Increasing global energy demand spurred by rapid industrialization and economic growth is expected to be one of the major growth drivers of the global packer market. Rise in drilling activities to fulfill the growing need for fossil fuel would augment the demand for well completion equipment. Packer is a type of sealing device or flexible tool used to isolate and contain production fluids and pressure within the wellbore. It is made of an elastomeric material and placed just above the producing zone. Packer protects the casing and other important formations above and below the producing zone. It is designed to expand and grip the wall of the casing and form a seal between the inside of the casing and the outside of the tubing.
There are two categories of packers, namely permanent packers and retrievable packers. A permanent packer can only be removed from a wellbore through milling. This type is fairly simple in nature and offers better performance than retrievable packers in operating conditions with extreme temperature and pressure. As the name suggests, a retrievable packer can be removed after the drilling operation, when the tubing is extracted from the wellbore. Complexity of a retrievable packer depends on its application (it can be highly complex for a high pressure and high temperature application or fairy simple for low pressure and low temperature application). Retrievable packers cost more than permanent packers due to the complexity of their design.
Majority of the demand for well completion equipment is expected to arise from increased drilling activities in North America. Rise in drilling activities pertaining to oil and gas extraction in the U.S. and Canada is one the major factors fueling the demand for well completion equipment including packers. Companies operating in these regions have strategically located themselves near areas such as Texas and Alberta to gain advantage of the opportunities arising from drilling activities. The packer market in Europe is expected to witness a sluggish growth over the forecast period. Declining oil reserves in North Sea have led to a decrease in drilling activities. This, in turn, has resulted in reduced demand for well completion equipment in the region. A major portion of demand for packers is expected to arise from the Commonwealth of Independent States (CIS) countries including Russia, Kazakhstan and Azerbaijan. Rest of the World (RoW) in the packer market includes the Middle East, South America and Africa. These regions comprise some of the largest oil and gas producing nations such as Saudi Arabia, Iran, Iraq, Brazil, Libya, Angola and Venezuela. The packer market is expected to grow, as a result of the ongoing and anticipated drilling activities in these regions. New oil and gas discoveries in Africa and offshore areas of Brazil would continue to drive the demand for packers in the next few years.
Permanent packers are expected to hold a majority share of the global packer market in the near future. These type of packers can be used for a range of applications and provide better sealing and gripping capabilities than retrievable packers. Retrievable packers are generally used in wells, wherein subsequent work over or re-completion is required.
Some of the key players in the market include Weatherford International Ltd., Halliburton Company, Baker Hughes Incorporated, Schlumberger Limited, Tryton Tool services, TIW Corporation, Map Oil Tools, Inc., Logan Completion Systems, Pinnacle Oil Tools Inc. and KazDuCo LLP.
Packers are downhole equipment used to separate portions of a borehole from each other. Escalating energy needs have spurred well construction activities to tap oil and gas reservoirs, of which casing and tubing are crucial elements.
A packer, which consists of a sealing device, holding device, and an inside conduit for fluids, shields the casing and other formations above or below the production zone.
The report, titled “Packer Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2020”, analyzes market drivers, restraints, opportunities in the global packer market and their impact on the market revenue for the forecast period.
The research report segments the packer market on the basis of products and geography. Permanent packers and retrievable packers are the product segments for which revenue projections for the forecast period in the key regional markets under purview are included in the research report.
Using a collection of tables and graphs, the market study presents the competitive scenario in the global packer market, with detailed market share analysis of key companies operating in this market.
The market analytics included in the study provide insights for existing and new market participants to formulate business strategies and gain maximum competitive advantage.
Overview of the Packer Market
Industrialization and economic development, predominantly in emerging economies, is cited as the primary reason for the increasing energy need in these regions. This has led to rising oil and gas exploration activities, which in turn is driving the global packer market.
For such reasons, the global packer market is expected to be valued at US$4,931.1 million by 2020. Increasing from a valuation of US$2,717.5 million in 2013, the market will display a healthy 9.0% CAGR for the period from 2014 to 2020.
By product, the market is divided into permanent packers and retrievable packers. Among the two, by revenue, permanent packers will dominate the global market for the forecast period. Due to the availability of permanent packers in a variety of pound per square inch (psi) grades, they are suitable for high-temperature and high-pressure application. In addition, low cost and superior functional performance make them suited for intense work conditions.
Unlike permanent packers, retrievable packers can be removed after completion of drilling, when the tubing is removed from the wellbore. They are suitable for applications that require consecutive recompletion.
Being best suited for recompletion activities, the demand for retrievable packers is expected to rise in the years to come.
Based on geography, the global market for packer is divided into North America, Asia Pacific, Europe, and Rest of the World (RoW).
Amongst all, North America is expected to be leading market for packers for the 2014-2020 period. This is mainly attributed to increasing drilling activities in the U.S. and Canada for reserves of shale gas, tar sands, and crude oil.
Major Companies in the Global Packer Market
Weatherford International Ltd., Baker Hughes Incorporated, Map Oil Tools Inc., Tryton Tool Services, Pinnacle Oil Tools Inc., Halliburton Company, Schlumberger Limited, TIW Corporation, Logan Completion Systems, and KazDuCo LLP are the major companies having a major share in the global packer market.
Global Packer Market by Product
Global Packer Market by Region
- North America
- Asia Pacific
- Rest of the World (RoW)
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- A clear understanding of the competitive landscape and key product segments