Coiled Tubing Market

Introduction

The coiled tubing sector plays a vital role in the oil and gas industry, specifically for well intervention and drilling purposes. Coiled tubing, which is a lengthy, continuous steel or composite tubing wound on a large spool, can be inserted into wellbores without the need for connections. This technology provides numerous benefits, including decreased downtime, improved safety, and cost-effectiveness in well servicing, completion, and drilling operations.

Global Market Overview

The worldwide coiled tubing market is experiencing consistent growth due to the increasing exploration activities in the oil and gas sector, the growing demand for well intervention services, and advancements in drilling technologies. North America leads the market, followed by the Middle East and Africa, owing to the presence of extensive shale reserves and significant offshore oilfields. As energy demands continue to rise and existing oilfields mature, the market is projected to expand further, necessitating more efficient recovery techniques and well maintenance solutions.

Coiled Tubing Market Size was valued at USD 4 Billion in 2022. The Coiled Tubing industry is projected to grow from USD 5 Billion in 2022 to USD 17 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6% during the forecast period (2022 - 2032).

Coiled Tubing Market

Size, by Product, - (USD Billion)

Well Intervention

Well Cleaning

Well Completion

Well Stimulation

Other Products

The Market will Grow

At the CAGR of:

6%

The Forecast Market

Size for in USD:

$17 Billion

Key Players

• Schlumberger Limited
• Halliburton Company
• Baker Hughes
• Weatherford International plc
• National Oilwell Varco
• Archer Limited
• C&J Energy Services, Inc.
• Calfrac Well Services Ltd.
• Superior Energy Services, Inc.
• Trican Well Service Ltd.
• Oceaneering International, Inc.
• Altus Intervention
• Essential Energy Services Ltd.
• Pioneer Energy Services Corp.
• Key Energy Services, Inc.
• Deep Casing Tools
• Global Tubing, LLC
• Tenaris S.A.
• Helix Energy Solutions Group, Inc.
• Franks International N.V.

Market Segmentation

By Service

Well Intervention

Well Cleaning

Well Completion

Well Stimulation

Drilling

Others

By Application

Onshore

Offshore

By Operation

Pumping

Circulation

Logging

Perforation

By Diameter

1.25” Diameter

1.50” Diameter

1.75” Diameter

Others

By Region

North America

Europe

Asia-Pacific

Latin America

Middle East & Africa

Market Dynamics

Coiled Tubing Market

Share, by end user, (USD Billion)

5 Billion%

Onshore

Offshore

Other End-Users

17 Billion

Total Market Size

USD (Billion),

6%

CAGR

-

Market Trends

The coiled tubing sector is witnessing a shift towards the adoption of cutting-edge CT technologies, like real-time monitoring and data acquisition systems, that boost operational efficiency and decision-making. Moreover, the incorporation of automation and digitalization in CT operations is gaining momentum, enhancing safety and reducing human involvement.

Market Restraints

The industry is confronted with obstacles stemming from volatile oil prices, which can result in fluctuations in exploration and production activities, impacting the demand for coiled tubing services. Environmental regulations and strict safety standards also act as hurdles to market expansion, necessitating substantial compliance costs and operational modifications.

Market Opportunities

Growing markets, particularly in Asia-Pacific and Latin America, present substantial growth opportunities due to rising energy demand and ongoing oil and gas exploration projects. Technological advancements in coiled tubing materials and equipment, aimed at improving durability and performance, offer new avenues for market growth.

Market Challenges

One of the primary challenges in the coiled tubing market is the significant initial investment required for advanced equipment and technologies. Additionally, shortages of skilled labor and the necessity for continuous training to operate sophisticated CT systems pose operational challenges.

Value Chain Analysis

The value chain of the threaded pipe market involves several stages, including supply of raw materials, manufacturing, distribution and end use. Raw materials such as steel or composites are sourced and processed to produce coiled tubing. Manufacturers then produce and assemble coiled tubing that incorporates advanced technologies for specific applications. These units are distributed to service providers and end users, such as oil and gas companies, who use them for well modification, drilling and other operations.

Supply Chain Analysis

Threaded Pipe market supply chain includes raw material suppliers, manufacturers, service providers and end users. Effective supply chain management ensures timely procurement of quality materials, efficient manufacturing processes and reliable distribution networks. Collaboration between stakeholders, including suppliers, manufacturers and service companies, is essential to effectively respond to market demands and operational challenge.

Porter's Five Forces Analysis

Threat of New Entrants:

High barriers to entry due to significant capital investment, technological expertise, and established player dominance limit the threat of new entrants.

Bargaining Power of Suppliers:

Suppliers of raw materials have moderate bargaining power, influenced by material availability and price fluctuations, but diversified sourcing options reduce dependency.

Bargaining Power of Buyers:

Buyers, mainly oil and gas companies, have high bargaining power due to the competitive nature of the market and their ability to switch service providers based on cost and quality.

Threat of Substitute Products:

The threat of substitutes is low as coiled tubing offers unique advantages in well intervention and drilling operations that are not easily replicated by alternative technologies.

Industry Rivalry:

Intense competition among key players drives continuous innovation, price competitiveness, and strategic collaborations to maintain market position and capture growth opportunities.

Coiled Tubing Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

6%

The Forecast Market

Size for in USD:

$17 Billion

Recent Development

In June 2023, Halliburton acquired Welltec's assets, a renowned Norwegian coiled tubing company. The acquisition aims to bolster Halliburton's coiled tubing expertise and broaden its market presence.

In May 2022, Halliburton unveiled a massive coiled tubing intervention system at its New Iberia Training Facility located in Louisiana. This advanced system integrates Halliburton's cutting-edge V135HP coiled tubing injector, a substantial reel capable of accommodating 36,000 feet of 2-3/8-inch coiled tubing, and an impressive 750-ton capacity tension lift frame. Remarkably, this deployment stands as the largest, most potent, and sturdiest system of its kind ever implemented.

In December 2022, Baker Hughes made public its intention to acquire Altus, a recognized authority in well expertise. This strategic move, scheduled for March, entails the absorption of Altus' workforce, encompassing 1,200 employees, with over 500 individuals situated in Portlethen, near Aberdeen.

FAQs

What is coiled tubing?

Ans: Coiled tubing is a long, continuous length of steel or composite tubing wound on a large reel, used in oil and gas operations for well intervention and drilling.

What are the primary applications of coiled tubing?

Ans: Coiled tubing is primarily used for well intervention, including well cleaning, completion, and stimulation, as well as drilling and other downhole operations.

Why is coiled tubing preferred over traditional drilling methods?

Ans: Coiled tubing offers advantages such as reduced downtime, enhanced safety, cost-efficiency, and the ability to perform operations without the need for connections or disassembly.

What are the key trends in the coiled tubing market?

Ans: Key trends include the adoption of advanced CT technologies like real-time monitoring, automation, digitalization, and the development of high-strength composite materials.

What challenges does the coiled tubing market face?

Ans: Challenges include volatile oil prices, high initial investment costs, stringent regulatory requirements, and the need for skilled labor and continuous training.

Which regions dominate the coiled tubing market?

Ans: North America leads the market, followed by the Middle East and Africa, due to extensive shale reserves, significant offshore oilfields, and ongoing exploration activities.

What opportunities exist for the coiled tubing market?

Ans: Opportunities lie in emerging markets such as Asia-Pacific and Latin America, driven by rising energy demand, new exploration projects, and technological advancements.

How does coiled tubing contribute to sustainability in the oil and gas industry?

Ans: Coiled tubing promotes sustainable operations by enhancing well efficiency, reducing environmental footprints, and complying with stringent environmental regulations.

Coiled Tubing Market TO (USD BN)

CAGR OF

6%

Coiled Tubing Market

17 Billion%