Composites in the Global Oil and Gas Industry Trends and Forecasts
Lucintel finds that the future of the composites in the global oil and gas end product market looks promising with opportunities in pipes, tanks, pultruded products, and frac plugs and frac balls in the oil and gas industry. The global composite tooling material market is expected to reach an estimated $4 million by 2031 with a CAGR of 13% from 2024 to 2031. The major drivers of growth for this market are increasing oil and gas drilling and exploration activities in future.
The composites used in the oil and gas market are made from reinforcing fibers like glass, carbon or aramid held together by matrix resins such as epoxy, vinyl ester or polyester. These materials are selected because of their ability to withstand harsh environmental conditions as well as their strength and durability. Additives and fillers can also be present in order to improve properties like impact resistance, UV stability and chemical resistance. Consequently, they combine mechanical performance and longevity necessary for the demanding applications within the oil & gas industry.
Usually, composites in the oil and gas market cost more than conventional materials such as steel or aluminum because of expensive high-performance fibers and resins. However, their excellent resistance to corrosion, chemicals or extreme temperatures can justify this higher cost over time through reduced maintenance and extended service life. Despite being competitive with other advanced composites designed for aerospace or automotive purposes, pricing is specific depending on material types as well as performance requirements.
• Lucintel forecasts pipe is expected to remain as the largest market by value and volume consumption and it is also expected to experience the highest growth in the forecast period due to increases in oil and gas production and exploration activity on both onshore and offshore production sites have increased the demand for pipes are the major driving forces that spur the growth for this segment over the forecast period.
• Epoxy composites will remain the largest segment over the forecast period supported by its high performance characteristics such as low shrinkage, excellent adhesion, effective electrical insulation, high chemical, and solvent resistance properties. Polyethylene composites is expected to witness highest growth over the forecast period.
• North America will remain the largest market over the forecast period due to growth in natural gas infrastructure projects, and awareness on the advantages of composite materials for oil and gas over traditional material. ROW is expected to witness highest growth over the forecast period.
Country wise Outlook for the Composites in the Oil and Gas Market
The composites in oil and gas market is witnessing substantial growth, driven by increased demand from various industries such as pipes, tanks, pultruded products, and frac plugs and frac balls. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major composites in the oil and gas producers in key regions/countries: the USA, Germany, China, India, and Brazil.
Emerging Trends in the Composites in the Oil and Gas Market
The oil and gas market is undergoing significant transformation, driven by the increasing adoption of composite materials. These materials, known for their lightweight, corrosion resistance, and durability, are becoming essential in various applications within the industry. As companies seek to enhance efficiency, reduce costs, and meet environmental regulations, composites are emerging as a viable solution. This shift is not only improving operational performance but also fostering innovation in product development and sustainability practices. Here are five key trends shaping the composites landscape in the oil and gas sector:
• Increased Use of Lightweight Composites: The demand for lightweight materials is rising as companies aim to improve fuel efficiency and reduce transportation costs. Composites offer a significant weight advantage over traditional materials, leading to lower emissions and enhanced performance in drilling and production equipment.
• Enhanced Corrosion Resistance: Composites are increasingly favored for their superior resistance to corrosive environments, which is critical in oil and gas operations. This property extends the lifespan of equipment and reduces maintenance costs, ultimately leading to more reliable operations and lower downtime.
• Adoption of Advanced Manufacturing Techniques: The oil and gas industry is embracing advanced manufacturing methods, such as 3D printing and automated layup processes, to produce composite components. These techniques allow for greater design flexibility, reduced waste, and faster production times, enabling companies to respond swiftly to market demands.
• Focus on Sustainability: As environmental concerns grow, the oil and gas sector is prioritizing sustainable practices. Composites, often made from recycled materials or designed for recyclability, align with these goals. Their use helps companies reduce their carbon footprint and comply with stricter environmental regulations.
• Integration of Smart Technologies: The incorporation of smart technologies into composite materials is gaining traction. Sensors embedded in composites can monitor structural integrity and performance in real-time, providing valuable data for predictive maintenance and enhancing safety in operations. This trend is paving the way for more intelligent and responsive systems in the industry.
These emerging trends in the composites market are reshaping the oil and gas industry by enhancing efficiency, reducing costs, and promoting sustainability. As companies continue to innovate and adopt these materials, the sector is likely to see improved operational performance and a stronger commitment to environmental stewardship.
Recent Developments in the Composites in the Oil and Gas Market
The oil and gas market has seen significant advancements in the use of composite materials, which are increasingly being adopted for their lightweight, corrosion-resistant, and durable properties. These materials are transforming various aspects of exploration, production, and transportation within the industry. Recent developments highlight innovations in composite technology, regulatory changes, and shifts in market demand, all of which are shaping the future of oil and gas operations. The following outlines five key developments that are influencing the integration of composites in this sector.
• Enhanced Composite Materials: Recent advancements in composite materials have led to the development of stronger, lighter, and more durable options. These materials are now being used in pipelines and offshore structures, reducing weight and improving efficiency while minimizing maintenance costs.
• Regulatory Support for Composites: Governments and regulatory bodies are increasingly recognizing the benefits of composites in the oil and gas sector. New regulations are being introduced to encourage the use of advanced materials, which can lead to safer and more environmentally friendly operations, thus promoting industry-wide adoption.
• Increased Investment in R&D: There has been a notable increase in investment in research and development focused on composite technologies. Companies are allocating resources to innovate and improve composite applications, which is expected to enhance performance and reduce costs in oil and gas operations.
• Sustainability Initiatives: The oil and gas industry is under pressure to adopt more sustainable practices. Composites, being lightweight and resistant to corrosion, contribute to reducing the carbon footprint of operations. This shift towards sustainability is driving demand for composite materials in various applications.
• Market Expansion in Emerging Economies: Emerging economies are witnessing a surge in oil and gas exploration and production activities. The adoption of composite materials in these regions is growing, as they offer solutions to challenges such as harsh environmental conditions and the need for cost-effective infrastructure.
These developments are significantly impacting the oil and gas market by enhancing operational efficiency, promoting sustainability, and driving innovation. The integration of composite materials is not only improving performance but also aligning the industry with modern regulatory and environmental standards, ultimately shaping a more resilient and forward-looking sector.
Strategic Growth Opportunities for Composites in the Oil and Gas Market
The oil and gas market is undergoing significant transformation, driven by the need for enhanced efficiency, sustainability, and safety. Composites are emerging as a vital component in this evolution, offering lightweight, corrosion-resistant, and durable solutions across various applications. As the industry seeks to optimize operations and reduce environmental impact, several strategic growth opportunities are surfacing. This discussion highlights five key applications where composites are poised to make a substantial impact, shaping the future of the oil and gas sector.
• Pipeline Infrastructure: Composites are increasingly used in pipeline construction due to their resistance to corrosion and lower weight. This leads to reduced maintenance costs and extended service life, enhancing the overall efficiency of oil and gas transportation.
• Offshore Platforms: The use of composite materials in offshore platforms allows for lighter structures that can withstand harsh marine environments. This results in lower installation costs and improved safety, making offshore operations more viable and sustainable.
• Downhole Tools: Composites are being integrated into downhole tools, providing enhanced performance and durability. Their lightweight nature reduces the energy required for drilling, leading to cost savings and increased operational efficiency in exploration and production activities.
• Storage Tanks: Composite materials are being utilized in the construction of storage tanks, offering superior resistance to chemicals and environmental factors. This innovation not only extends the lifespan of storage solutions but also minimizes the risk of leaks and spills, promoting environmental safety.
• Safety Equipment: The adoption of composites in safety equipment, such as protective gear and barriers, enhances worker safety in hazardous environments. Their lightweight and durable properties ensure that personnel are better protected, reducing the likelihood of accidents and improving compliance with safety regulations.
The strategic growth opportunities presented by composites in the oil and gas market are driving innovation and efficiency across key applications. By leveraging the unique properties of composite materials, the industry is not only enhancing operational performance but also addressing critical environmental and safety challenges, ultimately shaping a more sustainable future.
List of Oil and Gas Companies in the Global Composites Industry
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies composites in the oil and gas companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the composites in the oil and gas companies profiled in this report include.
• Mattr Infratech (Shawcor)
• Future Pipe Industries
• National Oil well Varco (NOV)
• Hengrun Group
• Strongwell
• Amiantit
• Baker Hughes
These companies have established themselves as leaders in the composites in the oil and gas industry with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the composites in the oil and gas market are evolving, with the entry of new players and the emergence of innovative technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Composites in the Oil and Gas Market by Segment
The composites segment of the petroleum industry has seen a dramatic surge in pipeline growth because of their ability to withstand corrosion and harsh environments. The use of tanks has increased because they tolerate corrosive substances and retain their structural integrity too. Pultruded products are also growing, providing light and high-strength solutions for different structural applications such as support beams, frames etc.
The composites in the oil and gas market report provides a comprehensive analysis of the market's current trends, growth drivers, challenges, and future prospects in all major segments like above. It covers various segments, include end use industry and resin type. The report offers insights into regional dynamics, highlighting the major markets for global balsa core material market and their growth potentials. The study includes trends and forecast for the composites in oil and gas market by end use industry, resin type and region as follows:
By Application [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Pipes
• Tanks
• Pultruded Products
• Frac Plugs and Frac Balls
• Other End Use Industries
By Resin Type [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]
• Epoxy Composites
• Polyester Composites
• Phenolic Composites
• Polyethylene Composites
By Region [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• North America
• Europe
• Asia Pacific
• Rest Of the World
Features of Composites in the Global Oil and Gas Industry
• Market Size Estimates: Composites in the oil and gas industry market size estimation in terms of value ($M) and Volume (M lbs.)
• Trend and Forecast Analysis: Market trends (2019-2024) and forecast (2025-2031) by various segments and regions.
• Segmentation Analysis: Market size by application, resin type, and region.
• Regional Analysis: Composites in the oil and gas industry breakdown by North America, Europe, and Asia Pacific & the Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different end use industries, resin types, and regions for composites in the oil and gas industry.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the composites in the oil and gas industry.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in composites in the oil and gas market or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the composite in the oil and gas industry size?
Answer: The composites in the global oil and gas industry is expected to reach an estimated to $4 billion by 2031.
Q2. What is the growth forecast for composites in the oil and gas industry?
Answer: The composite in the global oil and gas industry is expected to grow at a CAGR of 13% from 2024 to 2031.
Q3. What are the major drivers influencing the growth of the composites in the oil and gas industry?
Answer: The major drivers of growth for this market are technological advancements, demand for lightweight materials, environmental regulations, cost efficiency, and global energy transition.
Q4. What are the major applications or end use industry industries composites in the oil and gas market?
Answer: Pipes and tanks are the major applications for composites in the global oil and gas industry market.
Q5. What are the emerging trends of composites in the oil and gas industry?
Answer: Emerging trends, which have a direct impact on the dynamics of the industry, are the increased use of lightweight composites, enhanced corrosion resistance, adoption of advanced manufacturing techniques, focus on sustainability, and integration of smart technologies.
Q6. Who are the composites in the oil and gas companies?
Answer: Some of the key composites in the global oil and gas companies are as follows:
• Mattr Infratech
• Future Pipe Industries
• National Oil well Varco (NOV)
• Hengrun Group
• Strongwell
• Amiantit
• Baker Hughes
Q7.Which composite in oil and gas resin type segment will be the largest in future?
Answer: Lucintel forecasts that epoxy composite resin type composites in the global oil and gas will remain the largest segment.
Q8: In composite in oil and gas, which region is expected to be the largest in next 7 years?
Answer: North America is expected to remain the largest region and witness the highest growth over next 7 years.
Q9. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 11 key questions:
Q.1 What are some of the most promising potential, high growth opportunities for composites in the oil and gas industry by application (pipes, tanks, pultruded products, frac plugs and frac balls, and other applications), resin type (epoxy composites, polyester composites, phenolic composites, and polyethylene composites), and region (North America, Europe, and Asia Pacific & Rest of the World)?
Q. 2 Which segments will grow at a faster pace and why?
Q.3 Which regions will grow at a faster pace and why?
Q.4 What are the key factors affecting market dynamics? What are the drivers and challenges of the market?
Q.5 What are the business risks and threats to the market?
Q.6 What are the emerging trends in this market and the reasons behind them?
Q.7 What are the changing demands of customers in the market?
Q.8 What are the new developments in the market? Which companies are leading these developments?
Q.9 Who are the major players in this market? What strategic initiatives are being implemented by key players for business growth?
Q.10 What are some of the competitive products and processes in this area and how big of a threat do they pose for loss of market share via material or product substitution?
Q.11 What M & A activities have taken place in the last 5 years in this market?