Drill Bit Market Size, Regional Outlook, Application Growth Potential, COVID-19 Impact Analysis, Competitive Market Growth & Forecast, 2021 – 2027
Report ID: GMI3394
Drill Bit Market size is set to flourish over 2021-2027, considering the high prominence of exploratory drilling activities to establish proven reserves. For example, CNX Resources Corporation announced 9.55 Tcfe proved reserves in total as of December 2020, with drilling and completion costs incurred by discoveries and extensions amounting to $480 million. Significant increase in the adoption of tungsten carbide bits due to myriad usage benefits such as high strength, versatility, and eco-friendly nature will further amplify industry penetration.
Drill bits are cutting tools that are widely used to create holes or power them for cutting through the workpieces. The product comes in various shapes and sizes and is capable of creating different types of holes in various materials.
Robust focus on natural gas drilling and subsequent rise in the shale gas exploration activities in several countries are some major trends contributing to the overall drill bit market growth over the projected timeframe. In 2020, the Chinese government unveiled plans to subsidize costs and ease regulations surrounding shale gas exploration activities. The Guizhou province in the country has provided six shale gas exploration blocks in a government auction.
On the basis of type, the fixed cutter bit segment is anticipated to witness a remarkable growth rate through 2027, as it is considered an efficient drilling process as compared to the roller cone bits, due to its high frequency & speed of rotations. The segmental expansion will further be escalated by the strong awareness of consumers regarding the effectiveness of fixed cutter drill bit uses in carving both hard & soft rock formations.
On the regional front, North America is set to emerge as a prominent drill bit market over the forthcoming years, which is attributable to the extensive availability of recoverable shale gas resources and its resultant deployment of large-scale hydraulic fracturing technology in countries including the United States. The regional industry share will further be bolstered by the mounting exploration process of natural gas. According to the U.S. Energy Information Administration, the U.S. recorded a considerable increase in natural gas consumption, production, and gross exports in 2019, hence triggering a rise in demand for drill bit grinding tools across the region.
The global drill bit industry is proliferated by the presence of key players such as Ulterra Drilling Technologies, Varel International (Sandvik Venture), Torquato, Kingdream Public Limited Company (China Petrochemical Corporation), Scientific Drilling International, NOV Inc. (formerly National Oilwell Varco), NewTech Drilling Products, ESCO Group (Weir Group), Great Drill Bits, Irwin Industrial Tool Company (Stanley Black & Decker), Halliburton Company, Cangzhou, Baker Hughes, and Atlas Copco, among others.
These firms are implementing varied efforts and strategies such as innovative product launches and business expansions to boost their stronghold across the globe. For instance, in October 2020, NOV introduced its new 1-in. ION Alpha cutter, designed using the proprietary drill bit modeling software to examine the depth of cuts whilst avoiding traditional reactive torque-related issues.
Low Oil & Gas Drilling Activities During COVID-19 may influence Drill Bit Market Trends:
The dramatic decline in oil prices, coupled with the slightly reduced oil demand from the end-user markets amid the coronavirus pandemic, may have severely impacted the oil & gas activities. The instances of oversupply and subdued demand have also led to a substantial imbalance in oil demand, thus resulting in diminished oil & gas drilling activities, which in turn presented challenges to drill bit market.
However, the adoption of refined and chemical products, which was weakened due to the industrial slowdowns and travel restrictions, is anticipated to recover gradually. Also, despite slow recovery in oil prices and relatively weaker oil demand , high spending in this sector is likely to surge the consumption of various types of drill bits to conduct the oil exploration processes. For example, India is expected to witness over $206 billion in investment for its oil & natural gas sector over the next 8-10 years.
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