ID: MRFR/E&P/1083-HCR | 120 Pages | Author: Anshula Mandaokar | June 2023
Drill Bits Market share is projected to exceed USD 4.64 Billion by 2030, with at a 7% CAGR during the forecast period.
The drill bits market size is projected to register a CAGR of 7.00% to reach approximately USD 4.64 Billion by 2030.
When using the rotary drilling method to identify and explore hydrocarbons like crude oil and natural gas, a drill bit is attached to the bottom of the drill string that excavates the earth's rock to produce a cylindrical hole. The first stage in finding hydrocarbons is drilling, and businesses are creating cutting-edge technologies to make drilling operations as efficient as possible to increase oil and gas production. The adoption of tungsten carbide bits has risen significantly due to their many advantages, including their high strength, adaptability, and eco-friendliness.
Several oil and gas projects had been put on hold or delayed due to the COVID-19 outbreak because of travel restrictions, supply chain problems, and low crude oil prices. Due to COVID-19-related restrictions, limited demand for crude oil resulted in a price crash in April 2020. Low crude oil prices lower the operator's profit margin, which has a detrimental effect on upstream operations and the market under investigation. Increasing oil and gas exploration and development operations, developing unconventional fields, and directional drilling are key drivers for the market. Additionally, it is anticipated that the market under study has grown slowly due to the volatility of crude oil prices and the efforts made by the main economies to switch from an energy mix based on fossil fuels to renewables.
One of the key factors driving the expansion of the market is the strong emphasis on natural gas drilling and the ensuing increase in shale gas exploration operations in several nations. The Chinese government announced ambitions in 2020 to reduce costs and loosen rules governing shale gas development activity. In a government auction, the Guizhou province of the nation offered six shale gas exploration blocks.
Due to the significant role that drill pipes play in mining projects and operations, increasing mining activity has increased the demand for drill pipes. As an illustration, the Portuguese mining contractor recently declared that it had signed a contract worth £220,3 million (US$ 263.8 million) through its African subsidiary exclusively to prepare, excavate, and transport at the Gamsberg zinc mine in South Africa's Northern Cape. By April 2021, work on project preparation began, and it could take up to 96 months to complete. Site preparation, blasting, drilling, and the excavation of waste and ore were all part of the project's activities. To accomplish its ultimate goal of producing 1 billion tonnes of coal by 2023–2034, Coal India Ltd (CIL) approved 32 mining projects in March 2021 with an investment of about INR 47,300 crore (US$ 43.6 million). Thus, increasing mining operations would result in a huge demand for drill pipes, propelling the drill bits market growth.
Drill pipe is the main element in producing raw resources like crude oil. Uncertainty in demand for crude oil hinders the price of raw materials from drill pipes. For instance, on April 21, 2020, Brent crude prices, the standard for petroleum prices, dropped to $9.12 per barrel, setting a new low not seen since December 10, 1998. India's Crude Oil Basket (COB) hit a record-low low of $19.90 per barrel in April 2020, the lowest level since February 2002. The average COB price in India for the first 11 months of 2020–21 was about $42.72 per barrel, 30% less than the average COB price in 2019–20. Similarly, according to updated estimates for 2020–21, the COB has climbed from its initial budget estimate by about 35%.
The industrial, transportation, and residential sectors' steadily rising need for oil and gas supplies is a major factor in the market's expansion. Also, drill pipes are crucial in oil and gas exploration because they can endure great pressure, heat, and load during drilling and flow completion activities. For instance, Nigeria recently announced the beginning of its $ 11 billion Dangote Refinery and Polypropylene Plant project, which is scheduled to be completed by the end of 2021. The plant processes various crude grades, including shale oil, and has a production capacity of 12 300 b/d of fuel oil, 104,000 b/d of diesel, 153,000 b/d of gasoline, 4,109 b/d of LPG, 73,000 b/d of jet fuel.
Based on type, The drill bits market segmentation is fixed cutter bits and roller cone cutter bits. The fixed cutter bits category dominated the market in 2021 due to its high frequency & speed of rotations, which makes it a more effective drilling technique than roller cone bits. The increased consumer awareness of using fixed cutter drilling bits in hard and soft rock formations has intensified the segmental expansion. However, roller cone cutter bits are anticipated to be the fastest growing in the coming years due to their performance and cost-effectiveness.
Based on application, The drill bits market segmentation is onshore and offshore drilling. In 2021, onshore drilling bits accounted for the largest market share of the market due to increasing onshore drilling activities in many different parts of the world. New oil and gas sources are drilled using directionless drilling in previously uncharted and unconventional places. However, the offshore drilling category is estimated to register the highest growth rate during the forecast period. The activities related to offshore exploration and production (E&P) are expected to increase due to the increased interest in offshore drilling.
By region, The drill bits market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.
North America dominated the market share in 2021. In 2020, the United States produced more than 18% and 23% of the world's oil and gas, respectively, making it one of the top producers of crude oil and natural gas. Drill bit demand is directly correlated with upstream oil and gas activities; therefore, oil and gas exploration and production have expanded in the US, and so has drilling demand.
Asia-Pacific accounted for the second-largest market share in 2021. Due to China's expanding shale gas development projects, the market for drilling bits is anticipated to expand quickly in the Asia-Pacific area. The area is anticipated to experience a significant increase in demand for drill bit due to rising oil and gas discovery operations in nations like Indonesia, Australia, and the Philippines.
The market includes tier-1, tier-2, and local players. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, product introduction, joint ventures, and partnerships, to strengthen their market position and capture an extensive customer base. For instance, in January 2022, The 17,000 sq km of 3D seismic data would be collected by the state-owned national oil corporation of China, CNOOC Ltd., as well as 227 offshore exploration wells and 132 onshore unconventional exploration wells. Thirteen new projects in China are anticipated to start up in 2022, including the development of the Bozhong 29-6 oil field, the Kenli 6-1 oilfield Block 5-1, 5-2, and 6-1, the joint development of the Enping 15-1/10-2/15-2/20-4, and the development of the Shenfu South gas field.
Prominent players in The drill bits market research include Atlas Copco (Sweden), Cangzhou Great Drill Bits Co. Ltd. (China), Baker Hughes Inc. (US), Halliburton Company (US), Irwin Industrial Tool Company (US), ESCO Corporation (US), NewTech Drilling Products LLC (Russia), Scientific Drilling International Inc (US), Varel International Inc (US), National Oilwell Varco Inc (US), Kingdream Public Limited Company (China), Ulterra Drilling Technologies (US), Torquato Drilling Accessories Inc. (US) among others.
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Drill Bits Market Forecast & Size:
To identify and estimate the market size for the drill bits market report segmented by type and application by value (in US dollars). Also, to understand the consumption/ demand created by consumers in the drill bits market forecast between 2022 and 2030
Market Landscape and Trends:
To identify and infer the drivers, restraints, opportunities, and challenges in The drill bits market growth
Market Influencing Factors:
To find out the factors which are affecting The drill bits market size among consumers
Impact of COVID-19:
To identify and understand the various factors involved in the market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the company's financial health in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: USD 4.64 Billion|
|CAGR||7% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and the Rest of the World (RoW)|
|Key Vendors||Atlas Copco (Sweden), Cangzhou Great Drill Bits Co. Ltd. (China), Baker Hughes Inc. (U.S), Halliburton Company (US), Irwin Industrial Tool Company (US), ESCO Corporation (U.S), NewTech Drilling Products LLC (Russia), Scientific Drilling International Inc (US), Varel International Inc (US), National Oilwell Varco Inc (US), Kingdream Public Limited Company (China), Ulterra Drilling Technologies (U.S), Torquato Drilling Accessories Inc. (US)|
|Key Market Opportunities||Potential of emerging markets|
|Key Market Drivers||Preference for soft drill bits owing to comfort and modification of multiple eye problems|
The drill bits market forecast period is 2022 - 2030
The market is expected to register a CAGR of ~7.00% over the next 10 years, according to the drill bits market research.
Asia-Pacific is expected to register the highest CAGR during 2022 - 2030
North America held the largest share in 2021
The market size is expected to be USD 4.64 Billion by 2030.
Atlas Copco (Sweden), Cangzhou Great Drill Bits Co. Ltd. (China), Baker Hughes Inc. (U.S), Halliburton Company (US), and Irwin Industrial Tool Company (US) are the major companies operating in the market.
Key Questions Answered
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