Enjoy complimentary customisation on priority with our Enterprise License!
The oil and gas upstream equipment market size is estimated to grow at a CAGR of 3.26% between 2024 and 2028. The market size is forecast to increase by USD 11,226.76 million. The growth of the market depends on several factors including the increasing preference for pipeline transportation, the rising global energy demand, and the advancements in drilling technology.
This oil and gas upstream equipment market report extensively covers market segmentation by application (exploration and drilling, completion, and procedure, and others), deployment (onshore and offshore), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
To learn more about this report, View Report Sample
Our researchers analyzed the data with 2023 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.
One of the key factors driving the oil and gas upstream equipment market growth is the advancements in drilling technology. Advanced drilling techniques, including horizontal drilling and extended-reach drilling, enable greater access to hydrocarbon reserves, including unconventional resources like shale and tight formations. In addition, this prompts increased exploration efforts, resulting in a higher demand for drilling equipment and associated technologies.
Moreover, technological advancements have enabled drilling in deepwater and ultra-deepwater environments, where substantial reserves are found. As a result, it requires specialized drilling rigs, subsea equipment, and wellhead systems, all of which contribute to the upstream equipment market. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the oil and gas upstream equipment market growth is the rising adoption of digitalization and automation. Digitalization comprises the use of sensors and IoT (Internet of Things) devices to collect real-time data from equipment and assets. In addition, the demand for advanced sensor technology has grown as operators seek to monitor the performance and condition of equipment remotely. Furthermore, automation and digitalization enable the collection and analysis of vast amounts of data from upstream operations.
Moreover, data analytics and machine learning algorithms are used to predict equipment failures, schedule maintenance proactively, and optimize production processes. In addition, automation allows for remote monitoring and control of drilling rigs, production facilities, and pipelines. Furthermore, it reduces the need for on-site personnel, lowers operational costs, and enhances safety, especially in remote or hazardous environments. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
Uncertainties associated with low crude oil prices are one of the key challenges hindering the oil and gas upstream equipment market growth. The oil and gas industry is highly relies on commodity prices. Therefore, any fluctuation in crude oil prices affects the performance of a majority of the upstream sector companies. Furthermore, Pureplay upstream companies have been affected the most, while integrated oil companies were still able to absorb some of the ongoing pressure due to increased revenue from the downstream sector.
Moreover, for drilling and production of crude oil to be commercially viable, global crude oil prices need to be sufficiently high so that oil and gas companies can sustain themselves in the market. In addition, several oil and gas projects were put on hold, many oil rigs remained unutilized. Furthermore, such oil rigs require regular maintenance so that the quality of rigs is not hampered. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research 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 Oil and Gas Upstream Equipment Market Customer Landscape
Companies 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.
Aker Solutions ASA: The company offers oil and gas upstream equipment such as wellheads, subsea trees, and tie in systems.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The exploration and drilling segment is estimated to witness significant growth during the forecast period. Exploration activities are essentially attributed to the upstream sector, which comprises the basic search for crude oil or gas in the petroleum trap. In addition, with the help of several surveys, such as geological mapping through technologically advanced methods, such as reflective seismic, passive seismic, gravity, and magnetic surveys, potentially hydrocarbon-bearing rocks known as prospects are identified.
Get a glance at the market contribution of various segments View the PDF Sample
The exploration and drilling segment was the largest segment and was valued at USD 38,421.25 million in 2018. Moreover, seismic surveys utilize sophisticated technologies including streamers, vessels, hydrophones, geophones, and receivers to capture large volumes of data at higher frequencies from the entire seismic survey value chain. In addition, the data is then analyzed by geologists in real time to locate the area for production. Furthermore, this helps optimize reservoir production. With the maturing of oil fields, access to easy oil is reducing. Moreover, there are increased investments in offshore wells that require extensive use of high-technology surveying equipment. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 38% 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. One of the major regions for the oil and gas industry is North America. It includes the maximum share of active rig counts, which increases the potential for the oil and gas upstream equipment market.
With the gradual stabilization in crude oil prices, the region has resumed its deep and ultra-deep oil and gas projects in the Gulf of Mexico which is significantly contributing to the market growth in the region. In addition, drilling and production from unconventional sources of energy, such as shale and oil sands, are likely to further fuel the market potential for oil and gas upstream equipment in North America. Hence, such factors are driving the market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global oil and gas upstream equipment market witnessed a significant slowdown due to the halt in online pipeline projects in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of pipeline projects. Such factors are expected to drive the market during the forecast period
The oil and gas upstream 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 2018 to 2028.
Oil And Gas Upstream Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.26% |
Market Growth 2024-2028 |
USD 11,226.76 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.11 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aker Solutions ASA, Archer Ltd., ATB Holding Spa, Atlas Copco AB, AXON Pressure Products Inc., Dril Quip Inc., Evolution Oil Tools Inc., Flowserve Corp., Forum Energy Technologies Inc., General Electric Co., Halliburton Co., NOV Inc., Schlumberger Ltd., Seadrill Ltd., Siemens AG, SPX FLOW Inc., Sumitomo Corp., Weatherford International Plc, Geometrics Inc., and Helmerich and Payne Inc. |
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, and Market condition analysis for the 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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. You may change your settings based on a legitimate interest at any time, by selecting “Manage Settings” on our site. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.