Oilfield Degasser Market size is anticipated to reach USD 6.4 Million by the end of 2036, growing at a CAGR of 6.5 % during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of oilfield degasser was over USD 3 Million. The increase in active oil rig count is acting as a significant factor for the market’s growth. The increase in global crude oil prices has prompted oil and gas companies to invest more in oil and gas projects. As analysed by Research Nester analysts, the number of operational onshore oil rigs stood at 1,532 by the end of 2022, compared to 231 offshore. In 2021, as demand for oil increases again due to the coronavirus pandemic induced economic collapse, there has been a significant increase in global rig count. However, a decrease in proven oil and gas reserves in the North Sea is primarily behind the fall in offshore drilling rigs. In 2022, the average number of global oil rigs reached 1,747, which represents an increase compared to 2021. Increased drilling activity, in turn, increases demand for oil and gas drilling rigs. As a result, the demand for rig components and equipment rises. thus, propelling the market’s growth.
Further, the gradual recovery of global crude oil prices increased the number of active rigs deployed in both onshore and offshore drilling activities. This is expected to increase the demand for oilfield equipment, including degasser, which, in turn, will drive the growth of the global oilfield degasser market during the forecast period.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 6.5% |
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Base Year Market Size (2023) |
~ USD 3 Million |
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Forecast Year Market Size (2036) |
~ USD 6.4 Million |
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Regional Scope |
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Application (Onshore, Offshore)
Oilfield degasser market from the onshore segment is estimated to hold largest revenue share during the forecast period, amounting to 56% of the global market. The segment’s growth is attributed to significant technological advancements in horizontal drilling and hydraulic fracturing, which have made extraction from unconventional oil and gas reserves possible. As observed by Research Nester analysts, between 2008 and 2018, the total number of horizontal oil and gas wells in the USA increased considerably, from about 28,400 to approximately 140,000. Also, the US Energy Information Administration says that hydraulic fracturing of tight oil reserves made up 6.24 million barrels a day in 2018, or 59 per cent of America's total production.
Type (Vacuum Tank Degasser, Atmospheric Degasser)
The vacuum tank degasser segment in the oilfield degasser market is slated to garner majority revenue share. Demand in this segment is being stimulated by the rise of seaborne drilling activities. In the mining and oil & gas sectors, there is also a continuous growth in demand for degasification equipment. Another factor expected to underpin segment growth is the need for effective dissolution gas removal from liquids with a view to improving product quality. Moreover, new opportunities for the segment and market expansion are opening up as a result of increasing urbanization and industrialization in developing countries.
Our in-depth analysis of the global market includes the following segments:
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Application |
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Type |
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North American Market Forecast
North America oilfield degasser market is poised to hold largest revenue share, accounting to 45%. The region demonstrates robust growth driven by the thriving oil and gas industry. As per estimates, North America is home to the largest number of oil rigs in the world. There were 797 drilling rigs in this area as of November 2023, and another 22 had been deployed offshore. The United States and Canada, as key players in this market, witness extensive drilling activities, both onshore and offshore, contributing to the demand for efficient Degassing systems. The region’s focus on technological innovation and advanced drilling techniques enhances the necessity for reliable Degasser to maintain drilling fluid integrity. Additionally, stringent environmental regulations governing the oil and gas sector prompt the adoption of Degasser capable of effectively removing contaminants and gases from drilling fluids, ensuring compliance while optimizing drilling processes. Moreover, the emphasis on safety and well control in drilling operations further propels the demand for these systems. The North American market’s growth signifies its commitment to leveraging advanced technologies and adhering to environmental standards, fostering safer, more efficient, and environmentally conscious oil and gas exploration and production practices.
APAC Market Analysis
Asia Pacific oilfield degasser market is set to attain notable market value, by the end of the forecast period. The region exhibits a dynamic and growing market propelled by burgeoning energy exploration and drilling activities. In 2022, crude oil production in Asia Pacific is estimated to be approximately 7.37 million barrels a day. Countries like China, India, Australia, and Indonesia contribute significantly to this market’s expansion. China's oil output in the Asia Pacific region has exceeded 4 million barrels per day by 2022, making it the world's biggest producer. The region’s extensive oil and gas exploration efforts in both onshore and offshore fields drive the demand for Degasser. Moreover, the emphasis on environmental compliance and safety standards in drilling operations fuels the adoption of efficient Degassing systems. Technological advancements and a focus on optimizing drilling processes further bolster market growth. The expanding energy demands across various industries in the Asia Pacific region stimulate increased drilling activities, thus elevating the necessity for reliable and efficient Degasser.
Author Credits: Dhruv Bhatia
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