Workover Rigs Market to grow by USD 384.24 million from 2022 to 2027 | The growing demand for oil and natural gas drives the market - Technavio

NEW YORK, Aug. 30, 2023 /PRNewswire/ -- The workover rigs market size is estimated to increase by USD 384.24 million from 2022 to 2027, with a CAGR of 4.22%, according to a recent market study by Technavio. The growing demand for oil and natural gas is notably driving market growth. The surge in global liquid fuel consumption can be attributed to advancements in worldwide economic growth and heightened demand for cooling and heating across various regions. Furthermore, the gradual rebound of crude oil prices has triggered increased investments within the oil and gas sector. Notably, the utilization of natural gas as a fuel has witnessed substantial escalation, contributing to the mounting consumption of natural gas. Oil and gas companies have various avenues for augmenting production. These include drilling new oil and gas wells and enhancing output from existing, less-productive wells through the utilization of workover rigs. For freshly drilled wells, workover rigs are deployed to execute well-completion tasks, while for older wells, these rigs are employed to carry out intervention activities. Consequently, the growing appetite for both oil and natural gas is set to amplify the requirement for workover rigs in well exploration and production endeavours involving interventions and completions. This heightened demand is expected to drive the expansion of the global workover rigs market during the forecast period. Discover some insights on market size before buying the full report -Request a sample report

The workover rigs market report also offers information on the criticality of inputs, R&D, CAPEX, technology, and products of 15 vendors listed below -

Automated Rig Technologies Ltd., Aztec International Ltd., Bentec GmbH Drilling and Oilfield Systems, Care Industries Inc., China National Petroleum Corp., Deep Industries Ltd., Dragon Products LLC, LCH WELL SERVICING LLC, Megha Engineering and Infrastructures Ltd., Mesa Southern Well Servicing LP, Moncla Energy Services LLC, Nabors Industries Ltd., National Energy Services Reunited Corp., NOV Inc., Precision Drilling Corp., Schlumberger Ltd., Superior Energy Services Inc., Ventia Services Group Pty Ltd., Watson Hopper Inc., and Yantai Jereh Oilfield Services Group Co. Ltd. Download Sample

Workover Rigs Market - Segmentation Analysis 

This workover rigs market report extensively covers market segmentation by application (onshore and offshore), form factor (single drum and double drum), and geography (North America, APAC, Europe, Middle East and Africa, and South America).

• The market share growth by the onshore segment will be significant during the forecast period. Within this segment, upstream oil and gas exploration and production endeavours have undergone technological advancements that bolster enhanced production rates and the optimization of oil and gas recovery from reservoirs. Onshore E&P undertakings entail lower costs compared to offshore ventures. Operating conditions in onshore locations generally prove more advantageous than those experienced in offshore environments. Consequently, numerous oil and gas companies are actively participating in onshore E&P endeavours. The escalating prevalence of shale oil and gas E&P activities is projected to ignite heightened well completion undertakings within the onshore segment, subsequently propelling the expansion of the global workover rigs market targeting onshore oil and gas wells.

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Market Dynamics

Significant Workover Rigs Market Trends -

• The development of intelligent well-completion technologies is an emerging market trend.
• This technology enables well operators to monitor data related to reservoir and completion integrity remotely and evaluate and manage production in real-time without the need for well intervention.
• Furthermore, safety and economic benefits also spur the automation of drilling and completion processes.
• Hence, such trends fuel the growth of the market during the forecast period.

Major Workover Rigs Market Challenge - 

• The advent of rigless well intervention and abandonment technologies is a significant challenge hindering market growth.
• Such technologies are safe, efficient, and cost-effective. Furthermore, various technological advances supporting rigless intervention are taking place in the oil and gas industry.
• One such example is in February 2019, Secc Oil and Gas Ltd. installed its hot make hot break (HMHB) self-sealing and reconnectable emergency quick disconnect technology onto a new vessel.
• Hence, such challenges hinder the growth of the market during the forecast period.

Regional Analysis

The market is segmented by region North America, APAC, Europe, Middle East and Africa, and South America. An analysis of key leading countries has been included.

• North America is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The expansion of the workover rigs market in North America is credited to several factors, primarily the growth of exploration and production (E&P) activities. The heightened pursuit of crude oil resources prompts subsequent operations like well completion and routine maintenance, thereby boosting the demand for workover rigs in the region. The United States has been a hub for oil and gas endeavours for many years. The upswing in deepwater exploration endeavours is attributed to the resurgence of crude oil prices and governmental support. Numerous companies are channelling investments into deepwater and ultra-deepwater exploration projects, contributing to this trend. As a result, the upsurge in E&P undertakings within the oil and gas sector stimulates increased well intervention and completion operations. This ripple effect is anticipated to energize the growth of the workover rigs market across North America.

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Table of contents

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Application

7 Market Segmentation by Form Factor 

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

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