Christmas Tree Market: Global Opportunity Analysis and Industry Forecast, 2023-2030 Market

A Christmas tree is a type of equipment used in petroleum and natural gas extraction. It is an assembly of mechanical components, such as valves, pressure gauges, spools, chokes, and various other fittings. These are installed over well heads and are used to control flow of fluid in extraction pipes and thus, control production of oil or gas. They are also used for water injection, water disposal, gas injection, condensate, and other types of wells. These trees are used for both surface walls and underwater or subsea wells. For surface wells, both manual and automatic valves may be used, while for offshore applications automatic valves are used.  

COVID-19 scenario analysis:

• COVID-19 pandemic has shut-down production of various products in the global Christmas tree industry, mainly owing to prolonged lockdown in major global countries. This has hampered growth of the global Christmas tree market significantly from past few months, as is likely to continue during 2020.
• COVID-19 has already affected sales of equipment and machinery in the first quarter of 2020, and is likely to cause a negative impact on the market growth throughout the year.
• The major demand for equipment and machinery was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, the UK, and China, which is badly affected by the spread of coronavirus, thereby halting demand for equipment and machinery.
• Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Equipment and machinery companies can afford a full lockdown only for a few months, after which the players would have to modify their investment plans.
• Equipment and machinery manufacturers must focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19 infection cases start to decrease.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, Opportunities, Restraints and Impact Analysis

Growth of global urbanisation, increasing industrialisation, population, growth of automotive industry, airline industry, and increase in construction activity worldwide are some of the major factors behind the growth of the global oil and gas industry and as a result, the global Christmas tree market is also expected to expand. Moreover, the increasing investments and government initiatives worldwide are also expected to boost the growth of the oil and gas industry. The growth of the automotive industry due to the factors of rising population and disposable income around the world is expected to help boost the Christmas tree market. The growth of airline industry and transportation industry worldwide are also important factors driving petroleum demand. However, Christmas tree valves are usually used in newly drilled oil and gas wells because the operational conditions require sufficient pressure for the natural flow of oil and gas. Artificial lift systems are employed in case of lack of natural flow pressure. This is considered a major restraining factor for the global Christmas Tree market. On the other hand, the number of deepwater and ultra-deepwater petroleum drilling projects is increasing and this factor is expected to provide growth opportunities for the global Christmas tree market in the future.

The global christmas tree trends are as follows:

Growth of global oil and gas industry due to rising demand for petroleum products

Growth of global urbanization; increase in industrialization and population; growth of automotive, and airline industries; and increase in construction activities worldwide are some of the major factors behind growth of the global oil & gas industry and as a result, the global Christmas tree market is also expected to expand. Christmas trees are also widely used in local construction, mining, railways industries among other end users. It is also used for environmental and geotechnical sampling and is utilized in construction of sewer lines, in fence post setting, tree planting, and road construction in the construction sector. It is used in sewer construction, as it helps to accurately control diameter of a sewer bore. It is also used in the mining industry to extract coal, gold, and other minerals, owing to its low cost. Artificial lift systems are employed in case of lack of natural flow pressure. This is considered a major restraining factor for growth of the global Christmas tree market. On the other hand, number of deepwater and ultra-deepwater petroleum drilling projects is increasing, and this factor is expected to provide growth opportunities for the global Christmas tree market in the future.

Increase in government initiatives and investments in oil & gas industry

The global oil and gas exploration and production sector is very important to the global economy. Economic experts predict that the global oil production will increase from the current rate of approximately 85 million barrels to 100 million barrels per day in the near future. The emerging economies of the world, especially the BRICs nations including Brazil, Russia, India, and China are expected to drive the demand for oil and gas production due to their high population. The GDP of the global oil and gas industry was estimated to be around $86 trillion in 2019, and the oil and gas drilling sector itself is estimated to contribute approximately 3.8% of the global economy. According to information released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), Government of India, the petroleum and natural gas sector received foreign direct investment (FDI) of around US$ 7.82 billion between April 2000 and March 2020. As per Union Budget 2019-20, Government of India declared plans to invest US$ 2.86 billion in the upstream oil and gas production by 2022 and US$ 9.97 billion to expand the gas pipeline network across the country. These initiatives and investments by various governmental bodies and petroleum industry companies around the world are expected to help the global oil and gas industry grow and as a result, the global Christmas tree market is also expected to expand.

Key benefits of the report:

• This study presents the analytical depiction of the global christmas tree industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global Christmas tree market share.
• The current market is quantitatively analyzed to highlight the global Christmas tree market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
• The report provides a detailed global Christmas tree market analysis based on competitive intensity and how the competition will take shape in coming years.

 Christmas Tree Market: Global Opportunity Analysis and Industry Forecast, 2020–2027 Report Highlights