Liner Hanger Market Size, Share, and Industry Analysis By Well Type (Vertical and Horizontal/Directional), By Hanger Type (Mechanical Liner Hangers, Hydraulic Liner Hangers, and Expandable Liner Hangers), By Application (Onshore and Offshore), and Regional Forecast, 2025-2032

The hanger, as the name suggests, secures and supports the coating. It uses mechanical slides to grip the inside of the casing at a predetermined distance above the casing shoe. The space between the hanger and the casing shoe is called the liner. Hangers can be placed hydraulically, mechanically, or a combination of the two. Most liners are cemented back into the liner. Some systems are designed to allow rotation of the liner after the hanger is attached, as the ability to rotate has been shown to improve cement bonding, especially in long, high-angle wells. Some liner suspension systems have a polished bore (PBR) above the liner suspension system. This allows the bottom of the production tube to be pushed into the top of the casing, providing both a seal and a continuous channel for the produced fluids.

• According to Rystad Energy, more than 600 new offshore oil and gas projects will start production by 2025. In 2025, investments in the development of new offshore oil and gas projects will exceed USD 480 billion.

The main factors driving the considered market are the rise of unconventional and deepwater E&P operations, the growing need to increase productivity and efficiency, and the advantage of being able to cover large areas with a single drilling rig using long lateral drilling methods. The risk of failure associated with suspension systems and challenges related to the availability of raw materials are projected to restrain the growth of the markets under study. Due to the retrieval of oil and gas prices and the launch of several foreign projects, the development of the foreign segment is likely to be faster than onshore. Additionally, the increasing complexity of offshore oil and gas reservoirs is expected to encourage companies to innovate and develop offshore-specific excursion suspension systems. Expansion of deep sea and ultra-deep natural resources is likely to be a possibility in the future.

Changes in the maritime network after the COVID-19 pandemic influenced and revealed the relative effects of mitigation measures implemented by the government at different levels of ports. The suspension of traffic was negatively affected by the failure of essential hubs in the international liner hanger market in the network caused by the COVID-19 outbreak, which caused fluctuations in container traffic and an imbalance in the supply of ship cargo. Similar to excursion shipping, which is usually used to transport cargo produced in containers, the carrier issues a bill of lading when receiving and shipping the cargo without a charter contract.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Liner Hanger Market
• Key Industry Trends
• Regulatory Landscape for the Liner Hanger Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY WELL TYPE

Based on well type, the market is bifurcated into vertical and horizontal/directional, where the horizontal/directional segment dominates the market. These segments describe the various applications of casing suspension systems, reflecting the direction of oil and gas wells. The horizontal segment refers to horizontally drilled wells typically used to extract unconventional resources, while the vertical segment includes conventionally drilled wells. Horizontal segmentation highlights the adaptability of casing suspension systems in various well architectures to meet the dynamic needs of the global oil and gas industry.

ANALYSIS BY HANGER TYPE

Based on the hanger type, the market is distributed among mechanical liner hangers, hydraulic liner hangers, and expandable liner hangers. Mechanical liner hangers lead the hanger type in the market. A mechanical coating hanger is placed using string treatment. The most straightforward mechanical suspension adjustment feature is the J mechanism. This model is easy to use and reliably sets up the hanger: lift it and turn it in the direction of configuration (usually to the right); it can loosen the weight of the hanger to set it up. The main advantage of mechanical hangers over hydraulic models is that there is no port in the frame to transmit the set pressure. The adjustment mechanism of the hydraulic roof hanger is to apply a pressure difference to the hydraulic cylinder of the linear hanger. To prevent the hanger from falling into predictions during deployment, the hydraulic cylinder has offset pins in place.

ANALYSIS BY APPLICATION

Based on application, the market is segmented into offshore and onshore. Onshore segment dominates the liner hanger market. Onshore drilling and production activities account for the majority of global oil and gas production, and therefore, demand for linear hangers in onshore sectors is expected to remain strong. However, due to increasing investment in offshore exploration, the segment is expected to increase demand in the coming years. More than 60% of current oil production comes from mature oil fields, including onshore and shallow water. This, combined with low flat-rate prices in the offshore oil and gas sector, has forced producers to switch to deepwater and ultra-deepwater resources. This factor encourages the industry to increase its expenditure in the future gradually.

REGIONAL ANALYSIS

The liner hanger market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific is expected to lead during the forecast period, with China being the largest market by far. In response to President Xi Jinping's August 2017 call to boost domestic exploration and production (especially for natural gas) to progress energy security, several companies such as CNPC, CNOOC, and Sinopec plan to increase their investment in R&D and production. This means a significant boost for companies in the coming years when it comes to suspension systems. In addition, the Chinese government is implementing necessary positive reforms to increase international participation in the oil and gas industry. A critical part of the country's 13th five-year plan is that the opening of the agricultural sector to independent players is expected to diversify investment and increase drilling and completion, which in turn will boost the linear suspension market in the country. Furthermore, critical deepwater field developments in India are expected to be key growth drivers for the Indian suspension system market. In April 2018, BP and Reliance Industries approved the second phase of the Bay of Bengal Satellite Cluster project.

Upward hydraulic fracturing of the U.S. oil shale is expected to create a healthy demand for liners. The Middle East and Africa, along with North America, are expected to displace a significant portion of the global market for hangers. Latin America is also likely to see demand for hangers explode due to increased foreign production in Mexico and Brazil. In the European region, low demand and demand growth are expected due to the active development of the North Sea and onshore production activities in Russia.

KEY PLAYERS COVERED

The report includes profiles of key players, such as Halliburton Company, Weatherford International PLC, Schlumberger Limited, National Oilwell Varco Inc., Well Innovation AS, Innovex Downhole Solutions Inc., Baker Hughes Company, NCS Multistage LLC, Packers Plus Energy Services Inc., and Dril-Quip Inc.

KEY INDUSTRY DEVELOPMENTS

• In April 2024, Halliburton introduced a SuperFill II alignment tool mounted above the casing/trip suspension tool to direct fluid flow from the landing string to the annulus, enhancing the benefits of autofill floats and reducing induced spatter.
• In May 2021, Schlumberger and NOV announced a collaboration to accelerate the adoption of automated drilling solutions among oil and gas companies and drilling contractors. The agreement allows customers to combine Schlumberger's surface and drilling automation solutions with NOV's rig automation platform to achieve superior well construction.