Global Perforating Gun Market – Industry Trends and Forecast to 2029

Market Analysis and Size

As decades of oil and natural gas production have resulted in extensive use of conventional resources, unconventional oil and gas resources are becoming increasingly important. According to the International Energy Agency's (IEA) World Energy Outlook, unconventional oil production is expected to rise from 1.8 million barrels per day in 2008 to 7.4 million barrels per day by 2030. Unconventional oil production is anticipated to account for 15.3% of total global oil production by 2035. As a result, the increased production of unconventional oil and gas during the forecast period, opens the door for extensive exploration and production activities, which bolsters the perforating gun market growth across exploration sites.

Global perforating gun market was valued at USD 990.0 million in 2021 and is expected to reach USD 1577.91 million by 2029, registering a CAGR of 6.00% during the forecast period of 2022-2029. The market report curated by the Data Bridge Market Research team includes technological advancements, regulatory framework, PESTEL, porter's five forces analysis, industry standards-at a glance, raw material costs/ operational expenditure-overview, supply chain analysis, vendor selection criteria, pricing analysis, production analysis, and climate chain scenario.

Market Definition

Perforating guns are used to create tunnels by drilling deeper into the earth's surface. The key factors driving the demand for this assembly are safety and dependability. A perforating gun provides strong stream correspondence between the cased wellbore and a useful supply by drilling holes in gas and oil wells. To do so, the perforating gun "punches" a hole through the packaging and concrete sheath and into the useful arrangement.

Report Scope and Market Segmentation

Perforating Gun Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Surging Exploration and Production Of Unconventional Oil and Gas Resources

The discovery of unconventional oil and gas resources has aided in the development of clean and efficient energy sources. Typical examples are shale gas, tight gas, coalbed methane (CBM), shale oil, tight oil, and natural gas hydrates. Their distinction stems from reservoir rock type, oil and gas origin, occurrence state, underground position, or the unusual nature of their reservoirs. They are increasingly being used as a result of decades of oil and natural gas production that has resulted in extensive use of conventional resources. Consequently, the increased production of unconventional oil and gas boosts extensive exploration and production activities, which ultimately drives the demand for perforating gun across exploration sites, thus accelerating the market growth.

Furthermore, the major factors driving the perforating guns market are an increase in oil and gas earnings and profits (E&P) activities, an increase in average well depth over the years, an increase in the complexity of reservoir conditions, and an increase in shale gas exploration. Furthermore, with the growing trend of multilateral wells, the demand for horizontal drilling activity in offshore regions is increasing, driving the global market.

Opportunities

• Developments, Investments, Exploration and Production

Furthermore, various developments by the market players and significant investments in research and development activities further extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Additionally, the commencement of planned exploration and production of oil and gas wells will further expand the future growth of the perforating gun market.

Restraints/Challenges

• Prices and Capital Expenditure Fluctuations

The oil and natural gas prices are subject to large fluctuations as a result of changes in supply and demand for oil and natural gas, governmental regulations, including government policies regarding the exploration, production, and development of their oil and natural gas reserves, weather conditions, natural disasters, and a variety of other political, military, and economic factors. Furthermore, changes in capital expenditures by oil and gas service providers directly impact the perforating gun market. The drop in capital expenditure may have a negative impact on the demand for perforating guns.

• Transition Towards Usage Of Renewable Energy Sources

The increased inclination of economies to reduce their carbon footprint and greenhouse gas emissions has fueled the transition to the use of clean and green energy alternatives. As a result, economies have embraced renewable energy sources for power generation, such as solar, wind (onshore and offshore), biomass, hydroelectric, and geothermal power. The transition to renewable energy sources, fueled by increased investment by governments around the world, is expected to have a negative impact on the upstream, midstream, and downstream activities of the oil and gas industry, posing a serious challenge to the growth of the perforating gun market.

This perforating gun market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the perforating gun market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Perforating Gun Market

The recent outbreak of coronavirus had a negative impact on the perforating gun market, as the pandemic has had a significant impact on both the service and manufacturing sectors. The global economy has slowed as most countries around the world imposed nationwide lockdowns to prevent the virus from spreading further. According to the World Bank, the pandemic has caused deep recessions and is expected to have a long-term impact on the global economy due to decreased investment and disruptions in global trade and supply chains. The growth of the perforating gun market was also hampered by the shutdown of manufacturing operations and a drop in demand for commercial services in 2020. As a result, demand for perforating guns in the residential, commercial, and industrial sectors fell. The pandemic crisis has brought global construction and industrial activity to a halt, putting a damper on demand for perforating guns. Due to disruptions in the logistics network, there have been delays in the delivery of air conditioners and perforating guns. HVAC production lines in the European Union were shut down for several weeks, and new installation projects were pushed back. Government assistance to manufacturers and distributors of perforating guns, on the other hand, is expected to lessen the impact of the pandemic crisis on market participants.

Recent Development

• In June 2020, Schlumberger announced a collaboration agreement with China Petroleum Logging Co. Ltd (CNPC Logging), a subsidiary of China National Petroleum Corporation (CNPC), to jointly manufacture wireline downhole technology in China. The agreement aims to strengthen these two companies' technical and commercial collaboration. This will also include CNPC license logging for wireline technology manufacturing.
• In September 2021, Lytt and Baker Hughes announced a joint collaboration to accelerate the digital transformation of oil and gas operations. The collaboration will provide new offerings to customers by combining LYTT's cloud-based software and fibre optic data analytics with Baker Hughes' well intervention and completion hardware and expertise in services.
• In January 2022, Hunting Energy Services, a Hunting PLC subsidiary, announced an exclusive licensing agreement with Nammo Defense Systems Inc. for the production of time-delay fuses for Hunting's perforating applications. In a tubing-conveyed perforating operation, time-delay fuses provide a controlled delay for operators to position perforating guns after starting the firing sequence.

Global Perforating Gun Market Scope

The perforating gun market is segmented on the basis of type, gun type, orientation, explosives, carrier type, depth, well type, pressure and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Expendable
• Semi-expendable
• Retrievable

Gun Type

• Through Tubing Hollow Carrier Gun System
• Wireline Conveyed Casing Gun System
• Through Tubing Exposed Gun System
• Tubing Conveyed Perforation System

Orientation

• Internal
• External

Explosives

• Cyclotrimethylene Trinitramine (RDX)
• Cyclotetramethylene Trinitramine (HMX)
• Hexanitrosilbene (HNS)

Carrier Type

• Hollow Carrier
• Expandable Shaped Charged Gun
• Others

Depth

• Up to 3,000 ft.
• 3,001 – 8,000 ft.
• Above 8,000 ft.

Well Type

• Horizontal Well
• Vertical Well

Pressure

• High Pressure
• Low Pressure

Application

• Onshore
• Offshore

Perforating Gun Market Regional Analysis/Insights

The perforating gun market is analyzed and market size insights and trends are provided by country, type, gun type, orientation, explosives, carrier type, depth, well type, pressure and application as referenced above.

The countries covered in the perforating gun market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Poland, Norway, Finland, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Nigeria, Algeria, Angola, Ghana, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the perforating gun market because of the surge in shale gas exploration activities and commencement of several offshore drilling activities within the region.

On the other hand, Asia-Pacific is estimated to show lucrative growth during the forecast period of 2022 to 2029 due to the commencement of planned exploration and production of oil and gas wells within the region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Perforating Gun Market Share Analysis

The perforating gun market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to perforating gun market.

Some of the major players operating in the perforating gun market are

• Halliburton (U.S.)
• Schlumberger Limited (U.S.)
• Baker Hughes Company (U.S.)
• Schlumberger Limited. (U.S.)
• Weatherford International (U.S.)
• NOV Inc (U.S.)
• Shaanxi FYPE Rigid Machinery Co. Ltd. (China)
• Northern Colorado Manufacturing, LLC (UK)
• Hunt & Hunt Ltd (U.S.)
•  Core Laboratories (Netherland)
• Hunting Plc (UK)
• DMC Global (U.S.)
• Xi'anTop Oil Tools Co. Ltd (China)
•  Tassaroli S.A. (Argentina)
• LLC "Promperforator" (Russia)
• Landsea Technical Services Pte Ltd (Singapore)
•  2 G&H Diversified Manufacturing, L.P.   (U.S.)
• Schweitzer-Mauduit International, Inc (U.S.)

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