Mobile Servicing Rig Market
Mobile Servicing Rig Market Forecast, Trend Analysis & Competition Tracking - Global Review 2021 to 2031
Analysis of Mobile Servicing Rig market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Mobile Servicing Rig Market: Overview
Globally, the sales of mobile servicing rigs experienced a minor slowdown on account of extremely low demands in Covid-19 pandemic due to imposition of lockdown and trade barriers in 2020. As the condition is recuperating, the demand is rising gradually throughout the world. The manufacturers are spending on technological advancements to deliver upgraded services to its users in 2021.
Prominent players including Baker Hughes Incorporation, Halliburton Company, Bluestream Corporation, Petrofac, Fugro Corporation, Nordic Well Services and Sapura Energy Berhad are carrying out continuous research and developments activities in order to keep pace with the evolving technologies and rising competition. Investments in collaborations, strategic alliances, joint ventures, mergers & acquisitions, new product launches, product innovations etc continue to be the highly adopted tactics in 2021 to extend the market share.
Nabors Industries and Aker Solutions are among the leading manufacturing companies focusing on the provision of innovative products and services to the customers to catch global attention.
Demand for mobile servicing rig continues to remain influenced by the radical shift in designs being developed, and fast replacement of traditional rigs with powerful and advanced mobile servicing rigs worldwide. As standard servicing rigs are not well-equipped to cater evolving requirements of end-users, the industry is witnessing a fundamental and significant shift in servicing rig developments, thereby impacting demand and sales of mobile servicing rig,
Although mobile servicing rig has a confined application prospect, light mobile servicing rigs have witnessed widespread acceptance. With growing cases of shale drilling, sour wells, directional wells and multilaterals, demand for high horse power and hi-tech mobile servicing rigs has been witnessing increased traction in the recent years.
Supply and demand trends of the mobile servicing rigs are likely to remain adverse. Despite stability in drilling demand, continuous substantial pressures of the magnitude of order book and delivery schedules on fleet utilization has been impacting the demand for mobile servicing rigs.
Key mobile servicing rig manufacturers are actively seeking effective measures for supply adjustment in response to current demand volatility. Leading mobile servicing rig manufacturers are focusing on newbuild delivery delays, accelerated replacement of obsolete and old equipment, for saving on operational costs.
Rebound In the Oil & Gas Exploration and Production Activities to Boost Mobile Servicing Rig Market
With the recovery in activities of oil and gas exploration, the market for mobile servicing rigs is estimated to grow steadily in the review period. Following this momentum, oilfield service companies have raised capital expenditure in offshore as well as onshore projects. Depending upon the types of oil or natural gas well, the well can last from 5 to 50 years or even more.
A mobile servicing rig performs service at the same well for seven to eight time before the well is abandoned. However, engaged industry stakeholders tend to optimize resources as much as possible, thus creating the need for mobile servicing rig. On account of which, it is estimated that over the coming years, the global market is poised to witness an increase in growth for mobile service rigs.
Mobile servicing rigs are utilized in workover activities of oilfields which implies to invasive techniques such as wireline, coil tubing, or snubbing after the drilling is done. As these techniques are needed for the entire life of the well, function of mobile servicing rigs becomes indispensable in oilfields. New-builds and secondary transaction of mobile servicing rigs are regulated by OEMs in the global market.
Among different types of mobile servicing rigs, mobile single, mobile double, mobile slant, and skid double among others are highly preferred by end-users. Further, implementation of technological advances has introduced mobile servicing rigs that are functional in extreme environments including onshore, offshore, mountain, desert, as well as colder climates.
Rising Momentum in Oil & Gas Exploration to Boost Market Growth
Past two-years of oil price decline witnessed plunge in exploration & production (E&P) activities as well as downsizing of personnel and assets by the oil & gas industry. At the end of 2016, OPEC’s deal, reduction in service cost, and increased operational efficiency have gradually recovered E&P activities in the United States. Further, consistent rise in the global oil demand, the supply and demand gap of petroleum fuels has widened. To fill this gap, oil & gas companies across the globe are actively involved in E&P activities. As these activities are on the gradual rise, the market for mobile servicing rigs is expected to grow in parallel.
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Oilfield Service Companies to Report Increased Adoption
Strengthening demand for onshore services, increased commodity costs, as well as gradually rising oil prices, have assisted E&P companies to increase their capital expenditure in onshore as well as offshore projects. Increased demand for oil and natural gas has further encouraged the exploration activities. Based on this, oilfield service companies across the globe are likely to experience stronger demand by E&P companies. As oilfield service companies assist in petroleum exploration, production and well maintenance, these companies are the largest end-user of drilling rigs as well as mobile servicing rigs.
Further, to address growing environmental concern of E&P activities, these companies are seeking to provide environmentally responsible solutions. As global E&P activities gradually rebound, growth of the oilfield service companies is likely to translate in the increased adoption of mobile servicing rigs.
Rental Activities by OEM’s to Boost the Demand
As success of an E&P activity remains ambiguous until the discovery of an oil resource, most of the E&P companies are engaged in rental contracts as opposed to purchasing of the new rigs. Due to this, on the global scale the mobile servicing rig market is dominated by rental market and not by sales channel. The rental contract involves insurance premium with specific investment return laws. Nabors Industries Ltd, Precision Drilling Cooperation, Patterson-UTI Energy Inc., and others are leading rental companies in the mobile servicing rig market.
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Renewable Energy Revolution – A Potential Market Challenge
According to the International Energy Agency (IEA), the year 2017 reported over 50% installation of new solar power projects worldwide, significantly surpassing new cumulative constrictions of coal, gas, and nuclear plants. This was supported by low-auction prices for solar and wind project deployment across the globe, in particular the UAE, India, Mexico, and Chile. According to IEA’s forecast, renewable electricity capacity is projected to expand by 12% in 2017 and to report 43% expansion by 2022.
With the increased inclination towards renewable energy resources, dependency over conventional fuels is estimated to decline in future. Amidst this renewable energy revolution, decline in oil & gas exploration activity to influence the market for mobile servicing rig during the forecast.
Although recovering E&P activities will support the growth of mobile servicing rig market, oil price fluctuations, discontinued support from the World Bank, and to influence the market, and OPEC’s output cuts are expected to influence the market in the forecast period.
This analytical research study imparts an all-inclusive assessment on the market, while propounding historical intelligence, actionable insights, and industry-validated & statistically-upheld market forecast. Verified and suitable set of assumptions and methodology has been leveraged for developing this comprehensive study. Information and analysis on key market segments incorporated in the report has been delivered in weighted chapters. A thorough analysis has been offered by the report on
- Market Dynamics
- Market Size
- Market Segments
- Demand & Supply Trends
- Current Issues and Challenges
- Companies and Competitor Landscape
- Value Chain
Regional Segments Analyzed Include
- North America (U.S., Canada)
- Latin America (Mexico. Brazil)
- Western Europe (Germany, Italy, France, U.K, Spain)
- Eastern Europe (Poland, Russia)
- Asia Pacific (China, India, ASEAN, Australia & New Zealand)
- Middle East and Africa (GCC, S. Africa, N. Africa)
Compilation of authentic and first-hand intelligence, insights offered in the report are based on quantitative and qualitative assessment by leading industry experts, and inputs from opinion leaders & industry participants around the value chain. Growth determinants, macroeconomic indicators, and parent market trends have been scrutinized and delivered, coupled with the market attractiveness for each market segment encompassed. Qualitative impact of growth influencers on the market segments across regions has also been mapped by the report.
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
Highlights from the Report
- Elaborated scenario of the parent market
- Transformations in the market dynamics
- Detailed segmentation of the target market
- Historical, current and forecast market size based on value and volume
- Latest industry developments and trends
- Competition landscape
- Strategies adopted by the market players and product developments made
- Potential and niche segments, along with their regional analysis
- Unbiased analysis on performance of the market
- Up-to-date and must-have intelligence for the market players to enhance and sustain their competitiveness
- FAQs -
The mobile servicing rig market is likely to record a CAGR of 3.9% during the forecast period.
The mobile servicing rig market has high growth potential due to rebound and gas exploration activities gaining traction through the projection period.
The manufacturers of the mobile servicing rig industry are likely to find the most opportunities in the North American region.