Oil and Gas Drilling Equipment Manufacturing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD4724Revenue
$14.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
31,909
Businesses
478
Wages
$X.Xbn
Oil and Gas Drilling Equipment Manufacturing in the US industry analysis
Major global events, like the pandemic and the Ukraine war, have negatively impacted machinery manufacturers by creating significant volatility in commodity prices. Major production and travel slowdowns harmed demand for oil and gas, resulting in fewer extraction projects and lowering the need for machinery. Although prices bounced back as the economy re-opened, many oil and gas companies turned to imported machinery, which is more affordable. The Ukraine war, however, disrupted the global oil and gas supply chain, boosting demand for domestic production. Overall, revenue has been falling at a CAGR of 3.4% over the past five years to total an estimated $14.0 billion through the end of 2024, including an estimated decrease of 1.8% in 2024.
Trends and Insights
- Manufacturers are struggling to recover despite elevated prices. Supply chain disruptions and rising interest rates discouraged machinery investment, while increased import competition exacerbated declines.
- Sales of field production machinery are rising because of strong demand from oil and gas companies. High oil and gas prices drive buyers to expand production, boosting machinery sales.
- Texas is a prime location for manufacturing because of its abundant natural resources. This wealth attracts businesses looking to minimize transportation costs and enhances overall profitability in the competitive manufacturing landscape.
- Custom machinery manufacturers who offer tailored solutions often dominate the market share. This trend hampers smaller manufacturers as they struggle to compete with the customization capabilities of larger companies, limiting their access to significant contracts.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.4 % over the past five years, to reach an estimated $14.0bn in 2024.
Trends and Insights
Global conflicts directly impacted domestic production
- Revenue is primarily derived from the sale of oil and gas extraction machinery to upstream producers, making them susceptible to changes in the world prices of crude oil and natural gas.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
The Willow Project creates a need for machinery
- In March of 2023, the Biden administration approved The Willow Project, which is estimated to be one of the largest oil developments in US land. The project will boost demand for drilling machinery, supporting manufacturers' performance.
Biggest companies in the Oil and Gas Drilling Equipment Manufacturing in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Halliburton Company | 2,280.6 | 269.6 | 11.8 | |
Nov Inc. | 1,305.0 | -17.2 | -1.3 | |
Baker Hughes Company | 1,002.2 | 26.9 | 2.7 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Rotary oil and gas field drilling machinery, Oil and gas field production machinery and Other oil and gas field drilling machinery. Rotary oil and gas field drilling machinery is the largest segment of the Oil and Gas Drilling Equipment Manufacturing in the US.
Trends and Insights
Field production machinery grows in popularity
- Oil and gas field production machinery includes rotary tables, hoses, horizontal shafts, casings, tubing heads, manifolds and chokes, in addition to surface and subsea Christmas trees.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Oil Drilling & Gas Extraction in the US
- Construction Machinery Manufacturing in the US
- Mining, Oil & Gas Machinery Manufacturing in the US
- Oil & Gas Pipeline Construction in the US
International industries
- Mining, Oil & Gas Machinery Manufacturing in Canada
- Mining and Construction Machinery Manufacturing in Australia
- Mining, Quarrying & Construction Machinery Manufacturing in the UK
- Mining, Quarrying & Construction Machinery Manufacturing in Ireland
- Mining Equipment Manufacturing in China
Table of Contents
About this industry
Industry definition
Operators in this industry manufacture oil and gas drilling machinery and equipment to sell to extractors.
What's included in this industry?
Manufacturing oil and gas field machinery and equipmentManufacturing rotary oil and gas field drilling machinery and equipmentManufacturing other oil and gas field drilling machinery and equipmentManufacturing portable drilling rigs and partsManufacturing offshore oil and gas drilling machinery and equipmentCompanies
Halliburton CompanyNov Inc.Baker Hughes CompanyPurchase this report to view all 3 major companies in this industry.
Related Terms
SHALE GASHYDROCARBONSWELLBOREEAGLE FORD FORMATIONBAKKEN FORMATIONIndustry Code
NAICS 33313 - Oil and Gas Drilling Equipment Manufacturing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Manufacturers are struggling to recover despite elevated prices. Supply chain disruptions and rising interest rates discouraged machinery investment, while increased import c...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Sales of field production machinery are rising because of strong demand from oil and gas companies. High oil and gas prices drive buyers to expand production, boosting machin...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Texas is a prime location for manufacturing because of its abundant natural resources. This wealth attracts businesses looking to minimize transportation costs and enhances o...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Custom machinery manufacturers who offer tailored solutions often dominate the market share. This trend hampers smaller manufacturers as they struggle to compete with the cus...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Geopolitical issues significantly impact manufacturers' performance. These events often lead to fluctuations in oil and gas prices, influencing product demand across various ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Halliburton Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Nov Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Baker Hughes Company's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Halliburton Company, and factors influencing its performance in the industry
- Description and key data for Nov Inc., and factors influencing its performance in the industry
- Description and key data for Baker Hughes Company, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Environmental regulations like the Clean Water Act and Resource Conservation and Recovery Act impose strict controls on manufacturers. Non-compliance can lead to significant ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages for skilled engineers remain high despite a drop in sales. This trend is driven by a persistent need for expertise and ongoing investments in research and development, ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States in 2024?
The market size of the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States is $14.0bn in 2024.
How many businesses are there in the Oil and Gas Drilling Equipment Manufacturing in the US industry in 2024?
There are 478 businesses in the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States, which has declined at a CAGR of 1.3 % between 2019 and 2024.
Has the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States grown or declined over the past 5 years?
The market size of the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States has been declining at a CAGR of 3.4 % between 2019 and 2024.
What is the forecast growth of the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States is expected to decline.
What are the biggest companies in the Oil and Gas Drilling Equipment Manufacturing in the US market in United States?
The biggest companies operating in the Oil and Gas Drilling Equipment Manufacturing market in United States are Halliburton Company, Nov Inc. and Baker Hughes Company
What does the Oil and Gas Drilling Equipment Manufacturing in the US in United States include?
Manufacturing oil and gas field machinery and equipment and Manufacturing rotary oil and gas field drilling machinery and equipment are part of the Oil and Gas Drilling Equipment Manufacturing in the US industry.
Which companies have the highest market share in the Oil and Gas Drilling Equipment Manufacturing in the US in United States?
The company holding the most market share in United States is Halliburton Company.
How competitive is the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States?
The level of competition is high and steady in the Oil and Gas Drilling Equipment Manufacturing in the US industry in United States.
