Oilfield Equipment Market Size, Share, and Trends 2024 to 2034

Oilfield Equipment Market Size to Worth USD 172.18 Bn by 2034

The global oilfield equipment market size was USD 124.92 billion in 2023, accounted for USD 128.62 billion in 2024 and is expected to reach around USD 172.18 billion by 2034, expanding at a CAGR of 2.96% from 2024 to 2034. The North America oilfield equipment market size reached USD 53.72 billion in 2023. The rising demand for crude oil across the world is driving the growth of the oilfield equipment market.

Oilfield Equipment Market Key Takeaways

• North America dominated the market with the largest revenue share of 43% in 2023.
• Asia Pacific is expected to attain the fastest rate of growth during the forecast period.
• By equipment, the drilling equipment segment led the market in 2023.
• By equipment, the pumps segment is expected to be the fastest growing segment during the forecast period.
• By application, the on-shore segment held a dominant share in 2023.
• By application, the off-shore segment is expected to grow with the highest CAGR during the forecast period.

U.S. Oilfield Equipment Market Size and Growth 2024 to 2034

The U.S. oilfield equipment market size was exhibited at USD 40.29 billion in 2023 and is projected to be worth around USD 56.55 billion by 2034, poised to grow at a CAGR of 3.13% from 2024 to 2034.

North America held a significant share of the global oilfield equipment market in 2023 and is expected to maintain its dominance throughout the forecast period. The growth of the market in the North American region is mainly driven by the rising demand for oil and gas in countries such as the U.S. and Canada, which increases the demand for oilfield equipment, thereby driving the market growth. The growing number of off-shore applications in North America, along with the rising government initiatives in countries such as the U.S. and Canada for strengthening the oil and gas industry, has boosted the market growth.

Moreover, the presence of several local market players in oilfield equipment, such as Baker Hughes, MSP/Drilex, Halliburton, Deep Well Services, and some others, are continuously engaged in developing oilfield consumables for oil & gas industries and adopting several strategies such as partnerships, collaborations, and business expansions, which in turn drives the growth of the global oilfield equipment market in this region.

• According to the U.S. Energy Information Administration (EIA), the average daily consumption of petroleum in the U.S. region was around 20.01 million barrels in 2022.
• In March 2023, Diamond Offshore Drilling announced a contract extension with a subsidiary of BP in the U.S. Gulf of Mexico for the Ocean Black Hornet. This off-shore application is expected to start in February 2025, and the contract cost is around US$350 million.
• According to the Canada Association of Petroleum Producers, the government of Canada is expected to make a capital investment of US$40 billion to develop the oil and natural gas industry across the country.
• In April 2024, Deep Well Services (DWS) announced a partnership with CNX Resources Corp. This partnership is being launched to launch a new oilfield service company named ‘AutoSep Technologies' to provide automated flowback solutions to the oil and gas sector.
• In June 2023, Halliburton Company announced a collaboration with Nabors Industries to develop an automation platform for drilling operations.

Asia-Pacific is expected to be the fastest-growing region during the forecast period. The rising number of onshore activities in this region increases the demand for oilfield equipment, thereby driving market growth. Moreover, there are several oil and gas companies such as Indian Oil Corporation, Sinopec, The Oil and Natural Gas Corporation Limited, PetroChina, INPEX Corporation, and some others have increased the demand for oilfield equipment for several oil extraction applications, which in turn is driving the global oilfield equipment market growth.

Additionally, the presence of various local companies of oilfield equipment, such as Delta Corporation, Integrated Equipment, Sudhir Windlass, China Oilfield Services Limited, and some others, are developing superior quality oilfield equipment to fulfill the demand from oil and gas industries across the Asia-Pacific region that in turn is expected to drive the growth of the oilfield equipment market.

• In November 2023, Sinopec announced that it completed the on-shore drilling activity in the Tarim Basin in the Xinjiang Uygur region, and the depth of this oil well is 9,432 meters (30,945 ft), produces around 200 tons of crude oil and 50,000 cubic meters of natural gas.
• In September 2023, PetroChina announced the construction of a new petrochemical plant in Xinjiang, China. This plant will have 11 prominent facilities, and the total cost of construction is US$3 billion.
• In October 2023, Sudhir Windlass announced the launch of a new oil field equipment factory in India. This factory will be set up to manufacture advanced oilfield equipment for the oil and gas industry.

Market Overview

The oilfield equipment market is one of the important industries in the oil and gas industry. This industry mainly deals in the manufacturing and distribution of oilfield equipment around the globe. This industry consists of various types of equipment for oilfields, including drilling equipment, field production machinery, pumps, valves, and others. The demand for oil field consumables has increased in recent times with the growing number of oil and gas companies across the world. The oilfield equipment mainly finds application in the on-shore and off-shore activities. This industry is expected to grow exponentially with the growth in the oil and gas industry.

• According to the annual report of Baker Hughes, the company’s overall revenue in 2023 was US$ 25.5 billion, an increase of 21% compared to the previous year (2022). This increase in revenue was primarily boosted by higher volume in IET on gas technology equipment.

Oilfield Equipment Market Growth Factors

• The developments in the oil and gas industry have increased the demand for oilfields equipment.
• The rising government initiatives for strengthening the petrochemical industry have increased the application of oilfield consumables.
• There is a rise in the number of onshore and off-shore projects across the world.
• There are growing investments from public and private sector entities for developing the oilfield equipment market.
• The rising developments in drilling technologies have helped the oil and gas industry significantly.
• Increasing number of oil exploration and drilling activities in several countries.
• The advancements in technologies for manufacturing oilfield equipment accelerate global oilfield equipment market growth.
• The ongoing research and development activities related to the production of advanced and efficient equipment for the oil and gas industry.
• The growing application of pumps and valves in oilfields has enabled manufacturers to develop high-quality components.
• The increase in the re-development of mature oil wells and the rise in oil exploration activities have boosted the global oilfield equipment market growth.

Oilfield Equipment Market Scope

Market Dynamics

Driver

Rising development in technologies contributes to industrial growth

The oil and gas industry has developed significantly in recent times with growing advancements in technologies such as AI and IoT. The integration of modern technologies helps in the oil extraction process and helps oil companies analyze the quality of diesel, liquefied petroleum gas, jet fuel, lubricants, natural gas, petrochemicals, and others. Moreover, the incorporation of AI in oilfield equipment for the exploration of oil and gas has also recently gained prominent attention. Thus, growing development in technologies related to oilfield equipment, such as drilling machines, valves, plug sockets, and some other machinery, is expected to drive the growth of the oilfield equipment market during the forecast period.

• In July 2024, Indosat launched new AI-based cloud solutions for the oil and gas industry in Indonesia. Lintasarta will deliver this solution, which helps reduce manual errors in oilfields.
  
  
• In May 2024, eDrilling launched an AI-based drilling software. This software is equipped with several features such as self-learning, fully adaptive and constantly improving the drilling system and provides solutions to the challenges and requirements of drilling activities in oilfields.

Restraint

High maintenance costs and increasing prices of raw materials

The use of oilfield equipment is very prominent in the oil and gas industry for numerous applications across the world. Although the application of oilfield equipment in the oil and gas industry is worth mentioning, there are several problems associated with it. Firstly, the maintenance cost associated with oilfield equipment, such as drilling machines and pumps, is very high. Secondly, the prices of raw materials that are used in the manufacturing of oilfield consumables have increased significantly. Thus, the high cost of maintenance coupled with rising prices of raw materials is expected to restrain the growth of the oilfield equipment market during the forecast period.

Opportunity

Integration of additive manufacturing or 3D printing to shape the future

The developments in oilfield equipment are gaining traction with the rising demand for oil and gas across the world. Recently, some oilfield equipment companies have started using 3D printing technologies for manufacturing oilfield consumables as they help reduce lead time, rapid prototyping, complex geometries, and manufacturing costs. Thus, the growing integration of 3D printing in the production of oilfield equipment is likely to create opportunities for the global oilfield equipment market players in the future.

• In July 2024, Gazprom Neft launched a new 3D printing technology for manufacturing oilfield equipment. This technology helps in developing new spare parts and other components that are required in oilfields.

Equipment Insights

The drilling segment held the largest market share in 2023. The rise in the number of oil and gas companies around the world has increased the demand for drilling equipment, which, in turn, drives market growth. Moreover, the development of drill bits, collars, drill pipes, and other drilling components fosters market growth. Additionally, the increasing offshoring drilling activities increases the demand for drilling equipment, which in turn boosts the growth of the oilfield equipment market.

• In April 2024, Epiroc launched SmartROC T25 R. SmartROC T25 R is a surface radio remote drill rig and integrated with the Epiroc Rig Control System (RCS), that enhances automation level in drilling activities.

The pumps segment is expected to grow with the highest compound annual growth rate during the forecast period. The rising use of reciprocating plunger pumps, centrifugal pumps, gear pumps, progressive cavity pumps, diaphragm pumps, and metering pumps for transferring fluids in oilfields boosts market growth. Also, the increasing application of positive displacement pumps for pumping out natural gas, crude oil and viscous liquids has contributed to the market growth. Moreover, the growing use of high-pressure pumps for circulating mud and removing cuttings in oilfields is likely to propel the growth of the oilfield equipment market.

• In April 2024, Vanzetti Engineering launched ESK-IMO. ESK-IMO is a new series of retractable submerged pumps that do not require tough maintenance methods and can be maintained without the process of tank draining and reclamation.

Application Insights

The on-shore segment held a dominant share in 2023. The growing number of on-shore drilling activities in countries such as the U.S., UAE, and others has boosted market growth. Also, there are several advantages of on-shore drilling applications, including high oil production, cost-efficiency, and low environmental risks compared to off-shore drilling, which drives the market growth. Moreover, the on-shore drilling activities help with smooth logistics, easier transportation, and less regulatory compliance, which in turn is expected to propel the growth of the oilfield equipment market.

• In May 2024, Petrobras announced the launch of a bidding process for contracting for big rigs in the states of Amazonas and Bahia. These rigs are expected to begin their drilling operations in the second half of 2025 for the production of oil and natural gas.

The off-shore segment is expected to attain the fastest CAGR during the forecast period. The rising demand for hydrocarbons located beneath the oceans to meet energy demands across the world is driving market growth. Also, advancements in drilling technologies associated with off-shore applications have boosted market growth. Moreover, the advantages of off-shore application, including access to vast oil and gas reserves underwater along with minimizing conflict with local people, are expected to foster the growth of the oilfield equipment market during the forecast period.

• In March 2024, the government of Bangladesh announced international companies from various companies to auction oil and gas exploration across 24 blocks in the Bay of Bengal.

Oilfield Equipment Market Companies

• ABB
• Baker Hughes
• Delta Corporation
• Ethos Energy Group Limited
• Integrated Equipment
• Jereh Oilfield Equipment
• MSP/Drilex, Inc.
• Sunnda Corporation
• Uztel S.A
• Weir Group

Recent Developments

• In February 2024, China National Offshore Oil Corporation (CNOOC) launched the subsea Christmas (Xmas) tree. The subsea Christmas (Xmas) tree is an important piece of equipment in the subsea manufacturing process in the petroleum industry for increasing oil output in the oilfields.
• In December 2023, SOCAR announced the building of a laboratory in Uzbekistan. This laboratory will be built to manufacture chemicals and oil and gas equipment.
• In June 2023, Clariant Oil Services launched the PHASETREAT WET. PHASETREAT WET uses nano-emulsion technology to provide efficient and sustainable solutions for the oil and gas industry and reduce carbon emissions.
• In April 2023, Liberty Oilfield launched the Liberty Power Innovations (LPI). It is an integrated alternative fuel and power solutions provider for remote applications using Liberty’s digiTechnologies.
• In August 2022, Baker Hughes inaugurated a new oilfield services chemicals manufacturing facility in Singapore. This manufacturing unit has an area of 40,000 square meters and will deal with the production of chemicals for the oil and gas industry.
• In May 2022, SPM Oil & Gas launched the SPM (Simplified Frac Iron System). This system is used to enhance the hydraulic fracturing process in oilfields.
• In April 2022, Ingevity launched the EnvaWet UHS 3100 wetting agent and its novel EnvaDry PFL. EnvaWet UHS 3100 helps in maintaining consistent rheology of fluids containing a high amount of solids, and EnvaDry P-FL is a 100% active spray-dried technology that provides fluid loss control and helps in primary emulsification benefits in the oil and gas industry.

Segments Covered in the Report

By Equipment

• Drilling Equipment
• Field Production Machinery
• Pumps
• Valves

By Application

• Onshore
• Offshore

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa