Pipe Handling System Market
Pipe Handling System Market Analysis by Product Type (Horizontal, Vertical, Horizontal-to-Vertical), by Operational Type (Automatic, Semi-automatic, Manual), by Drive System (Hydraulic, Electric), by Rig Type (Drilling Rigs, Workover Rigs), by Environment & Region - Global Forecast 2022-2032
Pipe Handling System Market Outlook (2022-2032)
The global pipe handling system market is estimated at US$ 25.5 Mn in 2022, and is forecast to reach a valuation of US$ 40 Mn by the end of 2032, expanding at a CAGR of 4.5% during 2022-2032.
Market Size Value in 2021A
US$ 24.7 Mn
Market Value Estimated in 2022E
US$ 25.5 Mn
Market Value Forecast in 2032F
US$ 40 Mn
Global Market Growth Rate (2022-2032)
North America Market Share in 2021
North America Growth Rate (2022-2032)
China Growth Rate (2022-2032)
Top 5 Companies’ Market Share
Key Companies Profiled
As per detailed analysis by Fact.MR, pipe handling system sales accounted for 8%-10% of the global material handling market value in 2021, with this share expected to increase to 12%-15% by 2032. This is mainly due to rising adoption of automation technologies in the oil & gas industry.
Pipe Handling System Demand Analysis (2017-2021) Vs. Market Outlook (2022-2032)
As per latest market analysis by Fact.MR, a market research and competitive intelligence provider, consumption of pipe handling systems over the past half-decade increased at a sluggish CAGR of around 0.2%. In offshore environments, utilization of pipe handing systems stood at 143 units in 2021. In addition, due to the presence of extensive displacement activities, drilling rigs generated demand worth US$ 17.25 Mn in the same year.
Escalating demand for high-performance pipe handlers in oil & gas fields is projected to provide a thrust to market development for oil & gas pipe handing equipment over the decade, especially in North America and the Middle East & Africa. Surging utilization of pipe hoisting equipment in drilling activities in these regions is projected to create ample opportunities for pipe handling system manufacturers over the coming years.
Furthermore, surging application of pipe handling systems for drilling and workover applications is likely to supplement growth of the market over the period of 2022-2032, which is anticipated to expand at a CAGR of 4.5% through 2032. Increased spending on the exploration of unconventional reservoirs will push demand for pipe handling systems, especially in Indo-China, Russia, and the United States.
What are the Key Influencing Factors Driving Demand for Pipe Handling Systems?
The oil & gas industry is associated with various hazards such as blowouts, unwanted kicks, and other challenges associated with pipe handling operations and rigs. Due to this, there is constant demand for advanced pipe handling equipment that improves the safety of drilling personnel. Due to the development of automatic products, safety standards in drilling operations have improved over the past few years, thereby driving demand for automated drilling systems, including automated pipe handling systems.
Utilization of oil & gas pipe handling equipment eliminates the need for specific pipe handling tools such as drill pipe handlers and casing handling tools, and reduces operational costs. Additionally, application of pipe handling systems facilitates the handling of drilling pipes, casing, tubing, bottom-hole assemblies, and other rig floor equipment, thereby improving efficiency and safety.
Additionally, governments across the world are looking to increase their oil and gas export volumes over the coming years. Growing demand for oil & gas has surged activities associated with oil & gas exploration, drilling, and production. Governments are spending huge amounts on the development of new wells in oil & gas fields.
- For instance, in February 2021, the Indian government announced an investment of US$ 102.49 Bn in oil & gas infrastructure for the next 5 years.
This trend can also be observed in other countries such as China, the U.S., Russia, Iran, Iraq, and Saudi Arabia. This is expected to create abundant opportunities for market players over the coming years, especially for those manufacturing hoisting systems such as automated pipe handing systems.
Based on Fact.MR’s research, a total of 254 units of pipe handing systems were sold, including horizontal pipe handling, vertical pipe handling, and horizontal-to-vertical pipe handling systems, in 2021, across the globe. Global volume of pipe handling systems is projected to reach 341 units by the end of 2032.
Emergence of automation in drilling and well completion activities is expected to drive product penetration, since it reduces the human efforts necessary for pipe lifting and installation. In oil well drilling operations, a variety of pipe handlers and casing elevators are been utilized for pipe handling operations. It requires multiple tools in rig floors and reduces space availability for pipe spinners and rig floor equipment such as slips, power tongs, and other tools.
What Restraining Market Development to Some Extent?
The price of crude oil has observed various ups and downs over the past decade. Crude oil was priced at US$ 43.29/ barrel in 2016, while in 2020, it further reduced to US$ 39.68/ barrel.
Crude oil prices and their stability is a benchmark that decides the development of new wells and the overall oil & gas industry. Fluctuation in crude oil prices is anticipated to limit drilling and production activities across the globe. This is likely to affect the demand for pipe handling devices and the annual production volume of the same across the globe.
Moreover, the rise of e-vehicles is expected to reduce dependency on oil & gas in the transportation sector, leading to further uncertainty in the oil & gas sector.
Consumption of conventional energy sources such as petrol, diesel, kerosene and coal generates a significant amount of CO2 and other greenhouse gases. Due to this, a shift has been observed from conventional to renewable sources of energy over the past few years. Alternative energy sources such as wind, solar, hydro, geothermal, and other bio-composting methods provide waste management, optimal heating ,and cleaner & greener energy. Due to this, demand for oil & gas and conventional fuel is likely to decline in industrial and residential applications.
Thus, the trend of renewable energy is likely to hamper drilling activities in the oil & gas industry and reduce product penetration of pipe handling equipment in the near future.
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What Makes the United States a Growth Driver for Pipe Handling System Consumption?
The United States is considered as an emerged leading consumer and producer of pipe handling systems. The nation currently accounts for US$ 7.87 Mn and utilizes 76 units of pipe handling systems in oil & gas fields.
Expanding drilling & production activities in the U.S. is poised to generate an absolute $ opportunity of US$ 5.31 Mn during the period of forecast. In addition, the U.S. holds 78.9% share in the North America pipe handling system market.
Additionally, expanding demand for oil & gas and associated products from chemical, refineries, and other end-use verticals will drive considerable demand for efficient machinery in oil & gas fields, thereby increasing pipe handling system consumption as well.
Why are GCC Countries a Lucrative Regional Market for Pipe Handling Device Manufacturers?
GCC countries has been one of the most lucrative markets driving the consumption of pipe handling systems over the past decade. This regional market value currently stands at US$ 4.8 Mn, and likely to expand at a CAGR of around 4.7% over the decade.
Robust growth of the GCC pipe handling system market is projected to come from rising investments in oil & gas exploration and new well development activities. These are anticipated to generate noteworthy demand for pipe handling system suppliers over the coming years.
Which Environment is Projected to Account for Higher Utilization of Pipe Handling Systems?
Pipe handling systems have found major application in offshore environments owing to limited space and high operational cost in offshore platforms. As such, pipe handling systems are likely to be extensively utilized in offshore drilling and workover applications.
According to Fact.MR research, offshore environment is likely to contribute approximately 58% of revenue share to the pipe handing system market.
Which Pipe Handling System Type is Mostly Used in the Oil & Gas Sector?
Horizontal pipe handling systems is anticipated to be most lucrative segment during the forecast period. This segment currently accounts for 68.4% of market share, and is estimated to be valued at US$ 17.5 Mn by the end of 2022.
Horizontal pipe handling systems have the capability to handle various ranges of tubular pipes such as casing, drill pipes, tubing, and bottom-hole assemblies, which make them the most attractive from the consumers end.
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NOV, lnc, Cameron (Schlumburger), Royal IHC , Royal IHC, Weatherford, Drillmec, NABORS Industries, RAAH International., NABORS Industries, Drillmec, EFC Group, and Yantai Jereh Oilfield Services Group Co Ltd are some of the major manufacturers of pipe handling systems.
Leading players are more focused on the development of versatile pipe handling systems for oil & gas, refineries, and associated industries. A versatile product ensures the handling of drilling pipes, casing, BHA, and other pipes while using a single pipe handling system in drilling and workover rigs.
Fact.MR has provided detailed information about the price points of top manufacturers of pipe handling systems positioned across regions, in addition to providing sales growth information, production capacity, and speculative production expansion, in the recently published report.
Key Segments of Pipe Handling System Industry Survey
By Product Type:
- Horizontal Pipe Handling Systems
- Vertical Pipe handling Systems
- Horizontal-to-Vertical Pipe Handling Systems
By Operational Type:
- Automatic Pipe Handling Systems
- Semi-automatic Pipe Handling Systems
- Manual Pipe Handling Systems
By Drive System:
- Hydraulic Pipe Handling Systems
- Electric Pipe Handling Systems
By Rig Type:
- Pipe Handling Systems for Drilling Rigs
- Pipe Handling Systems for Workover Rigs
- Offshore Pipe Handling Systems
- Onshore Pipe Handling Systems
- North America Pipe Handling System Market
- Latin America Pipe Handling System Market
- Europe Pipe Handling System Market
- East Asia Pipe Handling System Market
- South Asia & Oceania Pipe Handling System Market
- Middle East & Africa Pipe Handling System Market
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