The global carbon steel tubing in oil and gas lift applications market is estimated to be worth around US$ 5.57B in 2022. With burgeoning demand for oil and gas across the world, the overall market is projected to grow at a steady CAGR of 3.9% between 2022 and 2028, surpassing a valuation of US$ 7B by 2028.
In a recently published analysis, Future Market Insights (FMI) has studied various market dynamics including key drivers, trends, and growth scenario of the global carbon steel tubing market, with a focus on the key lift applications of carbon steel tubes in the Oil and Gas industry over the forecast period of 2022-2028.
FMI predicts that increasing drilling activities to compliment recovering crude oil prices will boost the sales of carbon steel tubing for a wide range of applications in Oil and Gas industry.
Increasing number of horizontal wells in U.S coupled with flourishing oil and gas production in Gulf Of Mexico, Alaska, and the other states, will further spur the growth of carbon steel tubing market through 2028. With 1.6% Year-on-Year growth over the period of 2015-2030, natural gas consumption is projected to increase, further driving the shale gas production resulting in growing demand for carbon steel pipes. This growth is projected to present potential opportunities to oil and gas companies looking to expand their onshore activities. Also, high cost and complexities associated with offshore activities would result in service providers switching to onshore activities.
Geographically, North America is projected to dominate the carbon steel tubing landscape considering ongoing developments in hydraulic fracturing market for the production of shale gas.
Increased Oil and Gas Upstream Operations to Boost Carbon Steel Tubing in Lift Applications
FMI envisages increasing number of horizontal wells to significantly contribute towards deployment of carbon steel tubing in Oil and Gas upstream operations, further presenting potential market opportunities to manufacturers and suppliers of carbon steel tubing. Moreover, oil and gas companies replacing the aged and damaged cast and wrought iron pipes with carbon steel tubing, will drive up the adoption. Another key factor driving the demand for carbon steel tubing is the recovering Oil and Gas industry and efforts to facilitate this recovery process.
Increasing shale drilling activities in U.S and Canada will also boost the demand for carbon steel pipes during the forecast period. Moreover, technological advancements in coating products to fight pipe corrosion has also supported the deployment of carbon steel tubing in oil and gas lift applications.
Material Alternatives & Over Production of Chinese Steel Could Negatively Impact Carbon Steel Tubing Market
However, availability of material alternatives such as steel, alloy steel, chromium steel, fiber glass, fiber reinforced plastic, and corrosion resistant alloys could restrict the adoption of carbon steel tubing in oil and gas lift applications. Oil and gas companies change their tubing requirements as per the required application in onshore and offshore coupled with varying temperature conditions.
Another key factor anticipated to negatively impact the manufacturing of carbon steel tubing is the skewed supply demand ratio of steel attributable to excessive production and oversupply of Chinese steel. This situation lead to cheap exports and subsequent shutting down of many steel plants, which further resulted in price crash of carbon steel.
NPD & Tie-Ups to Remain Key Forward Market Strategies in the Moderately Concentrated Carbon Steel Tubing Market
FMI forecasts moderate concentration and high competition in global market for carbon steel tubing in oil and gas lift applications, considering the presence of dominant Chinese and other Asian players. Moreover, high initial setup costs acts as a barrier to the entry of new players in the market. In terms of overall market strategies, development of robust, innovative tubes coupled with strategic partnerships and tie-ups with end-use companies and distributors will fit the grand scheme of things.
These insights are based on a report on Carbon Steel Tubing in Oil and Gas Lift Applications Market by Future Market Insights