Sucker Rod Market
According to a new report published by Introspective Market Research, titled, “Sucker Rod Market by Type, Application and Region: Global Opportunity Analysis and Industry Forecast, 2024–2032,”
the global Sucker Rod Market size was valued at $ 114.11 billion in 2023, and is projected to reach $ 189.54 billion by 2032, registering a CAGR of 5.80% from 2024 to 2032.
Sucker rods, integral components in the oil and gas sector, serve the crucial function of transmitting pumping force from a surface unit to downhole pump mechanisms within an oil well. This process, known as artificial lift, becomes necessary when natural reservoir pressure is insufficient to bring fluids to the surface. In this system, a surface pumping unit, typically motor-driven, imparts an up-and-down motion to the sucker rod string. This string is connected to a downhole pump located near the well's bottom. The reciprocating motion generated by the sucker rod induces a similar motion in the pump, facilitating the lifting of oil or other fluids to the surface.
The Sucker Rod Market is segmented into Type, Application, and region. By Type, the market is categorized into Steel Sucker Rods, FRP Sucker Rods, and Hollow Sucker Rods. By Application, the market is categorized into Onshore and offshore. By region, it is analysed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.
The escalating global demand for energy, propelled by factors like population expansion, industrialization, and urbanization, has intensified the pressure on the oil and gas sector to enhance extraction and production capabilities. Sucker rods, integral components in the rod pumping system employed primarily in onshore wells, play a pivotal role in the oil and gas industry. Rod pumping, a prevalent method in this sector, relies heavily on sucker rods to establish a mechanical link between the surface pumping unit and the downhole pump. As the worldwide appetite for oil continues to surge, the imperative for efficient and reliable extraction methods becomes increasingly pronounced, making the sucker rod market a crucial player in addressing the mounting energy demand.
The sucker rod market is poised for significant growth, driven by key trends within the dynamic landscape of the oil and gas industry. A pivotal factor contributing to this expansion is the escalating demand for enhanced oil recovery (EOR) techniques. As mature oil fields experience a decline in natural pressure, extracting remaining hydrocarbons becomes increasingly challenging. Sucker rods play a vital role in artificial lift systems, particularly in the widely adopted beam pumping units utilized in EOR methods. This trend underscores a substantial opportunity for the sucker rod market, as operators seek reliable and efficient equipment to optimize production from aging wells.
Global Sucker Rod Market, Segmentation
The Sucker Rod Market is segmented based on type, application, and region.
Type:
The packaging type segment is further classified into Steel Sucker Rod, FRP Sucker Rod, and Hollow Sucker Rod. Among these, the FRP Sucker Rod sub-segment accounted for the highest market share in 2023. FRP sucker rods are resistant to corrosion. Traditional steel sucker rods are susceptible to corrosion in harsh downhole environments, leading to increased maintenance costs and a shorter lifespan. FRP rods, being non-metallic, offer superior corrosion resistance, making them a favorable choice for operators looking to minimize the impact of corrosion on their equipment. This can result in longer service life and reduced operational costs.
Application:
The application segment is further classified into Onshore and offshore. Among these, the Onshore care sub-segment is anticipated to show the fastest growth by 2032. Onshore applications of sucker rods play a crucial role in the oil and gas industry, primarily in the extraction of crude oil from onshore reservoirs. Onshore oil reserves are often more accessible and cost-effective to develop compared to offshore reserves. Onshore drilling involves less complex logistics and infrastructure requirements, making it a preferred choice for many oil and gas companies. The demand for sucker rods in onshore applications has been consistently growing as new onshore fields are discovered and existing ones are expanded.
Region:
The Sucker Rod Market in North America is projected to show the fastest growth by 2032. North America is poised to lead the sucker rod market for several key reasons. The region has experienced a notable upswing in oil and gas exploration and production activities, particularly in unconventional resources like shale oil and gas. The substantial development of these resources has resulted in a heightened demand for sucker rods, essential components in artificial lift systems crucial for extracting hydrocarbons from wells. Technological advancements and innovative drilling techniques in North America have significantly enhanced the efficiency of oil and gas extraction. The increased adoption of horizontal drilling and hydraulic fracturing necessitates specialized sucker rod systems to optimize production, thereby driving the demand for high-quality sucker rods in the region.
Some of The Leading/Active Market Players Are-
- Tenaris
- Weatherford
- Exceed
- Dover
- John Crane
- Ocher Machinery
- Nine Ring Petroleum Machinery Co., Ltd.
- Kerui Group
- Dongying TIEREN Sucker Rod Co. Ltd
- Shengli Oilfield Highland, and Other Active Players
Key Industry Developments
- In February 2024, McDermott was awarded two contracts from North Oil Company (NOC) to deliver engineering, procurement, construction, installation, and commissioning (EPCIC) for packages 11 and 13 of the Ruya Development Project, as part of the expansion of the Al-Shaheen field, Qatar's largest oil field.
- In August 2023, CB&I, McDermott's storage business, received Approval in Principle (AiP) for its design of a liquid hydrogen (LH2) cargo containment system from DNV, a leading classification society for shipping. CB&I collaborated with Shell International Trading and Shipping Company Limited (Shell) to provide safe LH2 shipping solutions that enable hydrogen energy supply chains.
Key Findings of the Study
- FRP Sucker Rods holding the highest market share in 2023 due to their corrosion resistance.
- Onshore applications of sucker rods are expected to exhibit the fastest growth by 2032.
- North America is projected to lead the sucker rod market's growth by 2032, fueled by increased oil and gas exploration and production activities, particularly in unconventional resources like shale oil and gas.
