Perforating Gun Market Report 2025

The perforating gun market size has grown steadily in recent years. It will grow from $1.14 billion in 2024 to $1.18 billion in 2025 at a compound annual growth rate (CAGR) of 3%. The growth in the historic period can be attributed to oil and gas exploration, global economic growth, regulatory environment.

The perforating gun market size is expected to see strong growth in the next few years. It will grow to $1.5 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to rising energy demand, emerging markets, environmental regulations, shale gas exploration. Major trends in the forecast period include increased focus on unconventional reservoirs, digitalization and automation, customization and tailored solutions, integration of data analytics, eco-friendly solutions.

The forecast of 6.2% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through restricted access to shaped charge explosives from Israel and high-strength gun barrels from South Korea, potentially delaying well completion operations. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising demand for oil is anticipated to drive the growth of the perforating gun market in the future. The demand for petroleum products is influenced by various factors, including economic growth, population expansion, and increasing income levels. In the context of oil wells, perforation refers to the process of creating holes in the casing or liner of an oil well to connect it to the reservoir. This process establishes a channel between the pay zone and the wellbore, facilitating the flow of oil and gas into the wellbore. For example, in March 2024, the U.S. Energy Information Administration, a federal statistical agency in the United States, reported that crude oil production reached a record high of 12.9 million barrels per day in 2023, representing a 9% increase (1 million barrels per day) from 2022. Consequently, the growing demand for oil is expected to propel the perforating gun market's growth.

The growth of perforating gun market is further expected to be propelled by the increasing operations of drilling rigs. Drilling rigs, comprehensive systems that penetrate the subsurface for purposes such as creating oil or water wells, play a vital role in perforating gun utilization. These guns are essential tools in drilling rig operations, creating openings in casings used in oil and gas well drilling. According to data from Baker Hughes Company in February 2023, the number of drilling rigs in the US witnessed an increase, reaching 761 rigs for the week ending February 10. This marked a rise of 126 units from the 635 rigs operating at the same time the previous year, underscoring the significant impact of increasing rig drilling operations on the perforating gun market.

Technological innovations are a significant trend gaining traction in the perforating gun market. Advances in well drilling operations have allowed the energy industry to access new sources of oil and natural gas to meet growing demand. These technological developments have also helped mitigate the environmental impact of energy extraction by enabling the recovery of more oil and gas with fewer wells. Leading companies in the perforating gun market are concentrating on creating new technological solutions to enhance their competitive edge. For example, in June 2023, DynaEnergetics, a Germany-based provider of well-completion solutions for the oil and gas sector, launched its latest perforating gun product, DS GRAVITY 2.0. This innovative product aims to improve perforation performance in oil and gas wells, enhancing efficiency and effectiveness during completion operations. The DS GRAVITY 2 integrates advanced technology designed to optimize the perforating process, thereby boosting productivity and lowering operational costs for clients in the energy industry.

In February 2023, SLB, a technology company based in the U.S., acquired Gyrodata Incorporated for an undisclosed amount. This acquisition aims to integrate Gyrodata's advanced technologies into SLB's services, thereby improving the efficiency of their well construction division. Gyrodata Incorporated is a U.S.-based provider specializing in gyroscopic wellbore positioning and survey technology.

In May 2023, SEF Energy, a US-based private holding company, acquired OSO Perforating, allowing SEF Energy to diversify its presence in the perforating gun market by incorporating advanced technologies that can potentially enhance its product and service offerings. This strategic move positions SEF Energy for an expanded range of offerings and increased market reach. OSO Perforating, a US-based company specializing in innovative perforating solutions, brings valuable technology to SEF Energy's portfolio aimed at simplifying downhole components.

Major companies operating in the perforating gun market include Baker Hughes Company, DMC Global Inc., G&H Diversified Manufacturing LP, Halliburton Company, Hunting PLC, Schlumberger NV, Tassaroli S. A., Weatherford International Ltd., Shaanxi FYPE Rigid Machinery Co. Ltd., Core Laboratories N. V., Northern Colorado Manufacturing LLC, Oiltech Service Pte Ltd., Zao NTF Perfotech, ZZ Top Oil Tools Co. Ltd., Promperforator LLC, NOV Inc., FHE LLC, Oso Perforating LLC, Dyna-energetics GmbH & Co. KG, Landsea Technical Services Pte Ltd., Iljin Steel Corporation, Joo Sung Sea & Air Co. Ltd., Apergy LLC, Trican Well service Ltd., Toyo Engineering Corporation.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are heavily impacting the oil and gas industry, especially in areas such as exploration equipment, pipeline development, and refining operations. Increased import duties on drilling rigs, steel pipes, and specialized machinery have significantly raised capital expenditures across both upstream and downstream segments. Midstream players are grappling with cost surges for essential components like valves, compressors, and storage tanks, causing delays and disruptions in expansion projects. Refiners, meanwhile, are contending with higher expenses for imported catalysts and control systems critical to operational efficiency. In addition, retaliatory tariffs from major trade partners have curtailed U.S. exports of liquefied natural gas (LNG) and crude oil, reducing global competitiveness. In response, companies are ramping up investments in domestic manufacturing alliances, digital asset management tools, and diversified energy portfolios to maintain resilience and protect profitability.

A perforating gun is a tool employed in the oil and gas industry to create holes in wells before the production phase. These guns come in various sizes and configurations, with through-tubing guns and hollow-carrier (casing) guns being the two primary types of gun systems. Hollow-carrier guns, being larger than through-tube guns, allow for larger charges, more phasing possibilities, and improved shot density.

The main carrier types of perforating guns include hollow carrier, expandable shaped charged gun, and other types. A hollow carrier gun system is a pressure-tight carrier made from steel tubing. It is typically characterized by outer diameter (OD), shot density in shots per foot (SPF) or shots per meter (SPM), shaped charge types, and pressure and temperature ratings, depending on the explosive types used. Various explosive types include cyclotrimethylene trinitramine (RDX), cyclotetramethylene trinitramine (HMX), and hexanitrosilbene (HNS), involving different pressures such as high pressure and low pressure. Perforating guns find applications in both onshore and offshore operations.

The perforating gun market research report is one of a series of new reports that provides perforating gun market statistics, including perforating gun industry global market size, regional shares, competitors with a perforating gun market share, detailed perforating gun market segments, market trends and opportunities, and any further data you may need to thrive in the perforating gun industry. This perforating gun market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the perforating gun market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the perforating gun market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the perforating gun market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The perforating gun market consists of sales of retrievable hollow gun, expendable gun, and semi-expendable gun. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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