The global oil & gas fabrication market size was worth USD 4.86 billion in 2021. The market value is slated to rise from USD 5.03 billion in 2022 to USD 6.93 billion by 2029 at 4.7% CAGR during the forecast period. The infrastructure of the oil & gas industry is complex. An oil rig or platform is a large structure with facilities for drilling wells and extracting and processing oil and natural gas. Some of these oil platforms even have facilities to house workers. There are different oil platforms such as fixed platforms, semi-submersible platforms, compliant towers, and others. All of these structures are built on steel legs. Fortune Business Insights presents this information in their report titled “Oil & Gas Fabrication Market, 2022-2029.”
Growing Demand and Consumption of Oil & Gas to Foster Market Growth
The rising oil & gas production & exploration activities, along with increasing investments in the services market, surges the demand for oil & gas fabrication. The necessity to enhance the efficiency of established and fresh reserves is increasing. Rising investments in ultra-deepwater and deepwater projects and growing emphasis on emerging unconventional hydrocarbons propel the global oil & gas fabrication market growth during the forecast period.
However, the oil & gas industry production results in rising pollution levels and increasing global warming threats. Governments have imposed regulations on oil & gas companies.
Global Market Experienced a Downward Trend Due to Decreased Oil & Gas Demand
In March 2020, oil prices plunged due to geopolitical events along with the global impact of the COVID-19 pandemic. As a result, in 2020, the average number of the U.S. rigs fell 52% from 2019. The U.S. rig count hit a low of 244 in mid-August since then it has risen to 397 as of February 19, 2021. In 2020, industrial participants’ business was impacted by the COVID-19 pandemic as customers delayed purchases and planned projects, citing COVID-19-related market uncertainties, permitting delays and logistical constraints.
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Source: GlobeNewswire
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