The oilfield equipment market comprises equipment that are utilized in oil and gas exploration and extraction activities. Devices like drilling equipment, production equipment, valves, pumps and others help extract oil and gas from underground reserves. With advancements in technology, digitalization is helping optimize operations in the oilfield equipment market. Devices are being integrated with sensors and analytics to improve efficiency, achieve remote monitoring and gain strategic insights.
The Global Oilfield Equipment Market is estimated to be valued at USD 129.6 Billion in 2024 and is expected to exhibit a CAGR of 3.7% over the forecast period 2024-2031. Oilfield equipment assist in a variety of operations including exploration, drilling, extraction and production of oil and natural gas. Key players operating in the oilfield equipment are Baker Hughes, ABB, Delta Corporation, Weir Group, Sunnda Corporation.
Key Takeaways
Key players: Baker Hughes, one of the largest oilfield service providers, offers a wide range of equipment and technologies. ABB supplies digitally enabled products for automation in oil and gas industry. Delta Corporation is a leading manufacturer of valves and pumps. Weir Group provides engineered products and services to energy industry including pressure pumping equipment. Sunnda Corporation produces drilling rigs and workover rigs.
Growing demand: Rapid urbanization and rising energy needs have increased the global demand for oil and gas. This has compelled oil producers to adopt advanced equipment to optimize operations and increase production volumes. More intensive exploration and drilling activities are expected to drive the demand for oilfield equipment.
Global expansion: Leading oilfield equipment companies are expanding their global footprint by entering emerging markets and establishing manufacturing and service centers closer to oilfields. The market is witnessing consolidation as well through mergers and acquisitions. Regional players are also coming up with low-cost solutions to tap new opportunities.
Market key trends
Digitalization and automation are prominent trends in the oilfield equipment market. Devices are being integrated with internet of things (IoT) technology, sensors, analytics and machine learning capabilities. This is helping optimize operations, reduce production downtime, achieve remote monitoring and predictive maintenance of equipment. Digitally enabled equipment allow gathering real-time data from oilfields for strategic decision making. Advanced technologies like robotic systems are also gaining acceptance in oil and gas industry.
Porter's Analysis
Threat of new entrants: High capital requirements and need for scale serve as entry barriers to this market.
Bargaining power of buyers: Large oil companies hold significant buyer power as major customers of equipment manufacturers.
Bargaining power of suppliers: Equipment components are highly customised with specialization, limiting supplier bargaining power.
Threat of new substitutes: Minimal threat as oil extraction techniques have limited alternatives.
Competitive rivalry: Intense competition among major global players to gain contracts from national oil companies.
Geographical Regions
North America accounts for the largest share of the oilfield equipment market currently due to significant shale oil and gas production. The United States holds the largest reserves of shale oil and gas and was the early adopter of hydraulic fracturing and horizontal drilling techniques.
The Asia Pacific region is expected to grow at the fastest pace during the forecast period with increasing offshore and onshore oil and gas activity in countries such as China, India, and Indonesia. Major national oil companies are investing heavily in developing indigenous production to meet domestic energy demand.
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