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

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.

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.