Blowout Preventer (BOP) Equipment Market Size, Share, Growth, And Industry Analysis By Type (Up to 2,500 LBS, 2,500-5,500 LBS, 8,000 - 12,000 LBS, More than 13,000 LBS), By Application (Mining and Construction, Marine, Oil and Gas) and Regional Forecast to 2029

Updated On: 22 April 2024

Blowout Preventer (BOP) Equipment market Report Overview

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The global Blowout Preventer (BOP) Equipment market size was USD 9064.9 million in 2022. As per our research, the market is expected to reach USD 11510 million by 2029, exhibiting a CAGR of 3.4% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with the Blowout Preventer (BOP) Equipment market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

A BOP is a high-pressure mechanical relief valve system at the top of the wellhead that prevents uncontrolled fluid flow in the wellbore. This device is essential in the oil and gas industry because it monitors and controls pressure during drilling and is the last line of defense against underwater leaks or surface explosions. BOP stack consists of two types of BOP, annular BOP and ram BOP. An annular BOP is placed at the top of the stack and then two, three or four rams BOP are placed below the annular BOP. A BOP stack contains well drilling fluids either in an annular space between the casing and tubing or in the open hole during drilling, completion and testing.

The increase in deep and ultra-deep water drilling projects is expected to drive the growth of the market. The factors behind the growth of the market are strict standards and regulations in the hydrocarbon production sector and efficient search by geospatial agents. Increasing underwater drilling and the need for efficient oil and gas production are increasing the demand for blowout prevention systems. The increasing demand for hydrocarbons is accelerating drilling operations, which in turn leads to increasing demand for blowout prevention equipment and drilling equipment. Efficient onshore and offshore oil and gas production is extremely important to optimize overheads and costs. The key role in the growth of blowing fluids is the increase in safety requirements and the focus on the efficiency of the final products. The aforementioned reasons are expected to increase the demand for explosion protection equipment and thus in turn boost the growth of the global explosion protection equipment market.

COVID-19 Impact: Stringent government regulations implemented and halted transportation reduced market growth

The outbreak of the COVID-19 pandemic across the globe has impacted the global ram blowout preventer market to a notable extent. With the nationwide lockdown and stringent government regulations implemented, the transportation of vehicles has almost come to a halt. Moreover, several industries had to reduce their operations due to problems such as lack of workforce and disruptions in supply chain. This has resulted in a significant fall in the oil prices, which has severe impact on the ram blowout preventer market. COVID-19 has significantly disrupted almost all the industries including infrastructure, transportation, oil and gas, manufacturing, and others. To combat the COVID-19 pandemic, most countries have imposed lockdown restrictions, which are now being gradually eased by the industry. This had a significant impact on the manufacturing sector as production facilities around the world were temporarily shut down. Unprecedented restrictions on travel, work and most industries are cutting billions of barrels of oil, trillions of cubic meters of gas and millions of tonnes of coal from the global energy system. Many major oil and gas companies have announced specific reductions to their 2020 investment programs.

Latest Trends

"Introduction of next-generation blast-proof equipment augment the market growth"

The introduction of next-generation blast-proof equipment is another factor supporting the growth of the blow-off market share. Explosion-proof properties are important because they ensure safety even in the most pressurized situations. Ore exploration and drilling operations are expanding in deep and ultra-deep waters, where environmental conditions are becoming increasingly challenging. When drilling moves into environmentally sensitive areas, the new BOP technology provides the ability to safely shut down the well, protecting the drilling crew and preventing oil from escaping into the environment. The increase in research in relatively new areas requires effective explosion protection devices that can be used in extreme climatic conditions. As environmental awareness grows, the standards of the entire oil and gas industry are likely to tighten, which in turn will drive the blowout prevention market.

Blowout Preventer (BOP) Equipment market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Up to 2,500 LBS, 2,500-5,500 LBS, 8,000 - 12,000 LBS, More than 13,000 LBS. Up to 2,500 LBS is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Mining and Construction, Marine, Oil and Gas. Mining and Construction will be the dominating segment.

Driving Factors

"Increase in demand for fuel and hydrocarbons resulted in market expansion"

The increase in demand for fuel and hydrocarbons has increased subsea drilling around the world. However, different countries around the world have different regulations to prevent major oil spills. Stringent government regulations and growing safety awareness are the major factors driving the global sheep blasting equipment market. Currently, companies are investing more in technological advancements in anti-blowing systems to improve their efficiency and reduce the cost of the system, thus increasing the Blowout Preventer (BOP) Equipment market growth. Although offshore drilling is difficult and expensive in very deep water environments, the recovery in oil prices should lead to significant investment in oil exploration projects. An increase in offshore drilling is expected to increase E&P activity in subsea wells, which will drive demand for blowout prevention systems. Simplifying designs and standardizing the offshore equipment and service market will reduce the cost of offshore oil and gas drilling projects. Growing profitability of offshore projects is expected to increase the use of blast furnace in subsea projects during the forecast period.

"Revitalization of aging oil fields/wells boosting market growth"

With the decline in oil reserves and prices, major oil and gas companies have shifted their focus to technological advancement in the invention of tools and techniques. Companies are currently focused on increasing utilization and extending the life of mature wells beyond natural production levels. Increased water disruption and limited headspace, increasing flow insurance issues, increasing operating costs and integrity issues of aging facilities are significant factors that have led to mature wells. Over time, these factors also become operational and economically impractical. This has resulted in increasing demand for well access system. In addition, wireline services also help oil and gas operators lower downhole measurement equipment, such as those used in boreholes. Therefore, the increase in the number of maturing wells in the world has led to an increase in the demand for well access systems and BOP market.

As the number of developing onshore oil fields has increased in recent years, offshore exploration and production activities have increased. For example, in the Permian basin, which is currently the most important basin in terms of oil production, production from old wells has begun to decline, and there are few opportunities for new discoveries in those areas. As a result, the oil and gas industry is moving to deeper areas in search of oil and gas to meet the growing demand.

Restraining Factors

"Rising trend of renewable energy use could challenge market growth "

The transition to renewable energy sources can hinder the expansion of the market. People are increasingly oriented towards the use of renewable energy sources in various end-use sectors, including electric vehicle transportation, hydropower generation, nuclear power and other end-uses. This is due to the emerging trends of sustainable development and green environment. In addition, there are technical difficulties that are estimated to hinder the expansion of the market. Growing investment in renewable energy sources is a major challenge for the explosion protection market during the forecast period.

Growing environmental awareness has increased investments in the field of renewable energy sources. Renewable energy sources are now competitive and compete with traditional energy sources. In addition, renewable energy sources have established themselves as the primary energy source in some countries. The increasing reliability of renewable energy has put pressure on demand for oil and gas in these regions. The implementation of strict emission norms is likely to affect domestic oil production during the forecast period. Lack of exploration and drilling activity in new areas leads to a decrease in demand for anti-explosion equipment may hinder market growth.

Blowout Preventer (BOP) Equipment market Regional Insights

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"North America will become one of the important regional markets for anti-blowing agents "

North America is expected to have the dominant Blowout Preventer (BOP) Equipment market share for explosion-proof regions during the forecast period. Increase in production and exploration of oil and gas reserves in the U.S. and Canada is the determining factor for the growth of the North American market. In particular, the U.S. is expected to increase investments in both ring-shaped explosion protectors and rammed explosion protectors. The increase in hydrocarbon production and well monitoring has increased the demand for blowout prevention equipment. The U.S. has the strictest regulations for marine oil spills. The rules and penalty structure of the country are expected to increase the demand for explosion protection.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• GE Oil & Gas (U.K.)
• Cameron (U.S.)
• National Oilwell Varco (U.S.)
• Rongsheng Machinery (China)
• Halliburton (U.S.)
• OJSC NaftaGaz (Ukraine)
• MSP/DRILEX (China)
• Jiangsu Xinde (China)
• Fountain Petro (U.S.)
• Control Flow (U.S.)
• GCOP (U.S.)
• Jiangsu Jinshi (China)
• Well Control (U.S.)
• Shenkai (China)
• NETS (Denmark)
• Yantai Jereh Petroleum Equipment & Technologies (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.