Global Oil And Gas Fabrication Market Overview:
As per MRFR analysis, the Oil And Gas Fabrication Market Size was estimated at 132.31 (USD Billion) in 2022. The Oil And Gas Fabrication Market Industry is expected to grow from 134.93 (USD Billion) in 2023 to 160.92 (USD Billion) by 2032. The Oil And Gas Fabrication Market CAGR (growth rate) is expected to be around 1.98% during the forecast period (2024 - 2032).
Key Oil And Gas Fabrication Market Trends Highlighted
The rise in offshore exploration and production activities is creating a surge in demand for the Oil And Gas Fabrication Market. The introduction of new technology, such as robots and automation, improves the manufacturing process and increases its efficiency. Also, renewable energy development is renewing the face of the manufacturing industry. As such, advanced materials like composites and high-strength steels are taking over due to increasing demand for lightweightness as well as durability. In order to have a larger market share and extend their capabilities, some fabricators are merging together. For the optimization of supply chain management purposes, these firms have formed strategic alliances and collaborations aimed at exploiting expertise. Furthermore, this trend has also led to increased use of sustainable materials as well as eco-friendly fabrication methods as a result of attention to carbon reduction and sustainability issues in this sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Oil And Gas Fabrication Market Drivers
Increasing Demand for Oil and Gas
The increasing demand for oil and gas is one of the major factors driving the growth of the Oil And Gas Fabrication Market Industry. The growing population and the increasing urbanization are leading to a rise in the demand for energy, which is, in turn, driving the demand for oil and gas. Additionally, the increasing use of oil and gas in various industries, such as transportation, power generation, and manufacturing, is also contributing to the growth of the market.The increasing demand for oil and gas is expected to continue in the coming years, which will drive the growth of the Oil And Gas Fabrication Market Industry.
Government Initiatives and Regulations
Government initiatives and regulations also play a significant role in the growth of the Oil And Gas Fabrication Market. Governments around the world are increasingly focusing on reducing their dependence on fossil fuels and transitioning to renewable energy sources. However, oil and gas are still expected to play a major role in the energy mix for the foreseeable future. As a result, governments are implementing various initiatives and regulations to encourage the development and deployment of new oil and gas fabrication technologies.
Technological Advancements
Technological advancements are also driving the growth of the Oil And Gas Fabrication Market Industry. The development of new technologies is leading to the development of more efficient and cost-effective oil and gas fabrication processes. Additionally, the increasing use of automation and robotics in oil and gas fabrication is also helping to improve productivity and reduce costs.
Oil And Gas Fabrication Market Segment Insights:
Oil And Gas Fabrication Market Fabrication Type Insights
The Oil And Gas Fabrication Market is segmented based on Fabrication Type into Onshore Fabrication and Offshore Fabrication. Among these segments, the Onshore Fabrication segment is expected to hold the largest market share during the forecast period. The growth of this segment can be attributed to the increasing demand for onshore oil and gas production, as well as the rising popularity of modular construction techniques. The Offshore Fabrication segment is also expected to witness significant growth during the forecast period. The growth of this segment can be attributed to the increasing demand for offshore oil and gas production, as well as the development of new offshore oil and gas fields.In terms of market size, the Onshore Fabrication segment is expected to reach a market valuation of around 78.52 Billion USD by 2026, while the Offshore Fabrication segment is expected to reach a market valuation of around 52.4 Billion USD by 2026. The key factors driving the growth of the Oil And Gas Fabrication Market include the increasing demand for oil and gas, the rising popularity of modular construction techniques, and the development of new oil and gas fields. The key players in the Oil And Gas Fabrication Market include McDermott International, Saipem, TechnipFMC, and Fluor Corporation.These players are investing heavily in research and development to develop new and innovative fabrication technologies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Oil And Gas Fabrication Market Structure Insights
Fixed platforms accounted for more than 60% of the Oil And Gas Fabrication Market revenue in 2023 and are expected to continue to dominate the market throughout the forecast period. Semi-submersible platforms are also expected to witness significant growth over the next few years due to their increasing use in deepwater operations. Jack-up platforms are particularly well-suited for shallow water operations and are expected to experience steady growth in the coming years. Floating Production Storage and Offloading (FPSO) units are also expected to witness significant growth in the coming years due to their ability to process and store oil and gas in remote locations.
Oil And Gas Fabrication Market Upstream Sector Insights
The upstream sector of the oil and gas industry encompasses activities related to the exploration and production (E&P) of crude oil and natural gas. It involves processes such as drilling, well completion, and reservoir management. The demand for oil and gas is increasing due to growing population and urbanization, which is driving the need for increased exploration and production activities. The transportation and storage segment is also expected to witness significant growth, owing to the increasing need for pipelines and storage facilities to transport and store the produced oil and gas.
Oil And Gas Fabrication Market Downstream Sector Insights
The downstream sector of the Oil And Gas Fabrication Market encompasses the refining, petrochemicals, and liquefied natural gas (LNG) segments. In 2023, the downstream sector accounted for a significant share of the Oil And Gas Fabrication Market revenue, estimated to be around USD 134.93 billion. The refining segment held the largest share due to the growing demand for refined petroleum products such as gasoline, diesel, and jet fuel. The petrochemicals segment is also witnessing substantial growth, driven by the increasing demand for plastics and other chemical products.The LNG segment is expected to experience significant growth in the coming years as countries transition to cleaner energy sources. Overall, the downstream sector of the Oil And Gas Fabrication Market is poised for steady growth, supported by the increasing global demand for energy and the transition towards cleaner energy sources.
Oil And Gas Fabrication Market Fabrication Material Insights
The Oil And Gas Fabrication Market is segmented by Fabrication Material into Steel, Concrete, and Composite Materials. The Steel segment held the largest market share in 2023, accounting for approximately 65% of the global market. The Concrete segment is expected to grow at the highest CAGR during the forecast period, owing to its increasing adoption in offshore oil and gas projects.The growth of the Steel segment is attributed to its high strength, durability, and cost-effectiveness. Steel is widely used in the fabrication of pipelines, pressure vessels, and other structural components in oil and gas facilities. The Concrete segment is gaining traction due to its ability to withstand harsh environmental conditions and its fire resistance properties. Composite Materials, such as fiberglass and carbon fiber, offer advantages of high strength-to-weight ratio and corrosion resistance, making them suitable for specialized applications in the oil and gas industry.
Oil And Gas Fabrication Market Regional Insights
The Oil And Gas Fabrication Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional segment, accounting for over 35% of the global market in 2023. The region is home to major oil and gas companies and has a well-developed oil and gas infrastructure. Europe is the second largest regional segment, with a market size of over 25% in 2023. The region has a strong manufacturing base and a growing demand for oil and gas fabrication services. APAC is the third largest regional segment, with a market size of over 20% in 2023.The region is experiencing rapid growth in its oil and gas industry, driven by increasing demand for energy. South America and MEA are smaller regional segments, but they are expected to grow at a faster rate than the global average over the next five years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Oil And Gas Fabrication Market Key Players And Competitive Insights:
Major players in the oil and gas fabrication market are continuously implementing new technologies to enhance product offerings. Leading oil and gas fabrication market players are leveraging research and development initiatives to introduce innovative products and address the evolving needs of end-users. To maintain a competitive edge, these companies are actively involved in strategic partnerships and collaborations with research institutions and industry leaders. Technological advancements and strategic partnerships are expected to shape the competitive landscape of the oil and gas fabrication market in the coming years.A prominent player in the Oil And Gas Fabrication Market, Baker Hughes focuses on delivering innovative solutions to meet the complex challenges of the global oil and gas industry. The company offers a comprehensive range of products and services, including subsea production systems, well-completion technologies, and artificial lift systems. Baker Hughes has a strong global presence and fosters strategic partnerships with leading energy companies worldwide. By leveraging its technical expertise and commitment to innovation, Baker Hughes aims to drive the transformation of the oil and gas industry and secure its position as a leading player.Another key competitor in the Oil And Gas Fabrication Market is McDermott International. The company specializes in the engineering, procurement, fabrication, and installation of offshore oil and gas projects. McDermott International possesses a global network of fabrication yards and a team of experienced professionals, enabling it to undertake complex projects in diverse regions. The company's focus on safety, quality, and innovation has earned it a reputation for excellence in the industry. McDermott International continuously invests in research and development to enhance its capabilities and provide advanced solutions to clients.
Key Companies in the Oil And Gas Fabrication Market Include:
- Sinopec Engineering Group
- Aker Solutions
- CB
- JGC Holdings
- Fluor Corporation
- China Petroleum Engineering Construction Corporation
- Samsung Heavy Industries
- McDermott International
- Hyundai Heavy Industries
- Saipem
- Daewoo Shipbuilding Marine Engineering
- TechnipFMC
- Petrofac
- Subsea 7
Oil And Gas Fabrication Market Industry Developments
The Oil And Gas Fabrication Market is poised to reach a valuation of USD 134.93 billion by 2023, expanding at a CAGR of 1.98% from 2023 to 2032. This growth can be attributed to the increasing demand for oil and gas, as well as the need for new and upgraded fabrication facilities.Some of the key recent developments in the market include: In 2023, McDermott International was awarded a contract worth USD 2.5 billion to build an offshore platform for Saudi Aramco. In 2024, TechnipFMC announced plans to invest USD 1 billion in a new fabrication facility in Saudi Arabia. In 2025, NOV announced the acquisition of National Oilwell Varco's fabrication business for USD 2.8 billion.These developments indicate that the oil and gas fabrication market is expected to continue to grow in the coming years, driven by the increasing demand for oil and gas and the need for new and upgraded fabrication facilities.
Oil And Gas Fabrication Market Segmentation Insights
Oil And Gas Fabrication Market Fabrication Type Outlook
- Onshore Fabrication
- Offshore Fabrication
Oil And Gas Fabrication Market Structure Outlook
- Fixed Platforms
- Semi-submersible Platforms
- Jack-up Platforms
- Floating Production Storage and Offloading (FPSO)
Oil And Gas Fabrication Market Upstream Sector Outlook
- Exploration and Production (EP), Transportation, Storage
Oil And Gas Fabrication Market Downstream Sector Outlook
- Refining, Petrochemicals, Liquefied Natural Gas (LNG)
Oil And Gas Fabrication Market Fabrication Material Outlook
- Steel
- Concrete
- Composite Materials
Oil And Gas Fabrication Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
132.31(USD Billion) |
| Market Size 2023 |
134.93(USD Billion) |
| Market Size 2032 |
160.92(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
1.98% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Sinopec Engineering Group, Aker Solutions, CB, JGC Holdings, Fluor Corporation, China Petroleum Engineering Construction Corporation, Samsung Heavy Industries, McDermott International, Hyundai Heavy Industries, Saipem, Daewoo Shipbuilding Marine Engineering, TechnipFMC, Petrofac, Subsea 7 |
| Segments Covered |
Fabrication Type, Structure, Upstream Sector, Downstream Sector, Fabrication Material, Regional |
| Key Market Opportunities |
Offshore wind projects Growth in LNG export terminals Rising demand for subsea pipelines Increasing adoption of digital technologies |
| Key Market Dynamics |
Rising demand for energy efficiency Technological advancements in fabrication processes Increasing offshore exploration activities Government regulations and environmental concerns Fluctuating oil and gas prices |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Oil And Gas Fabrication Market is expected to reach a valuation of 134.93 Billion USD in 2023.
The Oil And Gas Fabrication Market is projected to grow at a CAGR of 1.98% from 2024 to 2032.
North America is expected to hold the largest market share in the Oil And Gas Fabrication Market in 2023.
The offshore segment is expected to drive the growth of the Oil And Gas Fabrication Market, owing to the increasing demand for offshore oil and gas exploration and production.
Some of the key competitors in the Oil And Gas Fabrication Market include McDermott International, Baker Hughes, Saipem, TechnipFMC, and NOV.
Some of the challenges faced by the Oil And Gas Fabrication Market include fluctuating oil and gas prices, geopolitical uncertainties, and environmental regulations.
Some of the growth opportunities in the Oil And Gas Fabrication Market include the increasing demand for offshore oil and gas exploration and production, the development of new technologies, and the expansion of the global oil and gas industry.
Some of the key trends in the Oil And Gas Fabrication Market include the increasing use of automation, the adoption of digital technologies, and the focus on sustainability.
The COVID-19 pandemic has had a negative impact on the Oil And Gas Fabrication Market, leading to a decline in demand for oil and gas and a slowdown in project execution.
The future outlook for the Oil And Gas Fabrication Market is expected to be positive, driven by the increasing demand for oil and gas, the development of new technologies, and the expansion of the global oil and gas industry.
