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Published Date: 2015-09-01Number of Pages: 236

Static and Rotating Equipment (Oil and Gas) Market by Static Equipment (Valves, Boilers, Furnaces, and Heat Exchangers [Shell and Tube, Air Cooled]) and Rotating Equipment (Compressors, Turbines, and Pumps) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2022

Static and Rotating Equipment (Oil and Gas) Market: Snapshot

The global static and rotating equipment market is expected to witness a swift growth on account of the advancements in infrastructure in the oil and gas midstream sector. Moreover, new refineries are being constructed and existing ones are revamped, thus pushing the demand for these equipment further. According to the expert panel of analysts at Transparency Market Research (TMR), the global static and rotating equipment market which stood at US$26.5 bn in 2013, is predicted to scale up to US$35.8 bn by 2022, exhibiting a 3.7% CAGR from 2014 to 2022. The production of oil from unconventional sources is expected to be one of the key factors behind the growth of this market during the forecast period.

U.S. Market to Benefit from Shale Gas Boom

The upstream, downstream, and midstream activities in the oil and gas industry are heavily dependent on the quality and reliability of static and rotating equipment. This is expected to ensure an assured growth of the market. This market’s growth is directly linked to the development of the oil and gas sector. As such, the recent shale gas boom has greatly benefited the static and rotating equipment market in the U.S.

In addition to the U.S., developing nations such as Argentina and China are also expected to take advantage of the shale gas boom. Moreover, the rapid development of LNG infrastructure in the Middle East and Asia Pacific will create a heightened demand for these equipment. There has been considerable increase of investments in the refining sector of Asia Pacific and the Middle East, which is encouraging the growth of the static and rotating market in these regions.

Oil and Gas Static Equipment to Lead in Market

On the basis of product, the global static and rotating equipment market is broadly classified into oil and gas static equipment and oil and gas rotating equipment. Static oil and gas equipment, which comprise boilers, heat exchangers, air cooled, valves, and shell and tube, is the leading segment, and accounted for 53.79% of the market in 2013. Valves are predicted to have the highest demand within the static equipment segment. Turbines, compressors, and pumps fall under the rotating equipment category.

Upstream Sector to be Most Affected by Hostile Macroeconomic Factors

There also exists some challenges, which the manufacturers of static and rotating equipment industry face. Manufacturers of static and rotating equipment are faced with constant pricing pressure and this poses a challenge. The hostile macroeconomic factors are thus, one of the major factors, restricting the growth of the static and rotating equipment market. It is expected that there will be a decline in the expenditure on exploration and production activities as oil and gas manufacturers are struggling to keep minimal margins in accordance to the current price regime. While the upstream sector is expected to suffer most by these macroeconomic factors, the midstream sector in contrast will witness strong investments, since natural gas continues to be of importance in the global energy mix.

Manufacturers to Aim at Cost Cutting Measures

The sluggish demand for static and rotating equipment has resulted in pricing pressures for manufacturers. Manufacturers are now focusing on controlling costs by adopting lean management strategies. Manufacturers are also curtailing their expenses on E&P activities. Many manufacturers are instead focusing on building up product quality and differentiating their products through strong brand identification strategies.

 

The downstream, midstream, and upstream operations in the oil and gas industry depends upon the quality and reliability of static and rotating equipment. Hence, these machines form an important part of oil and gas infrastructure. However, due to the recent drop in the global oil prices, expenditure on exploration and production activities is likely to reduce, which will have a negative impact on the demand for these equipment.

The report provides a comprehensive overview of the global static and rotating equipment market. For the purpose of the study, the market has been sub-segmented into critical products that are widely deployed across the oil and gas industry. The market for oil and gas static equipment comprises boilers, valves, furnaces, and heat exchangers. The oil and gas rotating equipment segment includes pumps, compressors, and turbines. Regionally, the global static and rotating equipment market is divided into Asia Pacific, North America, South and Central America, the Middle East and Africa, Europe, and Rest of South and Central America.

Compiled with valuable industry data, the report presents a 360-degree blueprint of the global static and rotating equipment market. The information provided in the report is sourced via primary and secondary research methods. Apart from this, relevant data is also obtained from financial records of leading companies and historical data regarding the market. Valuable insights from industry veterans are also referred to in order to ensure that the report presents an accurate executive-level snapshot.

Overview of the global static and rotating equipment market

The global static and rotating equipment market, which stood at US$26.5 bn in 2013, is anticipated to reach US$35.8 bn by the end of 2022. The market will therefore exhibit a slow yet positive CAGR of 3.70% between 2014 and 2022. Static and rotating equipment are manufactured by OEMs around the world, who also supply the same to E&P companies either directly or through EPC contractors.

The sluggish demand witnessed by the global static and rotating equipment market is primarily due to the hostile macroeconomics outlook, which further translates into pricing pressures upon manufacturers. With an increasing number of manufacturers seeking to differentiate their products amidst cut-throat competition, a greater focus is on innovative brand identification strategies and improving the product quality. The launch of new technologies allowing the production of oil from unconventional sources is also expected to amplify the demand for static and rotating equipment in the market.

Among the key regional segments, North America held the largest share in the overall market in 2013. The region is also expected to retain its position as the market leader through the forecast period. The reopening of E&P activities in the Gulf of Mexico, new oil sand projects in Canada, and privatization of the hydrocarbon sector in Mexico are the primary factors boosting the static and rotating equipment market in North America. In Europe, however, the market will exhibit sluggish growth due to the high cost of the raw materials. Asia Pacific countries are anticipated to invest in strengthening its downstream sector, while further upgrades are expected in Russian refineries. Thus, these emerging regions will also prove to be lucrative markets for static and rotating equipment manufacturers.

Companies mentioned in the research report

Companies studied in the report include Sulzer Limited, Metso Oyj, Alfa Laval AB, Siemens AG, FMC Technologies Inc., Pentair plc, General Electric Company, Flowserve Corporation, Atlas Copco AB, Technip SA, Tenaris SA, Mitsubishi Heavy Industries Ltd., Doosan Group, OAO TMK, and Wärtsilä.

Oil and Gas Static and Rotating Equipment Market: Product Type Analysis

  • Oil and Gas Static Equipment
    • Valves
    • Boilers
    • Heat Exchangers
      • Shell and Tube
      • Air Cooled
  • Oil and Gas Rotating Equipment
    • Compressors
    • Turbines
    • Pumps

Oil and Gas Static and Rotating Equipment Market: Regional Analysis

  • North America
    • U.S.
    • Rest of North America
  • Europe
    • Norway
    • U.K.
    • Rest of Europe
  • Asia Pacific
    • China
    • Australia
    • Rest of Asia Pacific
  • Middle East and Africa
    • GCC Countries
    • Nigeria
    • Algeria
    • Rest of Middle East and Africa
  • South and Central America
    • Brazil
  • Rest of South and Central America

This report gives you access to decisive data such as:

  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments


 
 
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