Christmas Tree Valves Market: Growing Number of New Drilling Operations in Onshore Oil and Gas Wells Fuelling Growth
Increasing number of oil & gas operations and the growing demand for oil & gas from numerous industries are collectively surging the demand for Christmas Tree Valves. These valves witness high demand from both onshore as well as offshore applications in the oil & gas industry. The global demand for Christmas Tree Valves is predominantly driven by the increase in remote drilling operations, and offshore exploration, drilling and production operations. The global Christmas Tree Valves market is expected to register substantial growth in 2018 with a value of US$ 2,560.5 Mn.
With recovery in crude oil prices post the crisis in 2017, the oil & gas industry has once again been gaining momentum. This has been creating opportunities for equipment and components, such as Christmas Tree Valves, that find application in the oil & gas sector. The installation of a Christmas Tree Valve depends upon the oil & gas and the operating conditions.
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Increasing investments in alternative or renewable sources of energy such as solar and wind energy are expected to negatively impact the oil & gas industry and subsequently, the adoption of Christmas Tree Valves, specifically in developed regions such as the European Union. The establishment of new manufacturing units and distribution centres for Christmas Tree Valves, coupled with increasing investments in Thailand, India, Indonesia, Malaysia, Argentina, Brazil and Nigeria, is expected to provide impetus to the growth of the market in the coming years.
On the basis of the type of Christmas Tree Valve, automatic valves are expected to account for nearly an 80.5% market share in terms of value by the end of the forecast period. Among the different applications of Christmas Tree Valves, the onshore oil and gas industry is expected to hold a substantial share and account for US$ 3,316.2 Mn by the end of 2027. The demand for Christmas Tree Valves in onshore application is anticipated to witness rapid growth in China and emerging countries from APEC.
As of 2018, North America is a lucrative market for Christmas Tree Valves and the region is expected to account for over a 39% market share by 2027. In addition, advancements in valve technology, material selection and remote oil and gas operations are expected to drive the demand for Christmas Tree Valves in North America, APEC and China.
The increasing demand for Christmas Tree Valves is expected to create opportunities for manufacturers to gain new orders in the coming years. With the aim of business expansion and enhancing sales, players in the market are seeking strategic collaborations with regional suppliers and distributors. Some of the noteworthy players identified in the Christmas Tree Valves market are Schlumberger Limited, TechnipFMC Plc, Aker Solutions, Dril-Quip, Inc., General Electric (Baker Hughes), Worldwide Oilfield Machine, Stream-Flo Industries Ltd, National Oilwell Varco, Kingsa Industries and The Weir Group PLC. Players in the Christmas Tree Valves market face intense competition, specifically from the numerous regional players operating around the globe.
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The global Christmas Tree Valves market is expected to register a value CAGR of 3.7% during the forecast period. It is estimated to create an absolute $ opportunity worth US$ 996.2 Mn between 2018 and 2027. Among all regions, China, APEC and North America are expected to witness high adoption of Christmas Tree Valves with CAGRs of 4.3%, 4.1% and 3.7% respectively during the forecast period. Countries such as Thailand, India, Argentina and Indonesia are expected to further drive sales over the assessment period.