Oilfield Equipment Market to Reach USD 156.5 Billion by 2035, Driven by Strong North American Demand

According to the report, the global oilfield equipment market is likely to grow from USD 116.2 Billion in 2025 to USD 156.5 Billion in 2035 at a highest CAGR of 3.0% during the time period. The key factor which has led to the growth of the oilfield equipment market consists of the rising exploration and production (E&P) of onshore and offshore oilfields due to the rising worldwide demand of energy and petroleum products. Digital oilfield systems, automation and sophisticated drilling tools are contributing to enhanced efficiency in operations and facilitating extraction of oil in complicated oil reservoirs.

Moreover, increasing the use of upgraded oil recovery (EOR) methods and development of unconventional resources, such as shale and tight oil, are increasing the demand on equipment. Major oil producing nations are investing in capacity building and modernization processes in order to maximize production, an additional driver in market development. In addition, the current recovery of the crude oil prices and the positive government policies aimed at boosting the upstream investments are also inspiring the oil companies to re-initiate the abandoned projects.

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Key Driver, Restraint, and Growth Opportunity Shaping the Global Oilfield Equipment Market

The increase in the number of deepwater and ultra-deepwater exploration ventures is an important booster to oilfield equipment market worldwide. The growing interest of large oil companies in offshore drilling (especially in the Gulf of Mexico, Brazil, West Africa, etc.) is driving the demand of sophisticated rigs, offshore production systems, and blowout preventers. The high-performance nature of the equipment that is required to work under harsh environments is driving manufacturers towards innovation thus increasing the growth in the oilfield equipment market.

The significant constraints of oilfield equipment market is the increasing tendency towards renewable energy and rigid environmental laws that are directed at the reduction of carbon emissions. Investments in new oilfields are being affected by government policies that encourage the use of cleaner forms of energy and policies that limit exploration of fossil fuels. Moreover, fluctuation in the cost of crude oil and increased maintenance charges of the heavy equipments deterring the operators to enter into long term contract discourages capital expenditure in upstream activities.

A huge potential to the oilfield equipment market in the rising penetration of digital technologies, including IoT, AI, and predictive analytics. Intelligent drilling and sensor-based monitoring systems can improve real-time data acquisition and optimization of production and minimize downtime of equipment. The providers of oilfield services are turning to automation and cloud computing to enhance the performance of the assets, the safety of operations, and the cost effectiveness and are generating profitable growth opportunities among the equipment manufacturers involving technology.

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Impact of Global Tariff Policies on the Oilfield Equipment Market Growth and Strategy

The global oilfield equipment market is greatly affected by the tariff rates as they mainly affect the manufacturing cost, the supply chain and the competitiveness in the trade. The increased tariff on imported raw materials like steel, aluminum and electronic fittings in oilfield equipment add to the cost of total production and the end user will bear higher costs in the purchase of equipment. This may slug the procurement process especially in markets that are cost conscious or when oil prices are low.

As an example, the introduction of tariffs on imported steel by the U.S. in Section 232 in 2018 increased the input prices of domestic manufacturers of oilfield equipment (such as Baker Hughes and National Oilwell Varco (NOV)) that needed to readjust pricing models and sourcing strategies to keep margins.

Moreover, the uncertainty in international trade and investment decisions in oil-producing regions is caused by changing tariff policies. The import reliant countries that rely on imported drilling tools, valves, and subsea equipments usually experience delay in project completion schedules as a result of customs and price change.

For instance, in 2024, the U.S. and China were in trade conflicts, and necessary import duties on drilling and pumping components were raised, which affected the supply stream of multinational companies operating in the oil and gas sector such as Schlumberger and Halliburton. Such interferences have caused major industry players to localize production and diversify supplier base, which have led to growth in regional production, yet have contributed to more complex operations throughout the oilfield equipment supply chain.

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Recent Development and Strategic Overview:

In July 2025, Aker Solutions ASA launched autonomous drone inspection on offshore platforms, which is controlled remotely in a control station located on land. It is an innovation that uses the use of sophisticated sensors and cameras to capture high-resolution data at more than 70 percent lower costs in comparison to conventional inspection methods.

In October 2025, Baker Hughes won a contract worth over a year with Aramco to increase its fleet of underbalanced coiled tubing drilling (UBCTD) to ten in Saudi Arabia in its natural gas fields. The objective of this expansion is to achieve efficiency in the operation of drilling and ensure more output in the region.

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Key Trend: Modular & Energy-Efficient Equipment

The key trends in the oilfield equipment market are the movement towards modular, energy efficient and environmentally friendly equipment. In 2025, TechnipFMC plc unveiled modular drilling units, which will save energy and carbon emissions in offshore and remote operations. These units can be transported, assembled and maintained with ease and have operational flexibility in harsh environments. Low-emission rigs, hybrid power systems, and automated operations are sustainable solutions that the industry is paying attention to with the aim of minimizing on the effects imposed on the environment.

Moreover, the cooperation between the equipment manufacturers and technology providers allows real-time monitoring, predictive maintenance and digital twin applications, which is in line with global environmental standards and customer expectations. Energy efficient and modular solutions enable the operator to minimize the cost of operations and meet the tighter regulatory environments. The innovations make the companies in a position to address the changing market demands in terms of sustainability and operational efficiency.
The trend enhances the oilfield equipment market growth through adoption of flexible, environmentally friendly, and cost-effective oilfield equipment.

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This release was published on openPR.