The global perforating guns market is pegged to increase from USD 1.2 billion in 2023 to USD 2.0 billion by 2033. Over the projected period from 2023 to 2033, global perforating gun sales are likely to soar at 5.5% CAGR.
In 2022, the worldwide perforating guns industry totalled a valuation of around USD 2.2 billion. Between 2023 and 2033, it is anticipated to generate an absolute $ opportunity of USD 0.834 billion.
Futuristic market projections indicate sales of tubing conveyed perforating guns to outpace other gun types. This is due to rising usage of tubing-conveyed perforating gun systems on account of their various advantages.
As per Future Market Insights (FMI), demand for tubing conveyed perforating guns is projected to increase at a CAGR of around 5.4% CAGR through 2033. To meet this demand and gain profits, key companies are introducing novel tubing conveyed perforating guns.
Key Market Shaping Factors:
Perforating guns are tools employed for creating openings in casings used in oil & gas well drilling. They hold various explosive-shaped charges for creating openings in casings. These guns come in a wide range of sizes and are used for various applications across the thriving oil & gas sector.
Perforating guns perform the function of perforation by making holes in casing and cement of a cased well. The main purpose of using perforating guns is to provide a clean flow channel between the producing formation and the well-bore while reducing damage to the producing formation.
Perforating guns are necessary for successful perforation and help oil & gas companies to significantly improve productivity. They allow users to make a cased well available for production.
Rising exploration activities and growing interest in unconventional oil and gas resources are prominent factors driving the target market forward. Similarly, burgeoning energy demand from industrial, residential, and commercial sectors will fuel market expansion.
In recent years, growing energy demand and rising environmental concerns have prompted people to look for alternatives such as shale gas. This in turn has brought unconventional oil and gas resources into limelight.
The discovery of unconventional oil and gas resources such as shale gas has proven effective in meeting the requirements for clean & efficient energy sources. These resources offer economic, energy security, and environmental benefits.
Growing focus on producing unconventional oil & gas resources is expected to play a key role in boosting the global perforating guns industry.
According to the USA Energy Information Administration (EIA), natural gas production, especially from shale resources, is estimated to increase to around 554 Bcf/d by 2040. This will generate high demand for perforating guns as they play a crucial role in safely and effectively drilling oil and gas from reserves.
Increasing investments in exploring new onshore and offshore reserves by governments and key oil & gas companies will bolster perforating gun sales.
To expand their customer base and gain profits, leading perforating gun players are developing advanced solutions with greater efficiency. These new perforating guns make a significant impact on the well productivity, completion costs, and safety.
Development of such novel perforating guns will facilitate market growth during the projection period.
Companies are also targeting lucrative markets such as Saudi Arabia for improving their revenues and expanding their global presence.
| Attribute | Details |
|---|---|
| Estimated Global Perforating Guns Market Value (2023) | USD 1.2 billion |
| Projected Market Size (2033) | USD 2.0 billion |
| Value-based CAGR (2023 to 2033) | 5.5% |
| United States CAGR (2023 to 2033) | 5.5% |
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As per Future Market Insights’ (FMI) latest analysis, global sales of perforating guns grew at around 6.7% CAGR historically from 2018 to 2022. Accordingly, total market valuation in 2022 reached about USD 1.1 billion.
Looking forward, the worldwide perforating guns market is expected to thrive at a CAGR of 5.5% through 2033. It is anticipated to generate an absolute $ opportunity of USD 0.834 billion during the projection period.
Growing energy demand from industrial and residential sectors and increasing oil & gas drilling activities are key factors driving the global perforating guns industry forward.
Perforating guns have become essential tools in oil and gas exploration activities. They are being increasingly used to perforate oil & gas wells in preparation for production. These guns take explosive shaped charges downhole where their detonation creates holes or tunnels that act as conduits through which reserve fluids flow.
Increasing consumption of fuels such as oil and gas across the world is expected to boost the worldwide perforating guns industry during the assessment period.
Rising investments by government in exploring new oil and gas reserves is expected to open a plethora of opportunities for perforated gun manufacturers
Governments throughout the world are launching new oil and gas exploration projects to meet rising energy demand. For instance, recently an investment of USD 1.4 billion for exploring oil and natural gas at nine new sites in the Mediterranean and Red Sea was announced by Egypt.
Similarly, increasing focus on improving productivity and reducing costs during oil & gas exploration activities will create demand for perforating guns.
Another key factor that will fuel global perforating gun sales is the rising production of unconventional oil & gas resources.
According to the International Energy Agency, production of unconventional oil and gas resources such as shale gas, natural gas hydrates, oil sand, coal bed methane, etc, will upsurge significantly. This will create ample growth opportunities for the target market.
| Countries | Projected CAGR (2023 to 2033) |
|---|---|
| United States | 5.5% |
| United Kingdom | 5.3% |
| China | 5.5% |
| Japan | 5.5% |
| South Korea | 5.3% |
| Countries | Market Value (2033) |
|---|---|
| United States | ~USD 0.385 billion |
| United Kingdom | ~USD 0.78 billion |
| China | ~USD 0.506 billion |
| Japan | ~USD 0.384 billion |
| South Korea | ~USD 0.115 billion |
| Countries | Historical CAGR (2018 to 2022) |
|---|---|
| United States | 6.6% |
| United Kingdom | 6.4% |
| China | 6.5% |
| Japan | 6.4% |
| South Korea | 6.2% |
Rising Oil & Gas Exploration Activities Propelling Perforating Gun Demand in the United States
According to Future Market Insights’ (FMI) latest report, the United States perforating gun industry is projected to reach a valuation of around USD 0.385 billion by 2033. It will create an absolute $ opportunity of about USD 0.159 billion between 2023 and 2033.
Over the assessment period, perforating gun demand in the United States is expected to surge 5.5% CAGR in comparison to 6.6% CAGR recorded during the historical timeframe.
Growing demand for energy and increasing oil & gas exploration activities are key factors driving growth in the United States perforating gun industry.
In recent years, oil & gas exploration activities have been on the rise in the United States due to increasing energy consumption. According to the USA Energy Information Administration (EIA), petroleum consumption in the United States reached an average of about 20.28 million barrels per day in 2022.
To meet rising demand for energy resources such as petroleum and gas, new exploration projects are being launched. For instance, the Biden Administration recently approved a USD 8 billion oil drilling project in Alaska. This in turn is expected to elevate demand for perforating guns as they are extensively used in oil & gas exploration and drilling activities.
Strong presence of leading perforating gun system manufacturers and advancements in well perforation technologies are also boosting the United States market.
Favorable Government Support & Rise in Shale Gas Production Making China a Lucrative Market
As per FMI’s latest report, China is likely to emerge as the most lucrative market for perforating gun manufacturers during the assessment period. This is due to favorable government support and increasing production & consumption of shale gas.
China perforating guns market expanded at a CAGR of 6.5% during the historical period. Over the projection period, perforating gun sales in China are expected to soar at 5.5% CAGR, taking the overall market valuation to over USD 0.506 billion by 2033.
Escalating energy demand in China is prompting leading private oil & gas corporations and the government to increase shale gas production. This in turn is creating an enormous demand for drilling technologies including perforating guns and the trend is expected to continue during the projection period.
China’s shale gas production has been rising rapidly during the past few years. As per the USA Energy Information Administration (EIA), since 2017 China’s shale gas production grew at 21% annually and reached about 803 billion cubic feet (Bcf) in 2021.
Perforating guns are being increasingly employed during drilling of unconventional oil and gas resources such as shale gas. Hence, increasing investments in increasing shale gas production will eventually uplift perforating gun demand through 2033.
Favorable government support is also positively impacting China perforating guns industry. For instance, the Chinese government recently launched a subsidy program through which it announced financial incentives for producers to promote domestic upstream development of unconventional natural gas.
Principal Consultant
| Top Segment (Gun Type) | Tubing Conveyed Perforating |
|---|---|
| Historical CAGR (2018 to 2022) | 6.5% |
| Projected CAGR (2023 to 2033) | 5.4% |
| Top Segment (Gun Type) | Below 3000 ft |
|---|---|
| Historical CAGR (2018 to 2022) | 6.4% |
| Projected CAGR (2023 to 2033) | 5.2% |
Demand Remains High for Tubing Conveyed Perforating Guns
According to Future Market Insights (FMI), demand in the global market is likely to remain high for tubing conveyed perforating gun systems. This is due to the versatile nature and high operational efficiency of these perforation gun systems.
The tubing conveyed perforating segment expanded at a CAGR of 6.6% historically from 2018 to 2022. Over the projection period, the target segment is anticipated to thrive at 5.4% CAGR. Hence, it will remain the top-revenue generation segment for perforated gun manufacturers.
Tubing conveyed perforating guns are suitable for both horizontal and deviated wells. They are adaptable to a variety of gun lengths to accommodate a range of completion procedures. These guns are attached to tubing and run in the well using a drilling or workover rig.
Adoption of tubing conveyed perforating guns (TCP) reduces both cost and operational complexity. They also offer benefits such as leaving tubing in place after perforating underbalanced and improved flexibility and performance. These attractive features of tubing conveyed perforating guns are expected to encourage their adoption globally.
Growing popularity of tubing conveyed perforating (TCP) techniques is another key factor that will elevate tubing conveyed perforating gun demand during the assessment period.
To gain maximum profits, leading companies are focusing on offering TCP guns with advanced capabilities. This will bode well for the overall market.
Below 3000 ft Segment Will Dominate the Global Market Through 2033
Based on depth, the worldwide perforated gun industry is segmented into below 3,000 ft, 3,000 to 8,000 ft, and above 8,000 ft. Among these, below 3000 ft segment will continue to lead the global market through 2033.
Growth of the target segment is attributable to rising usage of perforating guns for wells having depth of below 3000ft.
As per Future Market Insights’ (FMI) latest report, the below 3000 ft segment is forecast to expand at 5.2% CAGR during the assessment period, in comparison to 6.4% CAGR registered from 2018 to 2022.
Leading perforated gun manufacturers listed in the report include National Oilwell Varco, Inc., Core Laboratories, Schlumberger Ltd, DYNAenergetics GmbH & Co. KG, CJSC NTF PerfoTech, Halliburton, FHE USA LLC, Oiltech Services Pte Ltd, Hunting Plc, and Shaanxi FYPE Rigid Machinery Co., Ltd. among others.
Key perforated gun manufacturing companies are mostly focusing on developing advanced solutions to meet changing requirements of oil & gas sector. They are also implementing other strategies such as acquisitions, partnerships, agreements, mergers, facility expansions, and collaborations to gain a competitive edge in the market.
Recent developments:
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| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 1.2 billion |
| Projected Market Value (2033) | USD 2.0 billion |
| Anticipated Growth Rate (2023 to 2033) | 5.5% CAGR |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Billion, Volume in Units, and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Gun Type, Depth, Well Type, Well Pressure, and Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Companies Profiled | CJSC NTF PerfoTech; Core Laboratories; DYNAenergetics GmbH & Co. KG; FHE USA LLC; Halliburton; Hunting Plc; National Oilwell Varco, Inc.; Oiltech Services Pte Ltd; Schlumberger Ltd; Shaanxi FYPE Rigid Machinery Co., Ltd. |
The market is projected to generate USD 1.2 billion in sales by 2023.
The global market is set to be worth USD 2.0 billion by 2033.
The market is estimated to advance at a 5.5% CAGR through 2033.
Between 2018 and 2022, sales surged at a 6.7% CAGR.
By 2033, the United States market to develop at a CAGR of 5.5%.
Tubing conveyed perforating segment is projected to expand at a CAGR of 5.4% by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Gun Type 5.1. Tubing Conveyed Perforating 5.2. Through Tubing Hollow Carrier 5.3. Through Tubing Exposed 5.4. Wireline Conveyed Casing 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Depth 6.1. Below 3,000 ft 6.2. 3,000 - 8,000 ft 6.3. Above 8,000 ft 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Well Type 7.1. Horizontal 7.2. Vertical 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Well Pressure 8.1. High Pressure 8.2. Low Pressure 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. CJSC NTF PerfoTech 19.2. Core Laboratories 19.3. DYNAenergetics GmbH & Co. KG 19.4. FHE USA LLC 19.5. Halliburton 19.6. Hunting Plc 19.7. National Oilwell Varco, Inc. 19.8. Oiltech Services Pte Ltd 19.9. Schlumberger Ltd 19.10. Shaanxi FYPE Rigid Machinery Co., Ltd. 20. Assumptions & Acronyms Used 21. Research Methodology
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Perforating Guns Market
