The global packer market is expected to register growth over the forecast period owing to growing safety concerns and increasing fastening material demand in oil & gas E&P. Growing oil & gas extraction activities globally is anticipated to bolster market growth. Tubing & casings are deployed in the well bore for efficient formation fluid extraction. These are employed to control the well pressure, support the bore wall, and restrict water contamination along the wellbore. Packer is a device made of elastomers and comprises properties such as high heat resistance, pressure sustainability, and elasticity to bear shear stress. These are applied between bore wall, casing, and tubing to sustain external forces and vibrations during the drilling process. Increasing oil & gas drilling & extraction activities particularly in unconventional reserves are estimated to drive the global packer market over the forecast period. Growing horizontal drilling activities across the globe is anticipated to foster the packer market. Upcoming E&P projects particularly in the Asia Pacific and Latin America are also expected to bolster packer demand over the next seven years. Variations in ambient properties in different reservoir formations require more safety during the extraction process is projected to surge packer demand over the next seven years. High raw material procurement costs in comparison to durability and requirement for customized packer design are key challenges for market expansion.
On the basis of products, the market has been segmented into permanent and retrievable packers. As the name suggests, permanent packers can be removed only after completion of the drilling process. These packers are highly cost-intensive owing to the more complex design and manufacturing process. Permanent packers contribute to less market share in comparison to their retrievable counterparts. Retrievable packers are used on a large scale owing to low cost and simple installation process. These can be changed during the drilling process several times using milling tools. This has led to high market penetration and is expected to remain the dominant product segment on account of a large number of installation. Retrievable packers are expected to witness the fastest growth over the next seven years owing to multiple installations during the well lifecycle.
North America was the dominant regional packer market in 2014 and is expected to witness significant growth over the foreseeable future owing to growing onshore extraction activities and increasing production of shale gas. Asia Pacific is expected to be the fastest-growing regional market over the forecast period. Increasing drilling activities particularly in China, Indonesia, and Malaysia is anticipated to drive packer demand in the region. Upcoming E&P in shale reserves in China is anticipated to boost the market growth in the region over the next seven years. Future demand is anticipated to come from emerging economies such as Brazil, China, CIS countries, and India owing to upcoming E&P projects in these regions.
The global packer market is majorly fragmented due to the existence of a large number of companies and the top four companies are sharing less than 40% of the total market volume. Major market players include Baker Hughes Incorporated, Schulmberger Limited, Weatherford International Limited, TIW Corporation, Halliburton Company, Map Oil Tools, Inc., Logan Completion System, Team Oil Tools, Inc., and Tryton Tools Services.
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The ongoing pandemic has led to a decline in exploration activities in the oil & gas sector. A number of EPC projects have also witnessed an indefinite pause that has transpired into a slump in the requirement for drilling and excavation services. Economic repercussions of the trend are expected to be highly evident in the Middle East. The report will account for Covid19 as a key market contributor.