The global zonal isolation market is anticipated to grow at a considerable CAGR of 6.6% during the forecast period.  Improving the productivity of the oil and gas wells has always been a priority for the energy operators, especially when the demand for oil and gas has been growing rapidly across the globe, owing to its higher usage for household consumption, industries, perfume, and cologne, and among others. The oil and gas industry has been making accelerated progress over the past decade, and oil field operators are continuously adopting new technologies for the extraction of oil and gas. Most of the oil and gas wells have different zones, they are exposed during the process of drilling and at the time of completion. During the construction of oil and gas wells, zonal isolation seeks to segregate undesirable intervals from production and this is accomplished during the construction phase. Successful zonal isolation results in the creation of a hydraulic barrier between the casing and cement and between the cement and formation. 

Moreover, the zonal isolation method helps in tackling challenges that arise with shale gas migration. Owing to its wider use in oil and gas industy, the zonal isolation market expected to hold a lucrative position in coming years. For instance, in July 2020, Weatherford  International plc, announced a contract of 18 months with Iraqi Drilling Company(IDC), with the purpose to provide services and project management for the drilling and completion of twenty wells in the AI-Nasiriyah filed in Dhi Qar province in southern Iraq.  Both the company together build the well as IDC provid four rigs, civil works, and drilling services, and Weatherford will provide services for the completion of the well. Furthermore, government initiatives are fueling the growth of the zonal isolation market over the forecast period. For instance, in October 2021, the Union Ministry of Petroleum & Natural Gas of India has  approved a project of $3.8 billion to expand the refining capacity of the ongoing refinery project- Numaligarh Refinery Expansion Project ,from 3 mmtpa to 9 mmtpa. 

Impact of COVID-19 Pandemic on Global Zonal Isolation Market

Most of the industries across the globe have been negatively affected by COVID-19 pandemic over the last year. Restrictions, and lockdowns enforced by government authorities, as well as closing down of various operational activites, can be attributed to significant disruptions, experienced by their respective manufacturing units and supply chain management across the globe. Due to lockdown, the government of the countries restricted the movement of labor as a result the import and export activities were closed down between the developed and developing economic countries. Hence, caused large destruction in zonal isolation market. Moreover, consumer demand has subsequently decreased as individuals are more inclined towards reducing their non-essential expenses from their budgets, as COVID-19 has severely affected the general economic status of most individuals.

Segmental Outlook 

The global zonal isolation market is segmented based on the technology and application. Based on the technology, the market is augmented into mechanical zonal isolation, and chemical zonal isolation. Among the sub-segments, mechanical zonal isolation holds the lucrative share of the zonal isolation market. Mechanical zonal isolation includes sliding sleever, packers, and plugs, wherein packers are largely used in the injection and cementing activities. Moreover, growth in the exploration oil fields and vast application of packers will directly impact mechanical zonal isolation, and hence fueled the growth of the market.  Based on the application, the market is divided into the onshore zonal isolation, and offshore zonal isolation. 

Global Zonal Isolation Market Share by Application, 2021 (%)

The Offshore Segment Holds the Major Share in the Global Zonal Isolation Market.

The offshore segment of the zonal isolation market will witness steady growth during the forecast period. Ongoing development of the existing oil and gas wells, to enhance the production, along with making the progress in mature oil fields will accelerate the offshore zonal isolation market. Moreover, massive investments by the key company for increasing the expansion and production of potential oil and gas in deep and ultra-deep waters will considerably stimulate business growth. For instance, in October 2021, Aker Solutions has done a partnership with DeepOcean and Solstad offshore, the three companies combined offering technologies, capabilities, and resources to deliver services to the offshore renewable sector. Windstaller Alliance is named as a combination of three offshore industry companies, which delivers marine operations and related engineering services, subsea services for offshore renewable.  

Regional Outlooks

The global zonal isolation market is further segmented based on geography including North America (the US, and Canada), Europe (UK,Italy, Spain, Germany, France, and rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and rest of Asia-Pacific), and the Rest of the World (the Middle East &Africa, and Latin America). The Middle East zonal isolation market will witness a significant growth in the coming years on account of increasing the demand of the oil and gas industry and ramping of new drilling and explosion projects by the countries including Saudi Arabia, the UAE, and Qatar will facilitate the growth of the zonal isolation market. For instance, in December 2021, a group co-led by BlackRock Inc. invested $15.5 billion in Saudi Arabia’s natural gas pipeline, with this funding the company increases its gas production in the Saudi Arabia region, along with forward-looking steps to transition the Saudi’s economy toward the renewable source of energy, and clean hydrogen. The presence of proven oil reserves in large volume along with continuous focus toward enhancing the production of oil fields, in the Middle East region will stimulate the industry growth.  

Global Zonal Isolation Market Growth, by Region 2022-2028

The Asia-Pacific Region Holds the Major Share in the Global Zonal Isolation Market.

The Asia-Pacific has the potential to hold the major market share of zonal isolation market and is expected to grow in the near future. Presence of well established oil and gas industry and abundance availability of labor in the Asia-Pacific region, creates a platform for the growth of zonal isolation market. Moreover, with large number of oil fields in the region, and flexible government regulatory policies, to permit the drilling and mining activites in the areas, has propel the growth of zonal isolation market. For instance, as per InvestIndia information which highlights the fact that , India has emerged one of the largest refinery hub, plans to increase refining capacity to 400 MMPTA by 2025. India has witnessed an increase in the production and consumption of petroleum, oil and gas over the years. Owing to such attributable reason and government initiatives, the zonal isolation market has expected to hold a major market share in coming years.

Market Players Outlook

The major companies serving the global zonal isolation market include Archer Solutions ASA, Calfrc Well Services Ltd., Halliburton Energy Services Inc., NOV, Superior Energy Services Inc., Baker Hughes Co, Helix Energy Solutions Group and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2021, Superior Energy Services, providing oilfield services and equipment for oil & gas wells, has launched RestoreCem self-healing cement system,to broaden its portfoilio. With RestoreCem self-healing system, the company regain its zonal isolation properties of the wells and restore the cement sheath, against induced cracks, and minimizes the risk of cement sheath failures. 

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global zonal isolation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.