Market Overview

The market for liner hanger system is expected to witness a CAGR of 5.46% during the forecast period (2019-2024). Major factors driving the market studied are the rising unconventional and deepwater E&P activities, increasing need for higher productivity and efficiency, and the advantage of covering vast areas by a single rig employing long lateral drilling methods. The risk of failure associated with liner hanger systems and the challenges associated with the availability of raw materials are likely to hinder the growth of 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, greater degree of complexity in offshore oil and gas reserve formations is expected to push the companies to innovate and develop offshore specific liner hanger system.
• The development of deepwater and ultra-deepwater reserves are likely to act as an opportunity in the future.
• Asia-Pacific is expected to witness the fastest growth during the forecast period. China is by far the largest market in the Asia-Pacific region and is dominated by many local liner hanger system manufacturers unlike many other countries across the world. 

Scope of the Report

The liner hanger system market report includes:

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Key Market Trends

Increasing Demand from Offshore Sector

• The offshore oil and gas industry accounts for about 30% of the global crude oil production. The Middle East, North Sea, Brazil, and the Gulf of Mexico are the major offshore oil and gas producing regions.
• As of 2017, around 40% of shallow water oil production came from mature regions, such as Europe, North America, and Asia-Pacific. The mechanical liner hangers are deployed in shallow waters, as they are relatively less expensive and technically less challenging for the operators to explore and drill. These systems are in high demand, where the well construction cost is the key priority for the customer.
• More than 60% of the current crude oil production comes from mature oilfields, including onshore and shallow water. This, coupled with low breakeven price in offshore oil and gas sector, has compelled the producers to shift to deepwater and ultra-deepwater resources. This factor is encouraging the industry to step up its expenditure gradually in the future.
• Deepwater oil production is majorly concentrated in four countries – Angola, Brazil, Nigeria, and the United States. The Libra field in Brazil, the largest pre-salt discovery so far, began producing in late 2017 and the field development is expected to continue till 2020s.
• The expandable liner hanger system is preferred for deepwater well completion and is designed for applications where long and heavy liners must be deployed in challenging environments, including deepwater, extended reach, and HP/HT wells. 
• In September 2018, Halliburton announced the deployment of its XtremeGrip liner hanger system at a depth of 30,924 ft in the Gulf of Mexico Hess-operated Stampede deepwater development. With the advent of such deepwater liner hanger technologies, the market is likely to witness a shift from shallow water to deepwater production.

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