The liner hanger market is expected to reach a value of US$ 89.3 billion in 2023 and is rising to US$ 167 billion by 2033. According to the predictions, the market will grow at a CAGR of 6.3% during the forecast period. Due to the diminishing onshore oil reserves, offshore exploration is expected to drive the market for liner hangers during the forecast period. Deepwater and ultra-deep-water exploration projects as well as an increase in investment into shale assets are likely to present the market with plenty of opportunities. Over the next five years, China is expected to dominate the market. Having been proven to have the largest oil reserves and production capacity, the country will be at the forefront of the market in the near future.
Rystad Energy, a Norwegian energy industry intelligence group, predicts a new record for offshore oil and gas project commitments by 2025 - almost 600 projects in total. In 2021 to 25, Rystad anticipates offshore project commitments will reach almost US$ 480 billion, which is a 50% increase over 2016 to 20 figures of around US$ 320 billion.
It is expected that the onshore sector will dominate the liner hanger system market because there are currently 990 onshore rigs operating within the United States and production is increasing from the Permian basin. The United States is the leading market for liner hanger systems in the world, with a 17-million-barrel production rate per day in 2019. The company is expected to remain dominant during the period of forecasting.
For instance, as part of a comprehensive approach to maximizing shareholder value, HighPeak Energy, Inc. has announced that its Board of Directors has voted to begin an assessment of certain strategic alternatives, including the possibility of selling the company. The company plans to reduce the number of drilling rigs from six to four during the first half of 2023 to reduce costs. To ensure that the company's capital development plan coheres with the market's dynamics in the long run, the Company periodically assesses the financial viability of its capital development plan. Therefore, as the economic environment evolves, the company will continue to align its 2023 and 2024 plans with the current economic environment to the extent possible.
Saudi Arabia has a substantial reserve of crude oil, which is the largest proven reserve in the world after Nigeria, which makes Saudi Arabia an attractive investment destination for exploration and completion activities. It is expected that in the near future, liner hanger systems will see a significant increase in market opportunities. As the most common liner hanger system for onshore wells, conventional liner hangers are expected to continue to dominate the market in the years to come with ongoing projects.
According to regulatory guidelines set by the Federal Aviation Administration (FAA), the FAA is in charge of approving all airway facilities constructed across the United States, including the installation of airway markers, such as a T-hanger, and the installation of airway signs, which are required by law. Regulations governing federal aviation ensure that all airway facilities are appropriately built and maintained. A T-hanger must be approved by the FAA before it can be constructed or installed.
Future growth opportunities are abundant for hanger companies. Considering new markets like eco-friendly hangers or specialty hangers as a way to expand the market could be beneficial. To improve efficiency and reduce costs, companies can also develop new technologies, such as the use of automated hangers and 3D printing, to improve efficiency and reduce costs. As the industry of hangers evolves, companies will be able to pursue opportunities to offer custom-made hangers and other services to better serve their customers, such as personalization, to provide them with more value. The process of expanding a company's product line refers to adding related items to it, such as garment bags, display racks, storage solutions, and other products that complement the company's primary product.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | US$ 85 Billion |
| Expected Market Value (2023) | US$ 89.3 Billion |
| Anticipated Forecast Value (2033) | US$ 167 Billion |
| Projected Growth Rate (2023 to 2033) | 6.3% CAGR |
Liner hanger is a tool used to support, secure and hang a liner in oil and gas wells. Liner hangers uses a mechanical unit called slips to establish a firm hold from the inside of the liner to support its installation. Liner hangers helps in casing of open-hole below an already existing casing string. Some liner hangers are also used during drilling operations in problematic and complex well types to avoid problems related to stuck pipe.
Liner hangers come in different operation types, such as mechanical, hydraulic and expandable. The type of liner hanger system to be used is selected depending on the well type, application (onshore or offshore), and depth and pressure requirements. Liner hangers significantly reduces total well construction costs and minimizes risks associated with various well completion activities, thereby improving the performance of the oil & gas well across its lifecycle.
Liner hangers have become a necessity in most of the oil & gas completion wells. With the rising investments in offshore exploration & production activities, the liner hanger market is anticipated to witness healthy demand during the coming years.
Recovering crude oil prices have paved way to a number of investments in oil & gas exploration & production activities since 2016. With the industry moving away from the crude oil slump, the production activities are in full swing, boosting investments across the regions. This is anticipated to remain a prime factor in shaping the liner hanger market.
Growing adoption of hydraulic fracturing is anticipated to significantly drive the demand for liner hangers in the coming years. Horizontal drilling and directional drilling has been on rise in recent years owing to growing instances of production of complex reservoir formations, unconventional wells, and discovery of reserves in remote locations.
These are anticipated to further drive the demand for liner hanger market in oil & gas industry.Mechanical liner hangers are preferred in shallow depths due to their relatively lower cost and are less challenging to operate. Expandable liner hangers are designed to be deployed in deep-water wells where heavy and long liners are installed, and hence the demand is anticipated to remain concentrated in Brazil, Nigeria, Canada, USA and Angola.
Onshore drilling and production activities account for over 70% of the global oil & gas production and hence the demand for liner hangers is expected to remain prominent in the onshore segment. But, with growing investments in offshore exploration, the segment is anticipated to create elevated demand in the coming years.
Booming USA hydraulic fracturing in the shale plays is anticipated to create a healthy demand for liner hangers. Middle East & Africa is anticipated to corner significant share of the global demand for liner hangers, along with North America. Recent advancements in CBM horizontal drilling in China and India are anticipated to position Asia Pacific as one of the fastest growing regions in the liner hanger market.
Latin America is also anticipated to witness surge in demand for liner hangers, driven by growing offshore production activities in the Mexico and Brazil. Europe region is expected to register minor demand, and demand surges due to the active North Sea developments and onshore production activities in Russia.
Some of the key market participants identified in the liner hanger market across the globe are:
The research report presents a comprehensive assessment of the Liner hanger market and contains thoughtful insights, facts, and historical data and statistically supported and industry-validated market data.
It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to liner hanger market segments such as geographies, well type, application and type.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with Liner hanger market attractiveness as per segments. The report also maps the qualitative impact of various market factors on Liner hanger market segments and geographies.
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Liner Hanger Market
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