New York, NY (PRWEB) June 14, 2014
The Geophysical Services industry gathers, interprets and maps geophysical data. Companies often specialize in locating and measuring the extent of subsurface resources, such as oil, natural gas and minerals, but they may also conduct surveys for engineering purposes. “As a result, the industry's performance is dependent on demand for resource exploration from downstream oil, natural gas and mining industries, which is, in turn, largely dependent on movements in commodity prices,” according to IBISWorld Industry Analyst Dmitry Diment. During the five years to 2014, industry revenue is expected to grow at an average annual rate of 7.6% to $1.7 billion due to rising global energy and mineral prices. This includes forecast growth of 3.8% in 2014.
Because demand for geophysical services is largely dependent on global oil, gas and mining sectors, volatile commodity prices have been responsible for the industry's unstable growth. “Prior to the recession, the rising prices of crude oil, natural gas and minerals spurred demand for resource exploration, subsequently bolstering demand for geophysical services,” says Diment. However, the contraction of global economies during the recession depressed energy and mineral prices, adversely affecting demand for new exploration. As a result, industry revenue plummeted in 2009 and continued to decline in 2010. However, rebounding global commodity prices, coupled with improving economic conditions worldwide, has proven highly beneficial to the industry. With global energy commodity prices expected to continue rising, industry revenue is expected to eclipse its prerecessionary level in 2014.
Continued growth in global energy and mineral prices is expected to spur industry revenue growth during the five years to 2019. Additionally, industry operators are expected to benefit from greater government demand for geophysical services, as the federal government attempts to stimulate new resource exploration. Consequently, industry revenue is forecast to grow at an average annual rate of 2.7% during the five years to 2019 to about $2.0 billion. Nevertheless, the industry is expected to undergo considerable consolidation as large companies acquire smaller operators to expand into new geographic markets and obtain proprietary technologies, thereby buoying industry profit margins.
For more information, visit IBISWorld’s Geophysical Services in Canada industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry gather, interpret and map geophysical data. Firms often specialize in locating and measuring the extent of subsurface resources, such as oil, gas and minerals, but they may also conduct surveys for engineering purposes. Operators use a variety of surveying techniques depending on the purpose of the survey, including magnetic surveys, gravity surveys, seismic surveys or electrical and electromagnetic surveys.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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