Christmas Tree Valves Market Outlook – 2022-2027
[82 Pages Report] Sales in the global Christmas tree valves market are slated to top US$ 2.8 Bn in 2021. Expanding at a healthy 3.8% CAGR, the market size is projected to total US$ 3.5 Bn by 2027.
Christmas Tree Valves Market Estimated Size 2021
US$ 2.8 Bn
Christmas Tree Valves Market Value-based CAGR (2021-2027)
Christmas Tree Valves Market Size in Projected 2027
US$ 3.5 Bn
Increasing oil exploration activities across the globe is anticipated to drive the sales in this market. The ongoing advancement in remote monitoring and automation solutions is also likely to propel the growth in this market.
Christmas tree valves are primarily utilized in advanced gas and oil wells where the pressure for the natural flow of fuels is sufficient. These are considered to be a structure of chokes, gauges, spools, and valves, which make them look like a Christmas tree, hence the name. They are capable of acting as a connector between the over-oil well and under-oil well activities.
A sophisticated surface Christmas tree contains at least four to five valves, typically arranged in a crucifix pattern, whereas a basic surface tree has two or three manual valves to restrict the flow of fluid when fully open.
2013-2020 Christmas Tree Valves Market Outlook in Comparison to 2021-2027 Growth Forecast
The Christmas tree valves market is expected to register 3.8% CAGR between 2021 and 2027, up from 3.4% CAGR recorded during 2013-2020.
In the early days, Christmas tree valves were mainly used in newly drilled gas and oil wells where there was insufficient pressure for the natural flow. But, the lack of natural flow gradually compelled operators to utilize artificial lift systems instead of these valves.
However, from 2018, they started becoming more popular in the oil and gas industry owing to the increasing demand for crude oil across the globe. At the same time, the rapid technological advancements in this field resulted in the higher adoption of Christmas tree valves among oil and gas companies.
The ability of these valves to serve a large number of purposes, such as providing electrical interfaces for control systems, relieving pressure, monitoring safety equipment, and injecting chemicals, is expected to spur the growth in this market.
Further, the rising engagement of producers in partnerships and collaborations with sales and distributor companies to develop novel manufacturing units, especially in emerging economies, is projected to contribute to this growth.
Crude Oil Exploration a Primary Contributor to Christmas Tree Valves Market Growth
The rising number of exploration activities and high investments in the crude oil sector across the globe are expected to emerge as chief growth multipliers for the market. Christmas tree valves provide numerous benefits, such as controlling the injection of gas on non-producing or producing wells and preventing blockages, which, in turn, would drive their demand worldwide.
In addition, various key players operating in different parts of the world are likely to broaden their presence and bag novel contracts to initiate new oil and gas exploration projects in the upcoming years.
For instance, in January 2022, United Energy, Enap Sipetrol, INA Naftaplin, Energean Egypt, Apex International, BP, and Eni were awarded with eight oil and gas exploration concession areas by Egypt in the Gulf of Suez, Western Desert, and Mediterranean.
Such industry developments are likely to affect the demand for Christmas tree valves positively in the near future.
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How is the U.S. Christmas Tree Valves Market Progressing?
The rising production and exploration activities are likely to accelerate the growth in the U.S. Christmas tree valves market during the assessment period. As per FMI, the North America market is set to account for 45.2% of the share in 2022.
The U.S. has the second-largest tight oil reserves and one of the largest technically recoverable shale gas reserves in the world. In addition, the low breakeven prices and ongoing technological advancement in the field of hydraulic fracturing are set to boost the upstream gas and oil activities in the onshore area, thereby driving the demand for Christmas tree valves.
Moreover, the implementation of various norms by the government of this country is expected to bolster the market. In January 2018, for instance, the Trump Administration unveiled a new proposal to lease 98% of the U.S. waters to various oil and gas companies for offshore drilling. The introduction of such innovative plans by the government is likely to support the market over the forthcoming years.
Offshore Oil and Gas Production Propels the U.K. Christmas Tree Valves Market
The increasing adoption of advanced technologies for the recovery of reserves from deep water, heavy crude oil, and high pressure, high temperature (HPHT) fields is anticipated to fuel the growth in the U.K. The Europe Christmas tree valves market is likely to generate approximately 22.8% of the share in 2022, predicts FMI.
As per the Extractive Industries Transparency Initiative (EITI), the total oil and gas production surged by about 20% from 2014 to 2019 and the country’s oil and gas sector is dominated by the production from offshore areas. This showcases that offshore production and exploration activities in the U.K. is projected to grow in the near future, thereby expanding the opportunities in this market.
Which are Primary Drivers of China Christmas Tree Valves Market?
The surging demand for natural gas and numerous upcoming gas pipelines are likely to propel the growth in China in the near future. According to FMI, China Christmas tree valves market is predicted to account for around 24.2% of the share in 2022.
Additionally, the country is planning to slash its high dependence on gas imports by accelerating domestic projects, such as shale fields as its energy supply security. The government is also set to provide funds to encourage domestic production, especially from unconventional sources.
As per the Energy Information Administration (EIA), the Chinese State Council had set a target of 19.4 billion cubic feet per day in September 2018 for domestic natural gas production in 2020. Also, the country’s government launched a subsidiary program in June 2019 that is scheduled to be in effect by 2023. This program would establish new incentives for the production of natural gas from tight formations. These initiatives and targets unveiled by the regulatory body are anticipated to play a significant role in the country’s growth.
Why Are Automatic Christmas Tree Valves in High Demand?
Based on type, the automatic segment was estimated to account for about 80% of the global Christmas tree valves market share in 2021, finds FMI. The increasing deployment of automatic valves in onshore and offshore applications is likely to drive the growth of this segment.
Further, the ability of these valves to provide process control over the temperature, pressure, and flow rate, is set to drive their demand in the oil and gas industry worldwide. Additionally, the usage of these valves are anticipated to benefit the oil and gas companies by eliminating the cost of operators required on sites for adjusting and monitoring various processes.
Which is the Leading Application of Christmas Tree Valves?
In terms of application, the onshore segment is projected to procure the largest Christmas tree valves market revenue share in the upcoming years. As compared to the offshore sector, onshore is set to gain more benefits from the surging crude oil prices.
The increasing number of onshore oil and gas activities in various countries, such as Indonesia, Argentina, India, and Columbia, is likely to push the growth of this segment. It is mainly happening because of the rising government initiatives to augment domestic production, as well as recent changes in regulations.
According to the International Energy Agency (IEA), in 2020, the value of fossil fuel consumption subsidies went down to USD 180 billion globally. Out of this, subsidies to oil products remained the largest single component and held USD 90 billion, followed by fossil fuels used to produce electricity (USD 50 billion), and natural gas (USD 35 billion). This trend is likely to continue in the near future, thereby propelling the segment’s growth.
The Christmas tree valves market is a mix of international and domestic key players that are engaging in stiff competition. They are investing huge sums in research and development activities to come up with novel processes and mechanisms for improving the quality of their products. Meanwhile, some of the other players are focusing on bagging new contracts from renowned organizations to deliver their in-house products, as well as resume work on incomplete oil projects.
- In December 2021, OneSubsea, a Schlumberger company headquartered in the U.S., delivered its first Wet Christmas Tree for the Mero 2 project. The company had received a contract from Mero, according to which, OneSubsea will be involved in the supply of major equipment for subsea production systems. Also, it will intervene, commission, and install services for the second phase of the field’s development.
- In November 2021, Helix Energy Solutions Group Inc., an oil and gas services company based in the U.S., announced that it will start working on a five-well complete abandonment project in late 2022 in the offshore Tui field. The company has received the contract to begin work from New Zealand’s Ministry of Business, Innovation, and Employment (MBIE). As per the contract, Helix will utilize its Q7000 and 10K Intervention Riser System (IRS) for this project. By using the Q7000, the company will be able to recover Christmas trees and wellheads. The project is likely to be complete in 60 days.
Scope Of Report
Historical Data Available for
Units for Volume and US$ Bn for Value
Key Regions Covered
North America, Latin America, Europe, China, Asia Pacific excluding China, and the Middle East and Africa.
Key Countries Covered
United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.
Key Market Segments Covered
Type, Application, and Region
Key Companies Profiled
Available upon Request
Christmas Tree Valves Market By Category
- North America
- Latin America
- Asia Pacific excluding China
- Middle East and Africa