A top drive is mechanical device on a drilling rig consisting of electric or hydraulic motors, which provides rotational force to smoothen up the process of drilling a wellbore. In earlier days, rotary cable was used before top drive systems were brought to use. A top drive has the ability to drill longer sections of a stand of drill pipe and also drill with three joint stands instead of one. Moreover, it is a time-saving, efficient, and safer way of drilling. With the increasing demand for drilling rigs and rising drilling and exploration activities, there has been an increase in demand for top drive systems, thereby propelling the growth of this market even further.
Market Drivers & Inhibiting Factors
The growth of the global top drive systems market is primarily being influenced by the following factors:
- Increased exploration and deep-water drilling activities
- Advancements in technology
- Rising concerns regarding safety
- Growing demand for energy from emerging economies
- Technical and commercial benefits of top drive systems
Apart from these, increased international spending and development of unconventional reserves has laid down an array of growth opportunities for this market. However, higher costs and investments in development of unconventional reserves, concerns related to environment and oil spills, political issues, and lack of skilled professionals is likely to hamper the growth of this market. Moreover, with the declining oil price scenario these days, the demand for top drives has gone down due to decrease in the number of drilling rigs in 2015. Although the market for top drives has witnessed a slight dip in 2015, it anticipated to foresee a significant growth from 2016, since the effects of low oil prices is expected to last only for a short while.
Market Predictions
The size of the global Top drive systems market which was projected to be $1,270.2 Million in 2014 is expected to reach $1,541.6 Million by the end of 2020, growing at a CAGR of 5.7% during the forecast period 2015 to 2020. Geographically, North America holds the largest market share, with the U.S. being the dominant market among countries in this region. This growth is majorly attributed to increased exploration & drilling activities as well as in the number of drilling rigs.
Based on type, the electric top drive systems hold the largest market share of about 88.2% of the overall market, followed by hydraulic top drive systems, accounting for 11.8% of the total market share. The market value for electric top drive systems is estimated to reach $1,381.3 Million whereas the market value for hydraulic top drive systems is expected to reach $160.3 Million by 2020.
On the basis of application, the onshore segment holds the largest share, followed by offshore application. However, the offshore application segment is expected to grow at a faster pace over the forecast period.
National Oilwell Varco (U.S.), Tesco Corporation (U.S.), Canrig Drilling Technology Limited (U.S.), Cameron International Corporation (U.S.), Aker Solutions AS (Norway), Axon Energy Products (U.S.), Bentec GMBH Drilling & Oilfield Systems (Germany), Foremost (Canada), Honghua Group Limited (China), and Warrior Manufacturing Service Limited (Canada) are some of the leading players involved in the global market for top drive systems.
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Scope of the Research
The analysis and forecasts for the worldwide market for top drive systems has been done by breaking it down into following segments and sub-segments:
- Type: Electric, Hydraulic
- Application: Onshore, Offshore
- Vessel Type: Jackup, Drillship, Semi-Submersible
- Geography: North America, South America, Asia-Pacific, Europe, the Middle East, Africa
Summary
Growing demand for energy and increase in drilling & exploration activities is boosting the growth of top drive systems market, globally.
