The global coiled tubing market was valued at USD 1.712 billion in 2021. It is projected to reach USD 2.51 billion by 2030, growing at a CAGR of 4.32% during the forecast period (2022–2030).
Long metal pipes called "coiled tubing" were first made for working on producing (live) wells. Coiled tubing's applications have expanded beyond traditional cleaning and acid stimulation applications. It is increasingly used in projects such as coiled tubing drilling, hydraulic fracturing, subsea, deeper wells, pipeline construction, etc. This expansion can be attributed to technological advancements that have increased the use of coiled tubing in ineffective intervention, drilling, and completion applications. Coiled tubing is a term used to describe an extended metal pipe supplied spooled on a sizable reel in the oil and gas industry. The main benefit of coiled tubing is the ability to pump chemicals out of the coil. It has also been economically employed for open drilling, milling, and workover operations.
The United States and OPEC are expected to increase their investment in exploration and production activities to meet the rising demand for oil and gas, creating a lucrative market for the energy and power sector. Due to the low cost of domestic feedstock and the United States' expanding market share in new energy sources, tubing services will become more and more in demand. Over conventional drilling and workover techniques, coiled tubing has several advantages. The market is expected to be driven by quick mobilization and rig-up, a more negligible environmental impact.
The market is expanding due to rising production, exploration activities, and unconventional resource development. The primary objectives of well interventions are to maintain or boost production, extend the useful lives of the wells, and address serious issues with the wells. The upstream oil and gas sector is also improving its operational procedures and increasing production. These elements collectively are driving the market's demand.
The price of crude oil is sensitive to shifts in policy, fluctuations in demand and supply, and changes in the global market environment. Crude oil prices have been impacted due to the growing consciousness about the need to protect the environment in both developing and developed economies. The maintenance cost involved in providing services involving coiled tubing is relatively high. As a result, the market's growth is hampered by the unpredictability of crude oil prices and by the high costs of maintenance.
| Study Period | 2018-2030 | CAGR | 4.32% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD 1.712 Billion |
| Forecast Year | 2030 | Forecast Year Market Size | USD 2.51 Billion |
| Largest Market | North America | Fastest Growing Market | Middle East and Africa |
North America is a significant shareholder in the market and is fueled by the shale gas industry's growing importance. Due to technological advancements to increase efficiency, the region is seeing an increase in the use of coiled tubing. Since the GCC countries produce a significant amount of oil, the Middle East and Africa will probably continue to account for a sizeable market share during the forecast period. Additionally, it is anticipated that ongoing and new African projects will further support market expansion during the forecast period.
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Intervention and production are dominating the global coiled tubing market. Coiled tubing is preferable to conventional tubing when performing an intervention on a well because the latter needs to be screwed together. Since the first option can be installed immediately during production without stopping the oil flow, a workover rig is unnecessary. Key players in the oil and gas industry are encouraged to incorporate coiled tubing into their operations due to the growing preference for the product in advanced operations for enhanced oil recovery and hydraulic and acid fracturing.
The circulation segment is anticipated to have the highest CAGR during the forecast period. This operation is used when a hydrostatic head's weight prevents formulation fluid flow, and injecting nitrogen to move fluid out of the well is the best treatment. This operation uses the product to distribute fluids to a specific area of the well to perform chemical washes or cement perforations. Furthermore, using coiled tubing to deploy a challenging pump can reduce deployment costs by removing multiple units from the deployment site.
The onshore segment is the most dominant in the global coiled tubing market. It is more cost-effective and feasible to produce oil and gas from onshore wells than offshore wells and is anticipated to maintain its dominance during the forecast period. In addition, the increased utilization of fracturing and shale is anticipated to drive segment growth further.
COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.
Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.
