Sand Control Systems Market to reach US$5,372.8 Mn by 2016 - 2024

In the strikingly consolidated competitive landscape of the global market for sand control systems, the top four companies collectively commanded over a 92% share in 2015, observes Transparency Market Research (TMR) in a recent market research report. These top vendors: Schlumberger Limited, Halliburton Company, Baker Hughes, Inc., and Weatherford International, take the lead owing to their presence across most or all crucial segments of the supply chain, including manufacturing of equipment and installation and other related services. The highly capital and resource intensive market also presents immense entry barriers for new players owing to long-term contracts between sand control systems service providers and upstream companies.

Owing to high dependence on the state of oil and gas drilling activities across the globe, which have seen a rocky patch since the beginning of 2015, the global sand control systems market exhibited a decline of nearly 6% over 2014. The vast decline in drilling and exploration activities and in the number of global rig count is expected to last for a while, owing to which the market’s growth is expected to be cyclical till 2020.

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Gravel Packing Technology Takes Lead

Presently, the market exhibits moderate growth prospects and is expected to expand at a 5.8% CAGR from 2016 through 2024. At this rate, the market, which had a valuation of US$3,222.5 mn in 2015, is expected to rise to US$5,372.8 mn by 2024. Of the key sand control systems used in the market, the segment of gravel packing leads, earning a nearly 29% of the global market in 2015. In terms of geography, Asia Pacific is the leading regional market for sand control systems and is expected to remain the most promising region in the next few years as well. Asia Pacific held a 27.5% share in the global market in 2015.

High Demand for Enhancing Oil Production Efficiency to Stimulate Market Growth

Owing to the recent global crude oil crisis, triggered chiefly owing to overproduction and low demand, oil producers have unproductive rigs and have increased their focus on improving the efficiency of operations of high-yielding oil rigs. “The increased focus on improving efficiencies of rigs which are in operation is expected to ultimately augment the overall global demand for sand control equipment,” states a TMR analyst.

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The market is also expected to earn significant traction owing to the increasing global investment in the field of offshore drilling. Technically advanced sand control systems capable of countering deepwater challenges with ease will find vast demand from the offshore drilling and exploration industry in the next few years.

High Costs of Advanced Sand Control Systems to Hinder Market Growth

The key challenge for the global sand control systems market is the difficulty in balancing the high costs of sand control measures with the overall economic feasibility of a deepwater exploration project. That advanced sand control equipment has enabled oil and gas companies to alleviate many issues related to deepwater drilling and exploration is a known fact. However, the high costs associated with the process of installing sand control systems undermine their benefits to a certain extent. This factor is expected to act as a chief restraint for the market in the next few years.

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This release was published on openPR.