Pre-COVID-19 Forecast of Casing Centralizers Market Pegged at 3.9% CAGR Through 2030, Demand Suffers a Slight Drop During the Pandemic, Projects Fact.MR
Published : 25 Jun 2020 Industry: Industrial Goods
The casing centralizers market is estimated to be valued at US$ 462.3 million in 2020 and add value worth US$ 215.9 million by 2030, expanding at a CAGR of 3.9% during the forecast period (2020-2030). Demand for casing centralizers remains driven by the discoveries of new oil & gas fields across the globe.
With an increase in the production of shale gas in countries such as China, Canada, Argentina and the US, sales of casing centralizers are expected to experience a substantial rise through 2030. As per the World Oil estimates in 2018, the drilling activities outside the U.S. is forecast to increase by 4.6% to 43,456 wells, led by significant improvements in Russia, China, Australia and parts of Africa.
However, amidst the COVID-19 outbreak, several companies have temporarily abandoned discoveries of new oil & gas fields, aligning with social distancing requirements and stay at home orders. A halt in operation of several end-use industries along with closures of production facilities and supply chains disruptions has creating a logistical havoc in the casing centralizers market. As the pandemic fades with significant containment measures and resumption of factories in the most affected countries such as China, the casing centralizers market is expected to rebound by the second half of the forecast period and create significant opportunities for manufacturers.
Key Takeaways of Casing Centralizers Market Study
- The global casing centralizers market is expected to grow at a volume CAGR of 3.7% and expand 1.4X through 2030.
- Bow spring casing centralizers will continue to hold maximum share of the total market value and create an absolute $ opportunity of US$ 93.5 million during the forecast period.
- Onshore application of casing centralizers is expected to grow at a value CAGR of 3.8%, however, lose 110 BPS from its market share through 2030.
- Steel remains the material of choice and accounts for nearly three-fifth of the overall casing centralizers market value.
- North America will remain at the forefront, accounting for more than 45% share of the global market value, owing to rapid exploration of unconventional resources.
“The adoption of casing centralizers is expected to be on a significant rise, with an estimated increase in the greenfield and brownfield projects in the upstream. However, postponement and cancellation of these projects and delays in investment in oil & gas exploration, due to the COVID-19 outbreak, will hinder the casing centralizers market growth in the first half of the forecast period,” concludes the Fact.MR analyst.
Manufacturers Focus on Business Expansion through M&A Activities
The global casing centralizers market is highly competitive in nature. Key players are focusing on expanding their business operations through acquisitions. For instance,
- In January 2018, Madison Industries completed its acquisition of Centek Group. The acquisition was aimed at producing highest quality products and delivering outstanding customer service
- In November 2017, Maxwell Oil Tools completed its acquisition of the composites manufacturing and supply division of Innovex Downhole Solution
More Valuable Insights on the Casing Centralizers Market:
Fact.MR, in its new offering, presents an unbiased analysis of the global casing centralizers market, presenting historical demand data (2015-2019) and forecast statistics for the period of 2020-2030. The study divulges essential insights on the casing centralizers market on the basis of product (bow spring casing centralizers, rigid blade casing centralizers, semi-rigid casing centralizers, and inter-casing centralizers sub), application (onshore, and offshore), and materials (steel, aluminium, zinc, polymer and resin) across five major regions.
About the Industrial Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned industrial team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million plus data points, the team has analysed industrial good industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.