Static and Rotating Equipment Market Benefits from High Hydrocarbons Production

Static and rotating equipment constitute any form of oil and gas infrastructure while functioning as crucial components. Every element of the hydrocarbons value chain, viz. upstream, midstream, and downstream, features the usage of such types of equipment. With a CAGR of 3.14% between 2014 and 2024, the global static and rotating market is anticipated by Transparency Market Research (TMR) to grow reasonably.

The market is segmented into valves, boilers, furnaces, heat exchangers, shell and tube, and air cooled according to the product type of oil and gas static equipment. On the basis of oil and gas rotating equipment product type, the segments include compressors, turbines, and pumps. Geographically, Asia Pacific (APAC), North America, Europe, and the Middle East and Africa (MEA) are the key regions.

Shale Gas and Hydrocarbons Production Boom to Skyrocket Demand?

Natural gas pipeline construction of more than 4,000 miles is expected to be the pick of the drivers for the global static and rotating equipment market. With monumental investment growth in the hydrocarbons pipeline sector, there would be a notable augment in demand of the static equipment, especially for in the valves segment. The significant rise in hydrocarbons production using oil sands and extant shale gas flourish coupled with increasing drilling activities have optimistically influenced the international market. Number of major refineries ready to launch in the coming years and escalating investment in new refinery construction are anticipated to raise the demand in the market.


How will Countries with Large Appetite for Energy Birth Market Opportunities?

The demand for static and rotating equipment may see a drop with stumbling hydrocarbons exploration and production activities due to the fall in crude oil prices. Nevertheless, the good news is that oil prices are expected to normalize to usual figures, thus impacting the global market optimistically.

The growth in exploration and production activities to satisfy the swelling demand for energy production and security is likely to make the market opportune. In response to the growing concerns about energy demand and urgency to meet short-term and long-term energy needs, most nations across the world have turned to greater investments in exploration and production, strategic reserves of crude oil, and developments in renewable energy.

What are the Driving Forces for High Intensity Competition?


The degree of competition in the market for static and rotating equipment is predicted to experience a low to moderate shift with a similar rate of demand from end-user sectors. Equally-balanced players thriving on an international platform are expected to encourage the tussle for market share among incumbents. Other factors that may heat up the competitive landscape include the need to maintain brand identity, large investments by incumbents resulting in high exit barriers, and extreme product differentiation.

How Attractive is the Market with Regard to Geography?


APAC is foretold to take advantage of the plans to build some of the largest LNG liquefaction installations in Australia and ensure tremendous developments in pipeline capacity. North America will take the second position in terms of market attractiveness while riding on perpetual demand for static and rotating equipment with expensive sunk costs of operators. Europe and South and Central America, however, are envisaged to trail APAC and North America by quite a distance.

The aftermarket services business in the global static and rotating equipment market is forecasted to be spurred by the general nature of service and concern to avoid the downswing in sales. Besides this, the business will gain strength from higher premiums paid to steer clear of equipment breakdown risk.

0 comments:

Post a Comment

Note: only a member of this blog may post a comment.

Latest Post

Market Research Reports