According to a report published by Grand View Research, Inc.; the global drill pipe market is expected to reach a valuation of around USD 1.31 billion by 2025. Substantial oilfield expansions coupled with development of enhanced drilling techniques with better productivity can drive the market during the forecast period (2014 to 2025).
Increasing focus on improving product strength is one of the key trends observed in the market. The market is also witnessing rapid developments in terms of introduction of new technologies as well as raw materials to get greater performance in all drilling conditions including onshore and offshore remote oil and gas fields.
However, dip in crude oil prices and high production costs can hamper expansion of the market for rill pipes. In addition, rising concerns regarding emission of hazardous fumes caused by exploration activities is also anticipated to hamper the growth. Regulatory agencies such as the Fund for Wild Nature (FWN) have issued various orders regarding petroleum production.
Full Research Report On Drill Pipe Market Analysis: www.grandviewresearch.com/industry-analysis/drill-pipe-market
Global Drill Pipe Market Revenue By Grade, 2014 - 2025 (USD Million)
The worldwide drill pipe market can be segmented on the basis of grade, application, and region. Based on grade, the market can be categorized into premium grade and American Petroleum Institute (API) grade. The API grade segment is expected to continue leading the overall market in terms of market share during the forecast period. Standardization of finished products coupled with comparatively low prices are expected to support growth.
Use of AIP grade pipes can also help reduce operational cost of the Exploration and Production (E&P) and operator companies. These products are preferred in normal environment and conventional basins due to easy accessibility and reduced Operating Expense (OpEx) to E&P as well as contractor companies. The premium segment is also expected to showcase significant growth on account of increasing exploration activities in unconventional and harsh environmental conditions in Coal Bed Methane (CBM), tight, and shale reserves.
As per application, the market can be bifurcated into offshore and onshore. In 2015, onshore held the largest market share of over 58% in terms of revenue. It is expected to showcase the fastest growth during the forecast period. This expansion can be accredited to remarkable developments in onshore basins in U.S, Middle East, Nigeria, and Venezuela. Significant advancements in offshore locations such as Golden Triangle which includes the Gulf of Mexico, Brazil, and West Africa, the Persian Gulf, and South China Sea can further impel growth.
Geographically, the market for drill pipes can be divided into North America, Europe, Asia Pacific, Central and South America, and Middle East and Africa. Discovery of new hydrocarbons reserves in South China Sea, Israel, Australia, Egypt, Pakistan, and Senegal is expected to provide lucrative opportunities for growth in the forthcoming years.
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North America is one of the key markets. High investments by major E&P companies in conventional as well as unconventional fields are anticipated to bode well for regional growth. In 2015, demand for offshore basins in U.S. exceeded a net value of USD 64 million and is anticipated to expand at a CAGR of 4.3% through 2025.
Asia Pacific and Central and South America are projected to grow substantially over the forecast period on account of flexible regulatory policies in counties including China, India, Singapore, and Indonesia. The market in Indonesia is predicted to reach a net value exceeding USD 19 million by 2025. Factors such as rise in rig activities coupled with several new field developments including offshore basins especially in countries such as Indonesia, China, India, and Australia are likely to drive the growth in Asia Pacific region.
Some of the leading companies operating in the drill pipe market include Texas Steel Conversion Inc.; Superior Drill Pipe Manufacturing, Inc.; Jiangyin Long Bright Drill Pipe Manufacture Co. Ltd.; Oil Country Tubular Limited; and National Oilwell Varco.
The market is moderately fragmented owing to the presence of a large number of players. Most major players are involved in mergers and acquisitions to gain higher market share. Major companies are making R&D investments to optimize production quality for improving overall strength to fulfill the API specifications. This factor is likely to create significant business opportunities in terms of future demand.
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