Market Size (2017)
2017
$810.10M
Vertical: EnPBase Year: 201810 Sections
Market Size (2017)
2017
$810.10M
Projected (2025)
2025
$1.26B
CAGR (2017–2025)
5.7%
5.7%Key Players
110+
The demand for downhole cables is growing rapidly in the global market owing to various factors, including increasing exploration & production (E&P) of oil & gas and the technical developments in drilling activities.
The global downhole cables market is projected to grow at 5.84% CAGR during the forecast period, 2019–2025. In 2018, the global downhole cables market was dominated by North America with a 32.97% share, followed by Asia-Pacific and Middle East & Africa with shares of 26.35% and 18.19%, respectively.
The global downhole cables market has been segmented based on type, installation, application, and region. Based on type, the global downhole cables market has been classified into tubing encapsulated cable, fiber optic cable, electrical submersible pump cable, and others. The tubing encapsulated cable segment is expected to grow at a faster rate during the forecast period. In 2018, the tubing encapsulated cable segment held a 33.03% share of the global downhole cables market.
Based on installation, the global downhole cables market has been divided into onshore and offshore. The offshore segment is expected to grow at a faster rate during the forecast period. In 2018, the onshore segment held a 65.88% share of the global downhole cables market.
Based on application, the global downhole cables market has been segmented into oil & gas production, data collection, well monitoring, powering downhole equipment, instrumentation & control, and pressure sensing. The oil & gas production segment is expected to grow at a faster rate during the forecast period. In 2018, the oil & gas production segment held a 26.49% share of the global downhole cables market.
Based on region, the global downhole cables market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. In 2018, North America held a 32.97% share of the global downhole cables market.
The Downhole Cables Market market is projected to grow at a CAGR of 5.7% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansDownhole cables are used extensively in the oil & gas industry as their unique construction of downhole cables allows them to be used in harsh environments. These cables are used mainly for data transmission. Generally, these cables find applications in oil wells, pipelines, and underwater areas where they are used to drive centrifugal pumps.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansTHREAT OF NEW ENTRANTS
The cost of research and development for downhole and the cables is high along with a high technological complexity involved in manufacturing downhole cables. Such factors act as entry barriers for the new players in the global downhole cables market. The global downhole cables market is dominated by a few large players, who hold a substantial market share. However, since downhole cables play an important role in the extraction and production of oil and gas, the market is expected to witness significant growth due to increasing demand for oil and gas, leading to an increase in the number of players and an eased entry of the new players in the market during the forecast period. Additionally, the downhole cables are highly regulated and constructed as per the industry standards such as Institute of Electrical and Electronics Engineers (IEEE) and American Society for Testing and Materials (ASTM). Therefore, for supplying high-quality products to the upstream oil & gas industry participants, the players in the market require technologically advanced methods. Thus, the threat of new entrants in the global downhole cables market is moderate.
BARGAINING POWER OF SUPPLIERS
There is a high supplier concentration in the market due to the several local and international suppliers, which lowers their bargaining power. They enter into contracts with the manufacturers for the uninterrupted supply of raw materials. This increases the cost of switching between suppliers and raises the power of the suppliers to an extent. The regulations in downhole cable industry creates a need for the suppliers to supply raw materials as per the industry requirements which further lowers their bargaining power. Thus, the bargaining power of suppliers in the global downhole cables market is expected to be low.
BARGAINING POWER OF BUYERS
The buyers in this market are mostly the upstream players of the global oil & gas industry such as Chevron Corporation (US), Exxon Mobil Corporation (US), and Saudi Arabian Oil Co. (Saudi Arabia). The concentration of buyers in the market is high, which decreases their bargaining power. However, the buyers procure downhole cables in bulk, which gives them the capability to exert substantial pressure on the downhole cable providers, which increases the bargaining power of buyers to an extent. Additionally, the cost of switching between providers is moderate owing to the moderate product differentiation and the contracts between the buyers and the providers. Moreover, the high impact of brand recognition creates a dependence of the buyers on certain providers, which further decreases the bargaining power of buyers. Therefore, the bargaining power of buyers in the global downhole cables market is expected to range between low and moderate during the forecast period.
THREAT OF SUBSTITUTES
There are no close substitutes for downhole cables, globally. The upstream oil & gas industry is dependent on downhole cables for the E&P of oil and gas. The market players do not face much threat from substitutes, which makes the threat of substitutes low.
RIVALRY
The global downhole cables market is highly competitive, and the key players focus on developing technologically advanced downhole cables and the reduction of prices to increase their shares in the market. Moreover, the use of downhole cables is expected to increase at a significant rate with the growing demand for oil and gas transportation. The growth of the global downhole cables market is proportionate to the growth of the global oil & gas market, which is witnessing significant growth. Therefore, there is high competition among the existing players in the market, which is expected to rise during the forecast period. Such factors are expected to make the intensity of rivalry high.
Market estimates by geography (2025)
InsightNorth America leads with $432.90M by 2025.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Middle East and Africa | $147.70M | $180.00M | $225.40M | 5.4% | 18% |
| North America | $265.50M | $334.40M | $432.90M | 6.3% | 34% |
| Asia Pacific | $213.40M | $262.90M | $333.10M | 5.7% | 26% |
| Europe | $124.10M | $150.30M | $187.10M | 5.3% | 15% |
| South America | $59.30M | $69.50M | $83.70M | 4.4% | 7% |
| Total | $810.00M | $997.10M | $1.26B | 5.7% | 100% |
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View Subscription PlansTotal Market Size
$1.26B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Tubing Encapsulated Cable | $449.20M | 5.7% | 46% |
| Fiber Optic Cable | $364.40M | 5.7% | 88% |
| Others | $269.00M | 5.7% | 53% |
| Electrical Submersible Pump Cable | $179.80M | 5.7% | 89% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Downhole Cables Market covering market dynamics, competitive landscape, and strategic outlook.
The Downhole Cables Market market is projected to reach $1.26B by 2025, growing at 5.7% CAGR. The Tubing Encapsulated Cable segment holds the largest share.
The global downhole cables market is expected to grow substantially during the forecast period owing to the increasing E&P activities and the technical developments in drilling activities Moreover, the growing shale production is expected to create an opportunity for the market players. However, the high process complexity is expected to restrain the market growth.
According to the BP Statistical Review of World Energy 2019, the global oil production grew from 92,502 thousand barrel per day (TBPD) in 2017 to 94,718 TBPD in 2018; the global natural gas production grew from 3,677.7 billion cubic meter (BCM) in 2017 to 3,867.9 BCM in 2018. The growth in production of oil and gas can be attributed to the improving global economic conditions. There has been an increased dependence on natural gas for electricity generation by the electricity generation companies worldwide due to its higher output and lower emissions than coal and diesel-powered plants. Also, as per the same report, the use of natural gas for electricity generation grew from 5,952.8 Terawatt-hour (TWh) in 2017 to 6,182.8 TWh in 2018. The production is expected to grow during the forecast period. In line with the increase of production of natural gas, the increase in demand for oil and gas has led to an increase in E&P of oil and gas, globally. Many oil & gas companies such as Schlumberger Limited (US) and Halliburton (US) are focusing on E&P of oil and gas across the world. For instance, in October 2017, Schlumberger along with Torxen Energy (Canada) signed an agreement with Cenovus Energy Inc. (Canada) to purchase Palliser Block in Canada for carrying out E&P of oil and gas in Canada. Moreover, in August 2019, Halliburton (US) signed a contract with Woodside (Australia) for drilling and completion services of offshore SNE Field, located in Senegal, Africa for E&P of oil and gas. Such developments are expected to increase in the demand for downhole cables for data monitoring and powering downhole equipment in drilling activities. Furthermore, as per the data of Baker Hughes, a GE Company (US), the worldwide rig count increased from 2029 rig counts in 2017 to 2211 rig counts in 2018, signifying an increase in the use of downhole cables. Such developments have led to an increased demand of downhole cables, as downhole cables are being used in the production of oil and gas.
Furthermore, there has been a steady rise in the number of oil wells drilled across countries, globally. For instance, according to World Oil Report 2018, the total number of oil wells drilled in the world increased from 41,560 in 2017 to 43,456 in 2018. Thus, the growth of such operations adds to the demand for downhole cables for E&P of oil and gas. Therefore, the increasing E&P of oil and gas is expected to drive the growth of the global downhole cables market during the forecast period.
As per the U.S. Energy Information Administration (EIA), the natural gas from shale resources accounted for 42 billion cubic feet per day (Bcf/d) in 2015; it is expected to reach 168 Bcf/d by the year 2040. Moreover, the share of shale gas production is expected to hold nearly 30% of the world’s total natural gas production by the year 2040. For the various countries planning emission reduction, use of shale fuel is an opportunity to ensure energy security while reducing dependence on conventional fuels. Many nations are considering the production of natural gas from shale resources for supporting the export requirement and bridging the demand and supply gap of electricity. For an instance, countries such as the US, Canada, China, Argentina, Mexico, and Algeria are projected to account for 70% out of the global shale production by the year 2040. In the US, the oil & gas companies aim to increase shale production from 37 Bcf/d in 2015 to 79 Bcf/d by the year 2040. Thus, the growing shale production, especially in the economies, such as Argentina, China, and Mexico, is expected to increase the demand for downhole cables, which are used in data collection, shale production, well monitoring and other applications. Therefore, the growing shale production is expected to create an opportunity for the global downhole cables market players during the forecast period.
Downhole cables are critical component used in the oil and gas reserves, which are exposed to severe conditions during the extraction processes. Rising onshore and offshore field developments in harsh environmental and seismogenic risk-prone conditions expose downhole cables to high pressure, harsh fluids, corrosive materials, vibration caused due to the drilling activities, and other chemical and mechanical conditions, leading to affected operational functions of the downhole cables. In addition to this, high process complexity causes damage to downhole cables such as cracking, stretching, and crushing. Such damage to downhole cables might hinder sound operations and lead to interrupted power supply to downhole equipment and lack of sound communication during the extraction of oil and gas. The damage caused to cables during operational process may lead to operational and financial losses to the oil & gas companies. Furthermore, the onsite operating conditions such as underwater pressure and installation complexity are usually experienced in offshore applications. Furthermore, monitoring the downhole cables in the deep-water and ultra-deep-water conditions is tough owing to the underwater pressure and other factors. Therefore, the high process complexity is expected to restrain the growth of the global downhole cables market during the forecast period.
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Profiles of 110 companies operating in the Downhole Cables Market market, including revenue, employee count, and market positioning where available.
Showing 110 of 110 companies
GEO PRESSURE SYSTEMS INC.
Company Headquarters: Alberta, Canada Founded: 2010 Workforce: ~100 Company Working: GEO Pressure Systems Inc. (GEO PSI) provides reservoir data that is used to increase production, improve ultimate reserve recovery, improve pump optimization, and reduce operating expenses. It delivers, installs, and services real-time monitoring systems that accurately measure downhole reservoir pressure and temperature. The company offers a wide range of electronic downhole tools, downhole instrumentation cables, and surface electronics for the oil & gas industry. The company caters to the automotive, oil and gas, consumer electronics, and energy industries, among others. It provides products to customers across the Americas, Europe, Asia, and the Middle East & Africa.
TE CONNECTIVITY
Company Headquarters: Schaffhausen, Switzerland Founded: 2007 Workforce: ~80,000 Company Working: TE Connectivity designs and manufactures connectivity and sensor products for harsh environments. It caters to several industries, including automotive, industrial equipment, aerospace, defense, medical, oil & gas, consumer electronics, and energy. The company operates through three business segments, namely, transportation solutions, industrial solutions, and communications solutions. The industrial solutions segment offers downhole cables with a broad range of low and medium voltages. The company serves customers in approximately 140 countries across the Americas, Europe, Asia, and the Middle East & Africa. Measurement Specialties, Inc., Hirschmann Car Communication GmbH, Alpha Sensors, Inc., ADC Communications (SEA) Pte. Ltd, AdvancedCath Inc., MicroGroup, Inc., and Kissling Elektrotechnik GmbH are some of its subsidiaries.
WIRECO WORLDGROUP
Company Headquarters: Kansas, US Founded: 1931 Workforce: ~5000 Company Working: WireCo WorldGroup Inc. (WireCo WorldGroup) manufactures and distributes wires and synthetic ropes. It offers yarns, electromechanical cables, and engineered products. The company serves the construction, fishing, mining, maritime, oil & gas, and heavy industries, among others. It offers products such as wire & cables, racks & cabinets, switches, and routers. It also offers fiber optic cables, ethernet cables, and instrumentation & control cables for offshore & marine applications. The company has two subsidiaries, namely, Camesa and Drumet, which are engaged in manufacturing wires and cables. WireCo WorldGroup offers downhole cables through its subsidiary– Camesa. The company has a presence in eight countries. It has 24 manufacturing facilities in countries across the world, including India, Spain, Norway, Greece, and China. Aceros Camesa, S.A. de C.V., Wireco Worldgroup Comercial, Unipessoal, Lda, Drumet CZ, S.R.O., Drumet S.R.O., and Wisco Wireco Wire Rope Co., Ltd are some of the subsidiaries of the company.
NKT A/S
Company Headquarters: Copenhagen, Denmark Founded: 1891 Workforce: ~5,000 Company Working: NKT A/S (formerly NKT Holding A/S) is an industrial holding company, which is engaged in providing power cables and wires as well as optical components, lasers, and crystal fibers. It is considered as a pioneer in the cable manufacturing industrial segment and is proactively working on meeting the world’s growing need for energy. The company also offers cleaning equipment and photonic products. NKT A/S operates through two main businesses, namely, NKT and NKT Photonics. NKT is segmented into high-voltage solutions, applications, and service & accessories. The applications segment offers downhole cables with a broad range of low and medium voltages. NKT Photonics A/S, NKT Flexibles, NKT Cables Group A/S, CCC GmbH Berlin, NKT cables AB, Nilfisk-advances, s.r.o., Nkt Cables Warszowice Sp Z O O, and Fianium Holdings Ltd are some of its subsidiaries. NKT A/S operates in 9 countries, including the US, the UK, the UAE, and Australia.
BELDEN INC.
Company Headquarters: US Founded: 1902 Workforce: ~9,000 Company Working Belden Inc. provides high-quality, end-to-end signal transmission solutions and delivers a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial, enterprise and broadcast markets. The company operates through five segments—broadcast solutions, enterprise connectivity solutions, industrial connectivity solutions, industrial IT solutions, and network security solutions. The broadcast solutions segment engages in production and distribution of connectivity systems for television broadcast, satellite, cable, and Internet protocol television (IPTV) industries. The enterprise connectivity solutions provide network infrastructure solutions, as well as cabling and connectivity solutions for commercial audio/video, broadcast, and security applications. The industrial connectivity solutions segment specializes in networking components and machine connectivity products. The industrial IT solutions segment provides security devices, routers, and gateways, Ethernet switches and related equipment, network management software, and wireless systems. The network security solution segment provides controls for protecting enterprises against cyber attacks and automating information technology regulatory compliance. The company offers over 3,000 cable and connectivity components (including fiber optics) for applications in computer/networks, cable television (CATV), industrial, entertainment and security.
FUJIKURA LTD
Company Headquarters: Tokyo, Japan Founded: 1885 Workforce: ~ 64,513 Company Working: Fujikura Ltd. is a leading electric wire and cable, optical fiber, and related products and materials manufacturer. The business segment of the company includes Power and Telecommunication Systems, Electronics Business, Automotive Products, and Real Estate Business. The extensive product line of the company is built with vast expertise by consistently introducing advanced technologies as per customer needs. The primary goods of the company include optical fibers and optical components, different electronic materials, wires and cables, and multi-layer and fine-pitch flexible printed circuits for the telecommunications, energy, automotive, and electronics sectors. To further serve our clients, we also offer services including calibration, maintenance, and technical support for AFL NOYES devices. The magnet wire of the company is manufactured and sold by Unimac Ltd, the magnet wire business division. It offers magnet wire for various applications including automotive. The company has 92 Consolidated Companies across the globe including 20 in Japan, 32 in the Americas, 14 in Asia-Pacific, 11 in Greater China, and 16 in Europe, the Middle East, and Africa.
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Downhole Cables Market