Wellhead Equipment Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Wellhead Equipment Market is Segmented by Wellhead Component (Casing Heads, Casing Spools, Tubing Heads, Casing Hangers, Secondary Seals, Tubing Hangers, and Other Wellhead Components), Location of Deployment (Onshore and Offshore), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Wellhead Equipment Market Size
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: North America
CAGR: >5 %

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Market Overview

The wellhead equipment market is expected to register a CAGR of more than 5% during the forecast period (2022 – 2027). The COVID-19 outbreak in Q1 2020 led to a shutdown of oil and gas plants worldwide. Consequently, a sharp decline in demand for wellhead equipment from oil and gas well plants was noticed. Factors such as increasing oil and gas demand in the coming years, the discovery of new oil and gas fields, and growth in exploration and drilling activities globally are expected to drive the market during the forecast period. However, the delay in oil and gas projects due to the high volatility of crude oil prices is expected to curtail the growth of the wellhead equipment market during the forecast period.

  • The onshore sector is expected to dominate the wellhead equipment market during the forecast period.
  • The development of deepwater and ultra-deepwater reserves is likely to act as an opportunity in the future.
  • North America is expected to dominate the market during the forecast period, with a majority of the demand coming from countries like the United States and Canada.

Scope of the Report

The scope of the wellhead equipment market report includes:

Wellhead Component
Casing Heads
Casing Spools
Tubing Heads
Casing Hangers
Secondary Seals
Tubing Hangers
Other Wellhead Components
Location
Onshore
Offshore
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Key Market Trends

Onshore Segment to Dominate the Market

  • The market’s growth is attributed to the growing demand for energy from the developing economies worldwide. This rising demand for energy is expected to increase exploration and production activities. Additionally, unconventional sources are expected to increase the demand for wellhead equipment.
  • As of 2020, the United States is leading the onshore oil and gas activity with its robust drilling in the shale reserves, resulting in a surge in global oil and gas production. The major reason behind the surge is the declining operational cost in the country’s basin, which has made marginal projects economical in the low oil price regime.
  • The activities in other countries, such as Argentina, Colombia, India, and Indonesia, are being driven by either the recent changes in policies and regulations and the government’s initiative to increase the domestic production (primarily to meet up for rising consumption) or to address the well-decommissioning activities in the industry.
  • Such initiatives are expected to increase demand for wellhead equipment due to increased onshore exploration and production activities.
  • India plans to reduce crude oil imports by 10% by 2022 from the 2018 level. Also, the government has made the entry of foreign companies comparatively easy as per the new licensing policy. This factor is expected to boost the onshore E&P activities in the country, thereby driving the market.
  • In November 2021, the Abu Dhabi National Oil Company (ADNOC) announced investments worth up to almost USD 6 billion (AED 22 billion) to enable drilling growth as it boosts its crude oil production capacity to 5 million barrels per day (mmbpd) by 2030.
  • Therefore, due to increased onshore developments in North America and Asia-Pacific, the onshore segment is expected to dominate the market during the forecast period.
Wellhead Equipment Market Share

North America to Dominate the Market

  • Drilling activities in North America have increased amid rising oil and gas prices. The North American rig count reached 740 in 2021. The United States accounted for 569 rigs, comprising 552 land rigs, 15 offshore rigs, and two inland water rigs. Canada’s rig count currently stands at 171, comprising 106 oil rigs and 65 gas rigs.
  • This surge in drilling activities created optimism in the North American oil and gas market. It may also be considered a good sign for wellhead equipment providers.
  • The total oil production in the United States reached 712.7 million ton in 2020, while gas production reached 914.6 billion cubic meters. Moreover, the United States reached a rig count of 569, comprising 467 classified as oil rigs and 102 classified as gas rigs.
  • In March 2021, Dril-Quip, Inc. was awarded a two-year contract valued at approximately USD 80 million to supply Dril-Quip's 15,000 psi and 20,000 psi proprietary Big Bore Subsea Wellhead Systems for BP at Gulf of Mexico operations.
  • Therefore, North America is expected to be the dominant region in the wellhead equipment market, supported by increasing investments in oil and gas projects during the forecast period.
Wellhead Equipment Market Analysis

Competitive Landscape

The wellhead equipment market is moderately consolidated. The key players in the market include Baker Hughes Company, Weatherford International PLC, TechnipFMC PLC, Schlumberger Limited, and NOV Inc.

Recent Developments

  • In February 2021, TechnipFMC’s subsidiary, FMC Wellhead Equipment Sdn Bhd was awarded a substantial contract by PETRONAS Carigali Sdn Bhd for Limbayong deepwater development project in offshore Malaysia. This contract covers the development of 10 deepwater wells and their tieback to the Limbayong Floating Production Storage and Offloading (FPSO) unit in Malaysia.
  • In March 2021, Dril-Quip, Inc. was awarded a two-year contract valued at approximately USD 80 million to supply Dril-Quip's 15,000 psi and 20,000 psi proprietary Big Bore Subsea Wellhead Systems for BP at Gulf of Mexico operations.
  • In December 2021, Plexus Holdings PLC was awarded a purchase order for a ‘POS-GRIP’ surface production wellhead system. The equipment is scheduled for delivery in the second quarter of 2022, with the contract running for approximately 120 days. Most of the revenue will be booked during FY 2021-22.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Wellhead Component

      1. 5.1.1 Casing Heads

      2. 5.1.2 Casing Spools

      3. 5.1.3 Tubing Heads

      4. 5.1.4 Casing Hangers

      5. 5.1.5 Secondary Seals

      6. 5.1.6 Tubing Hangers

      7. 5.1.7 Other Wellhead Components

    2. 5.2 Location

      1. 5.2.1 Onshore

      2. 5.2.2 Offshore

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Baker Hughes Company

      2. 6.3.2 Weatherford International PLC

      3. 6.3.3 TechnipFMC PLC

      4. 6.3.4 Schlumberger Limited

      5. 6.3.5 NOV Inc.

      6. 6.3.6 Weir Group PLC

      7. 6.3.7 Oil States International Inc.

      8. 6.3.8 Forum Energy Technologies Inc.

      9. 6.3.9 Great Lakes Wellhead Inc.

      10. 6.3.10 Cactus Wellhead LLC

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Wellhead Equipment Market market is studied from 2019 - 2027.

The Wellhead Equipment Market is growing at a CAGR of >5% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Baker Hughes Company, Weatherford International plc, Weir Group PLC, Schlumberger Limited , NOV Inc. are the major companies operating in Wellhead Equipment Market.

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