Consistently swelling consumption of oil and gas from a wide range of end use industries remains the key factor pushing the number of onshore and offshore oil and gas wells, which is projected to be around 69,000 over the next three years.
The nearly US$ 2.5 billion market for Christmas tree valves is projected for a steady revenue growth outlook. A new market research study by Future Market Insights, through exclusive tracking of new Christmas tree valves, positions the global Christmas tree valves market in a high value-low volume quadrant. The overall revenue growth projections for this market are moderate over the next few years.
North America’s Oil & Gas Industry Revival Remains Crucial
Steady resurgence of the oil and gas industry in North America has been playing a pivotal role in fostering the oil and gas well explorations across the region, post 2017. Commencement of new oil and gas drilling projects, coupled with sustained shale gas drilling activities, are likely to propel the demand for installation of Christmas trees, and thereby Christmas tree valves in the region.
As indicated by the recently published research intelligence by FMI, North America currently holds around 30% share in the global market revenue, led by the US oil and gas industry. The global report however indicates that apart from the US, Russia and China are estimated to witness remarkable expansion in terms of newly drilled oil and gas wells. This has been the primary factor responsible for elevated sales of Christmas tree valves, says the report.
The report highlights a few more factors as the key market growth influencers.
Growing Need for Christmas Tree Valves Replacement
Aged Christmas tree valves deteriorate over time and thus need to be replaced especially in case of onshore applications. A constantly increasing replacement rate of worn-out Christmas tree valves in leading markets such as the US, Canada, China, and Russia is compelling manufacturers of Christmas tree valves to introduce a new range of enhanced products.
Increasing automation of the offshore oil and gas sector has been resulting in mounting prices of Christmas trees and Christmas tree valves for oil and gas field operators. While the industry continues to witness innovations related to automation and remote monitoring, it is more likely that the demand for automatic Christmas tree valves installation would rise over the coming years.
For More Detailed Insights on Christmas Tree Valves Market
Shifting Focus to Emerging Regions
A number of manufacturers export Christmas tree valves to Asian and Middle Eastern & African economies.
Leading manufacturing companies in the Christmas tree valves landscape are thus focusing on expansion across developing regional markets by investing in strategic collaborations with global and regional leaders in sales and distribution.
While India, Indonesia, and a few South East Asian countries will remain in the focal point for manufacturing facility expansion, MEA is also identified to be a highly lucrative region for penetration of Christmas tree valves market.
Chinese companies on the other side are focusing on offering economically priced Christmas tree valves.
Imbalance of Christmas Tree Valves Supply & Demand Shape Competitive Landscape
While installation of Christmas tree valves is a prominent step in both onshore and offshore applications, a majority of Christmas tree valves manufacturers are the primary manufacturers of Christmas trees. According to the study, a majority of key players in Christmas tree valves manufacturers are likely to maintain their focus on strategic acquisitions, new product launches, and manufacturing expansion, in addition to product innovation.
However, the global Christmas tree valves landscape continues to face a severe demand-supply imbalance, as the number of suppliers is relatively high, compared to that of manufacturers of Christmas tree valves. According to the report, this demand-supply imbalance is triggering competition among multinational players in Christmas tree valves landscape.
The study suggests that an approximate 25-28% of the total value of Christmas tree valves market is accounted by the Tier 1 players, including Schlumberger Limited, Dril-Quip, Inc, Aker Solutions ASA, and General Electric (Baker Hughes). Whereas, the rest i.e. around 3/4th of the global market value is occupied by the Tier 2 and other manufacturing companies in global Christmas tree valves landscape such as Kingsa Industries, Worldwide Oilfield Machine, and Stream-Flo Industries Ltd.
For a more extensive yet precise outlook of the global Christmas tree valves market, request full report. For detailed insights on the various facets of Christmas tree and Christmas tree valves landscapes, write to the team of analysts at [email protected]
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With a repository of over 500 reports on energy, mining, oil & gas industry, an expert-led team of analysts in Future Market Insights has consistently tracked and assessed changing dynamics of the industry. The team conducts a number of complex projects pertaining to evolving trends in the fuel market, ongoing transformation in the energy industry, and technological impact on the mining sector. Keeping up with futuristic direction, the team offers in-depth insights and consulting services; reach out to know how we can help meet your business intelligence needs.
About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India. FMI's latest market research reports and industry analysis help businesses navigate challenges and take critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously track emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.