Liner Hanger Market size is anticipated to surpass USD 170 Billion by the end of 2035, growing at a CAGR of 6% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of liner hangers was crossed USD 90 Billion. The growing focus and investments in oil exploration activities are estimated to increase the utilization of liner hangers in the casing string during the production process. Global investment in oil and gas is estimated to increase by USD 25 Billion by the end of this year. Out of this, the investments in offshore activities are set to increase by 7%, to USD 155 billion, while conventional onshore is projected to jump by 8%, to USD 290 billion.
A liner hanger is an advanced tool that is primarily used for hanging a liner in an oil production well. However, with the advancement in technology, several different types of liner hangers are now available in the market that could be used for various purposes in numerous industries. This factor is anticipated to create positive opportunities that are in favor of market expansion. Also, the global market value is estimated to increase owing to rising demand for high total drilled footage per well along with enhanced productivity and efficiency during the drilling process.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 90 Billion |
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Forecast Year Market Size (2035) |
~ USD 170 Billion |
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Regional Scope |
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Type (Mechanical, Hydraulic, Expandable);
The mechanical segment is anticipated to generate the largest revenue share by the end of 2035 and hold a 41% share. The recent technological advancement has boosted the growth of the mechanical liner hanger segment in the recent period. Furthermore, the enhanced effectiveness of mechanical line hangers in rigs as compared to others along with the ability of high drilled footage per well is also anticipated to favor segment
Application (Onshore, Offshore)
The onshore segment in the liner hanger market is set to garner the highest revenue share of 58% through the forecasted timeframe. The primary reason for segment size expansion is the presence of a large number of onshore rigs as compared to offshore rigs on Earth. For instance, it was calculated that at the end of 2021, there were 1,300 operational onshore oil rigs, compared with 200 offshore rigs across the world. Furthermore, onshore rigs are attracting a huge amount of investments from key players and governments of different countries owing to their advantage of the availability of oil in onshore rigs along with oilfield chemicals.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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Well Type |
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North American Market Forecast
The North America liner hanger market is projected to be the largest with a share of about 35% by the end of the forecast period, owing to the large consumption of petroleum and petroleum products. As per U.S. Energy Information Administration, the country has averagely utilized around 19.89 million barrels of petroleum each day. Also, the high demand for energy by the American population is another growth factor of the market in the region owing to its usage in the drilling process.
APAC Market Analysis
The Asia Pacific liner hanger market is set to hold 24% of the revenue share by the end of the projected timeframe. Asia Pacific is expected to observe a growth outlook in the coming years owing to the need to bridge the gap between the demand and supply of oil and oil products. In addition, the expanding oil and gas industries in China and India are also expected to propel the expansion of the market.
Author Credits: Payel Roy, Dhruv Bhatia
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