Global Drill Pipe Market is poised to create a valuation of USD 1,019.6 Million by 2025, growing at a 3.52% CAGR during the forecast period.
The market growth is majorly driven by the increasing oil & gas exploration activities in onshore & offshore sites due to the growing demand for petroleum products and energy. Recent advancements in drilling technology and the decrease in crude oil price has generated substantial market demand for optimizing E&P in current oil fields operating at economical rates. Reduced E&P activities result in reduced oil & gas supply in accordance with the oil & gas demand, which increases the demand for oil & gas.
The COVID-19 outbreak affected most industries across the world. The novel coronavirus lockdown resulted in the closing down of several manufacturing facilities, causing huge revenue losses in end-use. The pandemic put a brake on the production of drill pipes and key raw materials, which, in turn, spiked the prices and lowered the demand.
With the deteriorating market due to Covid-19 and oil price declines, MRFR states that many drill pipe companies faced non-cash impairment in respect of certain idle drilling units. On the bright side, the steadily increasing demand for petroleum products and energy can favor the drill pipe market in the years ahead. With the industry players intending to ensure that all customer, vendor, and employee obligations are met without interruption, the market is gradually coming back to normal.
Rising Automation in O&G industries to Bolster Growth
The increasing automation and investments in rapidly growing oil and gas industries are projected to play a causal role in the development of the drill pine market. Besides, increasing integrations of innovative technologies such as robotics in offshore and onshore drilling activities drive the growth of the market. Moreover, advances in drilling technologies such as horizontal drilling and hydraulic fracturing escalate market growth.
Spurring Rise in the petroleum industry worldwide to Present Robust Opportunities
The petroleum industry is again gearing up to post lockdown restrictions imposed due to coronavirus spread. This, as a result, is expected to increase the use of drill pipes and petroleum pipes that occupy a very important position in the drilling industry. Drill pipes demonstrate a huge amount of potential to save expenses and reduce the costs of drilling activities.
The consumption of oil well pipes can be calculated based on the annual drilling scale. The mechanics and environmental behavior of drill pipes have an important influence on the adoption of advanced technology and the increase in production and efficiency in the oil industry. Additionally, emerging markets across the globe present untapped opportunities for drill pipe used in the O&G industry. Emerging countries would offer a host of lucrative opportunities to global firms in the near future.
Lack of Interoperability to Restrain Market Growth
The lack of interoperability is a prominent factor projected to restrict the development of the market. These interoperability issues in several countries could restraint the ongoing market growth, negatively impacting the sales and use of drill pipes in the coming years. This is because drill pipes lack interoperability standards. The drill pipe industry needs to develop RFID interoperability standards that have not been used in the oil and gas industry ubiquitously as in other fields.
Fluctuating Raw Material Prices to Challenge Players
Price fluctuations of key raw materials across countries could be a major challenge for the players. Also, the demand-supply gap in raw material required for the drill pipe production poses challenges to the manufacturers.
Cumulative Growth Analysis
Market Share to Expand at a Strong Rate
Along with urbanization and industrialization across the globe, the increasing population would expand the drill pipe market share at a strong rate. Furthermore, geothermal power is estimated to play a key role in the drill pipe market, driving the energy transition.
Advances in deep-drilling technology for fracking and developments of new methods of tapping into the earth’s limitless underground supplies of oil & gas demonstrate huge market opportunities. Also, high cost accessing deep geothermal energy and initial government support would provide a much-required impetus to the market growth.
The market is segmented into three major dynamics by grade, application, and region. Based on grade, the market is sub-segmented into API grade and premium grade. The API grade segment holds the largest market share, as it can be manufactured as per the specifications developed and approved by API. Standard API approved drill pipe grades are X-95, E-75, G-105, and S-135.
On the basis of application, the drill pipe market is sub-segmented into onshore and offshore. Among these, the onshore segment accounts for the maximum market share due to the ability to conduct drilling operations under the earth’s surface, not covered in underwater drilling.
By region, the market is bifurcated into Americas (US, Canada, Mexico, Rest-of-North America), Europe (Germany, UK, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World.
North America to Maintain its Winning Streak
North America has remained the market leader since 2018 and could continue to maintain its winning streak throughout the assessment period. The market is driven by advances in drilling technologies such as horizontal drilling and hydraulic fracturing.
Moreover, high grade finds in rare earth exploration sites and new hydrocarbon reserves in the region influence the market growth. The US holds the largest share in the regional market due to advancements in unconventional drilling technologies, attracting substantial investments for oil and gas drilling projects.
Europe Seizes Second Highest Share in Global Market
Europe captures the second biggest share in the global drill pipe market. This growth attributes to the drop in oil prices and lower costs for drilling operations in the region. Additionally, developments in unconventional drilling technologies and discoveries of vast hydrocarbon resources in shale basins increase the drill pipe market size.
Many European countries are initiating, transforming regulations to increase the use of drill pipe in oilfield applications, this would resultantly increase the market share of the region. Moreover, well-developed oilfield infrastructure, increasing drilling activities, and the increasing demand for fossil fuels in the region foster the uptake of drill pipes in the oilfields.
Players Focus on M&A Activities and R&D Investments to Gain Impetus
The drill pipe market is appears fragmented due to the presence of established industry players. Global vendors are increasingly facing fierce rivalry from each other and from local firms, who are growing aware of industry regulations for suppliers. Therefore, eminent players seek opportunities to deeply integrate across the extended value chain while focusing on the expansion of production facilities, R&D investments, and M&A activities to gain impetus.
Drill Pipe International LLC is an American vertically integrated drill pipe & HW drill pipe manufacturer serving the domestic downhole industry & overseas, providing a strong financial base. The company owns raw material sourced from its integrated steel plants & tube mill needed to deliver superior quality products at competitive rates in the shortest period.
The new offshore snubbing unit/hydraulic workover was completed in partnership with Helix Energy Solutions, setting a world record. The drill pipeline would take advantage of gravity and the vertical drill pipe section, using the weight to lower the lateral drill pipe string.
Scope of the Report
The report features unique and relevant factors expected to significantly impact the sensor market during the forecast period. The detailed and considerable amount of information in the report would help industry players understanding the market better. The MRFR report elaborates on the historical and current trends boosting the growth of the drill pipe market. Besides, the analysis of COVID-19 impact on the sensor market is also included in the report.
This report examines the demand-supply scenario, pricing structure, profit margins, production, and value chain analysis influencing the drill pipe market growth. Regional assessment explained in this report unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling in the region enables users to evaluate company shares analysis, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities, and much more.
Frequently Asked Questions (FAQ) :
global drill pipe market valuation can reach USD 1,019.6 million by 2025.
global drill pipe market is expected to grow at 3.52% CAGR from 2019 to 2025.
The onshore application can gain a large share of the global drill pipe market till 2025.
North America is touted to be lucrative for the global drill pipe market till 2025.
Tenaris, National Oilwell Varco, Tejas Tubular Products, Inc., DP-Master Manufacturing (S) Pte Ltd, Texas Steel Conversion, Inc., Jiangyin Long Bright Drill Pipe Manufacture Co. Ltd, TMK Group, Oil Country Tubular Limited, Superior Drill pipe Manufacturing, DRILL PIPE INTERNATIONAL, LLC, VALLOUREC, Hilong Group of Companies, TPS-Technitube Röhrenwerke GmbH, and RK Pipe & Supply, LLC are key players of the global drill pipe market.