COVID-19 Impact analysis

The zonal isolation market was negatively impacted by the pandemic as the sharp decrease in demand was seen due to travel restrictions owing to lockdown and halt at industrial operations took place amid the COVID-19 pandemic. The demand for oil & gas, which are the major drivers of the zonal isolation market took a hit and it reflected back to the zonal isolation market as well. The halts in production or production cuts in the oil & gas industry due to decline in industrial as well as domestic fuel has made a dent on the zonal isolation market. A shift in paradigm in business and operational models has been encountered due to the pandemic where the industries are dealing with the supply chain disruptions and restrictions on cross-border transportations and trade. The financial impact on firms and financial markets by the means of stock market volatility due to uncertainties in the market. This also affected the financial health of many organizations which also led to hindrances in the new exploration & production ventures. However, the demand for oil & gas is estimated to increase once the lockdown has been lifted and the trade has been resumed.

Top Impacting Factors

• The increase in exploration and production (E&P) of oil & gas wells, particularly in offshore fields across the globe is projected to enhance the demand for zonal isolation in the proximate future. The snowballing shale gas exploration and a considerable increase in the number of drilling rigs to meet the increase in demand for crude oil are expected to fuel the growth of the zonal isolation market. In the past few years, we have viewed the advent of numerous novel ventures in the domain of ocean mapping and bathymetry. These projects have led to the birth of multiple sub-projects that involve the use of zonal isolation technologies. Henceforth, the growth of the global zonal isolation market mostly relies on the level of maturity attained by the oil, gas, and marine industries of a region.
• The reduction in the difficulties linked with the migration of shale gas to a surface, plugs, packers, and others, the zonal isolation technologies are being utilized by well operators. The amplifying degree of offshore production and exploration (E&P) activities in nations such as the U.S. is probable to draw in a fine demand throughout the forecast period. Zonal isolation is a frequent necessity across the above-mentioned industries, and this is an imperative dynamic of market growth. 

Market Trends

• New product launches to flourish the market: Numerous new products are being developed across the globe to provide zonal isolation at adverse temperature and pressure. For example, Schlumberger launched CemFIT, a mud sealing cement system, whereas Packers Plus Energy Services Ltd. launched Lightening Plus. 
• North America is foreseen to hold a larger share in the global zonal isolation market. This could be due to the soaring number of drilling rigs and high focus on drilling activities. More opportunities are envisioned to take birth as players operating in North America look to invest in the untapped oil and gas reserves. In the Europe region, the abundant availability of oil & gas reserves in Russia is the key driver of the market. 
• On the other hand, the Asia-Pacific zonal isolation market might exhibit a quicker growth in the next few years as the unconventional reserves in this region are geared up for development. Asia-Pacific region is also anticipated to drive on an aggressive economic development to reinforce its development in the proximate future. Nations such as India and China could surface as crucial markets for Asia-Pacific region, considering the rise in drilling activities and supportive government regulations.

Key Segments Covered

Key Benefits of the Report

• This study presents the analytical depiction of the Zonal Isolation industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the Zonal Isolation market share.
• The current market is quantitatively analyzed from 2020 to 2030 to highlight the Zonal Isolation market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed Zonal Isolation market analysis based on competitive intensity and how the competition will take shape in coming years