Expandable Liner Hanger System Market Size

Expandable Liner Hanger System Market Analysis

The expandable liner hanger system market is expected to register a CAGR of greater than 10.2% during the forecast period of 2021 - 2026. In 2020, the oil and gas industry got struck with the COVID-19 impact, far more significant than any other shocks that the sector came across in the past. The oil prices started declining at the end of Q1 2020, and the prices were slashed entirely by the end of April 2020. The OPEC basket benchmarks crude oil prices, which at the starting of 2020 were USD 68.89/barrel and came down to USD 12.41/barrel by the end of April 2020, due to the COVID-19 pandemic. Factors such as the rising unconventional and deep-water exploration and production activities, increasing need for higher productivity and efficiency, and the advantage of covering vast areas by a single rig employing long lateral drilling methods are expected to drive the demand for expandable liner hanger systems market during the forecast period. However, the challenges associated with the availability of raw materials and the high volatility of crude oil prices are likely to restrain the market studied.

• With the revival of oil and gas prices and kick start of various offshore projects, the offshore segment is likely to register a higher growth rate, as compared to onshore. Moreover, a greater degree of complexity in offshore oil and gas reserve formations is expected to push the companies to innovate and develop offshore specific expandable liner hanger systems.
• The development of deepwater and ultra-deepwater reserves in major regions like North America, Asia-Pacific, etc. is expected to create ample opportunities in the future.
• Asia-Pacific is expected to be the fastest growing market during the forecast period, with majority of the demand coming from countries like China, India, Australia, etc.