The global centralizers and float equipment market reached a revenue of $991.6 million in 2018 and it is expected to attain a value of $1,439.3 million by 2024. Furthermore, as per the estimates of P&S Intelligence, a market research company based in India, the market will advance at a CAGR of 6.3% from 2019 to 2024 (forecast period). The market is being driven by the increasing exploration of oil and gas reserves, burgeoning requirement for oil and gas products, and recovery in worldwide crude oil prices.
Centralizers are basically casing tools which are used for retaining uniformity of the cement sheath around the pipe. In simpler terms, these tools play the role of a seal between casing and wellbore. On the other hand, float equipment is used to reduce strain on derrick and provide a landing platform for top and bottom cementing plugs and backpressure valve for preventing the flowing back of the cement into the inner diameter of the well casing.
For example, Royal Dutch Shell plc intends to explore the Penguins field in the North Sea, British Petroleum (BP) plc started the second phase of the Mad Dog oil field operations, and various other players also launched their E&P operations. Besides the recovery in crude oil process, the rising requirement for oil and gas in various industries and applications such as electricity generation and domestic transportation, on account of the economic progress of many countries, is also propelling the expansion of the centralizers and float equipment market.
Moreover, with the increasing energy consumption, upstream E&P activities will surge in the upcoming years. According to the estimates of the Organization of Petroleum Exporting Countries (OPEC), the demand for oil all over the world is predicted to grow from 95.4 million b/d in 2016 to 111.1 million b/d by 2040. Depending on equipment type, the centralizers and float equipment market is divided into float equipment and centralizers. Between these, the float equipment category dominated the market in 2018. This category is also expected to surge sharply in the coming years, on account of the launch of several oil and gas E&P projects and moderate prices of float equipment.
When application is taken into consideration, the centralizers and float equipment market is classified into offshore and onshore. Between these, the onshore category led the market, by accounting for over 80% of the market shares in 2018. This is credited to the large-scale E&P activities that were carried out in onshore oil and gas fields during the last few years. Moreover, nearly 80% of the worldwide oil and gas drilling wells were made in onshore fields. In the future years, the offshore category is predicted to register faster growth.
Therefore, the market is set for prosperity in the coming years, owing to the increasing oil and gas E&P activities, because of the surging demand for oil and gas in various industries.
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