[255 Pages Report] The global pressure control equipment market is estimated to grow from USD 6.8 billion in to USD 8.9 billion by ; it is expected to record a CAGR of 5.4% during the forecast period. Rising exploration and production of unconventional oil & gas resources, especially in North America region, and increasing global oil demand are the major driving factor for the pressure control equipment market .
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Since its inception, the oil and gas industry has seen rapid changes in the methods, modes, and materials used for production and delivery.With conventional oil and gas reserves maturing, the demand for substitute resources that can efficiently meet rising energy demand is increasing.The discovery of unconventional oil and gas resources has aided in the development of clean and efficient energy sources. Unconventional oil and gas resources are those that do not occur in traditional formations and necessitate specialised extraction or production techniques.Shale gas, tight gas, coalbed methane (CBM), shale oil, tight oil, and natural gas hydrates are examples of unconventional oil and gas resources.Chemically, these resources are identical to conventional oil and gas resources. The distinction is based on their reservoir rock type, oil and gas origin, occurrence state, underground position, or the unique nature of their reservoirs.
Although the remaining global conventional resources are still abundant and sufficient to meet current needs, unconventional oil and gas resources are gradually becoming valuable and attracting more interest as the oil price rises. Unconventional oil and gas resources are being utilized more and more as decades of oil and natural gas production have resulted in extensive use of conventional resources. As per the World Energy Outlook report by the International Energy Agency (IEA), unconventional oil production is projected to increase from 1.8 mb/d in to 7.4 mb/d by . By , global unconventional oil production is expected to account for 15.3% of the total oil production. Hence, the increasing production of unconventional oil and gas is expected to lead to extensive exploration and production activities, ultimately fueling the demand for pressure control equipment.
The majority of shale reserves are located in North America, with the United States dominating the regional market, as well as in some parts of Europe and Asia.The International Energy Agency (IEA) predicts that shale production in the United States alone will exceed 100 million barrels per day. According to the US Energy Information Administration (EIA), US oil production from seven major shale formations increased by about 29,000 barrels per day (bpd) in January , bringing total shale oil production to 9.14 million barrels per day. The increasing shale oil and gas production in the North Dakota basin, Montana's Bakken formations, and the Permian basin, as well as rising shale developments, are responsible for the US shale boom, which has propelled the country to the world's largest oil-producing country, ahead of Saudi Arabia and Russia. Furthermore, Argentina's Vaca Meurta shale basin is one of the world's largest shale reservoirs. Argentina has shale gas reserves of 23 trillion cubic metres and shale oil reserves of 27 billion barrels.
Pressure control equipment demand is tied to exploration, development, and production operations, as well as capital investment by oil and gas corporations. Oil and natural gas price fluctuations have a direct influence on these operations. The fluctuations occur as a result of changes in supply and demand for oil and natural gas, governmental regulations, including policies governing the exploration, production, and development of oil and natural gas reserves, weather, natural disasters, and other factors. Because many large-scale development projects are for a long time, oil and gas companies may reduce or postpone major expenditures based on the perception of long-term low oil and natural gas prices.The prolonged reduction in crude oil prices or expectations of such reduction is expected to hamper the growth of the pressure control equipment market.
Furthermore, the growth of the market is directly affected by the decline in capital expenditures by oilfield operators and service providers. It may lead to a decrease in demand for pressure control equipment.
Offshore exploration, drilling, and production operations necessitate distinct environmental and technological issues than onshore oil and gas activities. Despite the challenges posed by harsh offshore environmental conditions, advances in exploration and production technology for application in ice prone regions, such as the Grand Banks, Bohai Sea, Caspian Sea, Cook Inlet, and Sakhalin Island, have developed economically feasible solutions for the production in these regions.
The global slowdown in oil prices has resulted in downturn in the drilling activities in the past few years, thereby putting further pressure on offshore drillers and service providers; however, opportunities for offshore drillers is expected to grow as the industry tends to recover moderately. For instance, in Argentina, the Ministry of Energy launched an auction process for about 6'10 offshore exploration blocks at the end of , whereas the Colombian government reduced offshore gas royalties and lowered windfall profit fees to support offshore developments in the country. Other activities such as commercialization of Liza oil discovery in the Stabroek offshore block by ExxonMobil in Guyana and growing contracts for exploration and production of hydrocarbons in the deepwater offshore in Mexico are expected to develop new opportunities for offshore drilling.
The aim of global economies to reduce their carbon footprint and emission of greenhouse gases has fueled the adoption of clean and green energy alternatives. This has led the economies to use renewable energy sources such as solar, wind (onshore and offshore), biomass, hydroelectric, and geothermal power for power generation. The growing energy demand due to rapid industrialization and urbanization has further accelerated the transition.
Renewable energy is considered to be the fastest-growing sector globally, with a large number of renewable energy projects receiving more funding than ever before. As the need for clean, sustainable energy increases and renewable technologies become more advanced, more and more projects are expected to be initiated. For instance, the Wudongde Hydropower Station, China, has been under construction since and began producing power in June . The dam started operational by December . It is expected to offset the use of 12.2 million tons of standard coal and reduce CO2 emissions by 30.5 million tons per year and sulfur dioxide emissions by 104,000 tons per year. The Hornsea Project 2, UK, estimated at the cost of USD 7.8 billion, has been in development since August and completed by . This project boasts a total installed capacity of 1,386 MW on completion. Countries such as Canada, the US, India, and the UAE are actively investing in renewable energy projects, thus fueling the adoption of renewable energy sources.
The transition toward renewable energy sources, fueled by the increased investments by governments worldwide, is expected to result in a decline in upstream, midstream, and downstream activities and the growth of market players to an extent.
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This report segments the pressure control equipment market based on type into two types: wireline pressure control equipment, and coiled tubing pressure control equipment. The wireline pressure control equipment is expected to be the largest market during the forecast period. Increase in drilling activities in key tight and shale basins and inception of several new projects in the federal offshore'Gulf of Mexico'are expected to drive the market for wireline pressure control equipment.
This report segments the pressure control equipment market based on component into 11 segments: flow control valves, flow control treating iron, flow control adapter & flange, flow control surface crossover, flow control flexible hoses, wellhead equipment, control head, Christmas tree, quick unions, coiled tubing WPCE and others, which includes hydraulic chokes, and crossover adapters. Control head is expected to be the fastest segment during the forecast period. Reduced drilling cost and increases well production is expected to drive the market for control head segment.
North America is expected to dominate the pressure control equipment market between ', followed by Europe and Asia Pacific. Rising exploration and production of unconventional oil & gas resources, especially in North America region is driving the market for this region.
The market is dominated by a few major players that have a wide regional presence. The major players in the pressure control equipment market are SLB (US), Weatherford (US), NOV Inc (US), Baker Hughes Company (US), and The Weir Group PLC (UK). Between and , Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the market.
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Base year considered
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Value (USD Billion)
Segments covered
Pressure control equipment market by type, component, application, sales type, pressure and region.
Geographies covered
Asia Pacific, North America, Europe, Middle East & Africa, and South America
Companies covered
SLB (US), Weatherford (US), NOV Inc (US), Baker Hughes (US), The Weir Group PLC (UK), Hunting (UK), Emerson Electric Co (US), Flowserve Corporation (US), The IKM Group (Norway), Control Flow Inc (US), Brace Tool (Canada), Sunnda Corporation (US), GKD Industries Ltd (Canada), TIS Manufacturing (UK), NXL Technologies (Canada), IOT Group (Norway), Integrated Equipment (US), Allied Valve Inc (US), Omega (UK), and FHE (US)
This research report categorizes the market by type, component, application, sales type, pressure and region.
What is the current size of the pressure control equipment market?
The current market size of the pressure control equipment market is USD 6.4 billion in .
What are the major drivers for the pressure control equipment market?
Rising exploration and production of unconventional oil & gas resources, especially in North American region, and increasing global oil demand are the major driving factor for the pressure control equipment market.
Which is the largest region during the forecasted period in the pressure control equipment market?
North America is expected to dominate the pressure control equipment market between ', followed by Europe and Asia Pacific. Rising exploration and production of unconventional oil & gas resources, especially in North America region is driving the market for this region.
Which is the largest segment, by type during the forecasted period in the pressure control equipment market?
The wireline pressure control equipment is expected to be the largest market during the forecast period. Increase in drilling activities in key tight and shale basins and inception of several new projects in the federal offshore'Gulf of Mexico'are expected to drive the market for wireline pressure control equipment.
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