Mud Gas Separator Market

Mud Gas Separator Industry Outlook (2022-2032)

Worldwide demand for mud gas separators is estimated to be valued at US$ 3.9 Mn in 2022. Detailed industry research reveals that the global mud gas separator market is forecast to reach US$ 5.6 Mn by the end of 2032, expanding at a steady CAGR of 3.6%.

Report Attributes	Details
Mud Gas Separator Market Size (2021A)	US$ 3.8 Mn
Estimated Market Value (2022E)	US$ 3.9 Mn
Forecasted Market Value (2032F)	US$ 5.6 Mn
Global Market Growth Rate (2022-2032)	3.6% CAGR
North America Market Share (2021)	~37.6%
North America Market Growth Rate (2022-2032)	3.9% CAGR
U.S. Market Growth Rate (2022-2032)	4.1% CAGR
Top 5 Companies Market Share	~33%
Key Companies Profiled	Weir Group TSC Group Holdings Fluid Systems GN Solids Control Joulon Tech Fab

As per latest analysis by Fact.MR, mud gas separators accounted for 1.3% share of the global drilling rig equipment market value in 2021, with this share expected to rise to 2%-3% by 2032.

Owing to the rising number of deep wells and growing safety regulation in oil & gas fields. In addition to this, the unit sale of mud gas separator is likely to grow with a volume CAGR of around 3.3% over next decade.

Based on Fact.MR research, approximately 200 units of mud gas separators were sold, including open-bottom mud gas separators, closed-bottom mud gas separators, and float type mud gas separators, in 2021, across the globe. Global volume of mud gas separators for drilling is projected to surpass 300 units by the end of 2032 and provide ample of opportunities for mud gas separator manufacturers over the same period.

Emergence of automation in drilling & well completion and strict safety regulations in oil & gas fields are expected to drive product penetration, since mud gas separators remove formation gas from drilling fluids and aid in reducing the chances of unwanted kicks. Moreover, in deep to ultra-deep drilling scenarios, mud gas separators work as a well-controlled equipment by eliminating gas content from drilling mud.

Mud Gas Separator Demand Analysis (2017-2021) Vs. Market Forecast Outlook (2022-2032)

According to the recent analysis by Fact.MR, a market research and competitive intelligence provider, utilization of mud gas separators witnessed a declined growth rate of -0.6% over the past half-decade. This was due to fluctuating crude oil prices in early 2020 due to COVID-19 pandemic.

Offshore exploration units accounted for the highest utilization of mud gas separators with approximately 80% market share in 2020.

Accelerating demand for closed-bottom mud gas separators in oil & gas fields is projected to provide a thrust to market development over the decade, especially in North America and the Middle East & Africa. Surging utilization of mud gas separators in drilling activities in the aforementioned regions is projected to create an absolute $ opportunities of US$ 736.3 Th and US$ 650 Th, respectively, over the forecast period.

Furthermore, surging use of mud gas separators in oil & gas as a well control equipment for drilling applications is likely to supplement the growth of the market over the period of 2022-2032. Over, mud gas separator consumption is predicted to increase at a CAGR of 3.6% over the forecast period (2022-2032).

What are the Key Influencing Factors Driving Demand for Mud Gas Separators?

“Varied Uses of Oil & Gas – A Key End-use Industry”

Consumption of oil & gas is not only restricted to the transport and energy sectors, but it has a wide horizon to be utilized across pharmaceutical, textile, and chemical industries.

Antihistamines, analgesics, antibacterial, antibiotics, cough syrups, rectal suppositories, creams, salves, ointments, and gels are products that require petrochemicals for manufacturing. Similarly, acetate, acrylic, nylon, polyester and spandex are synthetic fibres that are made from non-renewable fossil fuels.

CGD (city gas distribution) is a critical factor driving the downstream LNG (liquefied natural gas) business. The CGD network is employed to ensure safe and efficient delivery of natural gas for household, industrial, and commercial purposes. Regional governments are emphasizing on widening the pipeline infrastructure.

Increasing CGD is expected to drive demand for natural gas over the coming years, which will have a positive subsequent impact on oil & gas drilling. Mud gas separators are a primary equipment deployed on rigs to eliminate the gas from drilling fluid for safety reasons. Increase in drilling activity will supplement the growth of the gas buster market over the assessment period.

What are the Key Restraining Factors for Market Development?

“Rising EV Trend to Stunt Mud Gas Separator Demand”

Increasing awareness about reducing carbon footprint has shifted consumer preference towards renewable sources of energy. Carbon emissions from the electricity sector are expected to grow by close to 2.5% in 2022. In this movement, regional government initiatives act as a catalyst to promote the usage of renewable energy.

Promoting biofuels, driving usage of substitutes, shifting towards energy efficiency, conservation measures, and other alternatives to fossil fuel are restricting the import volume of oil & gas. Minimizing the import volume will lead to a reduction in production and will have a subsequent impact on oil well drilling.

Gradual decrease in oil rigs can be clearly observed, which is proportionally reducing demand for mud gas separators.

On an average, 70% of oil is consumed by the transport industry, which is likely to shift consumer preference towards electric vehicles in the next decade. This is likely to affect demand for petroleum by nearly 10% by 2025, around 30% by 2030, and 55% by 2040.

Norway has the largest per capita usage of electric vehicles in the world. In the first half of 2021, global sales of e-vehicles witnessed exponential growth of 160% and 2.6 million units.

Consistently increasing preference for EVs is likely to reduce demand for oil & gas from the transport industry, thereby stunting demand for mud gas separators.

Country-Wise Analysis

Which Countries are Leading Producers & Consumers of Mud Gas Separators?

“U.S. Mud Gas Separator Market Leads the Way” 

The U.S. is considered a leading consumer and producer of mud gas separators. It currently accounts for US$ 1.5 Mn and utilizes approximately 60 units of mud gas separators.

Growing reservoir pressure maintenance jobs by the development of injection wells and horizontal drilling in the United States is likely to create ample of opportunities for U.S. mud gas separator manufacturers in the near future.

The U.S. mud gas separator market is anticipated to create an absolute $ opportunity of US$ 560 Th during the forecast period, and hold approximately 80% market share in North America.

“China - A Growth Epicentre for Mud Gas Separator Suppliers”

China has been one of the most lucrative markets driving demand for mud gas separators in the East Asia region. China provides mud gas separators at lower price points as compared to other countries such as the U.S. and leading Europe countries.

The China mud gas separator market is estimated to reach US$ 400.6 Th by 2032, expanding at a CAGR of around 2.7% over the decade

Category-Wise Analysis

Which Mud Gas Separator Type Accounts for Higher Sales?

“High Demand for Closed-bottom Mud Gas Separators”

Closed-bottom mud gas separators accounted for a little over 60% of overall separator demand in 2021. This vertical generated a valuation of US$ 23 Mn in 2021. Closed-bottom mud gas separator demand is estimated to surpass a valuation of US$ 3.5 Mn by the end of 2032.

Which Mud Gas Separator Orientation Type is Attractive in the Oil & Gas Sector?

“Vertical Mud Gas Separators Highly Sought-after Due to Space Constraints”

Oil & gas fields are equipped with various tools and equipment, and due to this, space requirement is a major issue in onshore and offshore fields. As such, vertical mud gas separators are highly sought-after in oil & gas industries.

The sub-segment currently accounts for approximately 90% market share and is estimated to create an absolute $ opportunity of US$ 1.7 Mn by the end of the assessment period.

Competition Landscape

Leading mud gas separator suppliers are focused on the development of compact, efficient, and versatile products for oil & gas. A versatile product is capable enough to handle high GOR (gas/oil ratio) and large volumes of drilling mud.

In addition to this, the compact design of mud gas separators provides sufficient space in fields and reduces the risk of accidents. Development of such types of products are likely to provide a plethora of opportunities for mud gas separator manufacturers over the coming years.

Fact.MR has provided detailed information about the price points of top manufacturers of mud gas separators positioned across regions, in addition to providing sales growth information, production capacity, and speculative production expansion, in the recently published report.

Key Segments of Mud Gas Separator Industry Survey

• Mud Gas Separator Market by Type:

  • Open-bottom Mud Gas Separators
  • Closed-bottom Mud Gas Separators
  • Float Type Mud Gas Separators

• Mud Gas Separator Market by Exploration Type:

  • Onshore Mud Gas Separators
  • Offshore Mud Gas Separators

• Mud Gas Separator Market by Orientation:

  • Horizontal Mud Gas Separators
  • Vertical Mud Gas Separators

• Mud Gas Separator Market by Region:

  • North America Mud Gas Separator Market
  • Latin America Mud Gas Separator Market
  • Europe Mud Gas Separator Market
  • East Asia Mud Gas Separator Market
  • South Asia & Oceania Mud Gas Separator Market
  • MEA Mud Gas Separator Market