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The global oil and gas drill bit market size was valued at USD 3.62 Billion in 2018 and it is projected to reach USD 7.68 Billion by 2026, exhibiting a CAGR of 10.04% during the forecast period.
The drill bit is the tool attached at the bottom of the drill string to excavate the rock formations. The rotation of the drill string and weight put on it provides power to the drill, which further carries out the crushing, scraping or grinding the bottom rock formation as the drilling goes on.
Therefore, the drilling bits form a vital part of the oil & gas industry which are required to carry out well drilling for the extraction of oil and gas from the earth’s crust. A drilling bit is available in various forms and these are deployed across all the onshore and offshore wells that are being drilled across the globe.
The drilling bit is selected based on the nature of the bed. Various types of available drilling bits include milled-tooth bits, tungsten carbide inserts, polycrystalline diamond compact, and impregnated diamond.
The market for drill bit is ultimately dependent upon the number of wells being drilled irrespective of the location being onshore or offshore. Therefore, an increase in the exploration activities which was witnessed after the stabilization of the oil & gas industry in 2016 has positively impacted the oil and gas drill bit market growth.
The recent shift towards natural gas has resulted in a rise in the number of shale gas exploration activities around the globe. They are undertaken to reduce the impact of carbon emissions in the environment. Most of the shale gas activities are concentrated in North America owing to the presence of abundant shale reserves.
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There has been an increase in the oil and gas drilling bits deployment in North America, mainly due to the shale boom in the region. The shale gas activities have been on the rise in this region.
The USA has been the leading country. The country not only satisfies its demands but also exports shale gas and therefore the drill bit market holds a greater market share in the region. The offshore exploration activities have been on a slow rise in the region and significant development in the oil and gas industry has been growing moderately at the onshore locations in the country.
“ Increasing demand for energy will propel the adoption of oil and gas drilling bit”
The increasing demand for energy with the growing population and urbanization will augment the global oil and gas drill bit market growth. Although there has been a competition from the upcoming substitutes for conventional fuels, these substitute energy sources are still new and cannot replace conventional fuels fully at the current scenario. High-efficiency and engine complacency are the factors driving the use of conventional fuels. The unexplored regions for the oil and gas still act as an exploration opportunity for the oil & gas industry and therefore it can contribute to this market growth.
“Focus on increasing efficiency at challenging locations will drive the growth of the global market”
The drilling bit have seen advancements in their structure over the years. The advancements brought in the structure of the drilling bits and the material being used for their manufacturing have helped the drilling efficiency to rise. The operational time required per well has also decreased. The exploration activities in recent years have been carried out at a difficult location and in great depths in the offshore locations. This has increased the scope of the area available for exploration activities. And the increased exploration activities at difficult locations along with increased efficiency will drive the sales of the global oil and gas drill bit market.
“Owing to their increased adoption, pdc bits will dominate the market during the given forecast period.”
Based on type, the market is segmented into roller cone cutter bits and fixed cutter bits. The roller cone cutter bits are further segmented into milled-tooth bits and tungsten carbide inserts. Similarly, the fixed cutter bits are further segmented into the diamond impregnated and pdc.
As diamond is the hardest material found on the earth, it can be used against any rock formation to break through it and extract the required product. Hence, the adoption of pdc bits has certainly increased in the recent years owing to this property and certain advantages over the other type of bits. The small, inexpensive diamond particles are transformed into large intergrown masses of randomly oriented crystals which are further altered into useful shapes known as diamond tables. The diamond tables then come in contact with the formation and carry out the cutting process.
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Apart from their hardness, the polycrystalline diamond cutters also have the property of being able to bond with other materials, such as tungsten carbide which can be brazed with the bit bodies. As the formation becomes softer the number of blades is also less but are bigger in case of pdc bits. The other types of bits available for drilling purpose include milled-tooth buts, tungsten carbide inserts, and the diamond-impregnated drill bits.
“Increasing onshore exploration activities will lead to domination of the segment in global market”
Based on application, oil and gas drill bit market is segmented into onshore and offshore. The exploration activities being carried out at onshore locations have increased in the recent years. North America region holds a major market share in the oil and gas drill bits market. One of the most significant reasons for this is a rise in the shale gas exploration activities in North America. The region holds a major global oil and gas drill bit market share. The shale gas exploration activities have been on the rise due to rising carbon emissions and increasing demand for clean fuel. Various countries have now shifted towards the use of shale gas and renewable energy sources over the conventional fuels.
The offshore segment has also witnessed growth in some of the regions of the world, but the growth in the offshore segment has been minimal as compared to the investments being made in the onshore segment. This trend is set to continue over the forecast period and the share for the onshore segment will rise in every region.
Geographically, the global oil and gas drilling bit market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America and the Middle East and Africa. These regions are further categorized into countries.
North America currently holds the largest market share in the oil and gas drill bit market owing to the increase in the exploration activities being carried out around the region at both offshore and onshore locations. The shale gas exploration activities have been the major factor driving the growth of the market in the region. The USA is the major player in this continent, accounting for more than half of the share in the region. Increasing exploration activities in the region has gained pace since the stabilization of oil prices in 2016.
Asia Pacific is also expected to witness a good growth rate in the drilling bit market. The major regions attributing to the growth of the region are an increased energy demand owing to the growing population. Presence of major drilling bit manufacturers and service providers has also impacted the growth of the market positively.
Europe is projected to witness moderate growth in the global oil and gas drill bit market. The green energy targets set up by various countries in the region have seen those countries shift towards the renewable energy sources, such as solar and wind. Therefore, a rise in the exploration activities in Europe will fuel the market sales.
North America Oil and Gas Drill Bit Market Size, 2018
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Latin America will also witness moderate growth in the oil and gas drill bit market. The major factors driving the growth in the region are the increased exploration activities being carried out at offshore locations owing to the increased energy demand in the region. The increasing population, coupled with the growing urbanization, has also impacted the growth of the market in the region. The major countries in the region are Argentina, Venezuela, Brazil, Mexico, Chile, and Peru.
The Middle East and Africa will also witness lucrative growth in the oil and gas drill bit market. The dependency of countries on the oil & gas industry for their economy is the major reason driving the growth of exploration activities which in turn is positively affecting the growth of the market in the region. The major countries focusing on the exploration and production activities in the region are GCC countries, Algeria, Nigeria and Egypt.
“Market Players like Schlumberger, Baker Hughes, and Halliburton are the leading players in providing advanced drilling solutions to the oil & gas industry.”
The oil and gas drill bit market is highly fragmented with the presence of numerous competitive players around the world. Schlumberger, Baker Hughes, and Halliburton together form a major portion of the market for providing the drilling services in the World.
Increased energy demand acorss the globe owing to rising population and urbanization has seen the oil and gas demand to rise. This has resulted in rise in number of exploration actitvities being carried out for oil and unconventional sources of energy. Drilling bits being responsible for the cutting through the earth’s crust to reach the underlying sources have also witnessed a hike in the number of sales of units in every region.
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Along with this, the report provides an elaborative analysis of the global oil and gas drill bit market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.
Value (USD Billion)
Fortune Business Insights says that the oil and gas drill bit market is projected to reach USD 7.68 Billion by 2026.
In 2018, the oil and gas drill bit market was valued at USD 3.62 Billion
Growing at a CAGR of 10.04%, the oil and gas drill bit market will exhibit steady growth in the forecast period (2019-2026)
Pdc bits will lead the oil and gas drill bit market.
Increasing exploration activities for oil and gas owing to the rising demand for energy is the key factor driving the growth of the global oil and gas drill bit market.
Baker Hughes, Halliburton, and Schlumberger are the top players in the oil and gas drill bit market.
North America is expected to hold the highest market share in the oil and gas drill bit market
An increasing demand for energy across the world is the most significant driver of the global oil and gas drill bit market.