Drill Pipe Market : Technological Advancements, Innovations | Size, Share, and Growth Analysis

The global drill pipes market is expected to reach USD 1.31 billion by 2025, according to a new report by Grand View Research, Inc. Increasing innovation regarding improving product strength is a major trend in the industry. Industry players are focused on developing new technologies and raw materials for better performance in all types of drilling conditions including onshore and offshore remote oil and gas fields.

Drill Pipes Market Report Highlights

  • Premium grade drill pipes are expected to account for over 25% of the revenue by 2025. The increasing use of premium grade in tight oil and gas formation is anticipated to drive the segment growth over the next eight years.
  • Onshore fields dominated the global drill pipe market with a net demand of over USD 580 million in 2015. Hike in E&P in shale and CBM fields particularly in the U.S., Canada, and China have been the key factors responsible for high market penetration.
  • The U.S. market demand in offshore basins exceeded a net value of USD 64 million in 2015 and is estimated to grow at a CAGR of 4.3% from 2016 to 2025
  • Asia Pacific is anticipated to witness the fastest growth over the forecast period owing to the flexible regulatory scenario in economies including India, China, Indonesia, and Singapore. The Indonesian drill pipe industry is anticipated to reach a net value exceeding USD 19 million by 2025.
  • The global market is dominated mostly by regional players. Some of the multinational players include Inter Drill Asia, TPS TECHNITUBE RÖHRENWERKE, Vallourec, and National Oilwell Varco.

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Drill pipes are essential components of a drilling rig used in the exploration and extraction of natural resources such as oil and gas. They are an essential component of any drilling rig and are used to transfer drilling fluids, such as mud, downhole to the drill bit. The drill pipe also provides a conduit for the cuttings to return to the surface. These pipes are typically made of high-strength steel and are designed to withstand the high pressures and torque of the drilling process. The length of a drill pipe can vary depending on the depth of the well being drilled, with typical lengths ranging from 30 to 45 feet. The pipes are connected end-to-end using threaded connections called tool joints, which provide a secure and tight seal. Additionally, drill pipes can be equipped with a variety of specialized tools, such as stabilizers and shock absorbers, to help optimize the drilling process and increase efficiency. Without drill pipes, drilling for oil and gas would not be possible, making them an indispensable tool for the energy industry.

Drill Pipe Market Size By Grade and Application
Drill Pipe Market Size By Grade & Application

One of the key trends in the market was the increasing demand for horizontal drilling, which requires longer drill pipes that can reach greater depths. This has led to the development of high-strength drill pipe materials, such as grade S135 steel, which can withstand the high pressures and torque of horizontal drilling. Another trend was the focus on sustainability and reducing the environmental impact of drilling operations. This has led to the development of eco-friendly drill pipe coatings and the use of recycled materials in their manufacturing. Furthermore, there has been a rise in the use of digital technologies such as artificial intelligence and machine learning in the drilling process. This has enabled companies to better predict drilling outcomes, optimize drilling operations, and improve safety. As new technologies and sustainable practices are developed to improve efficiency and reduce environmental impact.

However, the dip in crude oil prices over the last two years has restricted the market growth. Rig rental capital is declining in the offshore market, and customers have significantly higher bargaining power in negotiating new contracts and extensions, leading to lower day rates and an oversupply of rigs.

API grade drill pipes held the largest share in global demand and are expected to continue their dominance over the forecast period. Standardization of the finished products along with the relatively low prices of this grade is anticipated to promote market penetration. Utilizing these products also ensure the reduced operational cost to the E&P and operator companies.

API grade products are mostly preferred in normal environments and conventional basins owing to the easy availability and reduced OpEx to both E&P and contractor companies. Exploration in unconventional and harsh environmental conditions particularly in shale, CBM, and tight reserves are expected to steer premium grade drill pipes demand over the forecast period.

Drill Pipes Market Insights By Region

North America drill pipe market emerged as the leasing consumer of the total demand. Asia Pacific and Central & South America are anticipated to witness above-average growth rates over the next nine years. The expected increase in rig activities along with several new field developments including the offshore basins especially in China, Indonesia, Australia, and India is expected to drive Asia Pacific drill pipes industry growth.

Competitive Analysis By Major Companies

Owing to the presence of numerous industry participants, the market is considered as moderately fragmented. Major companies have been observed to have initiated frequent M&As in order to gain market share. The global drill pipe market is dominated by National Oilwell Varco, Inter Drill Asia Ltd., Superior Drill Pipe Manufacturing Inc., DP Master Manufacturing Pte Ltd., Shanghai Hilong Drill Pipe Co. Ltd., TPS TECHNITUBE RÖHRENWERKE GmbH, Tenaris Company, Drill Pipe International LLC, Vallourec, and RK Pipe LLC.

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Grand View Research has segmented the global drill pipes market on the basis of grade, application, and region.

Research Methodology

We employ a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. We utilize a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously.

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About Grand View Research

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S. based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.

 

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