Downhole Cables Market Share

Downhole Cables Market Share Analysis

Overview of Tubing Encapsulated Cable (TEC) Segment
In 2018, the Tubing Encapsulated Cable (TEC) segment held the larger share of the market, making up 33.03% with a value of USD 281.3 million. This segment is expected to show the highest growth, with a Compound Annual Growth Rate (CAGR) of 6.90% during the forecast period. On the other hand, the Fiber Optic Cable segment, the second-largest in 2018 with a value of USD 248.8 million, is anticipated to have a CAGR of 5.70%.
Tubing Encapsulated Cable (TEC) Explained
Tubing Encapsulated Cables (TEC) play a crucial role in the oil and gas industry, mainly used for monitoring and transmitting power in downhole applications. This segment involves electrical cables used in the oil and gas industry, and these cables are covered or jacketed with different protective materials. The aim is to shield the cables from tough environmental conditions. Some of the common materials used for encapsulation are stainless steel, nickel alloy, polypropylene, and fluorinated ethylene propylene.
The growing complexity in drilling for oil and gas is a key reason for the increasing demand for Tubing Encapsulated Cables in the global downhole cables market. As oil reserves closer to the Earth's surface are running out quickly, exploration and production (E&P) companies are turning to unconventional drilling methods. These methods include horizontal drilling, multi-well pad drilling, and offshore drilling to extract oil and gas from deep-seated oil fields. Major players offering Tubing Encapsulated Cables in the global market include Prysmian Group, Schlumberger, and Galaxy Wire & Cable.
In simpler terms, Tubing Encapsulated Cables are like protective layers for electrical cables used in the oil and gas industry. These cables are essential for the challenging conditions found deep within the Earth during drilling activities. With the way oil and gas drilling is evolving, these specialized cables are becoming increasingly important, leading to their expected growth in the market.