An Incisive, In-depth Analysis on the Christmas Tree Valves Market
This study offers a comprehensive, 360 degree analysis on the Christmas Tree Valves market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Christmas Tree Valves market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Christmas Tree Valves are attached in the Christmas Tree that is installed over the wellhead. The Christmas Tree has three major components, namely valves, spools and fittings. Christmas Tree Valves are adopted in both onshore and offshore oil and gas production operations and may differ in terms of cost and material. Automatic valves are used in offshore applications and in onshore operations, both manual and automatic valves are deployed. Offshore Christmas Trees generally have larger bores and higher pressure ratings than surface trees (onshore Christmas tree) to accommodate the high flow rate and pressure.
Christmas Trees are installed over well heads and Christmas Tree Valves are installed in both onshore and offshore applications. Manufacturers of Christmas Tree Valves are mostly manufacturers of Christmas Trees, which perform a crucial function in the production flow of oil and gas. More suppliers exist for the supply of Christmas Tree Valves for onshore applications whereas fewer manufacturers exist for the supply of Christmas Tree Valves for horizontal or vertical subsea Christmas Trees. The competition is prevalent among multi-national players.
Christmas Tree Valves Market: Scenario
Traditionally, Christmas Tree Valves have been used in newly drilled oil and gas wells where there is sufficient pressure for the natural flow of oil and gas. Lack of natural flow compels oil and gas operators to opt for artificial lift systems. This has restricted the adoption of Christmas Tree Valves to newly drilled oil and gas wells. The Christmas Tree Valves market has been witnessing a healthy growth rate in 2018, with respect to the demand and price of crude oil. Innovation of automation solutions and remote monitoring have been driving the installation of automatic Christmas Tree Valves, which is expected to have an extended effect of growth during the forecast period.
Manufacturers of Christmas Tree Valves have been facing tough competition in capturing new orders post the growth of crude oil prices in the latter half of 2017. The complete automation prevalent in the offshore oil and gas industry has increased the cost of Christmas Tree Valves for oil and gas operators. Direct and online sales contributes largely to the sales of Christmas Tree Valves and the market is expected to remain steady over the next 4 to 5 years.
Christmas Tree Valves Market: Inclusions
Christmas Tree Valves are of manual and automatic types. The scope of this research study is mainly limited to the new sales of Christmas Tree and Christmas Tree Valves. The cost of Christmas Tree Valves contributes nearly 60-70% of the cost of Christmas Tree for onshore applications. As mentioned above, this report only covers the sales of new Christmas Tree Valves and the rental business and sales of used Christmas Trees have not been considered. The global Christmas Tree Valves market report also does not include the custom coloring of Christmas Tree Valves.
The global Christmas Tree Valves market is estimated to be valued at US$ 2,560.5 Mn by 2018 end and reach US$ 3,556.6 Mn by the end of 2027, expanding at a CAGR of 3.7% over the forecast period. The global Christmas Tree Valves market is anticipated to represent an incremental opportunity of US$ 996.2 Mn between 2018 and 2027 and thus, is expected to be a low volume – high value – moderate growth market.
Drivers and Trends
The global Christmas Tree Valves market is expected to witness a steady growth rate in the coming years. The rise in crude oil prices post the crude oil crisis has generated new orders regarding the installation Christmas Tree Valves as there are new investments related to oil and gas drilling projects. Manufacturers of Christmas Tree Valves have been gaining traction since the latter half of 2017, and the scenario is expected to remain the same over the next five years. The replacement of Christmas Tree Valves has been witnessing a slow growth trend as wells are reaching a maturity stage, which is compelling oil and gas operators to choose artificial lift systems in matured oil and gas wells.
Investment in new onshore oil and gas wells has been driving the sales of new Christmas Tree Valves. The offshore exploration and production of oil and gas is slowly gaining momentum and in 2019, it is expected that new offshore drilling projects will drive the sales of subsea Christmas Tree Valves. Rising oil and gas onshore projects and investments in China, South East Asia and MEA are supporting the growth of the Christmas Tree Valves market in these regions. The Christmas Tree Valves market is also fueled by the growing number of shale gas projects and related investments in the U.S., Canada, Russia, Argentina, China, and Thailand.
Some of the prominent players reported in this study of the global Christmas Tree Valves market include Schlumberger Limited, TechnipFMC Plc, Aker Solutions, Dril-Quip, Inc., General Electric (Baker Hughes), Worldwide Oilfield Machine, Stream-Flo Industries Ltd, National Oilwell Varco, KINGSA INDUSTRIES and The Weir Group PLC, among others. These players are key participants in the global Christmas Tree Valves market and most of them are international players who offer Christmas Tree Valves. In addition to this, there are manufacturers who offer Christmas Tree Valves and export them to Asia and MEA regions. In recent times, leading players have been collaborating with sales and distributor companies and initiating new manufacturing units in developing countries such as India and Indonesia to cover the South East Asia market and enhance their revenue, which is fuelling the growth of the Christmas Tree Valves market. China-based players offer low-cost Christmas Tree Valves, but recent measures by the U.S. over trade tariff are posing a concern for the raw material suppliers from China. This acts as a restraining factor for some of the manufacturers of Christmas Tree Valves.
Future Market Insights offers a forecast for the Christmas tree valves market for the period between 2018 and 2027. In terms of value, the market is expected to register a CAGR of 3.7% during the forecast period (2018–2027). The main objective of the report is to offer insights on advancements in the global Christmas tree valves market. The study discusses market dynamics that are expected to positively or negatively impact the current business environment and future status of the Christmas tree valves market over the forecast period. The primary objective of this report is to offer updates on trends, drivers, restraints, value forecast and opportunities for the manufacturers operating in the Christmas tree valves market.
A section of the report discusses how the overall competition in the market is steadily increasing. It discusses various factors that are shaping internal as well as external competition in the global Christmas tree valves market. The sales of Christmas tree valves has been picking up side post the increase in crude oil prices. In addition to that, it is estimated that the Christmas tree valves market will grow at a steady pace in near future. Moreover, growth and robust demand from the upstream oil and gas industry, mergers and acquisitions by key manufacturers, new installation orders and rising investments from both onshore and offshore oil and gas operators are some of the strategies being witnessed in the market that are also expected to drive the growth of the Christmas tree valves market.
The report provides a detailed market share analysis of the Christmas tree valves market on the basis of key manufacturers. A section of the report highlights the country-wise analysis of the Christmas tree valves market. It provides the market outlook for 2018–2027 and sets the forecast within the context of the report..
Key Segments Covered
Middle-East & Africa (MEA)
Asia Pacific excluding China (APEC)
A detailed analysis has been provided for every segment in terms of market size analysis for Christmas tree valves.
The Christmas tree valves report starts with the market overview and provides market definition and analysis regarding drivers, restraints, opportunities, supply chain analysis and key trends in the market. The next section that follows includes global Christmas tree valves market analysis, analysis by type, by application and regional level analysis. All the above sections evaluate the global Christmas tree valves market on the basis of various factors affecting the market and cover the present scenario and future prospects. For market data analysis, the Christmas tree valves report considers 2017 as the base year with market numbers estimated for 2018 and forecast made for 2018–2027.
It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecast in terms of CAGR, but also analyze the same on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand the predictability of the Christmas tree valves market and identify the right opportunities for market players.
Another key feature of this Christmas tree valves report is the analysis of all key segments in terms of absolute dollar. This is usually overlooked while forecasting the global Christmas tree valves market. However, the absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve as well as identify potential resources from a sales and delivery perspective in the Christmas tree valves market.
In the final section of the report, a competitive landscape has been included to provide report audiences with a dashboard view. Detailed profiles of manufacturers have also been included within the scope of the report to evaluate their long- and short-term strategies, key offerings and recent developments in the Christmas tree valves.
FMI conducted exploratory research at a granular market level to arrive at the numbers in the Christmas tree valves market. An initial study was conducted to identify the Christmas tree valves market structure and demand pattern of the Christmas tree valves market by segments (i.e. by type and by application) in each prominent region of the globe. This study involved data mining via primary interviews with experts representing the upstream oil and gas industry in both onshore and offshore applications and Christmas tree valves manufacturers, dealers and oil and gas operators. Data was also gathered from secondary sources, such as company annual reports, industry association publications, industry presentations, white papers and company press releases to understand the Christmas tree valves market dynamics across various levels of the value chain. Post ascertaining the Christmas tree valves market behavior, data validation was conducted vis-a-vis primary and secondary research data to arrive at the base numbers with 2017 as the base number and estimated sales for 2018, followed by a forecast for the years 2018 to 2027.
FMI validated the forecast developed using concrete growth levels derived from macro and micro factors related to the Christmas tree valves market. For instance, the growth of Christmas tree valves in the oil and gas industry, industry value added and key participants’ annual sales performances were analyzed to attain the Christmas tree valves market forecast and refine anomalies, if any. This approach enabled the forecasting of the Christmas tree valves market in terms of CAGR with respect to the forthcoming period, based on oil and gas operator sentiments and helped in analyzing the Christmas tree valves market on the basis of Year-on-Year growth (Y-o-Y). The Christmas tree valves market has been analyzed in terms of Absolute Dollar Opportunity and Basis Point Share (BPS) and a market attractive index has been provided for high growth segments in the Christmas tree valves market.
Some of the key players in the Global Christmas Tree Valves market are:
General Electric (Baker Hughes)
Worldwide Oilfield Machine
Stream-Flo Industries Ltd
National Oilwell Varco
The Weir Group PLC