Oilfield Equipment Market Size, Share & Growth Report | 2031

Report Description

The global oilfield equipment market size was valued at around USD 122.22 billion in 2022 and is expected to surpass USD 165.13 billion by 2031, expanding at a CAGR of 3.4% during the forecast period, 2023–2031. The market growth is attributed to the increasing oil drilling activities and the rising gas exploration to meet the growing demand for oil and gas energy worldwide.  

Oilfield equipment refers to a range of bulky, highly specialized, and high-energy consumption equipment that is primarily designed for various applications in the oil and gas industry. These heavy types of machinery are mainly deployed to help effective, accurate, and cost-efficient processes in oil and gas exploration, excavation, and drilling activities.

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The major types of oilfield equipment include drilling equipment, pumps & valves, pressure & flow control equipment, field production machinery, and fishing equipment. These instruments offer specific functions to detect flow control, pressure maintenance, well logging, oil sands, and drilling fluids level in both on-shore and off-shore drilling rigs and exploration activities.

Various control panels such as solid control equipment and well control equipment are widely used to ensure effective drilling of oil rigs for both on-shore and off-shore to maximize oil production. The rapid growth of the petrochemical business and the growing oil extraction investment from oil and energy international organizations present a key factor for oilfield equipment market growth.

According to the Organization of the Petroleum Exporting Countries (OPEC) Annual Statistical Bulletin 2022, the apex organization estimated that the OPEC members constituted nearly 80.4% (1,241.82 billion barrels) of the global oil reserves with the leading oil reserves in Middle East in 2021. The region accounted for about 67% of the total OPEC oil reserve with a major contribution from Saudi Arabia, Iran, and Iraq. In country-wise, Venezuela has the largest reserve of oil among OPEC members, accounting for about 24.5% (303.47 billion barrels) of the total oil reserve of the organization. 

COVID-19 Impact on Oilfield Equipment Market

The market report finds that the COVID-19 pandemic adversely impacted the global oilfield equipment market due to the sharp decline in oil drilling and gas exploration in the oil and gas sector worldwide. The sluggish nature of the overall oil production across the globe during the peak of the pandemic was caused by the massive decrease in demand for oil and gas energy across industries.

Movement restrictions and travel bans, imposed by governments as part of emergency lockdowns, crippled the transportation system and aviation sector across the globe, which resulted in a rapid decline in oil and gas demand worldwide. Moreover, the lack of availability of skilled labor or technicians to operate oilfield equipment further hampered the overall demand for such equipment.

The pandemic affected the oil & gas industry significantly due to the massive fall in oil prices, imbalance in the oil and gas demand and supply, and temporary halt of crude oil explorations, which led to the massive decline in oilfield equipment demand. The global oilfield equipment market is recovering at a steady rate following the wide relaxation of lockdowns across countries, impacted by the rapid decline in corona cases globally.

Drilling and excavation services are back to normal operations, which leads to oil price recovery and increasing demand for field production machinery. As per a study by the International Energy Agency (IEA), oil production had a significant turnaround at the beginning of 2022 due to global oil demand rebounded. 

Oilfield Equipment Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global oilfield equipment market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Key Trends
Rising shift to unconventional oil reserves

The rising shift of oil and gas companies to the exploration of unconventional sources of oil reserves is one of the major market trends, which is likely to have a major impact on market growth. The increasing exploration of unconventional oil reserves from major oil and gas companies requires a different set of drilling equipment and specialized equipment to widen their drilling activities and maximize their oil production.

Several key players, especially from developed regions are increasingly engaged in various exploration studies such as examining different rocks including carbonated rocks and oil sands. The increasing research investment in unconventional hydrocarbon production and the exploring activities for shale oil present key current market trends in the global oilfield equipment market. 

Major Drivers

Growing demand for crude oil and natural gas 

The increasing oil drilling and exploration activities globally are largely influenced by the growing demand for crude oil and natural gas from various industries. A wide range of oilfield equipment is deployed in the drilling and excavation to ease and safe execution of multiple operations including crude oil excavation and natural gas extraction.

With the growing number of commercial and passenger vehicles along with the rapid expansion of the aviation sector across the globe, the demand for advanced oilfield equipment is increasing significantly to help extract crude oil and natural gas efficiently. Moreover, the global oilfield equipment market growth is largely attributed to the rising number of mature oil wells and the increasing discovery of new oil reserves globally, which further push the demand for oil and natural gas energy. 

Existing Restraints

Environmental concerns and the high cost of oil transport   

Strict government regulations encouraging oil and energy companies to shift toward the use of green energy sources and increase investment in alternative fuels act as a major restraining factor for the market. Governments have laid down various policies and guidelines for companies to reduce their carbon footprint and focus on electric and renewable energy as a substitute for fossil fuels. The high cost of oil transport and the heavy maintenance cost of drill pipes are other major challenges that can hamper the market growth in the coming years.  

Emerging Opportunities

Technological advancements and wide integration of AI, ML, and IoT

Technological advancements in oil drilling activities and the wide integration of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT) are expected to offer lucrative growth opportunities for the global oilfield equipment market.

The rapid introduction of advanced drilling equipment helps in increasing safety, cost reduction, and higher efficiency in oil production. With the increasing shift to the digitization of equipment, various AL and ML solutions are widely integrated with oil and gas pipelines, exploration sites, oil and gas refineries, and infrastructure. 

Scope of Oilfield Equipment Market Report

The report on the global oilfield equipment market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Oilfield Equipment Market Segment Insights

Drilling equipment segment to expand at a significant growth rate

Based on types, the global oilfield equipment market is divided into drilling equipment, pumps & valves, pressure & flow control equipment, field production machinery, fishing equipment, and others. 

The drilling equipment segment accounted for more than 70% of the global market share in 2021 and is expected to expand at a significant growth rate during the projected period owing to the massive increase in oil and gas drilling and excavation activities worldwide. The rising exploration of new oil fields and gas wells along with the increasing governments’ initiatives for the high level of oil production is further boosting the demand for drilling activities.

Moreover, the increasing discovery of fresh oil fields and gas wells as well as the rising oil reserve depletion across several key provinces further drive segment growth. Directional drilling, percussion/cable drilling, and rotary drilling are three main drilling types, widely used in the oil and gas industry. Rotary drilling is one of the most common techniques in drilling activities and is largely used for digging up oil production wells that require deep excavation.

Furthermore, the rapid introduction of innovative drilling equipment equipped with advanced technology and features is likely to fuel the segment further during the forecast period. 

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On-shore segment to register a considerable CAGR

On the basis of applications, the global market is bifurcated into on-shore and off-shore. 

The on-shore segment held a dominant market share in 2021 and is projected to register a considerable CAGR during the forecast period due to the massive on-shore oil drilling activities across newly discovered oil reserve provinces globally. On-shore oil excavation and drilling activities currently account for nearly 70% of the global oil and gas production and the operation cost of on-shore drilling is much cheaper compared to off-shore operations.

Moreover, the wide introduction of advanced on-shore oil drilling equipment as well as the high availability of oilfield equipment renting services for on-shore exploration and drilling activities further drives the segment.     

North America to dominate the market

In terms of regions, the global oilfield equipment market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. 

North America constituted a major market share in 2021 and is expected to dominate the market during the projected period owing to the rising demand for oil and gas in the region along with the increasing shale gas development in the US and Canada. The overall crude oil production in North America has increased significantly over recent years with the massive expansion of shale oil extraction and operations in the Gulf of Mexico.

In the region, the US market size is expected to expand at a significant growth rate during the forecast period owing to the rising off-shore oil rig operations and the wide adoption of advanced drilling components in off-shore oil production. The Permian Basin, which is the largest shale production province in the US, has a natural gas production capacity of 19,891 mmcfd of crude oil and a condensated production capacity of 5,055 mbd in 2022.

With the increasing rate of oil exploration and production activities in the US and Canada, the market in North America is anticipated to register a high CAGR during the forecast period. Asia Pacific is projected to account for a key market share in the coming years owing to the increasing demand for oilfield equipment to meet the rising needs for massive oil drilling and excavation operations in the region.

The rising investment in oil reserve discovery as well as the rapid development in the operation of natural gas and crude oil extraction in China, Thailand, and India is a major driving factor for the regional market. Moreover, the massive expansion of oil and gas refineries in major economies of the region further boosts the market in Asia Pacific.   

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