"Actionable Insights to Fuel Your Growth"
The global hydraulic workover unit (HWU) market size was USD 8.11 billion in 2020 and is anticipated to grow from USD 8.59 billion in 2021 to USD 13.21 billion in 2028 at a CAGR of 6.4% in the 2021-2028 period. The global impact of COVID-19 has been unrivaled and staggering, with it witnessing a negative demand across all regions amid the pandemic. Based on our analysis, the global hydraulic workover unit (HWU) market exhibited a decline of -14.5% in 2020 compared to the average year-on-year growth during 2017-2019. The growth during the forecast period is attributable to this market's demand and growth, returning to pre-pandemic levels once the epidemic is over.
The noteworthy development in technology for oil and gas purposes has increased the demand for this equipment worldwide. The revolution in various fields such as automotive, energy, and digitalization has led to industrialization and urbanization, making it vital to boost crude oil production. The increase in brownfields coupled with a surging energy demand has made this market relevant.
Descent in Oil and Natural Gas Demand to Harm Hydraulic Workover Unit Market Growth amid COVID-19
The COVID-19 pandemic initiated by the spread of the novel coronavirus has had a damaging impact on the global industrial landscape. This industry faced significant losses and have had to reduce operations due to the imposition of rigorous lockdowns to contain the spread of the COVID-19 virus. Consequently, the outbreak of the virus has transformed the demand for HWUs.
As the hydraulic workover unit industry is majorly dependent on oil and gas activities, the decline in oil prices in a long time has significantly impacted the investment in the instrument. The imposition of lockdowns in various countries and the shutting down businesses except for essential services with minimal workforce affected the energy demand. This factor has directly impacted work in the well interventions sector.
Request a Free sample to learn more about this report.
Amplified Investment In Offshore Oil and Gas Developments to Enhance HWU Demand
In July 2019, Kuwait signed a USD 600 billion offshore exploration contract with Halliburton. The contract aimed to drill six exploration wells in the next two to three years, which is anticipated to increase around 100,000 b/d in the forecast period. The United Arab Emirates invested approximately 31,000 square kilometers of acreage for offshore oil gas production, majorly in the Abu Dhabi and Ras Al Khaima regions. In January 2020, Russia announced a significant investment of around USD 300 billion for new offshore oil and gas projects.
The world is likely to derive massive oil and gas from offshore production. The more arduous production conditions in offshore locations increase the investment in more complex and newer technologies like hydraulic workover units. The onerous requirement for offshore with ease of operations is the primary market driver during the projected period.
Growing Demand for Efficient Technology to Drive Market Growth
There is a substantial increase in demand for developing a safe, versatile, and cost-effective tool for workover and well intervention operations due to the increasing number of mature oil fields. This factor bolsters the demand for HWUs globally. This equipment can be efficiently used with low setup times and are more cost-effective. Earlier workover rigs were used for similar operations, which took a lot of time and effort to be set up and used. Further, the wells had to be killed before operations, However, with newer technologies, HWUs with snubbing capabilities have made snubbing capabilities possible with newer technologies.
In 2021, MEIL, India started manufacturing a new type of HWUs with indigenous know-how, especially for the local market. The increasing demand for more effortless functioning, avoiding well-killing, secure and cost-effective well intervention units is an important trend for the hydraulic workover unit market.
Increasing Focus on Brownfields to Bolster Market Growth
A mature oil and gas field is past peak production. These oilfields account for a majority of the world's crude oil production. With enhanced technological approaches like enhanced oil recovery (EOR), the recovery of mature oil fields has seen a tremendous increase. Increasing recovery from mature fields has necessitated prolonging the well and improving production using well interventions and workover.
With the deterioration in oil reserves, companies have increased their focus on inventing equipment required to access remaining reserves on mature wells. The prime focus is to improve recovery and prolong life. But the amplified water cut with constrained topside facilities, growing flow assurance problems, rising operating costs, and integrity issues because of the maturing facilities have made brownfield operationally and economically impractical. The increasing requirement for workover services is anticipated to bolster the market growth.
Increasing Energy Requirement to Propel Demand
The growing population explosion and urbanization has resulted in a spike in energy requirement from the various end-user sector. As renewable energy is still in an early adoption stage of its product life cycle, the majority of power generation is handled by hydrocarbons. Due to inadequate development of other energy sources, the growing global oil and gas demand enhances well drilling and maintenance. The increase in crude oil and shale gas production capacities and an increasing number of brownfields is expected to enhance the well workover and intervention demand, fueling the market growth.
Increasing Consumer Obligation Towards Renewable Energy to Restrain Market Growth
The primary factor restraining the hydraulic workover unit market growth is the consumer shift towards clean fuels. The increasing requirement of the renewable energy sector will undoubtedly decrease the investment being made in the oil and gas energy sector, which will harm the well intervention sector. The increasing proportion of power generation using renewable energy can hinder the principal investments being made for oil and gas. Also, the necessity to reduce carbon emissions has powered the acceptance of renewable energy, with government incentives being granted worldwide. Further, the developing competence of renewables for power generation with durable benefits can result in increased adoption over conventional fuels.
Workover Segment to Safeguard High Share Due to Majority of Services Present in Segment
The market by service is segmented into workover and snubbing.
The services carried out by hydraulic workover units are completions, plug & abandonment, ESP completion, sand screen installations, well deepening, fishing/clean-outs, casing repairs, etc. Workover segment includes operations over dead-wells, while snubbing involves installing or removing pipes in or out of live wells. The increasing demand for dead wells' services due to the high number of brownfields is critical for the workover segment. The workover segment involves a broader range of services, making the segment significant.
The snubbing market segment is gaining traction due to increased demand for performing operations of live-wells and avoiding well killing. The rising popularity of snubbing services is anticipated to propel the snubbing segment of the market.
Rising Requirement of High Pull Capacity Will Drive Above 200 Tonnes Segment Growth
Based on the capacity, the market can be primarily split into below 150 tonnes, 151 – 200 tonnes, and above 200 tonnes.
The concentrated portion of the equipment manufactured and utilized is above 200 tonnes due to its massive pull capacity required in large brownfields for various services. They are also majorly used in deepwater and ultra-deepwater wells.
The 151-200 tonnes segment finds its usage in medium-sized oilfields. The below 150 tonnes HWUs are used for smaller and easier services on small oil wells.
Rising Offshore Applications Will Drive Skid-Mounted Segment Growth
Based on the installation, the Hydraulic Workover Unit market can be primarily split into skid-mounted and trailer-mounted.
The concentrated portion of the equipment manufactured is skid-mounted due to its ease of setup and utilization in onshore and offshore activities.
The trailer mounted HWUs are more portable and require less space but can be used only in onshore applications. Due to rising demand from the offshore segment, the skid-mounted segment is growing at a high CAGR.
To know how our report can help streamline your business, Speak to Analyst
Onshore Segment to Dominate Backed by Maximum Share of Onshore Oil Production
Based on the degree of utilization in various applications, the market is segmented into onshore and offshore.
Due to the high oil production from the onshore segment and the larger number of onshore oil rigs, the segment dominates the market. Moreover, most of the onshore oil rigs are mature and drive significant demand for the market.
The offshore segment is increasing faster due to the rising shift towards offshore and increasing complexity of operations that demands easy to set up equipment like the HWUs.
North America Hydraulic Workover Unit Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America to Dominate Market due to Rising Proportion of Mature Oilfields
The market has been analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
The North American region holds a significant share in the market due to the high adoption of workover and snubbing services, coupled with demand for ease and efficiency of operations and technological advancement. Also, the rising proportion of mature oilfields in the region drives the market. Additionally, the government norms to reduce emissions led to companies finding it unviable to increase exploration and an increased necessity to prolong existing oil wells and drive the region's market.
Middle East & Africa is the second-most dominant market due to the increased proportion of mature oil wells in the region. The GCC countries contribute to a majority of the demand for the equipment in the region.
China dominates the market in the Asia Pacific. The rapid industrialization and urbanization, which has led to increased energy demand, is a significant driver for the market. The offshore development, coupled with maturing offshore sites in Europe, drives the region's demand for HWUs.
Balance Point Control and Halliburton to Lead with Investments in Technological Improvements
The competitive landscape for the hydraulic workover unit study shows that very few current companies have invested widely in research and development. The market has seen substantial recent technological advancements to keep pace with the best manufacturers. Considering all the scenarios, Balance Point Control and Halliburton are the major companies that have invested in developing HWUs. They are anticipated to continue being the key players in the future.
An Infographic Representation of Hydraulic Workover Unit Market
To get information on various segments, share your queries with us
The global hydraulic workover unit market research report highlights the leading regions worldwide to understand the user better. Also, it provides insights into the latest market trends and analyzes technologies deployed rapidly with market statistics. The report highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.
Value (USD billion)
By Service; By Capacity; By Installation; By Application; and By Region
Fortune Business Insights says that the global market size was USD 8.11 billion in 2020 and is projected to reach USD 13.21 billion by 2028.
In 2020, the North American market value stood at USD 2.43 billion.
The market is likely to grow at a CAGR of 6.4% over the forecast period 2021-2028.
The workover segment is anticipated to dominate this market.
The growing focus on brownfields for workover is the key factor driving this market.
Balance Point Control and Halliburton are two of the key participants in this market.
North America dominated the market in terms of share in 2020.
The increasing focus on brownfields to improve recovery and prolong life in the presence of limitations such as rising operating costs have made brownfield operationally and economically impractical. This is anticipated to increase the requirement for technologically advanced and cost-effective hydraulic workover units.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry