Oil & Gas Downhole Cables Market: Introduction
- Downhole cables are used in several applications in the oil & gas industry. This includes oil well monitoring, oil & gas production, pressure sensing equipment, powering downhole equipment, and data collection.
- These cables are sent down the oil well, pipeline, and underwater application areas where they are used to drive centrifugal pumps and control functions
- The unique construction of downhole cables allows them to be used in harsh environments
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Key Drivers and Restraints of Oil & Gas Downhole Cables Market
- Rise in demand for oil and gas due to industrialization, urbanization, and population growth is driving the demand for drilling. This, in turn, is boosting the oil & gas downhole cables market.
- Increase in exploration activities and new discovery of oil & gas deposits are fueling the market. In January 2019, BP Plc announced the discovery of more than 1 billion barrels of oil in its Thunder Horse field in the Gulf of Mexico. This discovery is likely to spark long-term drilling and exploration operations in the near future, leading to a steady rise in demand for oil and gas downhole cables during the forecast period.
- Discovery of shale resources in the U.S. has boosted the demand for reservoirs and production monitoring sensors on the surface, where the data is recorded and processed. These sensors are connected with downhole cables. These cables provide power to downhole sensors and electrical valves.
- High cost of drilling projects and implementation of stringent government regulations on offshore drilling are projected to hamper the market
Tubing Encapsulated Cable (TEC) Type Segment to Offer Attractive Opportunities
- The global oil & gas downhole cables market can be segmented based on type, installation, application, and region
- Based on type, the global market can be divided into tubing encapsulated cable (TEC), fiber optic cable, and others. The TEC segment is expected to dominate the oil & gas downhole cables market, as these cables are especially designed to withstand harsh environments associated with the oil & gas industry. Furthermore, these cables can be utilized for data transmission, including downhole gauge applications.
- In terms of application, the global market can be divided into oil & gas production, data collection, well monitoring, powering downhole equipment, instrumentation & control, and pressure sensing. Oil & gas production is expected to dominate the global oil & gas downhole cables market, as downhole cables are extensively used to locate problems in wells.
- Based on installation, the global market can be classified into onshore and offshore
North America Expected to hold Major Share of Global Oil & Gas Downhole Cables Market
- Based on region, the global oil & gas downhole cables market can be segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global oil & gas downhole cables market in 2018. This trend is projected to continue during the forecast period due to the discovery of shale reserves in the U.S. and presence of a large number of private oil companies in the region. According to General Electric Company’s Baker Hughes Inc., the oil rig count in the U.S. increased by approximate 42% in 2017 compared to that in 2016 due to the recovery in crude oil prices.
- Middle East & Africa is a major producer of oil in the world. Offshore developments and discoveries, particularly in the Red Sea region, by countries such as Qatar, the UAE, and Saudi Arabia are anticipated to drive the oil & gas downhole cables market in the Middle East
- The market in Latin America and Asia Pacific is estimated to expand at a considerable pace during the forecast period. Rise in demand for energy and increase in investment in offshore exploration activities are estimated to drive the market during the forecast period.
- Asia Pacific is among the largest consumers of oil & gas. This is projected to lead to an increase in exploration and production activities in the region.
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Key Players Operating in Oil & Gas Downhole Cables Market
The oil & gas downhole cables market is highly concentrated, with the top companies accounting for approximately 45% to 50% share of the global market. Key players operating in the oil & gas downhole cables market include:
- Prysmian Group
- Eland Cables
- NKT Cables
- Marmon Engineered Wire and Cable
- Galaxy Wire & Cable
- W. L. Gore & Associates, Inc.
- Belden Inc.
Global Oil & Gas Downhole Cables Market: Research Scope
Global Oil & Gas Downhole Cables Market, by Type
- Tubing Encapsulated Cable (TEC)
- Fiber Optic Cable
Global Oil & Gas Downhole Cables Market, by Application
- Oil & Gas Production
- Data Collection
- Well Monitoring
- Powering Downhole Equipment
- Instrumentation & Control
- Pressure Sensing
Global Oil & Gas Downhole Cables Market, by Installation
Global Oil & Gas Downhole Cables Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- Rest of Middle East & Africa
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