Wellhead Equipment Market size was over USD 6.75 billion in 2023 and is poised to cross USD 12.11 billion by 2036, growing at more than 4.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of wellhead equipment is evaluated at USD 7 billion. The growth of the market can be attributed to increasing number of oil wells across the world, backed by rising investment in the oil & gas sector. Wellhead is made up of spools, valves and adapters to provide pressure control of the oil well. The growing application of wellheads to ensure safe operation of oil wells, is estimated to boost the market growth. The growing construction of onshore as well as offshore oil wells, to meet the growing demand for oil petroleum, is further expected to fuel the wellhead equipment market growth significantly. According to the data by the International Energy Agency (IEA), the oil production touched 98.3 million barrel per day in 2018. Furthermore, global oil consumption is projected to touch 104.1 million barrel per day by 2026, registering an increase of 4.4 million barrel per day from 2019.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
4.6% |
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Base Year Market Size (2023) |
USD 6.75 billion |
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Forecast Year Market Size (2036) |
USD 12.11 billion |
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Regional Scope |
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The market is segmented by application into onshore, offshore, and others, out of which, the offshore segment is anticipated to hold the notable share in the global wellhead equipment market over the forecast period on account of higher potential for oil and gas generation in offshore sites, along with rising investment in offshore oil fields. As per the data by the IEA, the offshore gas production is estimated to increase by 700 billion cubic meters (bcm) by 2040. Moreover, the growing unmet demand for oil and gas, is estimated to fuel the segment growth.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Component |
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By Application |
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On the basis of geographical analysis, the wellhead equipment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the North America industry is set to hold largest revenue share by 2036, backed by increasing demand for crude oil, high production of oil and gas, and presence of large number of oil reserves in Canada, and the US. Canada is one of the largest producers and exporters of crude oil, producing over 15,500 barrels per day in 2019.
The wellhead equipment market in Middle East and Africa region witnessed noteworthy growth by the end of 2021, on the back of owing to the large number of oil reserves, increasing global demand of crude oil, along with rising investment from western countries.
September, 2021: NOV’s subsidiary ReedHycalog launched a new second-generation wellbore conditioning equipment, Boomerang reamer for improving drilling and tripping performance.
May, 2021: Nippon Steel received the Eco Leaf Environmental Product Declaration (EPD) certification for its OCTG steel pipe products.
Author Credits: Dhruv Bhatia
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