In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
The equipment used in a shale gas processing is known as shale gas processing equipment. The shale gas processing equipment is comprising of electrical machinery, compressors and pumps, internal combustion engines, heat exchangers, and measuring devices. Apart from this it has separators & filters, hydrator/glycol dehydrator, injection systems, and storage tanks which are used to process, refine and treat shale gas before making it available for commercial use.
Shale gas is a type of nature gas which is extracted from the shale formation, which is deep inside the earth. The extraction of shale gas consists of few steps. The raw shale gas is extracted by drilling the shale formation and then sent for the refining process. Then the set of equipments are used to remove components such as N2, H2S, hydrocarbons, CO2, and H2O from the raw shale gas before it is ready for commercial use.
Shale gas is a natural gas covered within a shale formation whose reserves are spread almost all across the world. Development in the form of drilling technologies on account of increasing demand for shale gas, backed by its increasing application in end user industries, has made shale gas production economical. Such a factor is anticipated to promote the growth of the global shale gas processing equipment market. Moreover, the global shale gas processing equipment market is anticipated to record a CAGR of around 17% over the forecast period i.e. 2020-2028.
The market is segmented by technologies, by end user & by region. Based on technology, the market is bifurcated into horizontal drilling and hydraulic fracturing, out of which, the demand for horizontal drilling market is increasing and it is anticipated that next 8 years are going to be best growth years for this market.
On the other hand, the end user segment is segmented into industrial, power generation, commercial, residential and transportation, out of which, power generation segment is estimated to hold a significantly large share in the market and anticipated to grow at a robust CAGR over the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Increasing demand for shale gas is accelerating the need for the investments, which in return is giving rise to the demand for the shale gas processing equipments. In last few years, there has been a tremendous need for energy by many industries which is raising the requirement for more fuel reserves that is unconventional in nature, for instance, oil and natural gas.
Shale gas replaces coal and oil which emits maximum amount of carbon. It is good for the environment and produces less pollution, thus makes it more popular. It increases the demand of shale gas which in turn gives boost to the market of shale gas processing equipment.
Major restraining factor of this market is the initial investment cost. It requires good capital to step-up the equipment and to extract the shale gas. This process helps in elimination components such as N2, H2S, hydrocarbons, CO2, and H2O from the raw shale gas to make it suitable for commercial usage. All this process requires more time and high initial investment which in turn hampers the market growth.
In developing countries, lack of awareness, fear of gas leakage and water contamination might act as an obstacle to the growth of the shale gas equipment market.
Our in-depth analysis of the shale gas processing equipment market includes the following segments:
On the basis of regional analysis, the shale gas processing equipment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North American market has the largest share of shale gas equipment market and demand is also anticipated to increase in the forecasted period of 2020-2028. The United States of America occupies the largest market share.
In Asia pacific region, China is anticipated to be next big country of shale gas reserves and offer lucrative growth opportunity in this market. Increasing initiative and investment by Chinese government to product shale gas in China is driving the growth for shale gas equipment market over the forecast period.
The shale gas processing equipment market is further classified on the basis of region as follows: