary of the international Altus Intervention Group AS, secured a long-term frame agreement with Equinor for the delivery of Integrated Wireline Services. This agreement includes the provision of fully integrated intervention services, including mechanical wireline, cased hole logging, and tractor conveyance on a total of 22 installations.
In addition, in September 2021, Halliburton signed an agreement with Energean (an independent E&P company focused on developing resources in the Mediterranean and the North Sea) to execute a three to five well drilling and completions campaign. This agreement led to increase in the demand for coiled tubing services and is expected to increase the project portfolio of the company.
Coiled tubing market, by operation
By operation, the pumping segment held the largest coiled tubing market share in 2020. This is owing to rise in demand for coiled tubing from variety of fluid pumping operations such as oil well cementing, pressure testing, solvent pumping, acidizing treatments, and others. In addition, to open the pores of limestone layers, there is an increase in need for acid pumping operation, which has resulted in driving the growth of the market during the forecast period.
Pumping segment is projected as the most lucrative segment.
Coiled tubing market, by location
On the basis of location, the onshore segment dominated the global market in 2020, in terms of share. This is due to rise in demand for oil & gas and related products, which led to surge in the demand for coiled tubing. In addition, rise in onshore sites propels the market growth, as onshore sites are easily operatable and it takes less years for production in comparison to offshore. Moreover, 70.0% of the world’s oil and gas come from onshore sites, which notably contributes toward the growth of the coiled tubing market during the forecast period.
Onshore is projected as the most lucrative segment.
Coiled tubing market, by application
By application, the well intervention segment garnered the highest market share in 2020. This is attributed to rise in demand for oil and gas products across the globe in various end use applications including building & construction, transportation, power generation, and others, which lead to increase in demand for well intervention services that enhances the production of operational and abandoned oil & gas wells.
Well Intervention is projected as the most lucrative segment.
Coiled tubing market, by region
North America garnered the highest share in the coiled tubing market in 2020, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, recent developments of shale oil reserves in the region are further projected to fuel the growth of the market during the analyzed time frame. The huge production and exportation of oil is anticipated to fuel the demand for coiled tubing services, which in turn is projected to fuel the growth of the market in the upcoming years.
North America holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdowns imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries that decreased the demand for oil and gas products, which hampered the coiled tubing market. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the market is expected to recover by the end of 2021 as COVID-19 vaccination has started in various economies across the globe, which is expected to improve the situation globally.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current coiled tubing market trends and future estimations of the global market from 2021 to 2030 to determine the prevailing coiled tubing market opportunities.
- A comprehensive market analysis of the factors that drive and restrict the coiled tubing market growth is provided.
- Estimations and coiled tubing market forecast are based on factors impacting the market growth, in terms of value.
- Profiles of leading players operating in the market are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable market growth.
Coiled Tubing Market Report Highlights
Key Market Players
KEY ENERGY SERVICES, LLC., TRICAN, HALLIBURTON, SCHLUMBERGER LIMITED, ALTUS INTERVENTION, STEP ENERGY SERVICES, WEATHERFORD INTERNATIONAL PLC, CALFRAC WELL SERVICES LTD., BAKER HUGHES COMPANY, OCEANEERING INTERNATIONAL, INC.
Rapid industrialization is the key factor attributed to the leading position of North America and LAMEA regions in the global coiled tubing market. The North America region is further expected to provide lucrative opportunities to leading coiled tubing service provides, owing to its huge potential to enhance exploration & production activities and surge in demand for petroleum products across the globe.
Increase in demand for conventional fuels such as petrol, diesel, kerosene and others from the transportation and power generation industry is the key factor driving the growth of the global coiled tubing market during the forecast period. However, implementation of stringent government regulations toward environmental pollutions owing to the use of petroleum products is expected to hamper the growth of the market during the analyzed time frame. On the contrary, use of smart control systems in the coiled tubing equipment and R&D towards efficient well intervention services are anticipated to provide remunerative opportunity for the key players to maintain the pace in the coiled tubing market in the upcoming years.
Among the analyzed regions, North America is expected to account for the highest revenue in the market by the end of 2030, followed by LAMEA, Asia-Pacific, and Europe.