New York, NY -- (SBWire) -- 04/22/2019 --The global well cementing market generated a revenue of $7,577.6 million in 2018 and is projected to reach $10,065.4 million by 2024, advancing at a CAGR of 4.7% during the forecast period (2019–2024). The factors driving the growth of the market are increasing exploration and production (E&P) activities in conventional and unconventional oil and gas reserves, recovery in the oil and gas sector, and rising demand for oil and gas across the world. Well cementing refers to the blocking of fluid movement from the reservoir to the wellbore and holding the casing pipe in place.
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When segmented by service, the well cementing market is divided into remedial, primary, and other services. Among these, in 2018, the primary services division held the largest revenue share of more than 75.0% in the market, owing to the fact that primary cementing is necessary for the efficacious utilization of wells. Since 2017, this division has been witnessing growth on account of a betterment in crude oil prices. Apart from this, rising E&P activities, along with the need for zonal isolation at the time of well cementing, is further leading to the growth of the sector.
Based on well type, gas, oil, and shale gas is the categories of the well cementing market. Out of these, in 2018, oil well cementing dominated the market with a revenue contribution of more than 55.0%. This is attributed to the revival in oil and gas prices and increasing capital allocation for such projects across the U.S., Africa, and Latin America (LATAM). The rising investments are further anticipated to escalate the demand for cementing, which, in turn, is predicted to aid the growth of the sector globally.
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On the basis of region, the well cementing market is categorized into North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and LATAM. Among all, in 2018, North America held the largest share in the market (over 35.0%) due to the proliferation of drilled wells and discovery of more reserves of oil and gas. It has both conventional and unconventional resources of gas and oil in a significant number.
In 2018, the global oil and gas industry experienced slight recovery and is predicted to continue on that path in the forecast period as well. This is mainly attributed to a number of factors, such as increase in crude oil prices, stable geopolitical climate, and proper optimization of funds by companies. Thus, the considerable recovery of the oil and gas industry, along with a substantial rise in extraction activities in the MEA, North American, and European regions, is helping in the growth of the well cementing market.
Hence, an improvement in the crude oil prices and increasing capital allocation for E&P projects are expected to push the demand for well cementing in the forecast period.
Revival in Oil Prices Driving the Well Cementing Market
The market growth is mainly driven by increasing exploration and production (E&P) in both conventional and unconventional oil and gas reserves, owing to growing global demand for energy products such as gasoline, gas oil, heating oil, fuel oil, aviation turbine fuel, liquified petroleum gas, piped natural gas, and compressed natural gas.