Oil & Gas Engineering Services Market

• Industrialization and rapid urbanization is driving the market growth

The need for daily necessities has also increased as a result of the rapid population growth. As a result, businesses are growing the production facilities that depend on a steady supply of electricity. To meet the enormous demand for energy, a sizable amount of oil and gas is used to generate electricity.

Numerous hydrocarbon products are used as fuel in the expanding global transportation system, which is important for socioeconomic development. As a result, the market is being driven directly by the consistent and steady demand, which is anticipated to expand exploration and production activities.

It is projected that pipeline development will increase along with rising energy consumption. Numerous midstream EPC contracts for oil and gas will arise from this, fostering additional industry growth. This presents a lucrative possibility for market expansion.

Due to the high rate of hydrocarbon consumption in the world, the demand is still high and steadily rising in anticipation of the market's expansion. Government and commercial organizations are taking the initiative to invest in the extensive exploration of hydrocarbons in order to meet the high demand for oil and gas.

Due to their abundant oil and gas reserves, OPEC nations in the Middle East and Africa are likely to dominate this market, leading major oil firms around the world to boost their investment in hydrocarbon extraction. Due to its numerous rising and high-potential economies, including Malaysia, Australia, China, and India, the Asia Pacific region is essential for global oil and gas consumption.

Companies and governmental bodies are eager to enhance hydrocarbon output due to the increasing demand. As a result, there are numerous contracts and agreements in place to increase oil and gas production. The primary initiatives are on the to-do list to satisfy the changing hydrocarbon demand. Leading companies are very keen on exploring oil and gas, driving this sector. Thus, driving the Oil & Gas Engineering Services market revenue.

The Global Oil and Gas Engineering Services Market Industry is experiencing a surge in demand driven by the growing global energy requirements. As economies expand, the need for reliable energy sources intensifies, leading to increased investments in oil and gas exploration and production. In 2024, the market is projected to reach 54.4 USD Billion, reflecting the industry's response to this rising demand. Countries are focusing on enhancing their energy security, which necessitates advanced engineering services to optimize extraction processes and improve efficiency. This trend is expected to continue, with the market anticipated to grow significantly by 2035, reaching 88.2 USD Billion.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Oil & Gas Engineering Services Market dominated this market in 2022 (45.80%). Due to the rising number of oil and gas projects in nations like the United States and Canada, North America is predicted to dominate the oil and gas engineering services market. The United States Energy Information Administration estimates that the country produced 11.7 million b/d of crude oil on average last year and 12.4 million b/d on average this year.

The nation is seeing a substantial increase in strategic alliances as a profitable way to take advantage of the prospects offered by the oil and gas industry in the area. For instance, the U.S. Department of Energy (DOE) announced the Geothermal Energy from Oil and Gas Demonstrated Engineering Funding Opportunity Announcement (FOA) in July of last year.

This FOA will award up to USD 165 million to expand the U.S. geothermal energy deployment by utilizing technologies and labor from the oil and gas industry. This inaugural FOA is planned to grant USD 10 million to build a consortium that would propose a roadmap for bridging the technological and knowledge gaps in geothermal energy using technology and best practices from the oil and gas sector.

Further, the U.S. Oil & Gas Engineering Services market held the largest market share, and the Canada Oil & Gas Engineering Services market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Oil & Gas Engineering Services Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Oil & Gas Engineering Services market accounts for the significant market share. The region's ongoing upstream investments fuel the segment's expansion. Further, the German Oil & Gas Engineering Services market held the largest market share, and the U.K Oil & Gas Engineering Services market was the fastest growing market in the European region

The Asia Pacific Oil & Gas Engineering Services market is expected to register fastest growth from 2023 to 2032. Significant upstream and midstream developments have aided the region's colossal growth. The expansion of this sector in the area has been fueled by China's expanding downstream industries.

The complicated gas distribution pipeline network in Asia Pacific enhances market dynamics. Moreover, China’s Oil & Gas Engineering Services market held the largest market share, and the Indian Oil & Gas Engineering Services market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Oil & Gas Engineering Services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Oil & Gas Engineering Services industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Oil & Gas Engineering Services industry to benefit clients and increase the market sector. In recent years, the Oil & Gas Engineering Services industry has offered some of the most significant advantages to medicine.

Major players in the Oil & Gas Engineering Services market, including Stress Engineering Services Inc., Toyo Engineering Corporation, Element Materials Technology, L&T Technology Services Limited, Arseal Technologies, Citec Group Oy Ab, WSP Global Inc., Wood PLC, Tetra Tech, Inc., Mannvit Consulting Engineers, QuEST Global Services Pte. Ltd., M&H, Hatch Ltd., and Lloyd's Register Group Services Limited, are attempting to increase market demand by investing in research and development operations.

A significant infrastructure business with its headquarters in Hyderabad, India is called Megha Engineering & Infrastructures Limited (MEIL). The business started off as a modest fabrication facility in 1989. The division eventually established a reputation for itself in the industrial and technical fields. The first oil refinery in Mongolia will be built by Megha Engineering & Infrastructures Limited (MEIL) in November 2022.

Oil and gas company Indian Oil Corp Ltd (IOCL) is integrated. The business carries out oil and gas exploration, production, refining, pipeline transportation, and sale of natural gas and petroleum products. Additionally, it produces and sells petrochemicals and engages in a sizable amount of alternative energy business.

Larsen & Toubro (L&T), India's top engineering and construction conglomerate, ReNew Power, India's top renewable energy company, and Indian Oil Corporation Ltd., the country's top refiner and fuel retailer, announced in April 2022 that they had signed a legally binding term sheet for the creation of a Joint Venture (JV) company to develop the country's emerging green hydrogen sector.