Drill Pipe Market Size

Drill Pipe Market Dynamics

Drivers

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  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. 

Opportunities

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  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.

Restraints

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  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.

Challenges

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  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

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  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.

Drill Pipe Market Segment Overview

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. Due to the ability to conduct drilling operations under the earth’s surface, the onshore segment accounts for the maximum market share, 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.

Drill Pipe Market Regional Analysis

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.

Drill Pipe Market COVID-19 Analysis

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.

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.

Competitive Landscape

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 Market Segmentation

By Application

• Onshore


• Offshore

By Grade

• API


• Premium

By Type

• Standard Drill Pipe,


• Heavy Weight Drill Pipe (HWDP)

By Region

• North America


• Europe


• Asia Pacific


• Rest-of-the-World (RoW)