Market Size of Production Testing Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 2.54 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Production Testing Market Analysis
The production testing market is dependent on the number of production wells, and is expected to grow at a CAGR of more than 2.54% during 2020-2025. Major factors driving the market include increasing number of production well, especially in the United States and declining production from mature fields are resulting in increasing demand for tests such as drill stem test, frac water flowback monitoring. On the other hand, the lack of new projects in the offshore sector between 2014 and 2017 is expected to restrain the market growth.
- Majority of the growth in the production testing market in the recent past has been dominated by onshore segment due to lack of the projects in the offshore. However, with the current high crude oil price the offshore segment has witnessed an uptake in activity with a large number of projects receiving FIDs in 2018 and 2019. A number of these projects will be developed in phases and contribute to driving the market in the latter part of the forecast period.
- The oil & gas industry in the past few years has witnessed major oil & gas discoveries in countries such as Guyana, Egypt, and Senegal. These discoveries have attracted a number of oil & gas operators to invest to develop these new discoveries and create an opportunity for the production testing service providers to expand their global presence.
- Middle East countries such as Saudi Arabia, UAE, and Oman and Russia has a number of mature fields and production from these fields are declining. Monitoring oil, gas and water production rates is very crucial for reservoir management and production optimization in mature fields. Maturing fields in the Middle East and Russia have encouraged the oil & gas operators such as Saudi Aramco, and Rosneft to offer production testing contracts and drive the market.
