Casing Centralizers Market Insights
The global casing centralizers market is anticipated to grow at a CAGR of 3.9% to create an absolute $ opportunity of more than US$ 215.9 million during the forecast period (2020-30). It is anticipated to be valued at more than US$ 675.0 million by 2030-end, according to a new Fact.MR study.
Increasing demand for oil and gas from a wide range of industries remains the key driving factor for the casing centralizers market growth. Subsequently, an estimated rise in both offshore and onshore oil & gas exploration activities is expected to propel the demand for casing centralizers. However, due to the COVID-19 outbreak and its impact on the industrial operations, companies are temporarily abandoning drilling of new wells and postponing maintenance amid a sharp drop in global oil prices and brimming storage tanks. These have caused an unprecedented impact on the casing centralizers market and manufacturers are further facing critical challenges with the slowdown of drilling wells. Therefore, the market is poised to witness a sluggish growth rate in the next couple of fiscal quarters.
Casing Centralizers Market Analysis by Product
Bow spring casing centralizers continue to witness higher demand and investments, as they are widely used during oil & gas exploration and production process. These casing centralizers can generate a restoring force by using flexible bows that provide the separation between casing and wellbore. Over the years, a surge in the demand for crude oil and subsequent rise in oil & gas exploration activities have been propelling the demand for bow spring casing centralizers.
Significant growth of the international crude oil market makes the upstream oil & gas process industries to regularly change the production and operations frequency. This has led to an increased installation and replacement of bow spring casing centralizers. However, due to the recent outbreak of the COVID-19, the oil & gas industry is witnessing a slump in production. The current downfall of oil & gas industry has subsequently caused latency in the casing centralizers market. According to the Fact.MR’s recent report, sales of bow spring casing centralizers are poised to record a CAGR of 3.7% and attain a valuation of 1.6X the sales of rigid blade casing centralizer over the forecast period.
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Casing Centralizers Market Analysis by Application
Onshore application of casing centralizers accounts for a major share of the global market revenue. This is attributable to an increase in exploration and production activities in onshore oil & gas fields.
Onshore drilling wells account for 80% of the global oil and gas production, whereas discoveries in offshore regions are expected to increase drilling operations. Thus, growing demand for drilling oil & gas wells to sustain the needs of rapidly expanding industries across the globe is expected to further propel the casing centralizers market growth during the forecast period. Onshore application of casing centralizers is projected to grow at a CAGR of 3.8% during the forecast period.
Casing Centralizers Market: Regional Analysis
North America continues to account for a majority share of the global casing centralizers market value, owing to growing demand for hydrocarbon from the power generation and transport industries. Moreover, continuous shale gas exploration and production activities in the region are driving the demand for casing centralizers. The market is also driven by significant growth in unconventional resources in the US and Canada and demand from the onshore and offshore fields.
North America’s casing centralizers market is projected to register a CAGR of 4.1% to create absolute $ opportunity worth US$ 108.1 million during the forecast period. However, the region is facing an economic slowdown and dramatic downfall in oil & gas production since the last quarter, due to rampant spread of the COVID-19 in the U.S. This is expected to have a severe impact on the regional market for casing centralizers.
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New Product Development to Remain a Key Growth Strategy
The casing centralizers market is highly consolidated in nature. Leading players are prioritizing the introduction of new products to strengthen their position in the market. For instance, in April 2020, Centek Group developed a hinged centralizer to reduce the transportation costs and storage. The new hinged centralizer has no weak spots and can be used in challenging wells.
Leading players operating in the global casing centralizers market include Halliburton, Maxwell Oil Tools Ltd, Moonshine Solutions AS, NeOz Energy, National Oilwell Varco, Summit Casing Equipment, and Weatherford International.
COVID-19 Impact Analysis
The coronavirus outbreak has caused a devastating impact on the global economy. In particular, reduced in demand for oil has resulted in a twofold challenge – a drop in oil’s value and a consequential price war. In response to strained demand, oil-producing countries such as Saudi Arabia, Iraq, and Nigeria have opted to sell crude oil at the low rates, while several oil companies are scaling down on their exploration, production, and new projects budget.
With the COVID-19 outbreak, the industrial wheels began to spin slowly and means of transportation began to be used at a low rate. This situation caused the demand for oil to decrease by 30% in a short time. Such challenges prevailing in the oil and gas industries are poised to hinder the adoption of the casing centralizers globally.
The Analyst’s Viewpoint
“Decrease in oil & gas exploration and production during the COVID-19 pandemic will hinder a manufacturer's ability to invest in future projects. However, during the recovery process, global oil demand will slowly move towards normalcy and play an instrumental role in the casing centralizers market growth”.
Global Casing Centralizers Market: Scope of the Report:
The recent report on the global casing centralizers market by Fact.MR offers a 10-year forecast for the period of 2020-2030. The report elaborates on key drivers, restraints, opportunities, and threats to the expansion of the global casing centralizers market. A detailed segmental analysis based on product, application, materials and regions has been provided in the report.
Regional analysis in terms of supply chain, business execution and market value provides an in-depth perspective about the future scope of the global casing centralizers market. In addition, a separate section on market structure has been provided. The section provides a detailed analysis of key market players and the strategies for expansion in the casing centralizers market.
Casing Centralizers Market - Scope of the Report
Fact.MR recently published an exclusive study on the global market for casing centralizers. The study provides a detailed assessment on the key market dynamics, including drivers, trends, opportunities, restraints, and detailed information about the casing centralizers market structure. The market study presents comprehensive information about how the casing centralizers market will grow during the forecast period of 2020-2030.
Key indicators of market growth, which include Year-on-Year (Y-o-Y) growth of the market, value chain and supply chain analyses, and Compounded Annual Growth Rate (CAGR), are explained in the Fact. MR’s study in a comprehensive manner. This information can help readers understand the quantitative growth prospects of the casing centralizers market in the forecast period.
The study is relevant for stakeholders in the casing centralizers market, including manufacturers, suppliers, distributors, and investors, and can help them in developing appropriate strategies to grow in the market. Stakeholders in the casing centralizers market, investors, industry experts, researchers, and journalists, as well as business researchers can leverage the information and data presented in the Fact.MR study.
The study also includes statistics as well as facts related to macro- and microeconomic factors that are impacting developments in the casing centralizers market. It also offers actionable insights based on future trends in the casing centralizers market. Furthermore, small businesses and new entrants in the casing centralizers market can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the market.
Key Segments of the Casing Centralizers Market
The Fact.MR’s study on the casing centralizers market offers information divided into three key segments—product, application and materials across five regions. This report offers comprehensive data and information about important market dynamics and growth parameters associated with these categories.
Key Questions Answered in the Fact.MR’s Casing Centralizers Market Report
- Which regions will continue to remain the most profitable regional markets for casing centralizers market players?
- Which factors will induce a change in the demand for casing centralizers during the assessment period?
- How will changing trends impact the casing centralizers market?
- How can market players capture the low-hanging opportunities in the casing centralizers market in developed regions?
- Which companies are leading the casing centralizers market?
- What are the winning strategies of stakeholders in the casing centralizers market to upscale their position in this landscape?
Casing Centralizers Market: Research Methodology
In the Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the casing centralizers market, and reach conclusions on future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of conclusions.
Secondary resources referred to analysts during the preparation of the casing centralizers market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who have contributed to the development of this report as a primary resource.
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