Downhole Control Lines Market- The Biggest Trends to Watch out for 2019-2027

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Global Downhole Control Lines Market: Introduction

• Downhole control lines include cables designed for use in harsh environments, such as use of chemical injections and well-monitoring applications, wherein strength, corrosion resistance, and reliability are required
• Control lines are available in sizes ranging from 1/8” to 5/8” and a range of materials such as austenitic stainless steel, nickel-based alloy, and duplex stainless-steel tubing
• Downhole control lines are manufactured and tested in compliance with ASTM requirements

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Key Drivers and Restraints of Global Downhole Control Lines Market

• Rise in the demand for oil and gas led by growth of industrialization, urbanization, and population is driving the demand for drilling across the world. This, in turn, is boosting the global downhole control lines market.
• Increasing investments in the upstream sector are driving the global market. After the sharp price drop in 2014, the global oil & gas industry has been recovering at a steady pace. Introduction of automation and artificial intelligence (AI) has encouraged companies to focus on the exploration and development of new oilfields. The total investment in the upstream sector was valued at US$ 477 Bn in 2018.
• Increase in exploration activities and discovery of new oil and gas reserves are fueling the global oil & gas industry. In January 2019, BP Plc announced the discovery of more than 1 billion barrels of oil in its Thunder Horse field in the Gulf of Mexico. This discovery is likely to stimulate long-term drilling and exploration operations in the near future, leading to steady rise in the demand for downhole control lines during the forecast period.
• High costs of drilling projects and implementation of stringent government regulations about offshore drilling are major factors hampering the global downhole control lines market

Welded Control Lines Segment to Offer Attractive Opportunities

• The global downhole control lines market can be segmented based on type, application, and region
• Based on type, the global market can be divided into welded and seamless. The welded segment is expected to dominate the global downhole control lines market during the forecast period. Welded control lines are largely preferred for downhole oil and gas applications. These control lines are used in applications such as surface-controlled subsurface safety valves (SCSSVs), chemical injection, advanced well completions, and gauges. The seamless segment is expected to expand at a significant CAGR during the forecast period. Seamless control lines are mostly used in shorter-length applications, wherein no orbital welds are required. 
• In terms of application, the global downhole control lines market can be divided into chemical injection, advanced well completions, well monitoring, and others

North America to Hold a Major Share of Global Downhole Control Lines Market

• Based on region, the global downhole control lines market can be segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
• North America dominated the global downhole control lines market in 2018. This trend is projected to continue during the forecast period, due to the discovery of shale reserves in the U.S. and presence of a large number of private oil companies in the region. According to General Electric Company’s Baker Hughes Inc., the oil rig count in the U.S. increased by 42% in 2017 compared to that in 2016, due to the recovery in crude oil prices.
• Middle East & Africa is a major producer of oil in the world. Offshore developments and discoveries, particularly in the Red Sea area, by countries such as Qatar, the UAE, and Saudi Arabia are anticipated to drive the downhole control lines market in the Middle East during the forecast period.
• In terms of discovery, Latin America is the leading region, holding 24% share of the global volumes discovered, which is around 2.1 billion barrels of oil equivalent
• The downhole control lines market in Latin America and Asia Pacific is estimated to expand at a considerable pace during the forecast period. Rise in the demand for energy and increase in investments in offshore exploration activities are estimated to drive the market during the forecast period.
• Asia Pacific is among the largest consumers of oil and gas across the world. This is projected to lead to increase in exploration and production activities in the region in the next few years.