Coiled Tubing Market Size, Share & Segmentation by Service (Well Intervention & Production [Well Completion, Well Cleaning, Others], Drilling, Others), by Operation (Circulation, Pumping, Logging, Perforation, Others), by Application (Onshore and Offshore), by Regions and Global Market Forecast 2024-2031

Coiled Tubing Market Report Scope & Overview:

The Coiled Tubing Market size was valued at USD 2.92 Billion in 2023. It is expected to grow to USD 4.21 Billion by 2031 and grow at a CAGR of 4.7% over the forecast period of 2024-2031.

Coiled tubing, a continuous tube constructed from steel or composite materials, finds extensive application in the oil and gas sector for deployment and conveyance purposes. Its usage spans across oilfields, well intervention services, drilling activities, onshore and offshore projects, and various well-work over operations, offering versatility in diameters, lengths, and tapered profiles. Unlike conventional setups, coiled tubing can be mechanized and integrated seamlessly into ongoing operations, facilitating access to greater depths. A coiled tubing apparatus, commonly referred to as CT Strings, comprises essential components such as the coiled tubing reel, tubing guide, injector head, pressure control system, and power pack. The inherent flexibility and adaptability of coiled tubing contribute significantly to its superiority over traditional methods. The energy industry witnesses diverse applications for coiled tubing, and the market is anticipated to exhibit a steady growth trajectory based on prevailing trends.

Get more information on Coiled Tubing Market - Request Free Sample Report

Originally designed for use in well production activities, coiled tubing has evolved beyond its traditional roles, extending into areas like coiled tubing drilling, fracturing, subsea applications, deeper wells, and pipelines. Technological advancements have been instrumental in expanding the scope of coiled tubing, enabling its increased utilization in well intervention, drilling, and completion processes. The utilization of coiled tubing contributes to enhanced well and reservoir performance. The multifaceted applications of coiled tubing include mechanical isolation, milling, drilling, rock fracturing, side-tracking, production tubing, low bottom hole pressure drilling, wellbore cleanout, and tube logging and perforating. The industry's forward momentum is further propelled by favorable regulatory policies, governmental initiatives, and support. Additionally, the coiled tubing sector is poised for growth due to increasing demand from emerging economies, ongoing technological innovations, and substantial investments in research and development.

MARKET DYNAMICS:

Drivers

• Global upstream and operational expenses are both high.

• Increasing demand for oil and gas, the upstream sector of the oil and gas industry.

The global upstream and operational expenses in the oil and gas industry are currently elevated. This is primarily attributed to the heightened demand for oil and gas, particularly in the upstream sector. The term "upstream" refers to the initial stages of the oil and gas production process, including exploration, drilling, and extraction activities. The surge in demand for these energy resources has led to increased costs associated with the upstream operations, encompassing expenses related to exploration, development, and production. In essence, the rise in global demand for oil and gas has resulted in higher expenditures within the upstream segment of the industry, reflecting the substantial costs involved in locating, extracting, and bringing these resources to the market. The increased operational expenses underscore the challenges and financial investments required to meet the growing global appetite for oil and gas.

Restraint

• Coiled tubing is a relatively thin-walled piece of equipment with a modest appearance.

• Corrosion, human mistakes, mechanical damage, and string production issues have all been linked to failures.

Coiled tubing is characterized by its relatively thin-walled structure and unassuming physical appearance. Despite its modest look, various factors, including corrosion, human errors, mechanical damage, and issues related to the production of the tubing string, have been identified as contributing to instances of failure in coiled tubing applications. These challenges highlight the need for careful consideration and proactive measures in addressing potential issues associated with the durability and reliability of coiled tubing during its use.

Opportunities

• Technological advancements in exploration

• The financial feasibility of exploration ventures and the declining oil reserves in shallow wate.

Technological advancements in exploration have significantly impacted the financial feasibility of exploration ventures, especially considering the declining oil reserves in shallow waters. The improved technologies utilized in exploration activities have not only enhanced the efficiency of the process but have also influenced the economic viability of such ventures. As traditional shallow water reserves diminish, the need for advanced exploration methods becomes crucial to locate and extract oil reserves in deeper and more challenging environments. This intersection of technological progress, economic considerations, and the shift towards exploring deeper waters reflects the dynamic landscape of the oil and gas industry.

Challenges

• Both road haulage and offshore crane hoisting pose logistical obstacles.

• Pumping fluids with high-pressure losses, coiled tubing corrosion, and coiled tubing rotation inability.

Both road haulage and offshore crane hoisting present logistical challenges. Additionally, pumping fluids with high-pressure losses, corrosion in coiled tubing, and the inability of coiled tubing to rotate further compound the logistical obstacles associated with these processes. These issues underscore the complexities involved in transporting materials via road and hoisting operations in offshore settings. Moreover, challenges related to fluid pumping, coiled tubing corrosion, and rotation limitations highlight the technical hurdles that need to be addressed in the effective execution of these activities.

Impact of Russia-Ukraine War:

Coiled tubing is extensively used in the oil and gas sector. The conflict could impact oil and gas production in the region, affecting the demand for related services and equipment, including coiled tubing. Changes in energy prices and production levels can have cascading effects on the coiled tubing market. Geopolitical conflicts can disrupt supply chains, affecting the production and distribution of materials and equipment, including coiled tubing. If key suppliers or manufacturers are located in the conflict zone or rely on supply routes through the region, it could lead to delays and shortages. Ongoing geopolitical tensions create an environment of uncertainty, making it challenging for businesses to make long-term strategic decisions. Investments and projects in the coiled tubing market may be delayed or put on hold as companies assess the risks and potential impacts of the conflict.

Impact of Economic Downturn:

Economic downturns often lead to decreased investment in the oil and gas sector. As companies face financial constraints, they may cut back on exploration and production activities, directly impacting the demand for coiled tubing services. Economic downturns are typically associated with a drop in oil and gas prices. Lower prices can result in reduced revenues for oil and gas companies, influencing their willingness to invest in drilling and well intervention projects that utilize coiled tubing services.

Companies may defer capital expenditure plans during economic downturns to conserve cash. This can lead to postponed projects or reduced budgets for maintenance and well intervention activities, affecting the demand for coiled tubing services. Financial Strain on Service Providers: Coiled tubing service providers may experience financial strain as their clients, mainly oil and gas companies, cut back on spending. This can lead to increased competition for contracts and pricing pressure within the coiled tubing market.

IMPACT OF COVID-19:

The emergence of COVID-19 has had a variety of effects on the worldwide economy, including the oil and gas, automotive, industrial, and power generating industries. The COVID-19 epidemic interrupted the oil and gas industry's supply chain and harmed the industry's an exploration and production activities. As the transportation industry has ground to a halt, lockdown limitations have dramatically reduced worldwide demand for oil and gas. Furthermore, the interruption in oil and gas demand and supply has resulted in job losses and wage cutbacks in the industry, resulting in huge financial losses. The drop in oil and gas demand has disrupted worldwide demand for coiled tubing, which is an essential piece of equipment for oil and gas production operations. Furthermore, major oil-producing countries such as the United States, Russia, and Saudi Arabia have experienced a severe drop in oil and gas demand and production, which has had a direct impact on the global oil and gas market. The impact of the global oil price reduction, as well as the uncertainties surrounding government policies and initiatives, have dealt a devastating blow to the global economy, disrupting supply chains and cutting both demand and supply of oil and gas. Demand for coiled tubing is predicted to slowly restore its typical growth rate by early 2021 as the market stabilizes.

KEY MARKET SEGMENTATION

By Service:

• Well Intervention & Production

  • Well Completion

  • Well Cleaning

  • Others

• Drilling

• Others

In 2022, well intervention and production had the highest revenue share percent in the global market. In a good intervention, coiled tubing is chosen over standard tubing since the latter must be screwed together. The former does not require a workover rig since it may be introduced in the middle of a manufacturing run. It is also cost-effective and suitable for use in high-pressure wells.

By Operation:

• Circulation

• Pumping

• Logging

• Perforation

• Others

In terms of revenue, circulation is predicted to grow at a positive rate throughout the projection period, based on operations. This process is utilized when the weight of a hydrostatic head restricts the flow of formulation fluids. Injecting nitrogen to circulate fluid out of the well is the best approach.

By Application:

• Onshore

• Offshore

In 2022, the onshore sector had the highest revenue share percent in the worldwide market. Because onshore wells are more cost-effective and possible to produce oil and gas from than offshore wells, the category is likely to maintain its dominance during the projection period. Furthermore, the increased use of fracturing and shale is expected to boost segment growth throughout the projection period.

Need any customization research on Coiled Tubing Market - Enquiry Now

REGIONAL ANALYSIS:

North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to be the largest market, led by the rise in unconventional resources in the US and Canada. Furthermore, demand for coiled tubing operations in offshore fields in the Gulf of Mexico and other offshore fields in the US is expected to boost market growth. Because of the greater resource base for coiled tubing in North America, the number of shale fields is increasing, followed by Latin America and Canada. In 2021, the United States had the most Coiled Tubing Units per year, followed by Russia, while Western Europe had the least.

It is the world's largest and fastest-growing market. A number of emerging Russian and Eastern European equipment producers have favored worldwide demand. APAC countries have the potential for both impact and wealth, making it a viable market. Increased population in China and India has resulted in increased energy demands. The market in the Middle East is increasing slowly as numerous onshore fields in the area decline.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of the Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

KEY PLAYERS

The major key players of the market are Altus Intervention, Calfrac Well Services Ltd., Baker Hughes Company, Halliburton, Step Energy Services, Key Energy Services, Llc., Oceaneering International, Inc., Schlumberger Limited, Trican, Weatherford International Plc. and Other Players

Altus Intervention-Company Financial Analysis

Recent Trends in the Oil & Gas Pipeline Leak Detection Market:

• The market is set to experience growth propelled by an increasing demand for well intervention operations.

Expenditure in upstream and operational activities is experiencing an uptick, particularly from National Oil Companies (NOCs) and integrated oil firms. Additionally, the escalating demand for oil and gas is driving increased operating activities and production within the oil and gas upstream sector. These factors collectively contribute to the growing demand for the market.

• The increasing focus on exploration and production activities for discoveries

Various factors are compelling exploration and production operators to seek new oilfields, particularly in offshore locations. These include advancements in exploration technology, diminishing oil reserves in shallow water, and the financial viability of exploration operations. Consequently, coiled tubing is poised to benefit from these opportunities.

Recent Development:

In May 2022: Halliburton unveiled the installation of an extensive coiled tubing intervention system at its New Iberia Training Facility in Louisiana. This system, featuring Halliburton's V135HP coiled tubing injector, a reel with a capacity to hold 36,000 feet of 2-3/8-inch coiled tubing, and a tension lift frame with a remarkable 750-ton capacity, stands as the largest, most potent, and robust system ever deployed.

In December 2022: Baker Hughes revealed its intention to acquire wells specialist Altus in March, assuming the employment of the company's 1,200 personnel, with over 500 situated in Portlethen near Aberdeen.