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Drill Bits Market For Oil & Gas Industry (By Product, Roller Cone Bits, Fixed Cutter Bits) - Growth, Future Prospects & Competitive Analysis, 2016-2023

Drilling is the primary process in the exploration and production of crude oil from a reservoir. In this process, rocks are crushed to form a cylindrical hole in the earth's surface using drill bits to extract the crude oil. Drill bits made up of various materials such as diamond, tungsten, and carbide are widely used in the oil and gas industry. Drill bits are segmented on the type, i.e., roller cone drill bits and fixed cutter drill bits. Roller cone drill bits are the most popular type of drill bit used for the drilling of conventional wells. The roller cone drill bits segment is expected to be the most dominant segment over the forecast period. While the fixed cutter bits are in place, segment growth is augmented by increasing production of non-conventional shale gas and tight oil.

Growing energy demand due to an increase in automobiles due to rapid urbanization, especially in emerging economies of Asia Pacific such as India and China, is expected to drive the demand for fossil fuels, which in turn is influencing oil producers to increase oil production. This, in turn, is expected to spur the growth of the global drill bit market for the oil and gas industry. An increase in the exploration and production of sand formations coupled with new drilling techniques such as hydraulic fracturing, or "fracking," is anticipated to impel the demand for polycrystalline diamond bits (PCD).

The oil and gas industry has witnessed a shift in exploration and production operations from conventional to non-conventional oil and gas exploration. Growing production of shale gas since 2010, coupled with increasing ultra-deepwater drilling activities in the U.S. Gulf of Mexico, is expected to drive the demand for drill bits over the forecast period (2016–2023). Moreover, an increasing rig count for offshore drilling is also anticipated to fuel the demand for drill bits over the forecast period.

The global drill bit market for oil and gas has been estimated to be valued at US$ 5.4 billion by the end of 2016 and is expected to attain revenues of US$ 8.2 billion by 2023, expanding at a CAGR of 6.1% during the forecast period of 2016–2023.

Purpose of the Report

The purpose of this strategic research study titled "Global Drill Bits Market for Oil & Gas Industry: Growth, Future Prospects, Competitive Analysis, and Forecast, 2016–2023" is to provide company executives, industry investors, and industry participants with in-depth insights to enable them to make informed strategic decisions regarding the opportunities in the global drill bit market.

  • Target Audience
  • Industry Investors
  • Research Professionals
  • Emerging Companies
  • Raw Material Suppliers and Buyers
  • Product Suppliers and Buyers
  • Research Institutes

On the basis of product type, the global drill bit market is categorized into the following types:

  • Roller cone bits
  • Milled-tooth bits
  • Tungsten carbide inserts (insert bits)
  • Fixed cutter bits
  • Polycrystalline diamond bits (PDC)
  • Natural diamond bits

Hydrocarbon extraction involves various processes such as seismic surveys, drilling, production, and others. Various equipment, such as rigs, drill bits, tubes, pumps, and gauges, are used in drilling and the production of equipment. Drilling operations are one of the prime operations in hydrocarbon extraction and involve the creation of a cylindrical hole in the earth's crust. Drill bits are used for crushing or cutting rocks to create cylindrical holes in the earth's crust. The drill bit market in the oil and gas industry is gaining traction with growing oil production activities across the globe. Increased demand for energy coupled with advancements in the technology of extraction from nonconventional shale gas exploration is expected to augment the growth of the drill bits market over the forecast period (2016–2022).

On the basis of product type, the drill bit market can be segmented into roller-cone and fixed cutter bits.

Roller cone drill bits are the most common drill bit used in drilling to extract hydrocarbons. The segment is anticipated to be the most dominant segment among product types due to its low cost and because it is convenient for soft formations. However, the segment is expected to lose market share to the fixed cutter bits segment due to the growing exploration and production of shale gas, which requires hard rock drilling at higher depths. Roller cone drills can be subdivided into milled-tooth bits and tungsten carbide inserts (insert bits).

Fixed-cutter bit segments are expected to gain traction over the forecast period owing to the growing production of non-conventional shale gas exploration and deep-water drilling activities. Fixed cutter bits are widely used for crushing rocks found in deep-water drilling and the drilling of shale rocks. The fixed cutter bit segment can be sub-segmented into polycrystalline diamond bits (PDC) and natural diamond bits. The polycrystalline diamond bits segment is anticipated to grow at a significant rate over the forecast period due to its high penetration rate and adaptability to diverse rock formations.

Growing demand for oil and natural gas in key consuming economies such as China and India is expected to drive new projects of oilfield exploration, which in turn is anticipated to fuel demand for drill bits over the forecast period (2016–2023).

On the basis of geography, the global drill bit market is segmented into the following categories:

  • North America
  • U.S.
  • Canada
  • Latin America
  • Brazil
  • Mexico
  • rest of Latin America
  • Europe
  • Germany
  • France
  • U.K.
  • Rest of Europe
  • Asia Pacific
  • China
  • India
  • Japan
  • Rest of Asia Pacific
  • Middle East and Africa (MEA)
  • GCC
  • rest of MEA

The global drill bit market for the oil and gas industry is expected to gain momentum with the recovery of oil prices. The oil and gas industry has witnessed a shift in exploration and production operations from conventional to non-conventional oil and gas exploration. Drilling of sand formations increased offshore drilling, and growing deep-water and ultra-deepwater drilling have fuelled the demand for specialized drill bits with a better rate of penetration.

North America contributed the highest revenue share in the global drill bit market, with a contribution that is estimated to be more than 35% by the end of 2016. Following it, MEA stood in second place in the same year. High oil reserves coupled with a low per-barrel production cost in the region are projected to spur the exploration of new wells in the region, which in turn is anticipated to intensify the demand for drill bits over the forecast period.

Asia Pacific is expected to register significant growth after 2018 owing to high reserves of shale gas in China coupled with increasing research and development in shale gas exploration by Chinese oil producers. Besides this, increasing oil production activities in Russia and other countries of Europe are expected to spur the growth of the drill bit market over the forecast period (2016–2023).

Frequently Asked Questions:

The market for Drill Bits Market is expected to reach US$ 8.2 Bn By 2023.

The Drill Bits Market is expected to see significant CAGR growth over the coming years, at 6.1%.

The report is forecasted from 2016 To 2023.

The base year of this report is 2015.

Halliburton, Inc, National Oilwell Varco., National Oilwell Varco, Torquado Drilling Accessories Inc. are some of the major players in the global market.

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Trusted By
Godaddy
Published Date:  Nov 2016
Category:  Oil & Gas
Report ID:   58189
Report Format:   PDF
Pages:   120
Rating:    4.5 (70)
Delivery Time: 24 Hours to 48 Hours   
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