Perforating Gun Market To Generate $1,733 Million Revenue by 2030

The perforating gun market value is set to progress at a CAGR of 5.70% during 2022–2030, to reach USD 1,733 million by 2030. This can be ascribed to the expansion of oil and gas drilling operations worldwide, the increased shale gas exploration, technological advancements in perforating gun systems, the discovery of new oil and gas reserves, and the reperforation of aging wells.

Rising Discoveries and Exploration of Oil Fields

The oil and gas industry's players are concentrating on making discoveries, both onshore and offshore regions. At the end of 2022, the world's proven oil reserves amounted to 1,757 billion barrels, according to the BP Statistical Review. These reserves are opening up the possibility of well drilling operations, which lead to increased production operations. Thus, this factor is projected to boost the demand for perforation gun services in the coming years.

Upstream operators recently made a number of discoveries. For instance, in 2021, a well located in the North of the Dvalin field in Norway, a site of condensated oil and gas, was discovered by one of the offshore corporations, Wintershall DEA (Germany). Between 33 and 70 million barrels of oil equivalent was expected to be present in the Dvalin North offshore field, and later the company discovered another deeper secondary source with an aggregate resource of 38–87 million barrels of oil.

Adoption of Digital Oilfield Technology Is One of the Major Trends

Oil and gas companies decrease the cost of production to retain their competitiveness in the industry. These companies are undertaking cost-reduction measures to optimize operations, increase efficiency, and reduce operational costs. For this, they are developing digital oilfield technologies, such as perforating guns, sensors, artificial lift systems, and video data analytics, which improve drilling and transport efficiency, and are also useful tools that offer a high return on investment by increasing production efficiency and lowering operational costs. Owing to the aforementioned benefits derived from adopting digital oilfield technologies, which help companies to lower their operational and production costs, the demand for such systems is expected to rise in the coming years.

MEA the Market Leader

MEA holds the largest revenue share in the perforated gun market. This is due to the increasing number of oilfields and brownfields for oil and gas reserves in the region. Moreover, the surging energy demand, coupled with decreasing mature oilfield production, is forcing upstream companies to improve their recovery rates with the use of digital oilfield technologies. In addition, new product launches are some of the major strategies adopted by providers to expand their business in the region. These new solutions will help in increasing the production of oil, which in turn, drives the regional market growth.

Saudi Arabia is the largest revenue-generating country in the MEA market in 2022. This is because national oil companies and global oil companies operating in the country are shifting focus toward operations optimization and improved work collaboration to cut costs and improve field recovery rates. As a result, a large number of oilfield companies are adopting digital oilfield technologies including perforating guns to increase the production rate.

The most-significant perforating gun market players are Schlumberger Limited, Weatherford International plc, Baker Hughes Company, Halliburton Company, NOV Inc., Expro Group, Core Laboratories NV, DynaEnergetics GmbH & Co KG, XI'AN ZZ TOP OIL TOOLS CO. LTD., China Shaanxi FYPE Rigid Machinery Co. Ltd., and LLC PROMPERFORATOR.