Oilfield Equipment Market is Poised to Witness High Growth Owing to Rising Exploration and Production Activities

 


The oilfield equipment market involves various machinery and equipment that are used in the oil and gas exploration and production activities. Some of the major equipment used include drilling equipment, well completion equipment, production machinery, valves and fittings, and oilfield automation and control equipment. The demand for oilfield equipment is growing due to increasing demand for oil and gas worldwide and rising production activities in developed as well as developing countries. The involvement of advanced technologies to improve oil recovery, deepwater offshore drilling, and other extraction procedures is also fueling the market growth.

The global oilfield equipment market is estimated to be valued at US$ 129.6 Bn in 2024 and is expected to exhibit a CAGR of 3.7% over the forecast period of 2024-2031.

Key Takeaways

Key players operating in the oilfield equipment are Baker Hughes, ABB, Delta Corporation, Weir Group, and Sunnda Corporation. These players are focusing on new product launches, mergers & acquisitions, and expansions to gain a competitive edge in the market.

There are significant opportunities for oilfield equipment providers in developing regions owing to growing demand and production activities. Countries like India, Brazil, and Middle Eastern nations provide potential for market expansion.

Key players are expanding their global footprint to tap the growth opportunities. For instance, Baker Hughes acquired BHH to enhance its production portfolio and expanded in the Middle East & African region. Rising international offshore and onshore projects will drive demand for localized equipment and services.

Market Drivers

One of the key drivers of the oilfield equipment market is the rising exploration and production activities. With increasing demand for oil and gas worldwide, companies are investing heavily in upstream projects which is propelling the demand for drilling rigs, well completion equipment, and production machinery.

Market Restraints

Fluctuating crude oil prices pose a major challenge for investments in the oil & gas industry. Uncertain outlook of oil prices restrains exploration budgets of companies which negatively impacts the demand for oilfield equipment. Other challenges include stringent environmental regulations regarding offshore drilling and volatile foreign policies in some regions.

Segment Analysis
The oilfield equipment market has two major segments - drilling and well completion equipment and production equipment. The drilling and well completion equipment segment dominates the market currently. This is because drilling and well completion of oil wells account for a major portion of the capital expenditure in the oilfield equipment industry. Drilling and well completion equipment such as drill pipes, drill collars, drill bits, casing equipment, tubing, and valves are used in every oil and gas exploration and production project. Production equipment segment includes equipment and tools used for lifting oil and gas to the surface and separating fluids and solids. The equipment includes pumps, compressors, separators, storage tanks etc.

Global Analysis
North America currently dominates the oilfield equipment market owing to significant presence of shale oil and gas reserves and ongoing exploration and production activities. Increased shale drilling has driven demand for oilfield equipment in USA and Canada.

Middle East and Africa is another major market and is expected to witness fastest growth during the forecast period due to large exploration projects and oil discoveries in the Gulf countries and Africa. however China is emerging as a high growth market for oilfield equipment as the country ramps up its domestic oil and gas production and invests heavily in oilfield services sector. Localization of equipment manufacturing is a key trend in oil producing counties to reduce import dependence and create local jobs.

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What Are The Key Data Covered In This Oilfield Equipment  Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Oilfield Equipment 's growth between 2024 and 2031.

:- Accurate calculation of the size of the Oilfield Equipment  and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Oilfield Equipment  Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Oilfield Equipment  vendors

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

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