According to a new market report published by Transparency Market Research ("Oilfield Equipment Market (Drilling Equipment, Field Production Machinery, Pumps and Valves and Other) – Global and US Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012–2018"), the global market for oilfield equipment was valued at US$93.74 billion (B) in 2012 and is expected to reach US$117.37B in 2018, growing at a CAGR of 3.8% from 2012 to 2018.
The demand for oilfield equipment is expected to be driven primarily by the rising oil extraction and refining activities coupled with increasing regional consumption and its growing demand across the globe. A shift toward unconventional oil fields, such as shale gas, has been driving the demand for oilfield equipment in both developed economies such as the US and Europe and in emerging markets such as Asia Pacific and Latin America, and this trend is expected to drive the demand over the forecast period.
Regulatory policies and geopolitical issues, however, are some of the major concerns that are expected to affect the oilfield equipment market. On account of such issues, the world has been shifting focus toward the use of renewable energy sources, which is acting as one of the major factors inhibiting the market growth.
Drilling equipment was the largest market segment, accounting for over 70% of the total oilfield equipment consumption in 2012. This equipment is most widely used for piercing and boring into the earth to access energy resources below the surface. Also, in terms of demand growth, drilling equipment (which includes complete drilling rigs, rig components such as drill bits, and oil country tubular goods) are expected to be the fastest growing segment in the overall market with an estimated CAGR of 4.1%. The global demand for pumps and valves is expected to reach US$6.93B by 2018.
According to the report, North America emerged as the leading consumer of oilfield equipment and accounted for over 40% of the global demand in 2012. US market for oilfield equipment was valued at US$29.05B in 2012 and is expected to reach US$36.66B in 2018, growing at a CAGR of 3.9% from 2012 to 2018. Asia Pacific is expected to be the fastest growing market for oilfield equipment, growing at a CAGR of 4.3% from 2012 to 2018. The growth of exploration and production in China, the implementation of licensing bidding in India, and the introduction of new policies in Indonesia have been major factors driving market growth in the region.
Some of the leading companies operating in the global market include National Oilwell Varco, Schlumberger, Weatherford International, Halliburton, Baker Hughes, Cameron International, Aker Solutions, FMC technologies and Eni.