The oil and gas accumulator market is expected to rise with a CAGR of more than 1.6% during 2020 - 2025. Increasing production of oil and gas along with rapidly growing drilling operation in oil and gas fields are likely to drive the oil and gas accumulator market. However, increasing the use of renewable sources for generating energy over conventional oil and gas is expected to restrain the oil and gas accumulator market.
- Due to the increased drilling and workover activities, the onshore segment is likely to dominate the oil and gas accumulator market during the forecast period. In 2019 the increase in natural gas production was about 3.3%.
- The development in the area of gas hydrates, which is still in the research phase and its requirement of new technologies for its production, is likely to create several opportunities for the oil and gas accumulator market in the future.
- Due to its rapidly growing upstream industry, North America is likely going to be the fastest-growing market, the oil and gas accumulator during the forecast period. In 2019 the region produced 6.6% more crude oil than the previous year, which is likely to have a positive impact on the accumulator market.
Key Market Trends
Onshore Segment Expected to Dominate the Market
- An accumulator is a device used in a hydraulic system to store energy or dampen pressure fluctuations in some applications. Energy is stored by compressing a pre-charged gas bladder with hydraulic fluid from the operating or charging system. Well pressure-control systems typically incorporate sufficient accumulator capacity to enable the blowout preventer (BOP) to be operated with all other power shut down.
- The increasing number of wells at new fields and its exploration requires the drilling of several new wells, which require accumulators at every site for the proper working of the BOP to prevent any fatal accidents. The government regulations for the safety of the drilling and workover site also require the usage of accumulators for the working of BOP in case of emergency.
- Moreover, the low investment cost in onshore field development than offshore is attracting more investment in onshore, thus driving the oil and gas accumulator market during the forecast period.
- In 2019, the global natural gas production was 3989.3 billion cubic meters (bcm), higher than the region's production in 2018, 3857.5 bcm. Moreover, in 2019, about 23.3% of the electricity generated worldwide was from natural gas. The increasing demand and production of natural gas over the world is likely to have a positive impact on the more drilling and well workover activities, which is expected to drive the oil and gas accumulator market.
- In recent years several new oil and gas fields were discovered in the region, in 2019, a new oil field was found in Khuzestan province of Iran, which is expected to have 50 billion barrels of oil. The development of such newly discovered fields is expected to have a positive impact on the oil and gas accumulator market.
- Hence, owing to the above points, the onshore segment is likely to dominate the oil and gas separator market during the forecast period.
North America Expected to be the Fastest Growing Market
- North America, due to its rapid increase in crude oil and natural gas production in the world, held a significant share in the market. In 2019, North America produced is approximately 24.9% of the global crude oil production.
- Countries in North America have planned to decrease their carbon signature by using cleaner fuel such as natural gas from which the carbon emissions are less. Natural gas energy in the countries in North America already surpassed coal-based power and is likely to take over the energy sector, thus reducing greenhouse gas emissions.
- As of 2019, North America's crude oil production was 1116.5 million tonnes (MT), which was higher than the region produced in 2018, 1042.2 million tonnes (MT). The increase in crude oil production over the year exhibits the requirement of more installation capacity of the accumulators to prevent any accidents in the oil and gas field, which may lead to cause any harm to the personnel's life.
- In Jan 2018, Exxon Mobil Corp announced to triple its oil and gas production by 2025 from Permian Basin. The Permian Basin is the largest shale oil and gas basin in the United States. Increasing company production is likely to have a positive impact on the oil and gas accumulator market during the forecast period.
- Hence, owing to the above points, North America is expected to be the fastest-growing market for the oil and gas accumulator during the forecast period.
The oil and gas accumulator market is moderately fragmented. Some of the key players in this market include Eaton Corporation PLC, Parker-Hannifin Corp, Hydac, Freudenberg Group, and Roth Industries, LLC.
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