The growth of the pressure control equipment market is driven by the technological advancement in oil field equipment, increase in global investments in exploration and production (E&P), and rise in unconventional hydrocarbon production in North America. Refracturing activities in the US, along with rising activities in the offshore segment, create new opportunities for pressure control equipment companies. However, factors such as customized demands by drillers and decline in drilling activities and rig count hinder the market growth.
Market for high pressure to witness highest CAGR during forecast period
The market for high pressure is estimated to grow at a higher CAGR during the forecast period. High pressure and high-temperature wells require special instruments and materials. They also require extra preventive measures and experience as they are considered volatile reservoir environments. Thus, the need for instruments for high-pressure environments provides companies the opportunity to customize pressure control equipment using special materials. The customization and other factors mentioned above lead to an increase in the cost of equipment.
Ongoing offshore exploration activities to drive offshore pressure control equipment applications with higher CAGR from 2018 to 2023
The market for offshore applications is estimated to grow at a higher CAGR during the forecast period. Offshore activities require advanced technology, making the offshore market a capital-intense one. The South China Sea, the West Australian Coast, and the Gulf of Thailand are the major hubs for offshore E&P activities in APAC. Other significant areas include the Caspian Sea and the Bay of Bengal. West Africa, Malaysia, and offshore regions of Venezuela and Brazil are the emerging market for pressure control equipment in the offshore application to gain the momentum during the forecast period.
Increased investment expenditure in Mexico to drive North American pressure control equipment market and is expected to witness highest CAGR from 2018 to 2023
The market in North America is estimated to grow at the highest CAGR during the forecast period. Increased capital spending by major oil companies and a boom in production from shale operation and deepwater E&P activities in the Gulf of Mexico resulted in the growth of pressure control equipment market in North America. Also, the liberalization of Mexico's oil & gas industry has led several entries into domestic E&P activities. As a result, exploration and extraction contracts have been awarded for offshore and onshore oil & gas fields by Mexico's National Hydrocarbon Commission.