Sucker Rod Market Synopsis

Sucker Rod Market Size Was Valued at USD 108.26 Billion in 2022, and is Projected to Reach USD 164.89 Billion by 2030, Growing at a CAGR of 5.4% From 2024-2032.

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.
• Constructed from high-strength steel, sucker rods are designed to withstand the mechanical stresses inherent in the pumping process. The selection of the appropriate sucker rod involves considerations such as well depth, fluid weight, and pumping conditions. Available in various sizes and configurations, these rods play a vital role in optimizing fluid flow from the wellbore, ensuring efficient extraction under diverse operational parameters.
• The sucker rod market is significant in the context of the oil and gas industry. The demand for sucker rods is influenced by factors such as the level of oil production, the number of active oil wells, and the overall health of the oil and gas sector.
• Several companies specialize in the manufacturing and supply of sucker rods, and the market can be influenced by fluctuations in oil prices, technological advancements in the extraction process, and changes in global energy demand.

Sucker Rod Market Trend Analysis

Increasing Global Energy Demand

• 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 rapid industrialization and urban development witnessed in emerging economies further amplify the need for energy, particularly oil. Sucker rods are indispensable for optimizing the production efficiency of oil wells, ensuring a consistent and dependable energy supply. Consequently, the sucker rod market is directly influenced by the surge in global energy demand and the industry's quest to refine oil extraction processes.
• Moreover, advancements in sucker rod design and manufacturing technology have bolstered their performance, durability, and efficiency. This enhanced functionality is pivotal in addressing the challenges posed by escalating energy demand. Companies in the sucker rod market are incessantly innovating to create rods capable of withstanding harsh downhole conditions, ensuring prolonged operational life, and minimizing downtime. As the exploration and extraction of oil resources continue to be propelled by the surging global energy demand, the sucker rod market is poised for sustained growth and development, aligning with the evolving needs of the energy industry.

Oil and Gas Industry Trends Create Opportunity for Sucker Rod Market

• 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.
• Additionally, to the emphasis on EOR, the surge in unconventional oil and gas exploration, notably in shale formations, is reshaping the market. Hydraulic fracturing, or fracking, has emerged as a dominant method for extracting resources from unconventional reservoirs. Sucker rods are integral components in the pumping units essential for lifting fluids from these wells. The expanding footprint of unconventional drilling activities creates a significant market avenue for sucker rods, given the prevalent need for artificial lift systems to sustain or enhance production rates.
• Furthermore, technological advancements in sucker rod systems are aligning with the industry's overarching focus on automation and digitalization. The advent of smart sucker rod systems, equipped with sensors and monitoring capabilities, is gaining traction. These innovative systems furnish real-time data on well performance, empowering operators to optimize production and proactively identify issues. The integration of smart technologies into sucker rod systems enhances operational efficiency and mitigates downtime. As the industry continues its concerted efforts toward digital transformation, the demand for cutting-edge sucker rod solutions is poised to burgeon, presenting a lucrative opportunity for stakeholders in the market.

Sucker Rod Market Segment Analysis:

Sucker Rod Market Segmented on the basis of type and application.

By Type, FRP Sucker Rod segment is expected to dominate the market during the forecast period

• 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.
• FRP materials are known for their high strength-to-weight ratio. Sucker rods made from FRP can be lighter than traditional steel rods while maintaining the necessary strength characteristics. The lightweight nature of FRP rods can lead to easier handling during installation and reduced stress on the pump unit. This can contribute to operational efficiency and potentially lower energy consumption.
• The lightweight and flexible nature of FRP sucker rods can contribute to reduced energy requirements for pumping operations. The rods' flexibility allows for better absorption of shocks and load variations during the pumping process, potentially leading to smoother and more efficient operations. This characteristic can be particularly beneficial in unconventional and challenging reservoirs.

 By Application, Onshore segment held the largest share of 58.9% in 2022

• 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.
• The advancements in drilling technologies and enhanced oil recovery techniques have further fueled the growth of onshore sucker rod applications. Innovations such as horizontal drilling and hydraulic fracturing have enabled the extraction of oil from unconventional onshore reservoirs, contributing to increased demand for sucker rods. These technologies allow for the efficient recovery of oil from tight formations, enhancing the overall productivity of onshore wells.
• The stability and predictability of onshore operations make them attractive to investors and operators. Onshore drilling projects typically involve lower risks compared to offshore projects, which are subject to more unpredictable environmental conditions and technical challenges. This stability in onshore operations encourages continuous investment and development, leading to the sustained growth of sucker rod applications in onshore oil fields

Sucker Rod Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• 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.
• North America's well-established oil and gas infrastructure, coupled with supportive government policies, has created an environment conducive to the growth of the sucker rod market. The region's robust oilfields and the presence of major market players provide a solid foundation for the manufacturing, distribution, and application of sucker rods, solidifying its leadership position in the global market. In summary, North America's combination of increased exploration activities, technological advancements, and a resilient industry ecosystem positions it as a frontrunner in the sucker rod market.
• In 2022, the production index of the oil and gas extraction industry in the United States stood at 130. This was a considerable increase from 2018 when the oil and gas extraction industry's production index stood at 117.

COVID-19 Impact Analysis on Sucker Rod Market:

• The sucker rod market underwent substantial disruptions due to the COVID-19 pandemic, resulting in a nuanced impact on the industry. The initial pandemic phase witnessed a sharp downturn in oil prices, prompting a global reduction in drilling and exploration activities. Consequently, the demand for sucker rods, integral to the oil extraction process, dwindled as oil and gas companies curtailed operations in response to economic uncertainties.
• With the gradual recovery of the global economy and stabilization of oil prices, the sucker rod market is on the brink of a resurgence. Governments and industry stakeholders are implementing strategies to rejuvenate the energy sector, thereby fostering demand for oilfield equipment, including sucker rods. Nevertheless, persistent challenges such as supply chain disruptions, labor shortages, and oil price volatility continue to exert influence on market dynamics. Companies in the sucker rod sector are navigating the new normal by adopting digital technologies, optimizing production processes, and exploring innovative solutions to enhance resilience in the post-pandemic landscape.
• The post-COVID-19 landscape presents a blend of challenges and opportunities for the sucker rod market. While uncertainties endure, the industry's adaptability to changing circumstances, coupled with strategic investments in technology and sustainable practices, is poised to play a pivotal role in shaping the future trajectory of the sucker rod market. As global energy demands undergo a transformation, the sucker rod market is anticipated to experience a gradual recovery driven by a confluence of market forces, technological advancements, and ongoing initiatives aimed at achieving a more sustainable and resilient energy sector.

Sucker Rod Market Top Key Players:

• Tenaris (United States)
• Weatherford (United States)
• Exceed (United States)
• Dover (United States)
• John Crane (United States)
• Ocher Machinery (Russia)
• Nine Ring Petroleum Machinery Co., Ltd. (China)
• Kerui Group (China)
• Dongying TIEREN Sucker Rod Co. Ltd (China)
• Shengli Oilfield Highland (China)
• Jiyuan Petroleum Machinery (China)
• DADI Petroleum Machinery (China)
• Shengli Oilfield Freet (China)
• Yan'an Shou Shan Machinery Manufacturing Co., Ltd. (China)
• Shouguang Kunlong (China)
• CNPC Equipment (China)
• Shandong Molong (China)
• Sunnda (India)
• Laxmi Udyog (India)

Key Industry Developments in the Sucker Rod Market:

• In February 2024, McDermott has been 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. 

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. ANALYSIS OF THE IMPACT OF COVID-19
       1. Impact On The Overall Market
       2. Impact On The Supply Chain
       3. Impact On The Key Manufacturers
       4. Impact On The Pricing
       5. Post COVID Situation
   11. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   12. ECOSYSTEM
6. SUCKER ROD MARKET BY TYPE (2017-2030)
   1. SUCKER ROD MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. STEEL SUCKER ROD
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. FRP SUCKER ROD
   5. HOLLOW SUCKER ROD
7. SUCKER ROD MARKET BY APPLICATION (2017-2030)
   1. SUCKER ROD MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. ONSHORE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. OFFSHORE
8. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. SUCKER ROD Market Share By Manufacturer (2022)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. TENARIS (UNITED STATES)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. WEATHERFORD (UNITED STATES)
   4. EXCEED (UNITED STATES)
   5. DOVER (UNITED STATES)
   6. JOHN CRANE (UNITED STATES)
   7. OCHER MACHINERY (RUSSIA)
   8. NINE RING PETROLEUM MACHINERY CO., LTD. (CHINA)
   9. KERUI GROUP (CHINA)
   10. DONGYING TIEREN SUCKER ROD CO. LTD (CHINA)
   11. SHENGLI OILFIELD HIGHLAND (CHINA)
   12. JIYUAN PETROLEUM MACHINERY (CHINA)
   13. DADI PETROLEUM MACHINERY (CHINA)
   14. SHENGLI OILFIELD FREET (CHINA)
   15. YAN'AN SHOU SHAN MACHINERY MANUFACTURING CO., LTD. (CHINA)
   16. SHOUGUANG KUNLONG (CHINA)
   17. CNPC EQUIPMENT (CHINA)
   18. SHANDONG MOLONG (CHINA)
   19. SUNNDA (INDIA)
   20. LAXMI UDYOG (INDIA)
9. GLOBAL SUCKER ROD MARKET BY REGION
   1. OVERVIEW
   2. NORTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Impact Of Covid-19
      3. Key Manufacturers
      4. Historic and Forecasted Market Size by Type
      5. Historic and Forecasted Market Size by Application
      6. Historic And Forecasted Market Size By Country
         1. USA
         2. Canada
         3. Mexico
   3. EASTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Impact Of Covid-19
      3. Key Manufacturers
      4. Historic And Forecasted Market Size By Segments
      5. Historic And Forecasted Market Size By Country
         1. Russia
         2. Bulgaria
         3. The Czech Republic
         4. Hungary
         5. Poland
         6. Romania
         7. Rest Of Eastern Europe
   4. WESTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Impact Of Covid-19
      3. Key Manufacturers
      4. Historic And Forecasted Market Size By Segments
      5. Historic And Forecasted Market Size By Country
         1. Germany
         2. United Kingdom
         3. France
         4. The Netherlands
         5. Italy
         6. Spain
         7. Rest Of Western Europe
   5. ASIA PACIFIC
      1. Key Market Trends, Growth Factors And Opportunities
      2. Impact Of Covid-19
      3. Key Manufacturers
      4. Historic And Forecasted Market Size By Segments
      5. Historic And Forecasted Market Size By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Malaysia
         6. Thailand
         7. Vietnam
         8. The Philippines
         9. Australia
         10. New-Zealand
         11. Rest Of APAC
   6. MIDDLE EAST & AFRICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Impact Of Covid-19
      3. Key Manufacturers
      4. Historic And Forecasted Market Size By Segments
      5. Historic And Forecasted Market Size By Country
         1. Turkey
         2. Bahrain
         3. Kuwait
         4. Saudi Arabia
         5. Qatar
         6. UAE
         7. Israel
         8. South Africa
   7. SOUTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Impact Of Covid-19
      3. Key Manufacturers
      4. Historic And Forecasted Market Size By Segments
      5. Historic And Forecasted Market Size By Country
         1. Brazil
         2. Argentina
         3. Rest of South America
10. INVESTMENT ANALYSIS
11. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies