An increase in drilling activities as a result of oil price recovery, will drive the growth of the global downhole tools market.

However, stringent regulatory processes, oil price volatility, and harsh environments are heightening the need for judicious and efficient equipment to reduce operator costs and maximize profits. Access to unconventional resources in North America, South America and parts of Asia is driving exploration and production (E&P).

The Global Downhole Tools Market, Forecast to 2022 insight is part of Frost & Sullivan's Oil & Gas Growth Partnership Subscription and provides an in-depth evaluation of all the downhole tools segments, including downhole tubulars, drilling tools, wellbore cleanup tools, downhole communication tools, and support tools. Market revenue forecasts, drivers and restraints, technology advancements, competitors and market dynamics are assessed.

"Technologically improved downhole tools ensure greater penetration, real-time analysis, heightened performance and increased productivity that translate into significant capital cost savings, reduced well downtime, and increased well life expectancy," says Frost & Sullivan Energy & Environment Industry Analyst Rasholeen Nakra. "While North America continues to lead the downhole tools market with advanced technology in multi-well horizontal drilling and production, the Asia-Pacific Region and Middle East will be key markets as these regions continue to explore large untapped oil and gas reserves."

The total market is estimated to increase at a CAGR of 5.8% from 2015 to 2022, reaching $5.44 billion by 2022. The drilling tools segment is expected to grow at a higher CAGR of 6.6% from 2015 to 2022 due to a shale gas boom in the United States and high oil and gas demand globally.

"The downhole tools market is mature, with a mix of participants of different sizes and expertise. The top five participants constitute 69.5% of the total market share in downhole tools," says Nakra. "In order to remain competitive in a volatile market, key players such as Schlumberger, Halliburton, Baker Hughes, and National Oilwell Varco (NOV) consider merger and acquisition strategies."

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