Global Measurement While Drilling Market Flourishes at a CAGR of 7.49% by 2030

Introduction

Typically, MWD equipment can conduct real-time directional surveys. The instrument utilizes accelerometers and magnetometers to determine the inclination and azimuth of the wellbore at that location and then transmits this data to the surface.

The global economy is contracting as a result of the coronavirus epidemic, which has adversely impacted economic activities worldwide. Businesses throughout the world are virtually at a stop to contain the virus's spread. In addition, it has destroyed the balance sheets of oil and gas firms. Due to a dramatic decline in crude oil prices on the worldwide market, several enterprises are feeling the heat. To limit the financial impact of the COVID-19 epidemic, oilfield services businesses and operators are postponing investment in new projects. Government entities and international organizations are collaborating to stimulate the hydrocarbon industry through strategic planning, bilateral discussions between producers and consumers, and tax incentives designed to mitigate the impact. The market is anticipated to recover once global economic activity resumes. Even though the oil and gas business may encounter new prospects in the post-COVID-19 era, it is now in decline. This will tempt investors to participate in exploration and production operations that increase the need for measurement during drilling.

Market Dynamics

Growing focus on directional drilling

Directional drilling is witnessing explosive expansion because it enables the exploitation of several hydrocarbon wells, which is not possible with vertical drilling. In 2018, 69 percent of oil and natural gas wells drilled in the United States were horizontally fractured using hydraulic fracturing. In addition, the shale gas revolution in the United States is projected to increase demand for measurement while drilling instruments and services to efficiently monitor wellbore conditions, which bodes well for the growth of the measurement while drilling market.

Shrinking investment due to pandemic outbreaks and volatile prices

The global economy is in a dire state due to the coronavirus outbreak-induced economic slowdown. Authorities have imposed lockdowns to prevent the spread of the COVID-19 infection, thus all economic operations have been suspended. This pandemic has severely impacted oil and gas industries, with many of them facing bankruptcy. To counteract the effect, several businesses are reducing their capital and operational expenses. In addition, the recent price war between Russia and Saudi Arabia has made crude oil prices on the worldwide market extremely volatile. As a result of the fluctuating market, investors are in a stressful situation and are delaying new initiatives. All of these reasons are substantially lowering exploration and production, hence impeding the growth of the MWD market.

Inflating exploration and production activities

Consistent investment by major operators in exploration and production (E&P) activities to meet the rising demand for hydrocarbons is anticipated to strengthen the outlook for the MWD market. Developing nations are investing more in exploration and production (E&P) activities to enhance local oil production and minimize foreign currency spent on oil imports. Measurement during drilling provides a novel method for analyzing wellbore parameters to conduct drilling operations efficiently. The objective of oilfield service firms is to maximize the use of available resources, which creates prospects for market expansion.

Regional analysis of the global measurement while drilling market

Five regions comprise the global market: North America, Latin America, Europe, Asia-Pacific, the Middle East, and Africa. MWD is seeing consistent growth as a result of the increasing demand for cutting-edge drilling technologies. Due to the exponential rise of directional drilling in the United States, North America is witnessing robust growth. In addition, the shale gas revolution strengthened the region's position in the market share for measurement while drilling. The United States economy, however, is badly impacted by the coronavirus pandemic. Many of the nation's largest cities are seeing lockdowns to contain the spread of the virus. To reduce the effects of the outbreak, oil and gas corporations have suspended operations and postponed new projects. Latin America is anticipated to have the moderate expansion, with the majority of economic activity focused on Brazil, Mexico, and Venezuela.

Europe has been severely impacted by the coronavirus outbreak, and economic activity has virtually ceased. The leading economies in Europe, including the United Kingdom, Germany, Italy, and Russia, are taking preventive measures to prevent the virus from spreading. Even though the market has collapsed as a result of the pandemic, it is projected that it would recover during the forecast period due to the steady demand for hydrocarbons.

Likewise, as the number of Covid-19-positive cases increases, Asia is experiencing difficult circumstances. The coronavirus originated in China and spread globally, resulting in a global economic downturn. Amid pandemic fears, China is partially opening its markets and allowing operators to conduct business. In contrast, the Indian government declared a statewide lockdown in March to prevent the spread of the coronavirus, effectively stifling economic activity. This will undoubtedly impact the market, but there are numerous opportunities after the Covid-19 outbreak has subsided. The oil-rich nations of the Middle East have tentatively agreed to reduce oil and gas production to stabilize the market. To achieve a stable position in the market, all of the major corporations are reducing capital and operational expenditures.

Key Highlights

• The global measurement while drilling market was valued at USD 11.75 billion in 2021 and is projected to reach USD 22.51 billion by 2030, registering a CAGR of 7.49% from 2022 to 2030.
• The offshore segment is anticipated to account for the fastest CAGR of 8.8% over the projected period
• The horizontal drilling segment held the largest revenue share of 26.7% in 2019
• North America is experiencing healthy growth on account of exponential directional drilling operations in the United States.

Competitive Players

Competitive players in the global measurement while drilling market

• Schlumberger (United States)
• Halliburton (United States)
• Baker Hughes (United States)
• Weatherford (Switzerland)
• Nabors Industries (Bermuda)
• National Oilwell Varco (United States)
• Jindal Drilling & Industries Ltd (India)
• Cathedral Energy Services (Canada)
• Gyrodata (United States)
• Cougar Drilling Solutions (Canada)
• Newsco (United States)
• Target Well Control (Canada)
• COSL - China Oilfield Services Limited (China)

Recent Developments

Recent Developments by key players

March 2020: As a result of the coronavirus epidemic, the Italian company ENI plans to reduce its capital expenditures (CAPEX) by roughly USD 2.2 billion.

March 2020: Petronas Carigali awarded Dagang Nexchange Bhd (DNeX) a Pan-Malaysian umbrella contract for the provision of drilling services. Under the terms of the deal, DNeX is responsible for providing Petronas with equipment and services for directional drilling, measurement while drilling, and logging while drilling.

Segmentation

The global measurement while drilling market segmentation

Location Outlook

• Onshore
• Offshore

Well type Outlook

• Horizontal
• Directional
• Vertical

Regional Outlook

• North America
• The U.S.
• Canada
• Mexico

Europe

• Norway
• The U.K.

Asia Pacific

• China
• India
• Indonesia

Central and South America

• Brazil
• Argentina

The Middle East and Africa

• Saudi Arabia
• UAE