Oilfield Equipment Rental Services Market Is Set To Garner Staggering Revenues By 2032
The oilfield equipment rental services market size is witnessing rapid revenue growth. Oilfield operators prefer hiring those services as it allows them to minimize initial investments required to buy these equipments, increasing their intangible assets.
Besides, these services ensure timely
delivery on-site, saving a lot of time spent during purchase and delivery,
allowing operators to start the production immediately and profitability.
Convenience is a major factor making
these services are widely preferred and adopted worldwide. Resultantly, the oil
field equipment rental services market is expected to garner huge traction
globally.
In this regard, Market Research Future
(MRFR) asserts that the global oilfield equipment rental services market is
poised to grow at an impressive CAGR during the review period (2023 to 2032).
Key Players:
·
Halliburton
Co. (U.S.)
·
Oil States
International Inc. (U.S.)
·
Schlumberger
Ltd (U.S.)
·
Superior
Energy Services Inc. (U.S.)
·
Weatherford
International Ltd (Switzerland)
·
Baker
Hughes (U.S.)
·
National
Oilwell Varco (U.S.)
·
Cameron
International Inc.(U.S.)
·
Transocean
Ltd. (Switzerland)
·
B&B
Oilfield Equipment Corp (U.S.)
Recent Discoveries of O&G
Reservoirs Create Substantial Market Demand
The market growth is largely driven by
the rising demand for crude oil & energy. Technological advancements are
also fostering the market size, improving oilfield equipments capabilities and
enhancing their efficiencies. Other factors providing impetus to market growth
include rising population and increasing urbanization and
industrialization.
Increasing demand for oil and gas
results in rising demand in the oil field equipment rental services market.
Changed supply and demand dynamics are expected to increase in the number of
oil wells leading to boosting the oil field equipment rental services market
share.
Augmented demand for oil and gas also
propels the oil field equipment rental services market revenues. Additionally,
expansion of drilling activities in countries like Saudi Arabia, Kuwait, Qatar
and Venezuela boost the oil field equipment rental services market value.
Requirement of Vast Capital is
a Major Factor Hindering the Market Rise
High initial costs associated with
installment and maintenance of oilfield equipment rental services restrain the
market growth. Also, substantial investments required to develop these
equipments pose challenges for the oilfield equipment rental services market
growth.
Nevertheless, manufacturers are
increasingly focusing on reducing the overall manufacturing cost of these
equipments, which would support the market growth throughout the forecast
period.
COVID-19 Impact on the Market
The COVID-19 pandemic impacted the
oilfield equipment rental services industry severely. The pandemic has been a
major challenge for suppliers disturbing the production of several key
components and supply chains. Besides, travel restrictions implemented due to
COVID-19 stood in the way of delivering these equipments to users.
O&G equipment rental services
providers faced problems ranging from delivering end products to attracting
workers from quarantines. However, the oilfield equipment rental services
industry is rapidly getting back to normal, witnessing significant demand from
oil and gas sectors worldwide. Furthermore, the market demand is expected to
pick up following the uplift of lockdown in many countries.
Industry Trends
Emerging markets provide untapped
opportunities for the oilfield equipment rental services market revenues.
Significantly rapid industrialization and urbanization in developing regions
offer lucrative opportunities for global players. In addition, growing
government mandates & policy updates and the rebooting O&G industry
foster the oilfield equipment rental services market value.
Segmentation
The market is segmented into drilling
equipment, pressure & flow control equipment, and regions. The drilling
equipment segment is sub-segmented into drill pipe, drill collars,
heavy-weight, drill subs, and others. The pressure & flow control equipment
segment is sub-segmented into BOP, valves & manifolds, and others. The
region segment is sub-segmented into Americas, Europe, Asia Pacific, and
rest-of-the-world.
Regional Analysis
North America accounts for the largest
global oilfield equipment rental services market share. Factors such as the
increasing numbers of drilling activities in the US influence the region's
oilfield equipment rental services market size.
Besides, the demand for conventional
and non-conventional drilling in the region drives the oilfield equipment
rental services market growth. Also, the increase in E&P spending and
the strong presence of major players providing easy rental plans are major
oilfield equipment rental services market trends.
Competitive Analysis
The oilfield
equipment rental market share perceives different
strategies such as M&A activities, collaboration, contracts, agreements,
and partnerships to increase their market shares. Focused on developing
innovative technologies, dynamic players would shift the market dynamics during
the forecasted period. Key industry players also make strategic investments in
research and development activities and fostering their expansion plans.
For instance, recently, on June 23,
2021, OSSO, a leading fluid temperature control and separation technology
provider, announced a partnership with Medra Arabia (Saudi Arabia), the
national diversified O&G service company, to deliver drilling solutions in
Saudi.
Through this agreement, OSSO would
provide its clients with direct access to its rental fleet of equipment, along
with rig site support and heat transfer solutions. The partnership would also
allow OSSO to significantly reduce equipment and personnel turnaround time,
providing a greater economic support structure with added expert local
knowledge.
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