The European oilfield equipment market is expected to reach US$18.71 billion by 2022, according to a new report by Grand View Research Inc. Horizontal and directional drilling activities are expected to drive revenue growth over the forecast period.
In these processes, the well is turned horizontal or to a specific target or location. These flexible drilling techniques have already emerged as a separate growth industry in North America and are now expected to gain importance in other regions, including Europe.
Declining crude oil prices have been a major factor inhibiting the regional oilfield equipment market in the recent past. Stable crude oil prices in the near future are expected to help in oilfield equipment industry's recovery.
The drilling segment was the leading product segment with revenue share exceeding 65% in 2014. Key factors that are expected to drive drilling machinery segment include technological advancements in drilling techniques, increasing demand for horizontal and directional drilling, and the use of digital services in the sector. Drilling is also expected to witness the highest growth of 1.9% from 2015 to 2022.
Key findings from the report suggest that the European oilfield equipment industry was valued at US$16.39 billion in 2014 and is expected to reach US$18.71 billion by 2022, growing at a CAGR of 1.73% from 2015 to 2022. Russia has emerged as the leading regional consumer, accounting for over 55% of total revenue in 2014. The country is expected to continue its dominance owing to huge production levels from its oil fields.
Norway is expected to witness the highest growth of 2.2% from 2015 to 2022. Increasing drilling activities across the North Sea is expected to drive the country's demand over the forecast period. The presence of a large number of offshore oil fields has prompted demand for expensive technologies for development, which, in turn, is expected to increase oilfield equipment revenues levels over the next seven years.
The European oilfield industry is fragmented with the presence of a large number of multinational corporations, along with regional companies. Among the companies operating in the regional market are Zenith Oilfield Technology, SBS Oilfield Equipment GmbH, Atlas Copco, Schoeller-Bleckmann Oilfield Technology GmbH, Foster Wheeler AG, KSB AG, Sandvik AB, Vallourec, Sulzer Ltd., Technip SA, and Tenaris SA.