Crown Block Market Size, Share, and Industry Analysis By Type (Under 30T, 30T-100T, and Above 100T), By Application (Onshore and Offshore), and Regional Forecast till 2032

The global crown block market is expanding with a rise in oil & gas exploration activities. Crown block is essential to the drilling rig’s hosting system, located at the top of the derrick or mast. The block enables lifting heavy loads related to oil and gas drilling operations. Its design helps distribute the weight load evenly, reduce rig structure stress, and optimize drilling operations' efficiency.

Crown Block Market Driver

Growing Oil & Gas Exploration Activities to Support Market Growth

The market is mainly driven by the rising global demand for oil and gas, leading to an increase in exploration and drilling activities. As companies expand their production, both onshore and offshore activities grow, boosting the demand for oilfield-related equipment, including crown block. The need for robust and reliable equipment is increasing due to growing challenging environments. Further, developing unconventional oil and gas reserves such as shale gas drives the demand for advanced drilling equipment, including crown blocks. For instance, according to the International Energy Forum (IEF), oil & gas yearly upstream capital expenditures increased by around USD 63 billion year-on-year in 2023. This surge in the upstream spending might propel the market growth for crown block as it is used in the upstream sector.

Crown Block Market Restraint

High Maintenance & Safety Concerns to act as a Market Challenge

Some of the major challenges associated with the market are the high maintenance requirement and safety risks. Crown blocks are utilized under extreme stress due to the high capacity loads lifted and unloaded by them, leading to equipment wear and tear over time. Timely inspections, maintenance, and repair are essential to prevent equipment failure, impacting downtime and creating safety hazards in operations. 

Crown Block Market Opportunity

Incorporation of New Technologies to Offer New Growth Opportunities

Integrating new technologies in oilfield equipment is anticipated to develop new avenues for the market. Equipping crown blocks with advanced sensors, real-time monitoring systems, and others, helps maintain operations efficiently and limits failures and discrepancies. Digitization of oilfield operations further supports market growth as these technologies reduce the workforce requirement and help improve safety. Companies implement these technologies to achieve operational efficiencies and lower costs.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in Crown Block


• Key Industry Trends


• Regulatory Landscape for Crown Block


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

Analysis By Type

Based on type, the market covers under 30T, 30T-100T, and above 100T. The 30T-100T segment is anticipated to hold a significant market share. These crown blocks are under mid-range capacity and serve a variety of drilling requirements. The versatility offered makes them suitable for both onshore and offshore drilling operations. 30T-100T blocks offer a balanced combination of lifting capacity and operational efficiency.

Analysis By Application

Based on application, the market is segmented into onshore and offshore. The global increase in the demand for oil & gas products is primarily driving the demand for crown block in onshore oilfield operations. Onshore operations are relatively less complex and expensive than offshore operations. These factors drive the expansion of the onshore oilfield operations segment.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is anticipated to record a prominent share in the global crown block market owing to the increasing focus on improving rig efficiency. The U.S., the world’s largest oil producer, is investing in technologies and tools that help reduce operational risks and improve safety standards in oilfield operations. Further, the integration of technologies to improve efficiency, save costs, and increase productivity is driving market growth.

There was an increase in the crude oil production in the U.S. in 2023. Increasing crude oil production might help the market for auxiliary machinery and supporting products such as crown blocks. For instance, crude oil production in the U.S., comprising condensate, averaged 12.9 million barrels per day in 2023, compared to the previous U.S. and global record of 12.3 million barrels per day in 2019.

The crown block market in Europe is driven by the region's aging oilfield infrastructure. The need to retrofit and modernize the infrastructure is anticipated to support market growth. Moreover, stringent safety and environmental regulations push companies to replace old equipment and employ efficient technologies. New crown heads with enhanced load capacity and safety features are anticipated to record a high demand.

The Asia Pacific region is anticipated to be driven by the expansion of offshore drilling activities, particularly in countries such as China and India. Offshore operation requires highly durable and reliable equipment, and the crown block is critical in managing large, heavy loads under challenging environments. The region’s push for exploring and developing reserves is anticipated to contribute to market growth.

In Latin America, the market is anticipated to grow due to large oil reserves and growing oil production in the region. The region is home to nearly one-fifth of the world's global oil reserves, and countries such as Brazil, Mexico, and a few others dominate the region's oil production. The region's untapped potential and need for advanced equipment are anticipated to fuel market growth.

The region's massive presence in the oil & gas industry supports the market growth. Crown block is demanded to improve efficiency in both onshore and offshore applications. Major oil-producing countries are demanding more helpful equipment to improve drilling operations, which is also expected to support market growth.

Key Players Covered

The global crown block market is fragmented in terms of the number of providers. Various market initiatives, R&D activities, and others, are anticipated to drive market growth. NOV Inc., a global player based in Texas, U.S., offers equipment and components used in oil & gas production and drilling operations. The company operates in more than 500 locations across the globe and operates through three reporting segments viz Wellbore Technologies, Rig Technologies, and Completion & Production Solutions.

The report includes the profiles of the following key players:

• Jereh Group (China)


• Nabors Industries Ltd (U.S.)


• NOV (U.S.)


• American Block (U.S.)


• CARE Industries (Canada)


• Hebei Kingwell Machinery Co., Ltd (China)


• Crosby Group LLC (U.S.)


• Botta Group Ltd (China)


• ZPEC (China)


• Alco Group (Canada)

Key Industry Developments

• In October 2023, Petroleum Development Oman (PDO) launched the country’s first locally manufactured well drilling rig. The rig is developed with a focus on digitalization, utilizing the latest technologies to deliver safe, efficient, and sustainable drilling operations.


• In October 2022, Saudi Aramco and U.S.-based NOV launched Arabian Rig Manufacturing, a joint venture to manufacture drilling rigs and related equipment in Saudi Arabia. The facility is located at Ras Al-Khair and is aimed at reducing dependence on imported products.