Oil Field Equipment Market

Rising petrochemical product demand drives market growth

Market CAGR for oil field equipment is being driven by the rising demand for petrochemical products. Petrochemical products are ubiquitous and necessary in modern civilisations. This category includes plastics, fertilisers, packaging, apparel, digital gadgets, medical equipment, detergents, tyres, and many more goods. They can also be found in many modern energy system components, such as solar panels, wind turbine blades, batteries, building thermal insulation, and electric vehicle components.

Petrochemicals are already an important part of the energy system, and their importance is only growing. Plastics, the most common category of petrochemical products, have grown faster than any other bulk material (including steel, aluminum, and cement) since 2000. Per capita, industrialised economies such as the United States and Europe consume up to 20 times the amount of plastic and up to ten times the amount of fertiliser as rising economies such as India and Indonesia.

Furthermore, oilfield equipment market growth is being driven by a rise in the redevelopment of existing oil wells, a rebound in oil prices, and an increase in worldwide oil exploration and drilling activities. Furthermore, the rising use of oilfield equipment boosts demand for oilfield equipment due to the enhanced economic competitiveness of the oil exploration, drilling, and service sectors.

The Global Oil Field Equipment Market Industry is experiencing growth driven by the increasing global energy demand. As economies expand, the need for oil and gas continues to rise, leading to heightened exploration and production activities. In 2024, the market is valued at approximately 94.8 USD Billion, reflecting the urgency to meet energy needs. Countries with significant oil reserves are investing in advanced extraction technologies to enhance production efficiency. This trend is expected to persist, as global energy consumption is projected to increase, necessitating the deployment of sophisticated oil field equipment to optimize resource extraction.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America held the highest share of the worldwide oilfield equipment market in 2022, owing to increased shale oil exploration operations in the region's countries. Furthermore, rising offshore rig counts and oil and gas production operations in the United States are driving up oil and gas demand.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Oil Field Equipment Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s oil field equipment market accounts for the second-largest market share because of the increased demand for hydrocarbons, oil and gas corporations are investing in drilling activities. Further, the German oil field equipment market held the largest market share, and the UK oil field equipment market was the fastest-growing market in the European region

The Asia-Pacific Oil Field Equipment Market is expected to grow at the fastest CAGR from 2025 to 2034. This is because of their substantial infrastructural needs, high energy demands, and rising populations. Moreover, China’s oil field equipment market held the largest market share, and the Indian oil field equipment market was the fastest-growing market in the Asia-Pacific region.

Leading market players are extensively investing in research and development to extend their product lines, which will help the oil field equipment market, grow even more. Market participants are also engaging in a number of strategic initiatives to grow their worldwide footprint, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organisations. To expand and survive in a more competitive and expanding market climate, the oil field equipment industry must provide cost-effective products.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the oil field equipment industry to benefit clients and increase the market sector. In recent years, the oil field equipment industry has offered some of the most significant advantages to medicine. Major players in the oil field equipment market, including Pioneer Energy Services Corp. (U.S.), C&J Energy Services Ltd. (U.S.), and National Oilwell Varco, Inc. (U.S.). Halliburton (U.S.), Basic Energy Services, Inc. (U.S.) and others, are attempting to increase market demand by investing in R&D operations.

The Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector company owned by the Government of India's Ministry of Petroleum and Natural Gas. Its headquarters are in Dehradun. The Government of India established ONGC on August 14, 1956. It is the country's largest government-owned oil and gas explorer and producer, accounting for around 70% of India's domestic crude oil output and approximately 84 percent of natural gas production. In November 2019, ONGC said that it will invest INR 6,000 crore in digging 200 wells in Assam over the next seven years to improve the state's output.

The wells should be drilled during the following seven years.

Schlumberger Limited, sometimes known as SLB, is an oilfield services provider. It is the world's largest offshore drilling company as well as the world's largest offshore drilling contractor by revenue as of 2022. Schlumberger N.V. is based in Willemstad, Curaçao, and trades on the New York Stock Exchange, the London Stock Exchange, Euronext Paris, and the SIX Swiss Exchange. Its primary executive offices are in Houston, Texas. Schlumberger will be the 349th largest company in the world according to the Forbes 2000 in 2022. Schlumberger was established in Paris in 1926 as the Electric Prospecting Company.

In October 2022, Schlumberger announced today that it has teamed with RTIInternational, a nonprofit research organisation, to accelerate the commercialisation and scale-up of its proprietary non-aqueous solvent (NAS) technology, which increases the effectiveness of absorption-based carbon capture.