Wellhead equipment: Key market research findings
- The Americas dominate the market geographically
- Offshore field segment accounts for a majority of the market’s revenue
- Key vendors – Aker Solutions, Baker Hughes, FMC Technologies, GE-Alstom Grid, Stream Flo, and Weir Group
Technavio’s market research analysts predict the global wellhead equipment market to grow at a CAGR of around 3% between 2016 and 2020. The growth of this market is fueled by an increase in offshore E&P activities. The drop in crude oil prices has triggered a fall in the cost of goods and services, especially for high-cost offshore assets. Several companies are also decreasing their CAPEX to focus on producing wells or established wells. In 2015, the global wellhead equipment market was dominated by the Americas with a market share of around 65%. Governmental support across different countries, especially the US, will drive the demand for wellhead equipment in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of wellhead equipment segments based on the field type.
“The recent drop in crude oil prices in the oil and gas industry is resulting in a decrease in the number of rigs globally. This decrease in the rig count is also affecting the demand for wellhead equipment in the market. Baker Hughes reported a decline in the number of rotary rigs by 30 in the month of February 2016, with the final number standing at 541. There has been a decline of 817 rigs over the last year for the company,” says Thanikachalam Chandrasekaran, Lead Analyst, Energy, Technavio Research.
In 2015, the offshore filed segment dominated the global market by accounting for around 60% of the overall market revenue. New discoveries in several regions for offshore reserves, especially by major oil companies is opening up huge opportunities for operators to increase their profitability margins. Companies are now focusing on offshore wells that are already productive and have big reserves. The oil price reduction also reduced the price of contractor fees for drilling an oil and gas well.
The key vendors in the global wellhead equipment market include Aker Solutions, Baker Hughes, FMC Technologies, GE-Alstom Grid, Stream Flo, and Weir Group. The need for mergers and acquisitions is increasing as helps negate the effects of falling crude oil prices. For instance, in 2015, oilfield service giant Schlumberger bought joint venture partner Cameron International Corp for almost $15 billion.
A more detailed analysis is available in the Technavio report, Global Wellhead Equipment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
