U.S. Detonator for Perforating Gun Market Size, Share & COVID-19 Impact Analysis, By Type (Electric, Electronic, and Non-electric), and By Application (Onshore and Offshore), and Country Forecast, 2023-2030

The U.S. detonator for perforating gun market size was valued at USD 34.19 million in 2022 and is projected to grow at a CAGR of 6.09% during the forecast period.

The oil & gas industry uses the perforating gun for well completion operations. It creates holes or perforations in the casing and cement of oil and gas wells to allow the hydrocarbons to flow from the reservoir to the wellbore. Detonators are crucial for perforating guns as they trigger the explosive charge that creates the perforation.

The COVID-19 pandemic had different impacts on different industries, and its effect on the U.S. detonator for perforating gun market was likely limited. This market primarily serves the oil & gas industry, which experienced disruptions due to the pandemic, including decreased demand and reduced exploration & production activities. However, as the oil & gas industry is a crucial sector, it continued to operate during the pandemic. The demand for detonator for perforating guns observed some fluctuations, although the overall impact of the outbreak was not as severe compared to other sectors.

Detonator for Perforating Gun Market Trends

Huge Investment by U.S. Government in Oil & Gas Production to Enhance Market Growth Opportunities

Government investment in oil and gas production can increase both onshore and offshore exploration activities. As new oil and gas reservoirs are discovered, the demand for well-completion perforating guns increases. These tools (perforating guns and systems) are essential for creating well casing and reservoir rock perforations. Well-stimulation techniques, such as hydraulic fracturing, are often employed to optimize oil and gas production. Perforating guns play a crucial role in these operations by creating perforations through which hydraulic fracturing activities can enter the reservoir. Government investments can help increase fracking activities, thereby boosting the demand for detonators for perforating guns. For instance, according to the U.S. oil and gas infrastructure investment reports, total capital expenditures (CAPEX) for oil and gas infrastructure development will range from USD 1.06 to USD 1.34 trillion from 2017 through 2035. These levels of investments equate to an average annual CAPEX of USD 56 to USD 71 billion throughout the projection period.

Detonator for Perforating Gun Market Growth Factors

Advancements in Oil & Gas Technologies and Rising Oil & Gas Expenditure to Accelerate Market Progress

As oil and gas companies adopt advanced well drilling and completion technologies, the demand for sophisticated and precise perforating techniques also increases. Detonators with improved precision and control allow operators to optimize well productivity and ultimately increase the oil & gas production rate. Advancements in perforating techniques are expected to play a critical role in overcoming the challenges of maximizing productivity and recovery from wells drilled into the hard, poorly permeable rock that drill bits are increasingly targeting today. New oil and natural gas exploration technologies have led to explosive growth in production in the U.S., known as the shale revolution. A combination of horizontal drilling and hydraulic fracturing allows producers to access oil and gas reserves from low-permeability geological formations that were previously too expensive to extract. Until recently, the U.S. was the world's largest consumer of oil, supplying 25% of global demand. New developments in the U.S. oil and gas industry are expanding the market. Moreover, growth in the adoption of detonator for perforating guns for oil & gas exploration majorly depends on the level of expenditure done by the oil & gas industry in the production and development of oil and natural gas. The expenditure depends on the future of the industry and oil & gas prices, resulting in a significant acceleration in the demand for detonators for perforating guns.

RESTRAINING FACTORS

Price Volatility and Environmental Concerns Will Restrain Market Growth

The oil & gas industry is prone to price fluctuations, impacting exploration and production activities. During periods of low oil and gas prices, companies may reduce their drilling and completion operations, leading to a decrease in the demand for detonator for perforating guns. Increasing environmental regulations and concerns related to the impact of oil and gas exploration activities can affect the U.S. detonator for perforating gun market growth. Stricter regulations may require the use of environmentally friendly and low-impact perforating technologies, which can lead to changes in the product demand to suit various production needs.

Detonator for Perforating Gun Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into electric, electronic, and non-electric.

The electronic segment held a larger market share in June 2022.  An electronic detonator for perforating guns is a specialized device used in the oil & gas industry to initiate the perforation process during well completion and hydraulic fracturing operations. It is a modern alternative to the traditional electric detonators and offers enhanced control, precision, and safety during the perforating process. There are many key components in electronic detonators.

An electric detonator for perforating gun is initiated using an electric current. It is a part of the perforating gun assembly and is designed to initiate the charges that create perforations in the well casing and surrounding rock formation.

By Application Analysis

Based on application, the market is segmented into onshore and offshore.

The onshore segment is dominating the U.S. detonator for perforating gun market share. Detonators used in both onshore and offshore environments for oil and gas operations are similar in their function and purpose. The key difference lies in the specific requirements and considerations for each setting. Onshore detonators are extensively used during well completion and hydraulic fracturing operations. They are an integral part of perforating guns.

Offshore detonator for perforating guns is employed in drilling and production operations in marine environments, typically involving offshore oil rigs and platforms. It may be used in remote or subsea operations.

List of Key Detonator for Perforating Gun Market Companies

The U.S. detonator for perforating gun market is highly competitive, and technological advancements are constantly on the rise. The major players operating in the market are competing with a wide range of companies that manufacture perforation products and solutions. Many of these companies are the largest oilfield companies in the industry with a major presence in the U.S., longer operating histories, more significant financial, technical, and other resources, and greater visibility.

In addition, the market also includes various small key players with high competitiveness at a regional or national level, resulting in their ability to respond more quickly to new or emerging technologies and changing customer demands. Some of the other companies with a considerable presence in the U.S. market for detonator for perforating guns include DynaEnergetics, SLB, Halliburton, Dyno Nobel, Owen Oil Tools, Devon Global, Wellmatics, and GEODynamics.

LIST OF KEY COMPANIES PROFILED:

• DynaEnergetics (U.S.)


• SLB (U.S.)


• Halliburton (U.S.)


• Dyno Nobel (U.S.)


• Owen Oil Tools (U.S.)


• Devon Global (U.S.)


• Wellmatics (U.S.)


• GEODynamics (U.S.)


• Weatherford (U.S.)


• Baker Hughes Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Halliburton was recognized as the best supplier in the drilling & completion service category by Petrobras. The award reflected Halliburton's differentiated performance along with factors, such as quality, HSE, management, delivery deadlines, compliance, and integrity.


• February 2022: Titan Division of Hunting Energy Services, a subsidiary of Hunting PLC, introduced its new line of EQUAfrac. The company has been constantly improving its EQUAfrac technology. The new OP-shaped charges for oriented perforating are developed to increase oil and gas production.


• July 2021: Hunting PLC added a new perforating system to its comprehensive line of modular perforating guns. The company introduced the H-3 perforating system, which featured Hunting’s latest ControlFire Recon switch technology, which allowed users to read detonator resistance in each gun downhole or at the surface with the company’s VeriFire panel.

REPORT COVERAGE

The report provides a detailed market analysis. It is focused on providing valuable information for key products, segments, top market developments, and prominent product applications. Besides this information, the report provides insights into the latest market trends and highlights key industry developments. The abovementioned factors will reflect the market’s growth in the coming years.

Report Scope & Segmentation