Due to their ability to be integrated with a wide variety of application tools, downhole tractors are crucial to the good intervention process. Since their introduction in the late 1990s, downhole tractors have gained significant popularity, and the trend is anticipated to continue over the forecast period. Furthermore, the adoption of downhole tractors is anticipated to grow steadily throughout the forecast period as newer technologies are combined with them.
Future Market Insights (FMI), market research and consulting firm with ESOMAR certification, provides information about the main factors influencing the demand for downhole tractors in its latest study. The report examines the effects that COVID-19 has had on the end-use industries in general and downhole tractors in particular, in addition to tracking downhole tractor sales globally in more than 20 high-growth markets.
Globally, oil and gas companies are constantly creating new features and improvements for downhole tractors so they can be used in a variety of situations. Some of the technologies that can be combined with a downhole tractor for use in either deviated or horizontal good bores include production logging, fishing, and seismology.
In nations like the U.S. and nations in North Africa like Sudan, Libya, and Algeria, there is an increasing demand for downhole tractors, and the well-intervention application segment is expanding. Production and supply chain activities have experienced a slight decline as a result of the ongoing COVID-19 pandemic crisis, but consumption will rebound as the economy recovers after the pandemic has been contained.
The supply and shortage in demand are anticipated to cause a significant drop in Y-O-Y growth with several end users being impacted in regions like North America, Europe, and Asia-Pacific, but FMI anticipates the global downhole tractor market to grow at a 4.9% CAGR through 2031.
How is Technology Development by Key Players Affecting Downhole Traction Application?
The demand for downhole tractors is increasing at a consistent pace, thanks to technology developments undertaken by some of the leading players. The advent of novel technologies also is helping the market expand its footprint by offering newer products with better features. The rising number of integrated technologies and product enhancements is helping the market gain traction.
The U.S. is expected to continue to be one of the most lucrative markets throughout the forecast period, according to FMI. The United States’ high oil production and consumption rates are the main factors promoting market expansion. From 2017 to 2018, the output of oil increased by 14%.
The 85% of the U.S. supply of oil and gas that comes from horizontal drilling will continue to be vital to the industry’s growth. Downhole tractors will continue to expand because they are essential to horizontal wells. However, President Biden’s regulations regarding a transition from fossil fuels towards electric mobility can restrain the growth of the downhole tractor market.
Some of the leading companies operating in the market are:
- Aker Solutions
- WWT International
- Expro Group
- Baker Hughes GE
- ALTUS Intervention
- Hunting Plc