Oilfield drill bits are cutting tools used to drill through hard formations such as rocks. They help drill through geological formations to extract oil and gas deposits located underground. Key advantages include precise cutting of hard stones and high corrosion resistance in harsh conditions. The increasing global energy demand has boosted oil & gas exploration activities worldwide necessitating the use of drill bits.
The global Oilfield Drill Bits Market is estimated to be valued at US$ 9.17 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend accelerating the growth of the oilfield drill bits market is the increased exploration and production (E&P) activities around the globe to meet the rising demand for oil and gas. Expanding energy requirements from the automotive, industrial, and residential sectors have stimulated upstream oil companies to discover and drill new reserves. Technological advancements are also supporting E&P operations through improved drill bits designed for tough formations. Major players are investing in product innovations to develop bits with enhanced durability, impact resistance and drilling efficiency. This helps achieve well targets safely and quickly even in complex reservoirs.
Segment Analysis
The global Oilfield Drill Bits Market Demand is dominated by the PDC (Polycrystalline Diamond Compact) drill bits sub-segment, accounting for over 55% of the market share. PDC drill bits are designed to drill hard and abrasive formations. Its cutting structure is made up of numerous ultra-hard diamond grains that are pressed and bonded to a cobalt substrate under high pressure and temperature. PDC bits can drill through tough shale and granite formations more efficiently as compared to conventional bits due to their diamond cutting structures.
Key Takeaways
The global oilfield drill bits market is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising shale gas drilling activities and an upsurge in exploration and production projects globally. The global Oilfield Drill Bits Market is estimated to be valued at US$ 9.17 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030.
Regional analysis: North America currently dominates the global oilfield drill bits market with over 45% share owing to the presence of large shale reserves and increasing unconventional drilling activities in the United States. The North America region is expected to continue its dominance, growing at a CAGR of 8% during the forecast period.
Key players: Key players operating in the oilfield drill bits market are Baker Hughes Inc., Drill Master Inc, Ulterra Drilling Technologies, National Oilwell Varco Inc., Halliburton Inc., Schlumberger, Atlas Copco AB and Scientific Drilling International Inc. Baker Hughes holds the leading market share of over 20% with its broad portfolio of fixed cutter drill bits, roller cone bits, and polycrystalline diamond compact (PDC) drill bits. Schlumberger stands second with its comprehensive portfolio of drill bits including milled tooth bits, tungsten carbide inserts, and PDC drill bits.
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