Key participants in the global blowout preventer market have consistently been a part of the leading usage location of onshore wells. Uztel SA, GE Oil and Gas, Control Flow, Inc., and Cameron International Corporation are examples of leading players in the market that hold prominence in onshore BOP manufacture.
According to a research report released by Transparency Market Research, the competitive intensity in the global blowout preventer market is expected to increase over the coming years due to a high level of brand identification and product differentiation. Additionally, incumbents from industries are not dependent solely on BOP requirements and usually possess a greater scope of applications based on economic strengths of each region, further increasing the rate at which new entrants may enter over the coming years.
The report, however, states that this threat of new entrants is likely to remain low till 2022 due to the high capital required for market entry and the high level of technical and skilled labor required to manufacture BOPs. The global blowout preventer market is expected to reach US$38.58 bn by the end of 2022. Its revenue is expected to expand at a CAGR of 4.22% within a forecast period from 2014 to 2022 and is expected to reach US$32.84 bn by the end of 2016.
MEA Shares to Continue Dominating BOP Demand
The Middle East and Africa are expected to continue being the leaders in the global blowout preventer market over the coming years. The collective region’s share over recent years has been over 25%. One of the key regions for the MEA dominance in the global blowout preventer market is the aggressive strategies employed by players in this region towards procuring greater sales and revenue shares from the region’s massive oil and gas sector. The Middle East especially is expected to amplify its production rates of hydrocarbons over the coming years, giving players in the global blowout preventer market plenty of opportunities for profits.
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Sea Trading Scope to Expand, Inviting Greater BOP Demand
“The players in the global blowout preventer market are expected to find key driving forces from the volume of seaborne trade that has been happening. Sea trade is expected to increase at very high indices over the coming years, providing BOP manufacturers a large platform of demand to expand on,” states a TMR analyst. The upcoming increasing sea trade volumes are likely to intensify the traffic in key choke points across the water routes for tankers and trade units, such as the Strait of Malacca and the Strait of Hormuz in the case of oil trade. These choke points are making it increasingly necessary to use advanced and efficient BOPs.
Another factor intensifying the demand for BOPs is the increasing stringency of safety norms being implemented on sea transportation and offshore oil wells. Recent events such as the Macondo well explosion suffered by BP have prompted many regulatory and government bodies to intensify the rules that all water-related exploration and trading activities are expected to follow.
High Volatility in Crude Prices Stifling BOP Demand
The key restraint acting on the global blowout preventer market at the moment, is the massive disparity between highs and lows in crude prices. After the introduction of shale exploration, the oil and gas production around the world skyrocketed and prices of crude fell. Fracking is a primarily on-land activity and has, since its inception, put a strong stopper on offshore exploration and extraction activities. The intensity of this restraint is expected to weaken over time as production rates stabilize.
“Cost-effectiveness is a key catchphrase for a lot of users of BOPs, and the latest advancements in BOP technologies might provide just that. The implementation of subsea disconnect systems in SBOPs are expected to help the global blowout preventer market thrive over the coming years, while other technologies and innovations are continuously being introduced,” adds the analyst.
Key segments of the Global Blowout Preventer (BOP) Market
BOP Market: By Configuration
- Annular BOP
- Ram BOP
BOP Market: By Location
- Onshore
- Offshore
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