Oilfield Equipment Market | Acumen Research and Consulting

The Global Oilfield Equipment Market Size accounted for USD 122.4 Billion in 2022 and is projected to achieve a market size of USD 184.8 Billion by 2032 growing at a CAGR of 3.8% from 2023 to 2032.

Oilfield Equipment Market Report Key Highlights

• Global oilfield equipment market revenue is expected to increase by USD 184.8 Billion by 2032, with a 3.8% CAGR from 2023 to 2032
• North America region led with more than 37% of oilfield equipment market share in 2022
• In 2019, the US produced approximately 2 million barrels of oil per day from offshore drilling, accounting for about 16% of total US oil production.
• The oil and gas industry is expected to invest approximately $1.9 trillion in exploration and production between 2021 and 2025
• The oil and gas industry accounts for approximately 70% of the world's primary energy consumption.
• The offshore drilling segment is expected to grow at the highest CAGR of 5.6% during the forecast period
• Increasing demand for high-quality, long-lasting, and sustainable infrastructure, drives the oilfield equipment market size

Oilfield equipment refers to the machines and tools that are used to extract oil and gas from beneath the earth's surface. This equipment is utilized in the drilling, exploration, production, and transportation of oil and gas. Oilfield equipment is essential for the oil and gas industry, and its market growth has been significant in recent years due to the rising demand for energy.

The global oilfield equipment market is projected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2032. The growth of the market is attributed to the increase in oil and gas exploration activities, especially in developing countries. The rising demand for crude oil and natural gas, coupled with the growing demand for energy, is driving the growth of the market. Moreover, the advancement of technology and the introduction of new drilling techniques are also contributing to the oilfield equipment market growth.

Global Oilfield Equipment Market Trends

Market Drivers

• Increasing demand for oil and gas
• Development of new oil and gas fields
• Growing demand for energy from emerging economies
• Advancements in drilling technology and equipment
• Increased offshore exploration and production activities
• Government initiatives to boost oil and gas production

Market Restraints

• Volatility in oil and gas prices
• Environmental concerns and regulations
• High cost of oilfield equipment and operations

Market Opportunities

• Increasing focus on offshore exploration and production
• Advancements in automation and digital technologies
• Growing demand for equipment rental services

Oilfield Equipment Market Report Coverage

An increase in crude-yielding activities around the globe owing to the increasing demand for crude oil is anticipated to be the key reason behind the growth of the oilfield equipment market value in the coming years. Oilfield equipment is the instruments used by oilfield operators to extract gas and oil from reservoirs. Oil equipment can be either taken on rent or bought by oil operators. Most of the time these oil operators rent the equipment as it reduces capital expenditure.

The industrialization has led to the budding demand for the development of high-performance, reliable, and efficient oilfield tools for improving yielding results. Thus, several industry players are anticipated to strategize heavy capitalization into R&D not only for the development of better equipment in order to improvise the productivity and recovery of crude operations but also to ensure the safety and security of workers while functioning this equipment. Capitalization and investment by market participants are expected to boost the growth of the oilfield equipment market in the coming years. Moreover, the industry shift inclined towards the development of unconventional energy sources to fulfill the demand is also predicted to notably contribute to market growth in the future.

However, ongoing geopolitical issues coupled with a lack of skilled workers can be a few of the factors restraining the market growth. Also, a shift in focus towards the encouragement of green energy sources can adversely impact the activities of extracting energy sources, which in turn can pull back the market growth, globally. Nonetheless, trending utilization of cutting techniques, such as ER and IOR are expected to generate healthy opportunities for the oilfield equipment market in coming years.

Oilfield Equipment Market Segmentation                                               

The global oilfield equipment market segmentation is based on type, application, and geography.

Oilfield Equipment Market By Type

• Drilling equipment
• Pumps and valves
• Field Production Machinery
• Others

According to an oilfield equipment industry analysis, the drilling equipment segment is one of the major segments of the market. It includes various types of drilling rigs, such as land rigs, offshore rigs, and mobile rigs, as well as drill bits, mud pumps, and other equipment used in drilling operations. The demand for drilling equipment is directly linked to the exploration and production activities in the oil and gas industry. The global drilling equipment market is expected to witness significant growth over the next few years due to the increasing demand for oil and gas, particularly from emerging economies. Advancements in drilling technology, such as horizontal drilling and hydraulic fracturing, have enabled the extraction of oil and gas from unconventional sources, which has further driven the demand for drilling equipment.

Oilfield Equipment Market By Application

• On-shore
• Off-shore

According to the oilfield equipment market forecast, the onshore segment is expected to witness significant growth over the next few years. This growth is driven by increasing demand for oil and gas, particularly from emerging economies, and the development of new oil and gas fields. The onshore segment includes various types of drilling rigs, such as vertical and horizontal drilling rigs, as well as equipment used in drilling operations, such as drilling bits, mud pumps, and drill pipes. The completion equipment used in onshore operations includes wellheads, casing, and tubing, while the production equipment includes pumps, compressors, and separators. Additionally, the increasing demand for automation and digital technologies in onshore operations has created new opportunities for market players. The use of data analytics, artificial intelligence, and robotics in onshore operations has improved efficiency and reduced costs.

Oilfield Equipment Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)