Oil & Gas Fabrication Market: Current Analysis and Forecast (2023-2030)

Oil and gas fabrication refers to the process of constructing and assembling various components and structures used in the oil and gas industry. It involves the fabrication of equipment, such as pipelines, platforms, drilling rigs, storage tanks, and modules required for offshore and onshore operations. The oil & gas fabrication market plays a crucial role in the entire oil & gas value chain, providing essential components and infrastructure for exploration, production, and transportation. Despite the push for renewables, oil and gas remain dominant energy sources, particularly in developing economies. This sustained demand fuels the need for constant infrastructure expansion and upgrades, driving the fabrication market.

The Oil & Gas Fabrication Market is expected to grow at a strong CAGR of 4.75 % during the forecast period owing to the depletion of easily accessible resources which has led to exploration in deeper waters and unconventional formations like shale. This necessitates specialized equipment and infrastructure, creating opportunities for fabricators. New technologies like horizontal drilling and hydraulic fracturing are opening up new reserves and boosting production, requiring fabrication of specialized equipment and components. For instance, in 2023, TechnipFMC Partners with Aker Solutions to develop subsea equipment for carbon capture, utilization, and storage (CCUS) projects.

Based on the product, the market is segmented into offshore, onshore, piping, and structures. Amongst these, the onshore segment held significant growth in the market in because as countries are transitioning towards cleaner energy sources, liquefied natural gas (LNG) has become a popular choice for power generation and other industrial applications. Onshore LNG facilities are typically less expensive and easier to construct compared to offshore facilities which makes them more attractive to investors. Additionally, with the increasing focus on renewable energy, the demand for oil and gas infrastructure such as pipelines, storage tanks, and processing facilities is also growing. Onshore fabrication is better suited to meet these needs due to its proximity to population centers and lower transportation costs.

Based on application, the market is segmented into upstream, midstream, and downstream. Amongst these, the upstream segment held dominating share of the market in 2022. The global demand for energy continues to rise, and the upstream segment plays a crucial role in meeting this demand. As developing economies grow, the need for oil and gas increases, contributing to the dominance of the upstream market. Furthermore, advancements in technology have enabled the exploration and production of unconventional resources such as shale gas and deepwater reserves. These advancements have made previously inaccessible reserves economically viable, thereby increasing the dominance of the upstream segment.

Based on the material, the market is segmented into carbon steel, stainless steel, nickel alloys, and composite materials. The carbon steel segment held a dominating share in the market in 2022 because it is an economical option when compared to stainless steel and nickel alloys, making it appealing to clients looking for cost-effective solutions. Additionally, carbon steel offers good strength, durability, and weldability due to which it suitable for constructing large structures commonly found in oil refineries and petrochemical plants. Finally, its malleability allows for easy machining and forming which further enables complex designs that cater to diverse customer needs.

For a better understanding of the market adoption of the oil & gas fabrication industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, Netherlands, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India and Rest of Asia-Pacific), Rest of World. North America has a significant share in the oil & gas fabrication market because North America particularly the United States and Canada, has significant reserves of oil and natural gas, which provides a strong foundation for the industry. The region is home to many major oil and gas producers, such as ExxonMobil, Chevron, and ConocoPhillips. Furthermore, the oil and gas industry in North America has been at the forefront of technological advancements, with a focus on efficiency, safety, and sustainability. This has led to the development of innovative drilling techniques, such as hydraulic fracturing (fracking), which has unlocked new sources of energy. Finally, North America has an extensive network of pipelines, refineries, and storage facilities that support the oil and gas value chain. This infrastructure enables efficient transportation and distribution of hydrocarbons, reducing costs and increasing accessibility to markets.

Some major players operating in the market include SAIPEM SpA, TechnipFMC plc, Integrated Flow Solutions, Inc, Honiron Manufacturing, Drydocks World, Samsung Heavy Industries Co., Ltd, McDermott., LARSEN & TOUBRO LIMITED, Oil States Industries, Inc., and Lefebvre Engineering FZC.