Rising Horizontal Drilling and Digital Oilfields Fuel Demand for Perforating Guns

According to the latest market research study published by P&S Intelligence, the perforating gun market was valued at USD 1,298.1 million in 2024 and is projected to grow at a CAGR of 4.9% during 2025–2032, reaching USD 1,881.4 million by 2032. This expansion is propelled by a combination of increasing oil and gas earnings, intensified exploration and production (E&P) activities, and the growing complexity of reservoir conditions. As well depths increase and shale gas exploration intensifies, particularly in offshore regions, the need for advanced perforation systems has surged.

Perforating guns play a critical role in oil and gas extraction by connecting the reservoir to the wellbore, enabling fluid flow through precision-shaped charges. The growing adoption of horizontal drilling and high-efficiency tubing-conveyed systems further reinforces the demand for these tools. Moreover, collaborations and product innovations—such as those led by Schlumberger, Hunting Energy Services, and other industry leaders—are continuously enhancing technical capabilities and strengthening market positioning.

Key Insights

• The tubing-conveyed perforation (TCP) system held the largest market share of 50% in 2024, favored for its ability to perforate long intervals in a single trip and enable immediate flow testing. TCP also allows underbalanced perforation and supports higher explosive charges, contributing to improved operational efficiency.
• The through tubing exposed gun system is the fastest-growing gun type category, driven by its lightweight design and flexibility in complex well structures.
• Horizontal wells dominated the market in 2024 with a 60% share, and this segment is expected to grow at a CAGR of 5.5% through 2032. This is due to technological advances in multi-stage hydraulic fracturing and the growing need for efficient reservoir stimulation in unconventional fields.
• The above 8,000 feet depth category held the largest share (50%) in 2024, owing to its application in deep and geologically complex wells requiring advanced perforation solutions.
• In terms of application, onshore projects led with 65% market share in 2024 and are projected to grow at the highest CAGR of 5.8%, attributed to existing infrastructure and increasing conventional and unconventional drilling activities.
• North America was the largest regional market in 2024 with a 35% share, led by the U.S. with 784 active oil and gas rigs. The region’s shift from vertical to horizontal drilling and expanding shale projects, particularly in North Dakota and the Permian Basin, are key growth drivers.
• Latin America is also emerging as a high-potential market, particularly due to Argentina’s Vaca Muerta shale basin, which holds vast reserves of shale oil and gas.
• Middle East and Africa is the fastest-growing regional market, with Saudi Arabia leading in market share and South Africa showing the fastest growth, supported by increased investment in exploration and infrastructure development.
• A major trend shaping the market is the adoption of digital oilfield technologies, including sensors, edge computing, AI/ML analytics, and digital twins. These innovations help reduce production costs, enhance safety, and improve real-time decision-making.
• Companies are deploying drones, robots, and AR/VR tools for remote inspection and field surveillance, further streamlining operations and minimizing risks.
• Rising exploration of unconventional oil and gas resources, which are expected to constitute 15% of global oil output by 2035, continues to create new opportunities for perforating gun manufacturers.
• The market remains moderately fragmented, with key players such as Schlumberger, Halliburton, Baker Hughes, Weatherford, NOV Inc., and DynaEnergetics leading innovation and expanding their portfolios through strategic partnerships and acquisitions.
• Notable recent developments include:
• Schlumberger's agreement with Petrobras in Dec 2024 to provide services at over 100 ultra-deepwater wells in Brazil.
• NOV Inc.'s acquisition of Fortress Downhole Tools in Oct 2024.
• Weatherford's acquisition of Datagration Solutions in Sep 2024.
• The launch of GEODynamics' EPIC Flex Orbit system in Sep 2024 and DynaEnergetics' DS Gravity 2.0 gun in Jun 2023.