Europe Christmas Tree Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Christmas Tree Market Analysis
The European Christmas tree market is expected to register a CAGR of over 3% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.
- Over the medium term, the increasing investments and development of natural gas reserves are expected to drive the market's growth.
- On the other hand, the increasing adoption of renewable energy is expected to hamper the growth of the market during the forecast period.
- Nevertheless, increasing investments in deep-water and ultra-deep-water drilling activities across the region will likely create lucrative growth opportunities for the European Christmas tree market in the forecast period.
- Norway dominates the market and will likely witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments and supportive government policies in the oil and gas industry.
Europe Christmas Tree Market Trends
This section covers the major market trends shaping the Europe Christmas Tree Market according to our research experts:
Horizontal Tree to Dominate the Market
- Horizontal Xmas Trees (HXT) are exclusively used in subsea operations, and the valves of horizontal Xmas trees are located on the lateral sides, allowing easy well intervention and tubing recovery.
- On an HXT, access to the annulus (between the production tubing and casing) is incorporated into the tree design and controlled by gate valves instead of plugs, which allows operations with a mono-bore, less-complex riser, or landing string.
- In 2021, crude oil reserves in Europe stood at 11,552 million barrels, representing a decline of 6.8% compared to 2020 levels. Among European countries, Norway recorded the highest proven crude oil reserves (7,525 million barrels), followed by the United Kingdom (2,000 million barrels) and Denmark (428 million barrels).
- Unlike Vertical X-mas Tree (VXT), HXTs typically require a rig to run the Blowout Preventer (BOP) stack and recover completion during replacement operations. Typical costs range from USD 15-60 million, exclusive of mobilization/demobilization costs.
- However, HXT systems offer the lowest initial CAPEX and provide a universal design for operational efficiency in multiple fields. Additionally, these systems are especially suited for subsea systems, which require frequent interventions, reducing the cost and complexity of well interventions.
- HXTs offer several advantages in subsea environments, due to which they are preferred to VXTs for deep-sea applications. HXTs have a significantly larger bore of up to 7', which allows larger outer diameter (OD) tubular to be run into the wellbore without removing the tree.
- Owing to the above points, the advantages of horizontal Xmas trees over vertical Xmas trees are expected to drive the segment in the coming years.
Norway to Dominate the Market
- As of 2021, Norway is the world's third-largest exporter of natural gas, behind Russia and Qatar. The country has supplied 20-25% of the EU and United Kingdom's gas demand. Nearly all oil and gas produced on the Norwegian shelf are exported and combined, due to which oil and gas exceed half of the total value of Norwegian exports of goods. This makes oil and gas the most important export commodities in the Norwegian economy.
- In 2021, Norway's natural gas production amounted to 116,700 million standard cubic meters, up by 0.4% compared to the previous year.
- A total of 18 new oil discoveries were made in 2021, out of which 12 were in the North Sea, three in the Norwegian Sea, and three in the Barents Sea. The discoveries have a preliminary total estimate of 85 million standard cubic meters of recoverable oil equivalents. The most significant discoveries are 6507/4-2 S (Dvalin Nord) in the Norwegian Sea, 31/2-22 S (Blasto), 25/8-20 S, and 25/8-20 B (Prince/King) in the North Sea. These discoveries are likely to promulgate the growth of the market since all the discoveries were made offshore, which require subsea production systems such as subsea trees.
- The oil and gas sector is responsible for about one-fifth of the country's productive capital investments. As per the Norwegian Oil and Gas Association, significant investments were made in exploration, field development, transport infrastructure, and onshore facilities in 2020. Also, in 2021, the investments, excluding exploration, totaled around NOK 147 billion.
- Four new fields came onstream in 2021: Martin Linge, Duva, Solveig in the North Sea, and Ærfugl Nord in the Norwegian Sea. In October 2021, production from Yme started again after a field redevelopment. As of December 2021, six field developments were ongoing: four in the North Sea, one in the Norwegian Sea, and one in the Barents Sea.
- Therefore, the growing demand for natural gas and increasing investments in the oil and gas industry are expected to drive the segment in the coming years.
Europe Christmas Tree Industry Overview
The Europe Christmas tree market is moderately fragmented in nature. Some of the major players in the market (in no particular order) include TechnipFMC PLC, Baker Hughes Company, Schlumberger Limited, Aker Solutions ASA, and Worldwide Oilfield Machine.
Europe Christmas Tree Market Leaders
-
TechnipFMC PLC
-
Baker Hughes Company
-
Schlumberger Limited
-
Aker Solutions ASA
-
Worldwide Oilfield Machine
*Disclaimer: Major Players sorted in no particular order
Europe Christmas Tree Market News
- March 2021: Neptune Energy announced the safe and successful installation of four Enhanced Horizontal Subsea Tree Systems (EHXT) for the Duva development project in the Norwegian sector of the North Sea. The installation was carried out by a vessel instead of a rig, reducing installation time, costs, and operational emissions.
Europe Christmas Tree Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
6. By Type
6.1 Horizontal Tree
6.2 Vertical Tree
7. By Location of Deployment
7.1 Onshore
7.2 Offshore
8. By Geography
8.1 United Kingdom
8.2 Norway
8.3 Netherlands
8.4 Germany
8.5 Rest of Europe
9. COMPETITIVE LANDSCAPE
9.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
9.2 Strategies Adopted by Leading Players
9.3 Company Profiles
9.3.1 TechnipFMC PLC
9.3.2 Baker Hughes Company
9.3.3 Schlumberger Limited
9.3.4 Aker Solutions ASA
9.3.5 Worldwide Oilfield Machine
9.3.6 Shengji Group
9.3.7 Dril-Quip Inc.
9.3.8 INTERA Ltd
- *List Not Exhaustive
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Christmas Tree Industry Segmentation
A Christmas tree is an assembled combination of spools, valves, and fittings used to contain pressure in gas wells, oil wells, water disposal wells, water injection wells, condensate wells, gas injection wells, and other types of wells. The European Christmas tree market is segmented by type, location of development, and geography. By type, the market is segmented into horizontal trees and vertical trees. By location of development, the market is segmented into onshore and offshore. By geography, the market is segmented into the United Kingdom, Norway, Netherlands, Germany, and the Rest of Europe. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
Europe Christmas Tree Market Research FAQs
What is the current Europe Christmas Tree Market size?
The Europe Christmas Tree Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Europe Christmas Tree Market?
TechnipFMC PLC, Baker Hughes Company, Schlumberger Limited, Aker Solutions ASA and Worldwide Oilfield Machine are the major companies operating in the Europe Christmas Tree Market.
What years does this Europe Christmas Tree Market cover?
The report covers the Europe Christmas Tree Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Christmas Tree Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Christmas Tree Industry Report
Statistics for the 2024 Europe Christmas Tree market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Christmas Tree analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
