PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1555561
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1555561
Coiled Tubing Manufacturing Market size was valued at USD 3,251.2 Million in 2023, expanding at a CAGR of 5.50% from 2024 to 2032.
The intricate procedure of producing durable, pliable tubing for applications in the oil and gas, aerospace, and medical sectors is referred to as coiled tubing manufacturing. Sophisticated manufacturing techniques, like precise welding and shaping, are used to ensure that the tube meets strict quality standards. Furthermore, because they can endure challenging operating conditions, stainless steel and high-strength alloys are frequently used to create tubing.
Coiled Tubing Manufacturing Market- Market Dynamics
Increased Investment in Exploration and Production (E&P) Sector to Propel Market Growth
In the future, rising expenditures for exploration and production (E&P) operations should fuel the market for coiled tubing manufacturing. Exploration and production activities are the processes of looking for natural gas and oil reserves and then moving forward with extracting these resources from the earth for a profit. Because it is a more conventional and economical method, well-coiled tubing is used in exploratory drilling to stimulate a zone of interest and perform a drill stem test (DST). For instance, to increase output to 1.2 million barrels per day, the US-based natural gas company Exxon Mobil Corporation committed $10 billion to an offshore project in Guyana in April 2022. Thus, the market for coiled tubing manufacturing is being driven by rising investments in exploration and production (E&P) operations.
Coiled Tubing Manufacturing Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.50% over the forecast period (2024-2032)
Based on service segmentation, the well intervention category was predicted to show maximum market share in the year 2023
Based on application segmentation, the onshore category was the leading segment in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Coiled Tubing Manufacturing Market is segmented on the basis of Service, Application, and Region.
The market is divided into three categories based on service: Well intervention (Well Cleaning & Pumping Operations, Well Completions & Mechanical Operations), Drilling Service, and Others (Fishing, fracturing, wireline logging, and inspection). The well intervention category dominates the market because of a rise in the need for oil and gas products across the globe in a variety of end-use applications, including power generation, building and construction, and transportation. This raises the need for well intervention services, which increase the output of both active and inactive oil and gas wells. Since traditional tubing needs to be screwed together, coiled tubing is favored in well interventions. Because the former can be placed immediately during active production, it does not require the utilization of a workover rig. It works well in high-pressure wells and is reasonably priced.
The market is divided into two categories based on application: Onshore and Offshore. The onshore category dominates the market and is likely to maintain its dominance during the forecast period, ascribed to the rise in drilling operations brought on by the rising demand for energy around the world, which has compelled oil and gas corporations to investigate and drill further into more remote sources with challenging topographical conditions. Additionally, a greater emphasis on unconventional resources like shale gas and tar sands is anticipated to fuel the segment's growth during the projection period. The market for coiled tubing manufacturing is projected to be dominated by onshore operations, even if the emphasis is now more on offshore ones. This is due to the rise in unconventional resource development and the production tubing of depleted gas wells.
Coiled Tubing Manufacturing Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Over the course of the forecast period, North America is anticipated to hold the greatest share of the global market for Coiled Tubing Manufacturing. Large-scale production and development of oil and gas, especially in the United States and Canada, is the cause of this dominance. Because of established oil and gas fields and the continuous development of unconventional resource plays like tight oil reservoirs and shale gas, coiled tubing services and equipment are always required for well intervention, drilling, and completion operations. Furthermore, because of the existence of significant market players, favorable government regulations, and technical breakthroughs, North America maintains a substantial part of the market for coiled tubing manufacturing.
In addition, the Coiled Tubing Manufacturing market is anticipated to expand at the fastest rate in the world during the projected period in the Middle East and Africa. MEA has a lot of hydrocarbon resources, particularly in countries like Israel, Saudi Arabia, and the United Arab Emirates. This leads to significant Investment in these locations for the production and exploration of oil and gas. The need for coiled tubing solutions for drilling, well intervention, and production enhancement is further driven by the region's emphasis on developing unconventional resources and increasing oil recovery from established fields.
Some of the leading companies in the coiled tubing manufacturing industry are Tenaris S.A., Schlumberger Limited, C&J Energy Services, NOV Inc. (National Oilwell Varco), and John Lawrie Group, among others. To maintain a competitive edge in the coiled tubing manufacturing sector, the leading market competitors are concentrating on ventures and acquisitions. Among the primary tactics used by the top competitors to increase their market share are mergers and acquisitions. Other significant tactics used by the main international businesses to increase their current market shares include the construction of a vast supply network and product enhancements. Consequently, during the projected period, the global coiled tubing manufacturing market trend is expected to experience notable expansion.
April 2024: The master gas system (MGS) project of Saudi Aramco is currently in its third phase. US oilfield services giant Baker Hughes has been awarded a contract to deliver gas application equipment. In the coming years, Aramco's gas-based initiatives are probably going to pick up steam, even if new oilfield projects in Saudi Arabia have been put on hold due to a government mandate to stop increasing the country's capacity for producing crude oil.
November 2023: In an announcement, Forum Energy Technologies, Inc. said that it has finalized plans to purchase Variperm Energy Services ("Variperm") for $150 million in cash and 2 million shares of FET's common stock. This represents a valuation of roughly 3.7x Variperm's trailing twelve-month EBITDA as of September 30, 2023. With usual closing conditions and Canadian regulatory approval, the acquisition is anticipated to close in January 2024.
September 2023: ProPetro Holding Corp. said that STEP Energy Services Ltd., a subsidiary of STEP Energy Services Ltd., has purchased ProPetro's Coiled Tubing assets. These assets were utilized for nitrogen pumping, tubing-conveyed perforating, wellbore clean-out, and frac plug mill-out. ProPetro said that it believed STEP could expand the company and add value by opting to receive payment in the form of cash and STEP shares.