Global Perforating Gun Market - 2022-2029

Market Overview

The global perforating gun market is estimated to reach at high CAGR of 5% during the forecast period (2022-2029).

A perforating gun is used to prepare oil and gas wells for production by drilling holes. Perforations must be formed for oil or gas to flow into the wellbore. A perforating gun performs this and is lowered down the well for the respective purpose. A perforated liner is pierced with holes made by a perforating cannon.

Market Dynamics

Rise in unconventional oil and gas resources exploration and production are increasing, thus increasing the demand for perforating guns. Nonetheless, growing environmental concerns and transition towards renewable energy sources restrain the market's growth potential.

Expansion in exploration and production of unconventional oil and gas

The oil & gas sector has seen tremendous developments in the methods, modes and materials utilized in production and delivery. With conventional oil and gas stocks depleting, the desire for alternative energy sources to effectively fulfill expanding energy demand increases. Unconventional oil and gas resources have shown to be beneficial in satisfying the demand for clean and efficient energy sources. Oil and natural gas resources that do not present in regular formations and require specific extraction or production techniques are unconventional oil and gas resources. Shale gas, tight oil and natural gas hydrates, among others, are unconventional oil and gas deposits. Chemically, these resources are identical to traditional oil and gas resources. The differentiation is based on their traits and attributes in terms of reservoir rock type, oil and gas origin, occurrence condition, underground location, or the peculiar nature of their reservoirs.

Most shale reserves are in North America, with U.S. leading the regional market and Europe and Asia-Pacific in select areas. According to International Energy Agency, shale production in the U.S. will surpass 100 million barrels per day by 2025. The shale boom in U.S. is due to expanding shale oil and gas production, making it the world's largest oil-producing country, ahead of Saudi Arabia and Russia. Nonetheless, the exploration of unconventional sources of oil and gas requires perforation guns for forming sources from which unconventional oil & gas could be obtained. As a result, the rapid growth in exploration and production of unconventional oil and gas resources could be a major market driver.

Growing environmental awareness and adoption of renewable energy sources

Global economies' growing environmental awareness and desire to reduce their carbon footprint and greenhouse gas emissions have accelerated the move to clean and green energy sources. As a result, economies embrace renewable energy sources such as solar, wind (onshore and offshore), biomass, hydroelectric and geothermal power for power generation. The increased energy consumption resulting from rapid industrialization and urbanization has expedited this transformation even more.

Renewable energy is the fastest-growing sector on the planet, with more renewable energy projects obtaining finance. As the demand for sustainable and clean energy grows and renewable technologies evolve, more and more projects of increasing size and complexity are being built. The Hornsea Project 2, for instance, is anticipated to be finished by 2022 at the cost of US$ 7.8 billion. Furthermore, countries such as Canada, the U.S., India and the United Arab Emirates, among others, are investing heavily in renewable energy projects, accelerating the adoption of renewable energy sources.

The move to renewable energy sources, fueled by the greater investment by governments around the world, has a negative impact on the oil and gas industry's upstream, midstream and downstream activities, thereby constricting the market prospects of the perforating gun market.

COVID-19 Impact Analysis

The deployment of lockdown measures to limit the spread of the virus and restrict the movement of items and persons significantly impacted the perforating gun market during the COVID-19 pandemic. Because of three primary elements, the COVID-19 pandemic had a negative impact on the respective market:

The first and most significant impact of the pandemic on the market is its impact on the supply chain, which tarnishes the availability of raw materials and the sales of the finished product. A severe demand-supply gap happened due to a scarcity of raw materials and disturbing production processes.

Second, the manufacturing of perforating guns involves numerous manufacturing processes, which have been severely hampered by government regulations and lockdowns imposed in response to the COVID-19 pandemic.

The interruptions in the major end-user verticals, such as oil & gas exploration, are the last explanation for the pandemic's high impact on the market.

However, the demand for perforating guns is expected to rise as the oil & gas sector becomes completely operational. Further increasing exploration activities for shale gas are also expected to expand the market's growth potential in the post-pandemic market scenario.

Segment Analysis

The global perforating gun market is classified based on gun type, well, explosive, application and region.

Ease of exploration activities such as drilling together with less technological and monetary requirement

Horizontal wells dominate the well segment and are gaining popularity due to their advantages and technological improvements that have boosted their economic viability. Drilling in shale reserves entails directional or horizontal drilling, which increases contact with the pay zone and thus production. Further, the need for horizontal drilling activities in offshore locations is expanding due to the rising number of multilateral wells. The advancements and the rising efficiency of horizontal drilling and multi-stage hydraulic fracturing technology unlock the widespread unconventional shale and tight hydrocarbon resources. Argentina, China and Mexico are among the countries that have begun to investigate the commercial potential of their shale reserves. As a result of a growing focus on unconventional reserves and the increased exploration and production of shale oil and gas via horizontal drilling, the respective segments exhibit market dominance in the well-type segment.

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Source: DataM Intelligence Analysis (2022)

Geographical Analysis

Extensive shale gas reserve in U.S., along with the region's economic and technological progression

North America dominates the regional segment of the global perforating gun market. Drilling activity in North America has increased as oil and gas prices have risen. The transition towards horizontal wells has been the most significant transformation in the region over the previous decade, allowing for more formation access while only increasing the well's cost slightly. Drilling activity has increased, causing optimism in the North American oil and gas industry, which could be a good omen for perforating gun market.

Increased multilateral wells for shale reserve extraction could increase the market growth potential for perforating guns. As a result, as the number of multilateral grows, so does the requirement for perforating activities. The region's burgeoning shale industry will likely open up a slew of prospects for oilfield service providers in the perforating gun business.

Source: DataM Intelligence Analysis (2022)

Competitive Landscape

The global perforating gun industry is very niche in terms of the number and scope of global and local producers. The presence of several manufacturers such as Schlumberger Limited, Weatherford International, Baker Hughes, Halliburton, National Oilwell Varco, Inc, DYNAenergetics GmbH & Co KG, Tassaroli, Oiltech Service, FHE USA and Promperforator has been regarded as consolidated. Mergers, acquisitions, product launches, investments and partnerships are all common market tactics used by significant market participants to gain a competitive advantage and visibility in the respective market.

Schlumberger Limited

Overview: Schlumberger Limited is the premier provider of technologies to the oil and gas sector for reservoir characterization, drilling, production and processing. The company provides the industry's most comprehensive range of products and services, from exploration to production and integrated pore-to-pipeline solutions optimize hydrocarbon recovery to deliver reservoir performance sustainably. Schlumberger Limited has product sales and services in more than 120 countries and employs approximately 103,000 people from over 170 nationalities. Schlumberger Limited is headquartered in Houston, U.S. and has prominent offices in Paris, London and The Hague. The company recorded US$6,225 million in revenue in 2021.

Product Portfolio:

Hollow Carrier Gun Perforating Systems: Hollow carrier guns developed as systems with carriers, charges, detonating cords and boosters are among the company's product offerings. The products' components are all manufactured to stringent QA/QC standards and system performance is confirmed using API RP 19B Section 1 test results. With the SPAN Rock rock-based penetration model, gun systems are customized by adapting their configuration to the wellbore environment and reservoir conditions.

Key Development:

At Coiled Tubing and Well Intervention Conference (SPE/ICoTA) held on March 29, 2018, Schlumberger Limited unveiled Tempo, an instrumented docking perforating gun system. The respective product with the ground-breaking combination of a plug-in gun design and real-time enhanced downhole measurements allows and monitors the well's dynamic under balance to make clean perforations that increase reservoir production.

Why Purchase the Report?

To visualize the global perforating gun market segmentation based on gun type, well, explosive, application and region, as well as understand key commercial assets and players.

Identify commercial opportunities in the global perforating gun market by analyzing trends and co-development.

Excel data sheet with numerous data points of perforating gun market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Product mapping available as excel consisting of key products of all the major market players

The global perforating gun market report would provide approximately 69 tables, 67 figures and almost 184 pages.

Target Audience 2023

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies