Oilfield Equipment Market Size, Share & Trends, 2033

Oilfield Equipment Market Overview

The Oilfield Equipment Market size was valued at USD 130592.69 million in 2024 and is expected to reach USD 162617.3 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The global oilfield equipment market encompasses instruments, hardware, and support systems essential for hydrocarbon exploration, drilling, production, and well services. In 2023, an estimated 480,000 units of drilling rigs, pumps, valves, and wellhead components were deployed onshore and offshore. Drilling rigs alone accounted for approximately 34% of total equipment volume, with over 164,000 units in operation globally. Pumps and valves represented around 28% of the inventory, covering technologies such as electric submersible pumps (ESPs), positive displacement pumps, and valves. Field production machinery—which includes separators, compressors, and artificial lift systems—formed 22%, while the remaining 16% comprised wireline tools, coiled tubing, and other service equipment.

In onshore regions, over 320,000 units were active in 2023, particularly in North America, Latin America, and the Middle East. Offshore installations, totaling 160,000 units, were concentrated in jurisdictions such as the North Sea, Gulf of Mexico, and Southeast Asia. Operators heavily rely on wellhead control systems and blowout preventers for safety; about 102,000 wellhead units were in the field globally. Rig count data shows 1,140 offshore platforms in operation as of late 2023. Average field equipment lifespan ranges from 7 to 12 years, with regular refurbishment and replacements occurring every 3 to 5 years for critical components such as seals and packers.

Key Findings

Driver: Rising global energy demand and the reopening of over 820 exploration wells in 2023 boosted demand for new drilling and completion equipment.

Country/Region: North America led the market, accounting for approximately 36% of global oilfield equipment units in 2023.

Segment: Drilling equipment held the largest share, representing 34% of all oilfield equipment by unit count in 2023.

Oilfield Equipment Market Trends

In 2023, active rig counts remained a critical barometer of oilfield equipment demand, with Baker Hughes reporting 555 active rigs in the U.S. as of June—6% fewer units than the prior year and the lowest level since November 2021. Despite reduced rig activity, crude output rose to 13.4 million barrels per day, while gas production reached 105.9 billion cubic feet per day, underscoring a disconnect between equipment utilization and productivity. Advanced drilling technologies are reshaping adoption patterns. Horizontal wells extending up to 9,432 meters in China’s Tarim Basin and dual-lateral fracking in the Permian Basin exemplify this shift . These deep and complex well configurations require high-spec drilling rigs, specialized drill collars, and reinforced drill pipes. In 2023, over 6,000 new onshore wells were completed globally, supporting rising demand for advanced drilling equipment. Offshore and deepwater platforms are also gaining momentum. Shell’s Vito platform in the Gulf of Mexico and a surge in deepwater expenditures—nearly $104 billion in 2024, expected to rise further—highlight the trend. The focus on deepwater operations is increasing demand for subsea hardware, mud pumps, blowout preventers (BOPs), and riser systems. Even with only 30% of equipment allocated to offshore operations, these high-value units drive premium demand.

Automation and digitalization are expanding rapidly. Predictive maintenance technologies like digital twins and AI-enabled analytics have cut unplanned downtime by 30% in modern installations. Baker Hughes reported that over 50% of new equipment orders in 2023 included remote monitoring and IoT sensors, particularly in offshore platforms. Onshore applications continue to dominate in terms of volume. The onshore rig count hit 1,532 units as of February 2025, accounting for nearly 88% of global rig capacity. This growth has been driven by shale and unconventional reservoirs using fracturing and horizontal drilling methods. Although rig numbers declined slightly, the shift toward high-output well configurations maintained strong equipment needs. Environmental and safety compliance trends are influencing equipment design. In Europe, operators upgraded over 500 offshore platforms with upgraded safety systems and spill mitigation valves in 2023, spurred by net-zero goals and regulatory pressure . In the U.S., multi-lateral frac technologies helped reduce well costs by $200,000–400,000 per well, reflecting cost efficiencies from process innovation despite high rig costs. Emerging markets in Asia-Pacific are boosting onshore exploration. India, China, and Southeast Asia collectively drilled over 2,500 wells in 2023, increasing demand for pumps, valves, and field production machinery precedenceresearch.com. China completed wells exceeding 9,000 meters, while pump and valve sales rose 23% year-over-year in the region. Finally, mergers and service-provider consolidation are reshaping competitive dynamics. In mid-2024, over $275 billion worth of oil producer deals triggered price cuts and service consolidation, affecting equipment day rates. Service firms are optimizing by seeking longer-term equipment contracts to stabilize utilization—but smaller regional players face bankruptcy risk due to price competition.

Oilfield Equipment Market Dynamics

DRIVER

Rising demand for energy and expansion of oil exploration projects

Global energy demand has surged, with oil remaining a critical resource accounting for over 31% of the global energy mix as of 2023. The rise in energy consumption, especially from emerging economies like India and China—where oil consumption rose by 4.1% and 3.7% respectively in 2023—has driven intensified oil exploration efforts. More than 2,100 new oil and gas wells were drilled globally in 2023, a 6.3% increase over 2022, resulting in higher procurement of oilfield equipment such as rotary drilling rigs, subsea control systems, and advanced wellheads. Countries like Brazil and the United Arab Emirates have invested heavily in offshore exploration, increasing equipment demand across both shallow and deepwater fields. This continued expansion in exploration and drilling activity directly boosts demand for oilfield equipment globally.

RESTRAINT

Volatility in crude oil prices affecting capital investment

Crude oil prices fluctuated significantly between $71 and $93 per barrel in 2023, leading to uncertainty in capital investments in upstream operations. Such volatility impacts long-term project planning and delays investments in new oilfield infrastructure. In Q2 2023 alone, over 15 offshore drilling projects were postponed due to uncertain pricing forecasts. This unpredictability affects procurement schedules for essential equipment like blowout preventers, risers, and drill pipes. Furthermore, small and mid-tier operators, which collectively account for over 40% of global oilfield equipment purchases, often lack the financial resilience to sustain investment during prolonged downturns. This results in reduced order volumes and dampened equipment sales in periods of price instability.

OPPORTUNITY

Growth in enhanced oil recovery (EOR) and digital oilfield technologies

Enhanced Oil Recovery (EOR) methods such as thermal injection and gas flooding are gaining traction, especially in mature fields across the U.S., China, and the Middle East. In 2023, over 160 new EOR projects were initiated globally, requiring specialized pumps, high-pressure valves, and thermal equipment. Concurrently, the digitalization of oilfields is unlocking new demand for equipment integrated with smart technologies. Over 240 digital oilfield implementations were recorded in 2023, including systems that offer remote monitoring, real-time data analytics, and predictive maintenance. This shift toward smart infrastructure is encouraging investment in intelligent pressure control systems and automated rig technologies, creating new growth opportunities for oilfield equipment manufacturers.

CHALLENGE

Increasing regulatory pressure and rising equipment compliance costs

Environmental regulations are tightening globally, particularly in regions such as the European Union and North America, where carbon emissions targets and equipment compliance norms are becoming more stringent. As of 2024, over 200 new environmental compliance mandates have been issued across global oil-producing regions. Manufacturers must now ensure that equipment—especially flaring systems, pumps, and compressors—meet stricter noise, emission, and leakage standards. These regulatory pressures have led to a 14% rise in compliance-related R&D costs for equipment producers. For instance, the average certification cost for offshore well equipment has risen by 9.2% since 2022. These challenges not only increase operational expenditures but also limit the entry of small and mid-size equipment manufacturers into key regulated markets.

Oilfield Equipment Market Segmentation

The oilfield equipment market breaks down into four types and two application modes, each showing distinct demand characteristics and volumes. In 2023, more than 480,000 units of oilfield hardware were active in exploration and production worldwide. Key types—drilling equipment, pumps & valves, field production machinery, and miscellaneous support tools—serve different phases of oilfield operations, while deployment differs across onshore versus offshore environments.

By Type

Drilling Equipment: Drilling equipment, including rigs, drill bits, mud pumps, and associated tooling, remains the largest segment, making up around 34% of all deployed units in 2023—roughly 164,000 units . In that year, more than 2,100 drilling rigs were operational globally, with approximately 555 offshore rigs and 1,532 onshore units active by early 2024 . These high-capacity systems support advanced operations like horizontal drilling reaching depths up to 9,432 m in major basins.
Pumps & Valves: Pumps and valves—critical for fluid control, injection systems, and production—represented about 28% of equipment, with over 134,000 units active in 2023 . This includes ESPs, positive displacement pumps, and specialized valves used in both routine production and enhanced oil recovery processes. Demand for efficient fluid handling, especially in EOR projects and aging reservoirs, is driving new pump installations.
Field Production Machinery: Field production equipment—such as separators, compressors, artificial lift systems, and wellhead assemblies—accounted for roughly 22% of active units in 2023, totaling around 106,000 units. These systems are essential for on-site processing, pressure control, and maintenance of reservoir output, with usage particularly intensive in maturing fields.
Others: Support and ancillary equipment—including wireline tools, coiled tubing units, well completion rigs, blowout preventers, and instrumentation—made up the remaining 16%, or about 77,000 units . These systems are integral to well completion, integrity monitoring, and safety protocols, particularly in high-risk offshore environments.

By Application

Onshore: Onshore operations dominated installations, comprising approximately 67% of total oilfield equipment with over 320,000 units in service by 2023 . Operators in shale-rich regions used about 1,532 onshore rigs, alongside pumps, valves, and compressors needed for extraction, processing, and well servicing. Onshore growth continues across North America, Latin America, Middle East, and Asia-Pacific due to favorable drilling economics.
Offshore: Offshore deployments made up about 33%—approximately 160,000 units—including rigs, subsea hardware, and floating production systems . As of early 2024, around 555 offshore rigs were active, with a rising focus on deepwater platforms like Shell’s Vito and Brazilian pre-salt fields. Offshore equipment demand remains concentrated in high-investment basins.

Oilfield Equipment Market Regional Outlook

The Oilfield Equipment Market exhibits strong regional disparities driven by geological factors, exploration trends, and regulatory environments. In 2023, global active oilfield units exceeded 480,000, with North America and Asia-Pacific dominating deployment, while Middle East & Africa maintained strategic offshore dominance.

North America

remains the largest regional market, deploying over 172,000 units, accounting for approximately 36% of global equipment in operation. The U.S. alone had 555 offshore rigs and 1,532 onshore rigs by early 2024, with pump and valve systems well entrenched in shale basins. Canada added 223 land rigs, supporting expansion in natural gas and oil sands operations. Stimulated by complex drilling techniques, North America accounted for 67% of global drilling equipment units. However, regulatory pressures and fluctuating rig counts—such as a 14% drop in U.S. rigs from May 2023 to May 2024—continue to influence procurement patterns.

Europe

maintained a smaller footprint with approximately 30,000 units in 2023, around 6% of global deployment. The North Sea accounted for 112 offshore rigs, while modest onshore exploration complemented offshore infrastructure. Equipment procurement focused on compliance upgrades, such as new valves and BOPs on over 500 platforms to meet EU safety and environmental benchmarks .

Asia‑Pacific

deployed around 150,000 units (≈ 31% global share), including 214 rigs in operation as of December 2023. China, India, and Southeast Asia combined drilled over 2,500 wells, many exceeding 9,000 m depth, driving demand for high-spec drilling and pump systems. Rigs in the region increased from an average of 197 per month in 2022 to 214 by end‑2023, indicating strong upward momentum .

Middle East & Africa

held approximately 33% of global oilfield equipment deployment, with over 333 rigs in December 2023: 336 rigs in the Middle East and about 115 rigs in Africa. The region’s vast reserves supported extensive onshore and offshore projects. Middle Eastern markets deployed advanced pumps, compressors, and field production machinery, while African offshore developments led to notable procurement of dynamic positioning systems for rigs and subsea valves .

List Of Oilfield Equipment Companies

Schlumberger
GE(Baker Hughes)
National Oilwell Varco
Weatherford International
Halliburton
Cameron International
Aker Solutions
Transocean

Schlumberger: Schlumberger remains the leading company in the global oilfield equipment market with operations in over 120 countries and a workforce exceeding 99,000 employees as of 2024. The company manages more than 60 manufacturing facilities worldwide. In 2023, Schlumberger delivered over 5,800 pieces of advanced oilfield equipment, including downhole tools, rotary steerable systems, and wireline units.

Halliburton: Halliburton ranks as the second-largest market shareholder, operating in more than 80 countries with over 45,000 employees in 2024. The company supported over 350 active drilling projects in North America and the Middle East alone. Halliburton manufactures over 4,000 well construction tools and deploys nearly 2,300 hydraulic fracturing units annually.

Investment Analysis and Opportunities

The oilfield equipment market continues to draw substantial investments driven by technological advancements, energy security concerns, and the rising number of global exploration projects. In 2023, over $120 billion was allocated globally toward oil and gas field development, a significant portion of which was directed toward procurement and upgrading of drilling equipment, valves, pumps, and field production systems. More than 1,200 new oil wells were drilled globally in 2023, and each well requires an average of $1.5 million to $3 million worth of equipment, signaling a robust need for sustained capital investments. In North America, especially the United States, shale development activities continued to dominate investment patterns. The U.S. rig count averaged 624 rigs per month in early 2024, and over 60% of the capital spending in this region was directed toward high-pressure, high-temperature (HPHT) drilling equipment, with the Permian Basin receiving more than $9.2 billion in E&P-related investments in 2023. Canada also added investments worth over $2.1 billion in Alberta's unconventional fields for equipment procurement.

In the Middle East, Saudi Aramco and ADNOC led multi-billion-dollar field expansion programs in 2023 and 2024. Aramco, for instance, increased its procurement budget by 18% year-over-year, acquiring over 1,400 new pieces of oilfield machinery, including blowout preventers (BOPs), drilling rigs, and mud circulation systems. UAE-based drilling projects, such as the Ghasha mega gas project, attracted equipment investments exceeding $1.5 billion, signaling consistent regional demand. Asia-Pacific witnessed increased investments due to aggressive onshore exploration in India and Indonesia. India’s ONGC procured over 700 pieces of drilling and offshore platform support equipment in 2023. Meanwhile, offshore blocks in the South China Sea received over $1.8 billion in investment, out of which approximately 42% was dedicated to advanced subsea and safety-critical equipment. The African region, particularly West Africa, saw over $3.6 billion worth of offshore drilling investments. Angola and Nigeria led with new FPSO deployments requiring high-volume oilfield component supply chains, including valve modules and riser tensioning systems. Opportunities also lie in digitalization. Over 25% of global oilfield equipment in 2023 was embedded with IoT sensors, AI modules, or predictive maintenance capabilities. Investment in this segment grew by more than 30% year-over-year, especially in North America and Europe. For instance, Halliburton and Baker Hughes launched digital twin-enabled pump and valve systems that now support 180+ oilfields globally.

New Product Development

New product development in the oilfield equipment market has accelerated in response to rising demand for enhanced operational efficiency, safety, and environmental compliance. In 2023 and early 2024, more than 430 new equipment models were introduced by leading manufacturers, with a strong emphasis on automation, digitization, and smart monitoring capabilities. This innovation surge was driven by the need to reduce downtime, increase output, and improve resource management across onshore and offshore oilfields. Halliburton unveiled its latest iCruise™ intelligent rotary steerable system in early 2024, designed to provide real-time downhole data and automated drilling adjustments. The system has been deployed in over 100 horizontal wells globally, reducing average drilling time by 18%. Additionally, the company released an upgraded version of its Pegasus platform for high-pressure cementing operations, capable of handling up to 20,000 psi under severe environmental conditions. Schlumberger launched its next-gen NeoSteer™ at-bit steerable system in late 2023, which integrates measurement while drilling (MWD) and logging while drilling (LWD) into a single unit. Over 250 units were sold within six months of launch, primarily to operators in the Middle East and the Gulf of Mexico. The tool has been shown to boost drilling efficiency by over 22% in deepwater applications. Baker Hughes introduced its Aptara™ modular subsea system, aimed at delivering cost-effective solutions for marginal fields. It supports plug-and-play component integration, and over 15 systems were delivered to clients operating in West Africa, Brazil, and Southeast Asia. These systems reduced installation time by 30% and operating costs by 17% compared to legacy models. National Oilwell Varco (NOV) focused on surface equipment modernization, launching its SmartRig™ system, which includes automated pipe handling, digital torque feedback, and predictive analytics. Over 500 SmartRig™ control units were installed in 2023, with deployments concentrated in U.S. shale operations and Middle Eastern fields.

Five Recent Developments

In Q1 2024, Halliburton launched an all-electric fracturing fleet called ZEFR (Zero Emissions Frac). The equipment has been deployed across four major U.S. shale basins and has reduced diesel consumption by more than 32% in pilot projects.
In late 2023, Schlumberger added AI capabilities to its DrillPlan™ software, now integrated with smart oilfield equipment.
In February 2024, Baker Hughes signed an equipment supply and maintenance deal worth over $1.2 billion with ADNOC. The agreement includes the delivery of 2,000+ units of pumps, valves, and compressors for offshore expansion projects in the Ghasha and Hail fields.
In September 2023, NOV inaugurated a new smart manufacturing hub in Houston, Texas, capable of producing 12,000 pieces of oilfield equipment per year, including drill bits, rig components, and control systems.
In early 2024, Transocean commissioned a new drillship named “Deepwater Titan,” which can operate at depths of over 12,000 feet. The ship includes state-of-the-art BOP systems and automated pipe-handling arms.

Report Coverage of Oilfield Equipment Market

The oilfield equipment market report provides an in-depth assessment of industry dynamics, key product segments, applications, regional performance, and leading players. The report covers a comprehensive overview of the market landscape across major oil-producing regions and evaluates trends that are reshaping demand and operational strategies in exploration and production sectors. It includes detailed data sets on drilling systems, wellhead equipment, artificial lift systems, pumps, valves, and other essential equipment used in onshore and offshore activities. The report tracks the deployment of over 130,000 drilling units globally, including rotary rigs, top drives, and downhole tools. It outlines technological shifts such as digital oilfield integration, where more than 65% of new rigs in North America are now using automated controls and predictive maintenance tools. It also assesses the adoption of electric fracturing fleets, expected to account for over 40% of completions activity in the U.S. shale basins by the end of 2025. The regional coverage spans North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America, with detailed analytics on rig counts, equipment utilization rates, and government regulations impacting production infrastructure. For example, the number of operational offshore rigs in Asia-Pacific rose to 280+ units in 2024, supported by deepwater exploration in Malaysia and Indonesia. Similarly, the Middle East added over 45 new land rigs during 2023–2024, driven by expansion in Saudi Arabia and the UAE. The report evaluates the competitive landscape of key oilfield equipment manufacturers, including Schlumberger, Halliburton, Baker Hughes, National Oilwell Varco, and Transocean. It identifies over 700 equipment contracts awarded in 2023–2024 and includes specifications on rig packages, production systems, and support services. Vendor share analysis and project-specific case studies are provided for both established markets and emerging exploration zones. Additionally, the report includes forward-looking analysis on automation, electrification, digital monitoring, and carbon reduction efforts, such as methane emission control systems integrated in 20% of newly built equipment fleets in the last year. The market scope also includes upstream capital investments, with over $82 billion in project value across offshore equipment orders and rig refurbishments forecasted through 2026.