USD 85.31 Billion
Oilfield Equipment Market Size, Share, Growth Analysis, By Type(Drilling equipment, field production machinery, pumps and valves and others), By Application(Offshore and Onshore), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10B2062 |
Region:
Global |
Published Date: March, 2024
Pages:
178
|Tables:
61
|Figures:
75
Oilfield Equipment Market Insights
Global Oilfield Equipment Market size was valued at USD 118.04 Billion in 2022 and is poised to grow from USD 125.01 Billion in 2023 to USD 169.26 Billion by 2031, growing at a CAGR of 3.9% in the forecast period (2024-2031).
The global oilfield equipment market is expected to be driven by the growth in demand from regions like Asia and Latin America, along with increasing drilling activities in offshore and onshore locations. This is a dynamic and extremely important global energy industry sector, as it represents an array of equipment supplies and related services that are primarily required for discovering oil and gas wells, their subsequent extraction or production, and the eventual refining processes. The drivers of the market include growing demand at the global level for energy, rising offshore and onshore drilling activities, and continuous improvement in extraction methods.
Successive finding of numerous oil and gas fields across the globe has ensured that the demand for oilfield-related equipment remains steady. Among these, the segments into which the market is sub-categorized include drilling rigs, well completion equipment, production equipment, processing and storage equipment, and others. High competition among the key participants in the industry to innovate and come up with technologically advanced equipment that could further enhance operational efficiency and reduce downtime has been always there so that the maximum oil and gas reserves could be recovered.
Generally, the very strongly regulated oil and gas industry is now regulated by multiple levels of official governments. This therefore also means that the environment regulating the oil field equipment industry—the surrounding is complex with many dimensions cutting across different levels of government and industry organizations. The Oilfields (Regulation and Development) Act of 1948 gave a framework for orderly development and set standards for equipment usage/operations in India. Onshore and offshore operations are overseen by the Occupational Safety and Health Administration and the Bureau of Safety and Environmental Enforcement, respectively. Industry organizations, including the American Petroleum Institute, also develop and continue to update standards which have implications for regulations both in the United States and overseas.
US Oilfield Equipment Market is poised to grow at a sustainable CAGR for the next forecast year
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Drilling equipment
Fastest Growth
Drilling equipment
Growth Rate
3.3% CAGR
Oilfield Equipment Market ($ Bn)
Country Share for North America Region (%)
To get more reports on the above market click here to Buy The Report
Oilfield Equipment Market Segmental Analysis
The global oilfield equipment market is segmented by Type, Application, and Region. Based on Type, the market can be segmented into Drilling Equipment, Field Production Machinery, Pumps & Valves and Others. Based on Application, the market is segmented into Offshore and Onshore. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Type
Based on type, the market can be segmented into drilling equipment, field production machinery, pumps & valves and others.
Among these segments, the drilling segment currently dominates the market, recording USD 58.08 Billion in 2023. This dominance is expected to continue, accompanied by a projected CAGR of 3.88%. Drilling equipment dominates the oilfield equipment market globally, as this plays a very vital role in exploration and extraction for oil and gas. The continuous demand required by drilling activity, coupled with advancements in drilling technologies and increased offshore drilling, has also given it its lead.
However, field production machinery is the fastest growing segment and is expected to continue, with projections reaching USD 44.33 Billion by 2031, accompanied by a projected CAGR of 3.90% in the forecast period. The field production machinery segment is driven by its important role in efficient extraction, processing and management of oil and gas resources. This equipment provides smooth operation, output optimization and lowers downtime. As energy demands are increasing globally, there is a strong need for maximizing the existing oil and gas field productivity.
Analysis by Application
Based on application, the market is segmented into offshore and onshore.
The onshore currently dominates the market and is expected to continue, with projections reaching USD 99.48 Billion by 2031, accompanied by a projected CAGR of 3.91%. Factors that will continue driving the onshore segment include growing demand for oil and gas, increasing development of unconventional resources, and advancing technology in drilling and production techniques. Onshore oilfield operations are all the exploration and production activities taking place on land areas. The reason the onshore segment dominates the market is due to the large number of already existing oilfields that are on land and the comparative cheapness involved in onshore drilling and production activities as opposed to the offshore ones.
However, the offshore segment is expected to continue to grow at a projected CAGR of 3.80% in the forecast period. The offshore segment is the fastest growing in the global oilfield equipment market. Offshore operations involve exploration, production, and extraction activities conducted in marine environments, typically in shallow or deepwater regions. A fast-growing offshore segment coupled with the increasing demand for well-oil and gas reserves from the offshore basins and the ongoing exploration for untapped reserves, the offshore segment is surely moving forward. The growth in the offshore segment is being powered by various factors which include the discovery of offshore reserves, need for energy security, and the growing investment of oil and gas companies in their respective offshore projects.
Oilfield Equipment Market By Application
To get detailed analysis on other segments, Request For Free Sample Report
Oilfield Equipment Market Regional Insights
Based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
North America dominated the oil field equipment market globally in 2023 at USD 40.51 billion, due to the shale revolution and rising exploration and production activities in the vast on- and offshore reserves of the region. It is highly experienced in the production of oil and gas, with a number of principal manufacturers for oilfield equipment and service providers domiciled in this region. The region has a long history of oil and gas production, and the region is home for several of major manufacturers of oilfield equipment, and service providers. Ample resources of shale, advanced drilling and extraction technologies, and conducive infrastructure for oil and gas operations might be reasons why this region holds the leading position. In addition, the existence of mature oilfields, particularly in the United States and Canada, with their relevant government policies and funding toward research and development, added to North America's lead in the market.
It is predicted that Asia Pacific region will grow with a highest CAGR of 4 percent due to the rising energy demands and inclination in offshore E&P from countries like China, India, and other ASEAN nations. Asia-Pacific itself has vast but comparatively unexplored and undiscovered oil and gas potential, and as these reserves come online, the need for oil field equipment is clearly on an ascendancy. This is backed by the advancing technology improving the application of equipment, increased infrastructure spending, as well as government support which is deemed to support the escalating growth of this market in Asia-Pacific for oilfield equipment.
Oilfield Equipment Market By Region
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Oilfield Equipment Market Dynamics
Drivers
Increasing demand for global energy
- With fast-growing energy demand worldwide, the global oilfield equipment market is growing. Enormous growth in population, rapid urbanization process, and industrialization have collectively generated huge surge in energy consumption and hence need to increase exploration, production, and refining of oil and gas. An article published in Elsevier in 2024 says that global energy demand has increased continuously year by year due to rising population and economic growth. From 1990 to 2020, global energy consumption has grown phenomenally by 69.22%. It has increased due to the increase of 47.67% in the world population during the same period. Therefore, one of the major drivers of the growth of the oilfield equipment market is a rise in global demand for energy. This demand for energy thus becomes a significant driver of investment in oilfield equipment and service industries to meet the growing demands of energy by the industries and economies across the globe.
Increasing Focus on Offshore Exploration and Production
-
The pursuit of oil and gas has taken exploration and production activities offshore into such geographically and geologically intricate environments as ultra-deep waters and the Arctic. As onshore reserves become less and less economically exploitable, companies involved in the oil and gas sector have begun to shift to these areas offshore for purchase and production, thus fuelling the demand for special equipment in deepwater drilling rigs and floating production platforms for these environments associated with efficient resource extraction. For instance, the Petroleum Agency of South Africa has indicated this through statistics, that over the last two decades, there has been a rapid growth in exploration and production activities offshore. At the moment, nearly 98% of the country's Exclusive Economic Zone is either under exploration or production right for offshore oil and gas activities, a factor that evinces fast-growing interest from the industry in the offshore resources.
Restraints
Volatility of oil prices
- One key restraint of the global oilfield equipment market is the volatility of oil prices. Fluctuations in oil prices can significantly impact investment decisions and project activities in the oil and gas industry. When oil prices are low, oil and gas companies may reduce their capital expenditures, leading to a decrease in demand for oilfield equipment. Uncertainties in global oil markets, geopolitical tensions, and economic factors can contribute to price volatility, posing challenges to the stability and growth of the oilfield equipment market.
Environmental Concern and Regulations
-
Environmental concerns and regulations are one of the major challenges global oilfield equipment faces. Increased control is exercised over the operations of oil and gas through the complete life cycle of exploration, drilling, and production, and even in transport, because of stringent environmental regulations. Regulations on reducing greenhouse gases and air pollutants require the oilfield equipment market to innovate and adopt technologies that minimize emission-bearing equipment and processes. This creates technical as well as economic dilemmas of balancing the mandates of emission reduction with the performance and cost-effectiveness of equipment on the part of manufacturers. According to the data given by 'The Wilderness Society', more than 1.2 million oil and gas production facilities are present across the U.S. landscape that makes more than 12 million people vulnerable to getting exposed to diverse pollutants daily within half a mile of these facilities.
Request Free Customization of this report to help us to meet your business objectives.
Oilfield Equipment Market Competitive Landscape
The competitive landscape of the global oilfield equipment market is characterized by intense competition among market players. Key strategies adopted by participants in the market include mergers and acquisitions, partnerships, collaborations, and product innovations. Based on SkyQuest’s in-depth analysis, the strategy of rise in digitalization and automation as well as collaborations and acquisitions, these two strategies have emerged as a pivotal approach adopted by major market players in the global oilfield equipment market. Companies work on sophisticated, more advanced oilfield equipment in a move placing focus on operational efficiency, better safety standards at the workplace, and catering to the changing dynamics of the industry. Emphasis on geographic footprint is one among various strategies that the market players focus on to explore untapped markets, that would provide opportunities for market expansion.
Top Player’s Company Profiles
- Schlumberger Limited (US)
- Baker Hughes Company (US)
- Halliburton Company (US)
- Weatherford International PLC (US)
- National Oilwell Varco, Inc. (US)
- TechnipFMC PLC (UK)
- Saipem S.p.A (Italy)
- Sinopec Oilfield Equipment Corporation (China)
- China Oilfield Services Limited (China)
- Aker Solutions ASA (Norway)
- Petrofac Limited (UK)
- Nabors Industries Ltd. (Bermuda)
- Tenaris S.A. (Luxembourg)
- Subsea 7 S.A. (UK)
- NOVATEK (Russia)
- McDermott International, Inc. (US)
- Oceaneering International, Inc. (US)
- Archer Limited (Norway)
- Cameron International Corporation (US)
- John Wood Group PLC (UK)
Recent Development
-
In February 2024, Baker Hughes announced a contract from Petrobras for integrated well construction services in the Buzios field, offshore Brazil. The integrated services project is set to start in the first half of 2025 and will include drilling services, drill bits, wireline, cementing, wellbore clean up, fishing, remedial tools, fluids, services and geosciences.
-
In January 2024, Schlumberger (SLB) and Nabors Industries announced a collaboration focused on scaling the adoption of automated drilling solutions. This strategic alliance aims to integrate SLB's drilling automation applications with Nabors Industries' rig operating systems, thereby offering enhanced well construction performance and efficiency to oil and gas operators and drilling contractors.
-
In January 2024, Schlumberger (SLB) announced its investment and technology agreement with Geminus AI. This partnership grants SLB exclusive access to deploy a physics-informed artificial intelligence (AI) model builder designed specifically for oil and gas operations.
Oilfield Equipment Key Market Trends
- Rising Adoption of Various Digital Technologies and Automation: A major trend observed in the global market for oilfield equipment is the increased adoption of digital technologies and automation. With the help of artificial intelligence, the Internet of Things, data analytics, and automation, this equipment is helping optimize the operations of oil equipment manufacturers and service providers to enhance efficiencies and lower costs. The application of digital technologies in the equipment operational process ensures enhanced equipment performance, reduced downtime, improved operational safety, and general productivity. This is driven by the focus on operational excellence in the industry, cost optimization, and the need to adapt to the evolving digital landscape.
Oilfield Equipment Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analyses, the global oilfield equipment market is a dynamic and competitive sector within the energy industry comprising of wide ranges of equipment and services called for processes—oil and gas exploration, production, and refining. Growth in the global demand for energy, coupled with technological advancement in drilling and extraction techniques and demand for continuous and efficient equipment, has buoyed this market. Drilling equipment dominates the market by components, and field production machinery is projected to reflect the fastest growth. In terms of geographical region, while North America dominates the market, it is Asia-Pacific that reflects the fastest growth. Some of the key drivers identified include the rise in energy demand, while fluctuation in oil prices is acting as a restraint. The market is highly competitive, and companies are engaged in developing innovative products, forming partnerships, and increasing their geographic presence. A digitalizing and automating world aids companies evermore in the optimization of operations, attaining efficiencies, and cutting down costs. In times like these, the role and functions of the global oilfield equipment market gain immense significance to meet energy requirements, embrace technology, and meet the standards of sustainability.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 118.04 Billion |
| Market size value in 2031 | USD 169.26 Billion |
| Growth Rate | 3.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Oilfield Equipment Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Oilfield Equipment Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Oilfield Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Oilfield Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Oilfield Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Oilfield Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
USA (+1) 351-333-4748
