Liner Hanger Market Trends

Growth Drivers

• A High Number of Rigs Present in the Globe – Across the world, the number of drilling rigs is increasing owing to the rising demand for oil and its products. As a result, the use of liner hangers has increased in rigs for exploration and production activities. The number of global oil rigs has increased to 1,750 in 2022 from 1,350 in 2020. 

• Increased Demand and Consumption of Petroleum Across the World – The demand for petroleum has been on the constant rise owing to its usage in numerous industries and rapid urbanization in the globe. Petroleum is procured through the drilling process which generates the demand for liner hangers for efficient drilling and improving the safety hazards. The U.S. Energy Information Administration reports that in the year 2020, around 92.2 barrels of petroleum and other liquid fuels were consumed worldwide.

• Significant Rise in Usage of Crude Oil and Oil Products - Crude oil is a high-demand product from various end-use industries such as transportation, automotive, energy, petrochemical, plastics, and others. As crude oil is obtained through the oil wells, and rigs, the growing need for crude oil is expected to increase the utilization rate of liner hangers for optimum results in the drilling process. The daily demand for crude oil across the world increased from 90 million barrels per day in 2020 to 100 million barrels per day in 2022. This figure is supposed to further increase and reach 105 barrels per day in 2026.

• Constant Government Support for Deep-water Exploration Activities – The demand for liner hangers is estimated to increase rapidly owing to the increase in deep-water exploration and production activities. Using a single rig and long lateral drilling techniques, line hangers make sure to improve overall productivity and competence. Global deep-water production has increased by 25% today from almost 7 million b/d a decade ago. 

Challenges

• Rising Challenges Associated with the Availability of Raw Materials – The production of liner hangers requires different types of raw materials. However, there are some instances where the manufacturers of liner hangers have faced difficulty in arranging raw materials owing to their price and availability. This trend is anticipated to hamper the growth of the global liner hanger market in the forecast period.

• High Cost of the Product

• Less Availability of Modern Technology in Developing Nations