Wellhead Equipment Market Size, Share & Trends Analysis Report By Component (Hangers, Flangers, Master Valve, Choke), By Application (Onshore, Offshore), By Region (Europe, North America), And Segment Forecasts, 2024 - 2030

Wellhead Equipment Market Size & Trends

The global wellhead equipment market size was valued at USD 6.69 billion in 2023 and is expected to grow at a CAGR of 4.9% from 2024 to 2030. The market is driven by several factors, including the increasing demand for energy, the need for efficient and reliable oil and gas extraction, and the growing focus on offshore exploration and production activities. The rising global population and industrialization have led to a surge in energy consumption, which has in turn increased the demand for oil and gas. This has necessitated the exploration and production of oil and gas from new and existing fields, driving the need for wellhead equipment.

Moreover, the growing emphasis on offshore exploration and production activities, particularly in regions such as the Middle East, Africa, and Asia-Pacific, has contributed to the growth of the wellhead equipment market. Offshore exploration and production activities require specialized equipment to withstand harsh environmental conditions, which has led to the development of advanced wellhead equipment designed for offshore applications.

Drivers, Opportunities & Restraints

The increasing focus on enhancing oil and gas recovery rates and extending the lifespan of existing wells has driven the demand for wellhead equipment. Advanced wellhead equipment can help optimize production, reduce downtime, and improve safety, making it an essential component in the oil and gas industry.

Additionally, the growing emphasis on enhancing oil and gas recovery rates and extending the lifespan of existing wells is creating opportunities for wellhead equipment manufacturers to develop innovative solutions that can optimize production, reduce downtime, and improve safety.

The wellhead equipment market faces several restraints, including the volatility of crude oil prices, which can lead to delays in oil and gas projects. Additionally, the high costs associated with the development of deepwater and ultra-deepwater reserves may limit market growth.

Component Insights

Based on component, hangers held the largest revenue share of 31.44% in 2023. The master valve segment is driven by several key factors. One significant driver is the increasing demand for oil and gas, which is leading to a surge in exploration and production activities globally. This demand is particularly pronounced in regions like Asia Pacific, where countries like China and India are investing heavily in oil and gas exploration to meet their growing energy needs. Additionally, the growing number of oil and gas projects worldwide is driving the demand for wellhead equipment, including master valves. This is due to the discovery of new oil and gas reserves and the need to replace depleted reserves.

Chokes come in various configurations, such as fixed-bore, adjustable, and smart chokes, each suited for different well conditions and production requirements. The selection of the appropriate choke is essential to ensure safe and efficient well operations, as it helps maintain the desired flow rates, prevent damage to downstream equipment, and mitigate the risk of uncontrolled flow. The choke segment is a key component of the market, as it enables the precise management of well pressures and flow, which is critical for maximizing production and ensuring the overall integrity of the wellbore system. 

Application Insights

Based on application, the onshore segment held the market with the largest revenue share of 73.79% in 2023. The onshore wellhead equipment market is driven by several factors. One significant driver is the increasing demand for energy, particularly from developing economies, which is leading to a surge in oil and gas exploration and production activities. The growth of unconventional oil and gas resources, such as shale oil, is also contributing to the demand for wellhead equipment. The United States, with its robust drilling in shale reserves, is a major contributor to global oil and gas production, driving the market.

The offshore wellhead equipment market is driven by the growing demand for energy and the increasing exploration and production activities in offshore regions. The depletion of onshore oil and gas reserves has led to a shift toward offshore exploration, particularly in deep-water and ultra-deepwater environments. This has driven the need for specialized wellhead equipment capable of withstanding harsh offshore conditions, such as high pressures, temperatures, and corrosive environments. Additionally, the adoption of advanced technologies, such as unmanned wellhead platforms and subsea production systems, has further fueled the growth of the offshore wellhead equipment market. Governments' efforts to promote offshore exploration and production activities, coupled with the rising investments in offshore projects, are also key drivers of this market.

Regional Insights

North America wellhead equipment market dominated the global industry and accounted for the largest revenue share of over 41.19% in 2023.  The North American market is driven by the growing demand for energy and the increasing exploration and production activities in offshore regions. The depletion of onshore oil and gas reserves has led to a shift toward offshore exploration, particularly in deep-water and ultra-deepwater environments. This has driven the need for specialized wellhead equipment capable of withstanding harsh offshore conditions, such as high pressures, temperatures, and corrosive environments.

U.S. Wellhead Equipment Market Trends

The wellhead equipment market in the U.S. accounted for the largest revenue share of 79% in 2023. The U.S. wellhead equipment market is driven by the growing demand for energy and the increasing exploration and production activities in offshore regions, particularly in deep-water and ultra-deepwater environments. This has led to the need for specialized wellhead equipment capable of withstanding harsh offshore conditions.

Europe Wellhead Equipment Market Trends

The wellhead equipment market in Europe is driven by the increasing exploration and production activities in the region, as well as the growing demand for energy. Key players in the European market include Delta Corporation, EthosEnergy Group, and Weir Group.  The market is also influenced by the adoption of advanced technologies, such as unmanned wellhead platforms and subsea production systems, as well as government initiatives to promote offshore exploration and production activities. 

UK wellhead equipment market is a significant part of the broader European wellhead equipment market. Key players operating in the UK wellhead equipment market include major global players such as Weir Group, TechnipFMC, and Baker Hughes, as well as local companies like Hunting Energy Services and Plexus Holdings. These companies provide a wide range of wellhead equipment, including casing heads, tubing heads, Christmas trees, and associated components, to meet the specific requirements of the UK's offshore oil and gas industry.

The wellhead equipment market in Russia is driven by the country's significant oil and gas production activities. Russia is one of the world's largest producers and exporters of oil and gas, with a well-established upstream sector. The primary consumers of wellhead equipment in Russia are companies owning oil and gas production assets, companies acting as operators for oil and gas fields, and oilfield service providers.

Asia Pacific Wellhead Equipment Market Trends

The wellhead equipment market in Asia Pacific market is characterized by the presence of both domestic and international players. Key regional players include Jereh Oilfield Equipment, Jiangsu Sanyi Petroleum Equipment, and Sunnda Corporation, while global giants like Schlumberger, Halliburton, and Baker Hughes also have a strong foothold. These companies provide a wide range of wellhead equipment, including casing heads, tubing heads, Christmas trees, and associated components, to cater to the diverse needs of the region's oil and gas industry.

China wellhead equipment market is a significant and rapidly growing segment of the global wellhead equipment industry. China is the world's second-largest economy and a major producer and consumer of oil and gas, driving the demand for wellhead equipment in the country.

The wellhead equipment market in India is driven by the country's significant oil and gas production activities. India is one of the world's largest oil and gas consumers, and its oil and gas industry plays a crucial role in the country's economic development. The market is characterized by the presence of both domestic and international players, with key domestic manufacturers including Jereh Oilfield Equipment, Sunnda Corporation, and Yantai Jereh Oilfield Services Group. Global players like Schlumberger, Halliburton, and Baker Hughes also have a strong presence in the Indian market.

Central & South America Wellhead Equipment Market Trends

The wellhead equipment market in Central and South America is characterized by a mix of onshore and offshore exploration and production activities. The region is driven by the increasing demand for energy, particularly from countries like Brazil, Argentina, and Venezuela, which are investing heavily in oil and gas exploration and production projects.

Middle East & Africa Wellhead Equipment Market Trends

The wellhead equipment market in the Middle East & Africa is driven by the region's significant oil and gas production activities, particularly in countries like Saudi Arabia, UAE, and Nigeria. The growing demand for energy and the increasing exploration and production activities are key drivers of the market.

Key Wellhead Equipment Company Insights

The wellhead equipment market is a highly competitive with several key players operating globally.

Recent Developments

• In March 2024, OneSubsea awarded by Prime Energy Resources Development B.V. to supply Wellheads for its Malampaya Field which will be used for for Malampaya Phase 4 to drill and tie-in two new deepwater wells in the Camago and Malampaya East fields to the Malampaya Shallow Water Platform. The drilling is scheduled for 2025 with objective to deliver gas by 2026.

• In June 2023, Dril-Quip delivered wellhead equipment to Petrobras for Petrobras Exploratory project in the Aram Block located in the Santos Basin offshore Brazil. 

Wellhead Equipment Market Report Scope

Global Wellhead Equipment Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global wellhead equipment market report on the basis of component, application and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hangers

  • Flangers

  • Master valve

  • Choke

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Onshore

  • Offshore

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE