Drill Bit Market size is expected to witness a lucrative growth from 2022 to 2028, considering the high prominence of exploratory drilling activities to establish proven reserves. A 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 the 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 market growth. 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 in the drill bit market is estimated to register a remarkable growth rate through 2028, as it is considered an efficient drilling process as compared to the roller cone bits, owing 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.
North America is set to emerge as a prominent drill bit market during 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.
Key participants operating in the drill bit market are 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.
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 the market.
However, the acceptance of refined and chemical products, which was weakened on account of 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.