Composites In Oil & Gas Industry Market

Updated on : August 22, 2024

Composites in Oil and Gas Industry Market

The global composites in oil gas industry market was valued at USD 2.3 billion in 2022 and is projected to reach USD 3.4 billion by 2028, growing at 6.1% cagr from 2023 to 2028. Over the world, the composites in oil gas industry market is expanding significantly, and during the forecast period, a similar trend is anticipated. The demand for composites in the oil and gas industry has been driven by several factors, including the need to increase the efficiency of operations, reduce maintenance costs, and enhance safety. One of the main applications of composites in the oil and gas industry is in the construction of pipelines. Composites are used to create high-pressure pipelines that are resistant to corrosion and erosion. Additionally, composites are used in the construction of risers, which are used to transport oil and gas from the seabed to the surface. Composites are also used in the construction of offshore platforms, where they provide durability and resistance to environmental factors such as saltwater, high winds, and harsh temperatures. In addition to their use in infrastructure, composites are also used in various components of drilling and production equipment, such as drilling pipes, blowout preventers, and wellheads. Composites are also used in the construction of storage tanks, which are used to store crude oil, natural gas, and other liquids. In the upcoming years, this is also anticipated to fuel market expansion. Throughout the projected period, the market growth is anticipated to increase due to the rising need for cost effective solutions for oil & gas industry.

Attractive Opportunities in Composites in Oil Gas Industry Market Trends

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Composites In Oil Gas Industry Market Dynamics

Driver: Growing demand for lightweight and durable materials in the oil and gas industry

One of the major drivers of the oil and gas composites market is the growing demand for lightweight and durable materials in the oil and gas industry. Composites offer a range of advantages over traditional materials such as steel and aluminum, including their high strength-to-weight ratio, corrosion resistance, and ability to withstand high temperatures and pressures. Composites are also easier to install and require less maintenance, which can reduce costs for oil and gas companies.

Restraint: High cost of composite materials compared to traditional materials

One of the major restraints for the oil and gas composites market is the high cost of composite materials compared to traditional materials such as steel and aluminum. Composites are often more expensive to manufacture, and their installation may require specialized equipment and expertise, which can add to the overall cost of using them in oil and gas applications. Additionally, the long-term performance and durability of composites in harsh oil and gas environments is still relatively unknown, which may make some companies hesitant to adopt them.

Opportunity: Expanding natural gas market and growing use of composites in renewable energy sector

The natural gas market is expanding rapidly, and composite materials offer several advantages over traditional materials in the transportation and storage of natural gas. Composites are lighter, more durable, and more resistant to corrosion than steel, making them an attractive option for natural gas transportation and storage. oil and gas composites market is the increasing demand for renewable energy sources. As the world shifts towards cleaner energy, there is a growing need for materials that can withstand the unique demands of offshore wind farms and other renewable energy installations. Composites offer a range of benefits for these applications, including their high strength-to-weight ratio, corrosion resistance, and ability to withstand harsh environmental conditions.

Challenge: lack of uniform global standardization and regulations

Oil and gas composites market is the lack of standardization and regulation for composite materials in the industry. Unlike traditional materials such as steel and aluminum, there is no universally accepted standard for composite materials, which can make it difficult for companies to select and use them in a consistent and reliable manner. Additionally, there is a lack of standardization for testing and performance evaluation of composites in oil and gas environments, which can make it difficult to assess their long-term performance and durability.

Composites In Oil Gas Industry Market Ecosystem

Asia Pacific to hold the largest market share in the recycled materials for mobility applications market

According to the World Bank, Asia Pacific is the fastest-growing region in terms of population and economic growth. The region has experienced significant growth in the last decade, accounting for over a third of the world’s GDP. The high economic growth, coupled with the mounting population, is expected to boost the industrial sector in the region, which will increase the need for recycled materials such as recycled plastic polymers and recycled composites from industries. Continuous and easy availability of recycled materials, low-cost labor, lower price, and environmental benefits drive the recycled materials for mobility applications market in the region.

Based on resin type, Epoxy resin segment is estimated to account for the largest market share of the composites in oil gas industry market

Based on resin type, epoxy resin segment is estimated to account for the largest market share. The demand of epoxy resin for pipes and pipeline coatings, storage tanks and vessels applications, Epoxy resin composites are used in the construction of offshore structures such as risers, platforms, and subsea equipment. They offer excellent corrosion resistance and durability in harsh marine environments, also epoxy resin used to manufacture various tools and equipment used in the oil and gas industry, such as drill bits, coiled tubing, and wireline cables. They offer high strength-to-weight ratio, stiffness, and durability. This factors will contribute to the market growth.

Based on application, pipes segment followed by tanks segement anticipated to dominate the market

Based on application, the market is segmented into the Pipes (piping systems, jumpers, risers, downline, etc.), tanks, top side applications (gratings, ladders, walkways, handrails, decking, flooring, etc.), pumps & compressors, and others (fracballs, frac plugs, flexible tubes, composite riders high pressure, accumulator bottels, caissons, etc.). Composite pipes are made up of a combination of materials, such as fiberglass, carbon fiber, and epoxy resins. These materials are selected based on the specific application requirements, and the resulting composite material can be tailored to meet specific performance criteria. In the oil and gas industry, pipes are primarily used for offshore applications such as deep-water drilling, production risers, and flowlines. Pipes can withstand harsh environmental conditions such as high pressure, high temperature, and corrosive fluids. They also have excellent fatigue resistance and can withstand cyclic loading and vibration. In November 2022 Strohm, a leading producer of Thermoplastic Composite Pipes (TCP), has been awarded a contract from ECOnnect to provide more than 11 km of TCP for the TES Wilhelmshaven Green Gas Terminal in Germany.

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Composites in Oil and Gas Industry Market Players

The composites in oil gas industry market is dominated by a few globally established players such as Baker Hughes (US), Strohm (Netherlands), NOV Inc. (US), SLB (Schlumberger N.V.) (US), Halliburton (US), Shawcor (Canada), TechnipFMC plc (UK), Weatherford (US), Future Pipe Industries (UAE), Saudi Arabian Amiantit Co. (Saudi Arabia) among others, are the key manufacturers that secured major contracts in the last few years. Major focus was given to the contracts and new product development due to the changing requirements across the world.

These companies are pursuing a variety of inorganic and organic strategies in order to gain a foothold in the composites in oil gas industry market. The research includes a detailed competitive analysis of these key players in the composites in oil gas industry market, including company profiles, recent developments, and key market strategies.

Composites in Oil and Gas Industry Market Report Scope

The study categorizes the composite materials in oil & gas industry market based on Resin type, Fiber type, Application and Region.

By Resin Type:

• Epoxy
• Composites
• Polyester
• Phenolic
• Others

By Fiber Type:

• Glass
• Carbon
• Others (Aramid Fiber and Natural Fiber)

By Application Type:

• Pipes (piping systems, jumpers, risers, downline, etc.)
• Tanks
• Top Side Applications (gratings, ladders, walkways, handrails, decking, flooring, etc.)
• Pumps & Compressors
• Others (fracballs, frac plugs, flexible tubes, composite riders high pressure, accumulator bottels, caissons, bearings, gaskets, etc.)

By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In November 2022, Strohm, a leading producer of Thermoplastic Composite Pipes (TCP), has been awarded a contract from ECOnnect to provide more than 11 km of TCP for the TES Wilhelmshaven Green Gas Terminal in Germany.
• In June 2022, NOV and Aker Solutions signed a new long-term technology cooperation agreement to optimize Subsea system solutions enabling sustainable oil and gas.
• In March 2022, The agreement will be instrumental in expanding the knowledge of the design, production and qualification standard from Strohm’s technology backbone – DNV (standard ST-F119), allowing operators to qualify and utilize TCP, instead of metallic pipes, creating substantial cost reduction potentials in all stages of oil and gas projects life cycle.
• In September 2021, TechnipFMC acquired Magma Global Ltd, a UK-based company specializing in the development and manufacture of carbon fiber and composite pipes for offshore and onshore oil and gas, and renewable energy applications.
• In July 2021, NOV Inc. announced the acquisition of CDS Engineering, a leading provider of downhole completion tools for the oil and gas industry. The acquisition is expected to enhance NOV's completions offering and expand its presence in the Permian Basin..

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