The Wellhead Equipment Market is estimated to earn a valuation of USD 9.54 billion by the year 2032, at a CAGR of 3.25% during the forecast period 2023 to 2032, which was earlier valued at USD 6.72 billion in the year 2023. The wellhead equipment is placed on top of an oil or gas storage equipment with a structural interface and means to control pressure. It gives the casing strings pressure seals and suspension points. In the course of drilling, the wellheads are welded to the string of casing. The wellhead machinery can be repaired and repurposed for use in drilling projects and other wells.
The main parts of a wellhead system are the casing head, choke manifold, casing hangers, casing spools, tubing head adapter, tubing hangers, tubing heads, midline suspension systems, test plugs, and seals. The wellhead completion equipment has features such as casing suspension, tubing suspension, access for pressure monitoring and pumping, a way to attach a wellhead pump, a wellhead valve and a trustworthy way to get to a well. To safeguard equipment and direct the oil refining process, these components are also used to manage oil flow rates by lowering the corresponding pressure.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
With the growing demand for energy in the major emerging economies and with the efficacy of onshore energy resources, the new trend of deploying wellhead systems on oil and gas plants is making the market earn a substantial market share. It is anticipated that this rising energy demand will stimulate the exploration and production of subsea wellhead systems. Moreover, it is anticipated that the utilization of unconventional sources will augment the need for wellhead apparatus including hydraulic wellhead systems.
Several countries are adopting such wellhead systems and have emerged as the frontrunners in onshore oil and gas operations due to their robust drilling in shale reserves, which has caused a significant upsurge in worldwide oil and gas production. The primary catalyst for the increase is the decreasing operational expenses in the nation's basin, which have rendered marginal undertakings economically viable during the period of low oil prices.
Apart from the United States, the said operations in additional nations, including Argentina, Colombia, India, and Indonesia, are being propelled by either recent policy and regulatory changes, the government's initiative to increase domestic production (primarily to meet rising demand), or the industry's well-decommissioning efforts.
It is anticipated that such endeavours will enhance the need for wellhead apparatus as a result of expanded onshore exploration and production operations.
The Wellhead Equipment Market is primarily segmented into components and applications.
The wellhead equipment market, when segmented into component types is further divided into key categories like hanger, flange, master valve, choke, and others, according to components. Hangers are the market's dominating product category and account for the largest market share since they are utilized in multi-bowl wellheads and are an essential component of the wellhead equipment system. Slide and seal casing hanger assemblies and mandrel-style casing hangers are the two different types of hanger systems.
The Wellhead Equipment Market, when segmented based on its applications, is further segmented into onshore and offshore applications. Among these two applications, the onshore application owns the major market share and is anticipated to grow at the fastest rate during the forecast period. Due to the rising energy demand and associated growth in onshore exploration and production activities, the onshore segment currently holds a monopoly on the market. Additionally, oil well exploration initiatives have profitable market expansion prospects.
The Wellhead Equipment Market is primarily studied across four prominent regions namely North America, Europe, Asia-Pacific and the Rest of the World. Among these prominent regions, Asia-Pacific is said to dominate the market by the end of the forecast period.
Asia Pacific, currently the largest market segment in the Wellhead Equipment Market, is expected to have a significant impact on market dynamics due to increasing investments in the oil and gas sector and expanding oil refinery endeavours. By the end of 2023, India plans to cut its imports of crude oil by 10% from what they were in 2018. Additionally, thanks to the new licensing regime, the government has made it very simple for foreign enterprises to enter the country. This element is anticipated to increase onshore exploration and production (E&P) operations in the nation boosting the market.
In the coming years, North America is anticipated to witness a surge in market revenue owing to the redevelopment of mature oil wells and exploration and production activities stimulated by the rising demand for energy. In the North American region, drilling operations have increased in response to rising oil and gas prices. The number of rigs in North America peaked at 740 in 2021. In total, 569 rigs were attributed to the United States, of which 552 were land rigs, 15 were offshore platforms, and 2 were inland water rigs. At present, Canada has a total of 171 rigs in operation, of which 106 are oil rigs and 65 are gas rigs. The escalation in drilling operations instilled a sense of optimism within the oil and gas sector of North America. It could also be regarded favourably by providers of wellhead equipment.
In 2020, the United States achieved a cumulative oil production of 712.7 million tons and a gas production of 914.6 billion cubic meters. Furthermore, the total number of rigs in the United States amounted to 569, with 102 gas rigs and 467 oil rigs being classified as such.
Europe is undergoing expansion due to the burgeoning activities of exploration and production within the oil and gas sector. Middle East and Africa are experiencing a surge in market share due to the proliferation of deepwater exploration projects and an increase in the number of oil rigs in the region. Increasing investments and exploration initiatives in the oil and gas industry are, therefore, the primary drivers of wellhead equipment demand on a global scale.
Wellhead Equipment is a somewhat consolidated market, with a few numbers of notable manufacturers controlling the vast majority of the business. Most of the manufacturers are focused on methods like partnerships, mergers and acquisitions, and more while also emphasizing techniques like diversifying their product offerings and investing in R&D to produce cutting-edge products.
For instance, in March 2023, FlexSteel Holdings Inc. and a few of its affiliates (collectively referred to as "FlexSteel") were acquired by Cactus, Inc. (NYSE: WHD) and its affiliates. Cactus develops a variety of highly developed wellhead equipment, pressure control, and spoolable pipe technologies, which it then manufactures, sells, and leases. During the drilling, completion, and production phases of its clients' wells, it sells and rents products primarily for onshore unconventional oil and gas wells.
February 2019 -
In February 2019, Veritas Financial Partners acquired Integrated Equipment, Inc., a manufacturer of petroleum equipment, a USD 9 million contract for future development and to enhance its supply chain through the expansion of its global support network.
March 2023 -
In March 2023, FlexSteel Holdings Inc. and a few of its affiliates were acquired by Cactus, Inc. and its affiliates to develop a variety of highly developed wellhead equipment.
March 2019 -
In March 2019, ABB, a leader in the technology sector, launched its new product called ABB Ability Wellhead Manager, which is a new cloud-based visualization system for oil and gas operators.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 6.52 billion |
| Market Size 2023 | USD 6.72 billion |
| Market Size 2032 | USD 9.54 billion |
| CAGR | 3.25% (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component and Application |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | FMC Technologies (US), Baker Hughes (US), Weir (UK), Aker Solutions (Norway), Cameron International Corporation (US), Stream-Flo Industries Ltd (Canada), Wellhead Systems, Inc. (US), Oil States International, Inc. (US), National Oilwell Varco (US), Shanghai Elim Petroleum Machinery (China), Forum Energy Technologies (US), and Brace Tool (Canada) |
| Key Market Opportunities | increase in the exploration and production activities, across the world |
| Key Market Drivers | increasing drilling activity increasing oil rig count |
Wellhead Equipment Market Highlights:
Frequently Asked Questions (FAQ) :
The market will be gaining a valuation of USD 9.54 billion by 2032.
The market’s CAGR is 3.25%.
The global wellhead equipment market will be growing with the increasing oil rig count.
North America is to have the largest share in the wellhead equipment market.
Baker Hughes (US), FMC Technologies (US), Cameron International Corporation (US), Aker Solutions (Norway), Stream-Flo Industries Ltd (Canada), Weir (UK) are the key competitors of the market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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