Vietnam Oilfield Equipment Rental Services Market

Vietnam’s Oilfield Equipment Rental Services Market is expanding as the country develops its offshore resources in the South China Sea, where it has several ongoing exploration and production projects. Oilfield equipment rental services are critical for local operators who face challenges associated with offshore operations, including harsh marine conditions and high operational costs. Renting specialized equipment, such as drilling rigs, subsea equipment, and pressure control systems, provides operators with a flexible and cost-effective approach to resource extraction, enabling them to manage financial risk and adapt to fluctuating production demands.

Vietnam's growing energy demand and its goal to increase domestic oil production capacity are key drivers for the market. Additionally, collaboration with international oil and gas companies brings advanced technologies into the country, often through equipment rental, which enhances efficiency and meets the technical requirements of offshore operations. The Vietnamese government’s commitment to energy security and local production boosts the prospects for rental services. As environmental regulations become stricter, demand for equipment that minimizes ecological impact and ensures safe, sustainable operations is likely to increase.

The oilfield equipment rental services market is witnessing rapid revenue growth. Oilfield operators prefer hiring those services as it allows them to minimize initial investments required to buy these equipments, increasing their intangible assets.

Besides, these services ensure timely delivery on-site, saving a lot of time spent during purchase and delivery, allowing operators to start the production immediately and profitability. 

Convenience is a major factor making these services are widely preferred and adopted worldwide. Resultantly, the oil field equipment rental services market is expected to garner huge traction globally. In this regard, Market Research Future (MRFR) asserts that the global oilfield equipment rental services market is poised to grow at an impressive CAGR during the review period (2024 to 2032). 

Recent Discoveries of O&G Reservoirs Create Substantial Market Demand

The market growth is largely driven by the rising demand for crude oil & energy. Technological advancements are also fostering the market size, improving oilfield equipments capabilities and enhancing their efficiencies. Other factors providing impetus to market growth include rising population and increasing urbanization and industrialization.    

Increasing demand for oil and gas results in rising demand in the oil field equipment rental services market. Changed supply and demand dynamics are expected to increase in the number of oil wells leading to boosting the oil field equipment rental services market share. Augmented demand for oil and gas also propels the oil field equipment rental services market revenues. Additionally, expansion of drilling activities in countries like Saudi Arabia, Kuwait, Qatar and Venezuela boost the oil field equipment rental services market value.

Requirement of Vast Capital is a Major Factor Hindering the Market Rise

High initial costs associated with installment and maintenance of oilfield equipment rental services restrain the market growth. Also, substantial investments required to develop these equipments pose challenges for the oilfield equipment rental services market growth. Nevertheless, manufacturers are increasingly focusing on reducing the overall manufacturing cost of these equipments, which would support the market growth throughout the forecast period. 

COVID-19 Impact on the Market

The COVID-19 pandemic impacted the oilfield equipment rental services industry severely. The pandemic has been a major challenge for suppliers disturbing the production of several key components and supply chains. Besides, travel restrictions implemented due to COVID-19 stood in the way of delivering these equipments to users. 

O&G equipment rental services providers faced problems ranging from delivering end products to attracting workers from quarantines. However, the oilfield equipment rental services industry is rapidly getting back to normal, witnessing significant demand from oil and gas sectors worldwide. Furthermore, the market demand is expected to pick up following the uplift of lockdown in many countries. 

Industry Trends

Emerging markets provide untapped opportunities for the oilfield equipment rental services market revenues. Significantly rapid industrialization and urbanization in developing regions offer lucrative opportunities for global players. In addition, growing government mandates & policy updates and the rebooting O&G industry foster the oilfield equipment rental services market value. 

Segmentation

The market is segmented into drilling equipment, pressure & flow control equipment, and regions. The drilling equipment segment is sub-segmented into drill pipe, drill collars, heavy-weight, drill subs, and others. The pressure & flow control equipment segment is sub-segmented into BOP, valves & manifolds, and others. The region segment is sub-segmented into Americas, Europe, Asia Pacific, and rest-of-the-world.

Regional Analysis

North America accounts for the largest global oilfield equipment rental services market share. Factors such as the increasing numbers of drilling activities in the US influence the region's oilfield equipment rental services market size.

Besides, the demand for conventional and non-conventional drilling in the region drives the oilfield equipment rental services market growth. Also, the increase in E&P spending and the strong presence of major players providing easy rental plans are major oilfield equipment rental services market trends. 

Competitive Analysis

The Oilfield equipment leasing market perceives different strategies such as M&A activities, collaboration, contracts, agreements, and partnerships to increase their market shares. Focused on developing innovative technologies, dynamic players would shift the market dynamics during the forecasted period. Key industry players also make strategic investments in research and development activities and fostering their expansion plans. 

For instance, recently, on June 23, 2021, OSSO, a leading fluid temperature control and separation technology provider, announced a partnership with Medra Arabia (Saudi Arabia), the national diversified O&G service company, to deliver drilling solutions in Saudi. 

Through this agreement, OSSO would provide its clients with direct access to its rental fleet of equipment, along with rig site support and heat transfer solutions. The partnership would also allow OSSO to significantly reduce equipment and personnel turnaround time, providing a greater economic support structure with added expert local knowledge. 

Key players:

• Halliburton Co. (U.S.)
• Oil States International Inc. (U.S.)
• Schlumberger Ltd (U.S.)
• Superior Energy Services Inc. (U.S.)
• Weatherford International Ltd (Switzerland)
• Baker Hughes (U.S.)
• National Oilwell Varco (U.S.)
• Cameron International Inc.(U.S.)
• Transocean Ltd. (Switzerland)
• B&B Oilfield Equipment Corp (U.S.)

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