According to a report by Zion Market Research, the global downhole tools market was valued at approximately US$ 4.05 billion in 2018 and is expected to generate around US$5.62 billion by 2025, at a CAGR of around 4.78% between 2019 and 2025.
Large-scale oilfield exploration and production activities witnessed in developing countries of North America and Europe is likely to drive the downhole tools market in the future.
The superior functionalities of downhole tools in comparison to conventional drilling tools lies in their ability to augment oil production from oil wells. The crucial factors that are boosting the downhole tools market include the implementation of new technology in mature wells and rise in the shale oil and gas drilling activities.
Moreover, the ongoing technological advancements in the oil exploration and production operations are likely to further propel the downhole tools market in the future, as these advancements trigger the need for the downhole tools for cost-effective operations. Therefore, the major companies are investing significantly in their research and development activities for developing new products by upgrading their functionalities.
The rise in unconventional oil fields is also projected to fuel the downhole tools market over the forthcoming years. Unconventional oil and gas resources refer to the natural gas and crude oil found in shale formations. Coal-bed methane is another unconventional source of natural gas, which is found in coal seams or coal deposits. However, fluctuating crude oil prices may hamper the downhole tools market in the future.
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