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The offshore rental equipment market size is estimated to grow at a CAGR of 6.63% between 2022 and 2027. The market size is forecast to increase by USD 7,956.37 million. The growth of the market depends on several factors, including the increasing demand for oil and gas, the increase in offshore exploration and production activities, and the growing demand for offshore rental equipment in end-user industries.
This offshore rental equipment market report extensively covers market segmentation by type (drill equipment, flow, and pressure equipment), end-user (oil and gas industry, marine engineering, and exploration), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for oil and gas is notably driving the market growth, although factors such as increasing standard regulations for safety may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for oil and gas is the key factor driving the growth of the global offshore rental equipment market. Oil and gas are critical components of the global energy mix, and they are utilized for a variety of purposes, such as transportation, power generation, and heating. The offshore rental equipment market is critical to the exploration, drilling, production, and transport of oil and gas from offshore deposits. Population growth, urbanization, and economic development in emerging markets are all on the rise.
As the demand for oil and gas grows, there is a greater need to explore and produce oil and gas. The more challenging offshore settings, such as deepwater and ultra-deepwater reservoirs, the more sophistication of offshore equipment is required. Offshore equipment such as drilling rigs, subsea systems, and pipelines are essential for the efficient and safe exploration and production of oil and gas in offshore sites. Thus, the increasing demand for oil and gas is expected to drive the growth of the global offshore rental equipment market during the forecast period.
Increasing demand for offshore rental equipment in the renewable energy industry is the primary trend in the global offshore rental equipment market growth. Increased climate change and depletion of fossil fuel supplies may lead to a shift towards renewable energy sources such as wind, solar, and hydropower during the forecast period. Offshore wind energy is gaining popularity as a potential alternative energy source compared to other energy sources. Additionally, many industries are looking for cost-effective alternatives from offshore rental equipment providers, increasing demand for offshore rental equipment such as cranes, jack-up boats, jack-up platforms, and installation vessels.
With the increasing demand for offshore wind energy, the renewable energy sector as a whole is predicted to increase significantly in the forecast period. This is owing to governments across the world adopting more renewable energy mandates, as well as the dropping costs of renewable energy technologies. This creates a big potential for offshore rental equipment companies to expand their product offerings and capitalize on the growing demand for renewable energy solutions. Thus, increasing demand for renewable energy is one of the major trends for the growth of the global offshore rental equipment market during the forecast period.
Increasing standard regulations for safety is a major challenge to the growth of the global offshore rental equipment market. Regulations are in place to protect worker safety, the environment, and the integrity of drilling rigs. While these laws are necessary, they could impact demand for rental equipment and increase the costs associated with offshore drilling. For example, environmental, health and safety (EHS) regulations, occupational health and safety agencies, and other regulations may require equipment used in offshore drilling activities to meet specific safety standards, and such equipment can increase the cost of use.
Furthermore, rules may restrict businesses from employing specific types of equipment or processes, which can limit rental equipment availability and make it more difficult for businesses to find the equipment they require. Regulations can also impact the timing of offshore drilling operations, as they may require businesses to seek permits and approvals before initiating drilling operations. This can cause delays in the drilling process, affecting the demand for rental equipment and raising company costs. Thus, the standard regulations in the extraction process are expected to hamper the growth of the global offshore rental equipment market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Offshore Rental Equipment Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Atlas Copco AB: The company offers offshore rental equipment solution through its subsidiary Atlas Copco Rental.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the drill equipment segment will be significant during the forecast period. The increasing demand for oil and gas increased the demand for drill equipment as well. According to a statistical report by the American Petroleum Institute (API) in 2022, the demand for petrol in the US increased by 2.9% year over year (YOY) compared with the demand in 2021. Thus, the increase in demand for drilling equipment will drive the growth of the global offshore rental equipment market during the forecast period.
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The drill equipment segment was valued at USD 12,777.84 million in 2017 and continued to grow until 2021. Drilling equipment provides essential equipment for drilling operations in offshore oil and gas exploration and production. The need for modern and effective drilling technology, expanding oil and gas development operations, and the trend toward deepwater drilling all contribute to the need for drilling equipment rentals. A wide range of equipment is included, including drilling fluids, tools, drill motors, drill bits, and drill pipes. These tools are essential in completing offshore drilling projects and are used in a variety of drilling activities including vertical, horizontal, and directional drilling. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America was the leading offshore rental equipment market in 2022, and this trend is likely to continue during the forecast period due to the region increasing need for energy efficiency. Because of the rising production from both deepwater outcomes and shale activities, the region has emerged as a swing producer or close oligopolistic group.
Due to growing shale gas production, the United States is anticipated to be the leader during the forecast period. Another element that is predicted to have a substantial impact on the regional industry is E&P combined with the development of ultra-deep drilling activity in the Gulf of Mexico region. Technological advancements in product design and functionality are expected to boost industry growth in this region during the forecast period.
In 2020, the offshore rental equipment market in North America witnessed certain challenges owing to the outbreak of COVID-19. However, the initiation of large-scale vaccination drives across North America in Q1 2021 led to the resumption of operations in various industries, such as the oil and gas industry, marine engineering, and exploration. Due to the lifting of lockdown restrictions, businesses started operating, which led to a surge in demand for material handling equipment across all industries, including the oil and gas industry. Thus, the regional offshore rental equipment market is expected to witness growth during the forecast period.
The offshore rental equipment market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global offshore rental equipment market as a part of the global oilfield equipment and services within the global oil and gas market. The global oilfield equipment and services market covers products and companies engaged in upstream exploration and production (E&P) operations, production of equipment or service contracts, and is an important manufacturing sector which caters to the needs of oil and gas upstream sector. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Offshore Rental Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.63% |
Market growth 2023-2027 |
USD 7,956.37 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.67 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 58% |
Key countries |
US, Mexico, China, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aquaterra Energy Ltd., Ashtead technology Ltd., Atlas Copco AB, Baker Hughes Co., BESTWAY OILFIELDS FZCO, Bois Equipment Rentals BV, Certified Oilfield Rentals LLC, China Oilfield Services Ltd., Ensign Energy Services Inc., Halliburton Co., Norwegian Offshore Rental AS, NOV Inc., Offshore Rental and Support, Oil States International Inc., Parker Drilling Co., Schlumberger Ltd., Superior Energy Services Inc., Tiger Offshore Rentals, Weatherford International Plc, and TechnipFMC plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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