Static and Rotating Equipment Market Size, Share & COVID-19 Impact Analysis, By Type (Static Equipment {Heat Exchangers, Boilers, Furnaces, Valves, Others}, Rotating Equipment {Pumps, Compressors, Turbines, Others}), By Application (Upstream, Midstream, Downstream), By Location (Onshore, Offshore) and Regional Forecast, 2021-2028

The global static and rotating equipment market size was USD 29.08 billion in 2020. The global impact of COVID-19 has been unmatched and staggering, with static and rotating equipment witnessing a negative demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 9.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 29.84 billion in 2021 to USD 38.90 billion in 2028 at a CAGR of 3.9% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The remarkable development in the exploration and production of crude oil and other hydrocarbons across the world has led to the growth of the exploration and refining of oil and gas. Revolution in various fields such as automobile, pharmaceutical, telecommunication, and manufacturing has led to huge industrialization and urbanization, making petroleum a vital element of development. Before transferring oil and gas to end-users, it is processed and refined for effective utilization.

Blockades in Global Oil and Gas Exploration and Sales has Harmed the Static and Rotating Equipment Market Growth amid COVID-19

The global health crisis caused by the sudden spread of the novel coronavirus or COVID-19 pandemic has had a damaging impact on every industry. Industries have had to suffer significant losses in operational time owing to the imposition of strict rules, such as nationwide lockdowns to limit the spread of the COVID-19 virus. Accordingly, the outbreak of the virus has altered the demand for static and rotating equipment. As the market is majorly dependent on the oil and gas industry, the biggest collapse faced by the global industry in a long time has also impacted the investment in the market.

The excess supply and low oil demand have forced leading oil and gas companies to temporarily stop onshore and offshore drilling activities, which ultimately led to a surge in oil prices. This has directly impacted the demand for upstream drilling equipment and reduced the midstream and downstream undertakings in the oil and gas industry, which includes the use of the equipment.

LATEST TRENDS

High Demand for Remote Operations Owing to COVID-19 Pandemic is a Current Trend

Due to the COVID-19 pandemic, there have been working restrictions and the demand for remote operations has seen a huge hike, leading to a surge in the demand for remote operations in every sector. Cloud-based data handling has become a compulsion rather than a choice for many businesses. The occurrence of a larger demand as compared to the supply has appealed to investments in the market. Industry players have been researching and developing automated control static and rotating equipment to increase operational safety. Owing to this, the demand for automated equipment is anticipated to increase.

Increased Scope of Deployment with Rising Offshore Exploration Activities is a Vital Trend

Technological developments in the exploration and refining equipment have enabled oil and gas companies to execute exploration and production activities at greater depths and under severe climatic conditions.  Also, uncharted areas with vast reserves of natural gas or crude oil view a chance for the development of the oil & gas exploration and production market, thereby leading to a reduction in oil prices, which is an opportunity for market growth.

DRIVING FACTORS

Improvement in Equipment Efficiency by Cutting–edge Technology to Bolster Growth

The increasing equipment efficiency has been brought about by technological advancements. This has led to a reduction in operation times of the exploration, transportation, and refinery activities, thereby helping companies to conform to labor laws and increase profits. Industry players have constantly been researching and developing static and rotating equipment to increase operational efficiency, and a surge in demand for the equipment is anticipated in the coming years.

Increasing Demand for Energy from Various Application Sectors to Propel Growth

The increasing population and migration of people from rural to urban areas have resulted in a spike in the energy demand from every application sector. Currently, renewables being in an early stage of adoption, the major portion of power generation and energy are still fulfilled by oil and gas. This is set to increase the global demand for oil and gas to even higher levels in the upcoming years. According to a United Nations report, 68% of the world’s total population is expected to be living in urban areas in 2050, which was at 56.2% in 2020. This will certainly require ramping up of production capacities, supply lines, transportation, and supply capabilities. It will therefore fuel the market growth.

RESTRAINING FACTORS

Drift Towards Renewable Energy is a Major Restraining Factor

The main factor which can confine the growth of the market is the change towards renewable energy sources. The interest and growth of the renewable energy sector are expected to decrease the cash inflow in the oil and gas energy sector. This is expected to have an adverse impact on the market. The growing proportion of electricity generation using renewable energy can hinder the capital investments being made for oil and gas. The necessity to reduce the carbon footprint has driven the adoption of renewables with the help of government grants and incentives around the world. The growing efficiency of renewable energy utilization in electricity generation is anticipated to increase the demand for renewable energy.

SEGMENTATION

By Type Analysis

Rotating Equipment Segment to Hold Largest Share Fueled by Surging Petroleum Refining Activities

Based on the type, the global market is segmented into static equipment (heat exchangers, boilers, furnaces, valves, and others) and rotating equipment (pumps, compressors, turbines, and others). Currently, the rotating equipment segment holds the maximum share owing to the rising petroleum refining activities that are being carried out worldwide. The pump sub-segment has the most market share due to its widespread usage in upstream, midstream, as well as downstream activities. Turbines are used in the oil and gas sector along with a generator to generate electric power, and compressors are used in the transportation of the coil and gas from exploration sites to refineries and end-users.

The static equipment is majorly used in downstream activities, and the heat exchanger is the most-used static equipment, which is utilized in the distillation and separation process to control the energy input. The major type of valves used is blow-off valves to control the pressure, gate valve, plug valve, and check valves to control the transmission. Generally, water tube boilers, horizontal furnace tubes, and process heaters are used in refineries, which are contributing to the growth of the static equipment market.

By Application Analysis

Rising Upstream Exploration Activities Will Drive the Segment’s Growth

Based on the application, the market can be split into upstream, midstream, and downstream. Currently, the maximum share of the oil and gas activities is carried out in the upstream sector due to the massive number of explorations done to search for oil and gas. With the growing demand for oil-generated energy by end consumers, the downstream segment is anticipated to grow. With the rising upstream and downstream activities all over the globe, the midstream segment is indirectly expected to grow at a very high rate. This inclination has been observed in the last few years with activities in the North American and European regions.

By Location Analysis

Onshore Segment to Maintain a Higher Share due to Rising Refining Activities

Based on the location, the global market is divided into onshore and offshore segments. The onshore segment, which involves the equipment for oil and gas activities on the land, accounts for the maximum static and rotating equipment market share in the global market due to the increasing number of exploration and refining activities taking place in the onshore region. The offshore segment includes the equipment needed for oil and gas activities on the sea-floor bed and in water bodies. This segment is massively growing due to the greater success of explorations in water bodies and is expected to grow, especially in countries such as Norway.

REGIONAL INSIGHTS

The market has been analyzed across major regions, which include North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa. The global market is dominated by North America owing to the massive exploration and refinery activities and the presence of key players in the U.S. Technological advancement has helped enhance the operational competence in oil and gas activities. The growth in the Middle East & Africa can be attributed to the most steadily expanding oil and gas equipment industry in this region, owing to the rich resources and ever-growing exploration and production activities, especially in the GCC countries.

In Europe, Norway is the most important country for offshore oil and gas investors, as the existence of uncharted oil reserves provides the prospect to achieve vast profits. In Asia Pacific, China is the undeniable leader in oil & gas production, owing to the investment in the equipment. In terms of oil rigs, the country has the largest number, followed by India that has also observed stable progress. Further, research and development projects are being carried out in many countries by various institutions to improve equipment efficiency and induce investments in the sector.

KEY INDUSTRY PLAYERS

Technip FMC, Alfa Laval, and Atlas Copco to Lead with Investments in R&D Activities

Amongst the present companies of the market, very few of them have developed viable products for all segments. Most of the equipment is being researched and developed to combat newer ecological conditions and to satisfy the standards. It can be considered that TechnipFMC, Alfa Laval, and Atlas Copco are the prominent static & rotating equipment providers and are investing in developing new equipment. They are expected to remain the market leaders in the future.

LIST OF KEY COMPANIES PROFILED:

• TechnipFMC (United Kingdom)


• Alfa Laval (Sweden)


• Atlas Copco (Sweden)


• General Electric (United States)


• Siemens AG (Germany)


• Metso Oyj (Finland)


• Sulzer Ltd. (Switzerland)


• Pentair Plc. (United States)


• Flowserve Corporation (United States)


• Wartsila Oyj Abp (Finland)


• OAO TMK (Russia)


• Doosan Group (South Korea)


• Mitsubishi Heavy Industries (Japan)

KEY INDUSTRY DEVELOPMENTS:

• March 2021 - ASCO Norge AS signed an agreement for the delivery of base services for INEOS’ drilling operation of the Fat Canyon, Kristiansund, where work is expected to begin in July. ASCO Norge AS will be handling the entire midstream, which is the complete logistics and supply base services, including loading/unloading of vessels, transport and customs clearance, storage, waste management, CCU services, and management of equipment.


• March 2021 - INEOS Energy announced an agreement with PGNiG Upstream Norway AS to sell its Oil and Gas enterprise in Norway for USD 615 million. The deal includes all INEOS Oil & Gas interests in production, licenses, fields, facilities, and pipelines on the Norwegian continental shelf. 

REPORT COVERAGE

The market research report on the global static and rotating equipment market highlights leading regions across the world to offer a better understanding of the user. Furthermore, the market research report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the industry.

Report Scope & Segmentation