Oilfield Equipment Rental Market
By Equipment (Drilling Equipment [Drill Pipe, Drill Rigs, Drill Color, Other], Pressure and Flow Control Equipment [Blowout and Preventer, Valves and Manifolds, Flow Lines, Other], Other Equipment),
By Application (On-Shore, Offshore),
By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa):
Global Analysis and Forecast 2023-2033
The global oilfield equipment rental market is to be worth more than USD 31.44 Billion in 2033.
The demand for crude oil and natural gas is expected to increase exploration and production activities, which will likely propel the oilfield equipment leasing services market during the forecast period. The amount of production activities determines the demand for rental equipment in the oil and gas sector. The demand for equipment rentals rises in direct proportion to output levels. The search for new oil and gas reserves through drilling and exploration also increases the need for rental tools. For a one-time project, businesses might opt to rent the necessary equipment rather than invest in new machinery.
The volume of oil and gas output significantly impacts the demand for oilfield equipment rentals globally. This is because oil and gas production drives the need for equipment and machinery. Renting equipment is frequently favored over buying it because it has lower initial capital costs and offers more flexibility in how it is used. The amount of oil and gas produced depends on several variables, including the world's energy consumption, geopolitical factors like supply disruptions and political instability, and industry-related technological developments. Therefore, the need for rental tools in the oil and gas sector is subject to change over time.
The companies operating within the industry are undergoing mergers, collaborations, acquisitions, long-term contracts, and service agreements. For instance, in July 2019, Baker Hughes, a GE Company (BHGE), bagged a contract from 13 Energy plc for its drilling operation at Liberator. In Nov 2018, a five-year surface technologies frame agreement was signed between oilfield service provider TechnipFMC & oil major Chevron.
According to the CXOs and primary research conducted, increasing demand for shale gas and tight oil production, growing focus on cost optimization, growth in offshore exploration and production activities, technological advancements, and increasing focus on safety and environmental regulations, among other factors, are expected to drive forward the oilfield equipment rental market in the upcoming years.
The oilfield equipment rental market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In line with the analyzed region, the Asia-pacific region will witness the highest market growth, followed by Europe, Asia-Pacific, Latin America, and Middle East & Africa. The market for renting out oilfield equipment is anticipated to expand most rapidly in North America. As the region that produces the most unconventional hydrocarbons worldwide, North America is expected to dominate the market for oilfield equipment leasing. This area is presently the swing producer on the world oil market due to the rise in oil output from shale operations and deep-water exploration and production in the Gulf of Mexico.