Sand Control Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Sand Control Systems Market Analysis

The global sand control systems market is expected to grow at a CAGR of more than 4% during the forecast period. The global upstream oil and gas investments stood at approximately USD 476 billion in 2018, representing a 6% increase compared to that in the previous year. Adding to this, according to the estimates of Oil & Gas UK, the oil and gas exploration and production companies in Europe are expected to spend about USD 265 billion between 2019 – 2035. Factors, such as increasing demand for oil and natural gas and increasing investments in the upstream oil and gas sectors across the world, are expected to drive the number of exploration and production activities, thereby driving the sand control systems market during the forecast period. However, the crude oil prices have been highly volatile in 2018, fluctuating between USD 85 per barrel and USD 50 per barrel by the end of the year. This volatility of oil prices remains a growing concern for the upstream industry. Hence, this is expected to hinder the market during the forecast period.

• The offshore segment is expected to dominate the market, due to increasing exploration activities.
• The shift of the projects from onshore to offshore, shallow waters to deep waters and ultra-deep waters is an opportunity for the sand control systems market during the forecast period.
• Middle-East and Africa is expected to be the fastest growing market during the forecast period, with the majority of the demand coming from Saudi Arabia, Iran, and others.

Sand Control Systems Industry Segments

The sand control systems market report include:

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Sand Control Systems Market Trends

This section covers the major market trends shaping the Sand Control Systems Market according to our research experts:

Offshore Segment to Dominate the Market

• In many offshore regions, the geologic formations that produce oil and gas are unconsolidated, which means the sand that makes up these formations is loose or poorly bonded, much like the sand on a beach. As a result, this loose sand can end up inside the production piping in the well or production equipment on the surface. ​
• Sand production is highly undesirable, since it can plug pipes and equipment, erode piping (much like sand blasting), and lead to corrosion of pipe and equipment. Eliminating sand production has been one of the main production challenges faced by engineers since the early days of offshore oil and gas development.​
• The offshore oil and gas industry accounts for around 30% of the global crude oil production. The Middle-East, North Sea, Brazil, the Gulf of Mexico, and the Caspian Sea are the major offshore oil and gas producing regions. The decline in the offshore rig count had slowed down in 2017, and offshore activity started to pick up after 2017. An estimated of more than 90 offshore projects are in the queue to receive a green signal in the next few years, driving the demand for sand control system in the offshore sector.​
• Moreover, the cost of operation in the offshore have declined significantly over the past few years, enough for the industry to start to step up the spending gradually in the coming years.
• Hence, due to aforementioned factors the sand control systems market for offshore segment is expected to positive during the forecast period.

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