ID: MRFR/E&P/6278-HCR | February 2021 | Region: Global | 111 pages
A wellhead is an essential component used in the oil & gas industry, at the surface of a well to provides pressure containing interface for the drilling and production equipment. It is mainly used to connect the tubing and casing to an oil & gas pipeline. Casing heads, casing spools, tubing head spools, and crosses are some of the components of a wellhead equipment. The shift towards implementing an environmentally safe approach in oil & gas recovery, would positively impact the wellhead equipment market.
Wellhead equipment market is projected to reach USD 7.20 billion by 2024, at a CAGR of 3.25%. The increasing drilling activity is a major driver for the global wellhead equipment market. The US Energy Information Agency (EIA) reported an increase in oil production in the US in 2017 due to the high oil prices, which led to increase in the drilling activity. Similarly, Shell (Netherlands) is investing extensively in drilling activities in deep water areas in the US Gulf of Mexico, which would create new avenues for wellhead equipment companies in North America.
The global wellhead equipment market is projected to grow at a high rate during the forecast period, due to the increasing oil rig count. According to the Baker Hughes rig count data, the US accounted for 924 rigs in January 2018 and reached 1,075 rigs in January 2019. Similarly, the worldwide rig count increased from 2,175 rigs in January 2018 to 2,265 rigs in January 2019. This surge in drilling activity with increased rig counts has created scope for the growth of wellhead equipment market. Global wellhead equipment market has been segmented based on component, application, and region. On the basis of component, the market is classified into hanger, flange, master valve, choke, and others. The hanger segment is leading the market and has the largest market share as it is an essential component of wellhead equipment system and is used in multi-bowl wellheads. The hanger system is generally of two types, namely, a slip and seal casing hanger assembly and mandrel style casing hanger. The global wellhead equipment market is further segmented based on application, including onshore and offshore. The onshore segment of the global wellhead equipment market is estimated to register the highest growth rate during the forecast period.
The global wellhead equipment market is expected to grow at ~3.25% CAGR during the forecast period.
Global Wellhead Equipment Market
Global wellhead equipment market is expected to witness substantial growth during the forecast period owing to an increase in the exploration and production activities, across the world. According to the IEA, offshore oil production is estimated to reach 27.4 million barrels of oil equivalent per day (mboe) by 2040 from 26.4 million barrels of oil equivalent per day (mboe) in 2016. This would result in an increase in the demand for wellhead equipment, globally. Increasing interest in exploration of unconventional resources, such as shale oil, coal bed methane will also add to the growth of the global wellhead equipment market. North America holds the largest share in the wellhead equipment market due to the rising importance of unconventional oil and gas reserves in the countries, such as the US, Canada, and Mexico.
The key players of global wellhead equipment market are 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), .
Frequently Asked Questions (FAQ) :
The market will be gaining a valuation of USD 7.20 billion by 2024.
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.