Market Size of Downhole Drilling Tools Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Downhole Drilling Tools Market Analysis
The downhole drilling tools market is expected to record more than 6.5% CAGR throughout 2022-2027. Due to the COVID-19 pandemic, the oil and gas industry witnessed a significant decline in demand due to the various lockdowns and restrictions, which resulted in decreased demand for downhole drilling tools. Additionally, the outbreak of COVID-19 in Q1 2020 delayed significant drilling projects worldwide, affecting the market for downhole drilling tools. For instance, in April 2020, Beach Energy announced a termination notice to Diamond Offshore for its year-long offshore drilling program in the Otway basin in Southern Australia with the semi-submersible Ocean Onyx, citing the logistical difficulties caused by the COVID-19 pandemic. Increased rig counts during the forecast period due to discoveries in several regions may drive the downhole drilling tools market. Also, the high requirement for tubular and increased directional drilling activities in the United States, North Sea, and Russia present more opportunities for the downhole drilling tools market. However, the unfavorable environmental effect of E&P activities, such as the release of crude oil into the environment and heavy metals, can have profound ecological implications. These ecological effects, coupled with stringent government regulations, are likely to restrain the market's growth during the forecast period.
- The onshore had the maximum share in the market in 2020. Onshore drilling encompasses all the drilling sites on dry land and accounts for 70% of worldwide oil production.
- The development of new-generation automated drilling tools and technological advancements breeding from automation in drilling activities are expected to present many opportunities for downhole drilling companies.
- North America, specifically the United States, dominates the market, accounting for most of the downhole drilling tools due to many wells being drilled each year in its shale and tight reserves.
Downhole Drilling Tools Industry Segmentation
The scope of the downhole drilling tools market report includes:
| Location of Deployment | |
| Onshore | |
| Offshore |
| Component | |
| Tubulars | |
| Drilling Bits | |
| Deflection Tools | |
| Other Downhole Drilling Tools |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Downhole Drilling Tools Market Size Summary
The downhole drilling tools market is poised for significant growth, driven by an anticipated increase in rig counts and discoveries in various regions. The market experienced a downturn due to the COVID-19 pandemic, which led to delayed drilling projects and reduced demand for downhole drilling tools. However, the recovery in global crude oil prices and the resurgence of onshore projects are expected to bolster market expansion. The onshore segment, which accounts for a substantial portion of global oil production, is projected to maintain its dominance due to the ease of initiating projects compared to offshore endeavors. Technological advancements, particularly in automated drilling tools, are set to create new opportunities for market players, with North America, especially the United States, leading in market share due to its extensive shale and tight reserves.
North America's dominance in the downhole drilling tools market is supported by favorable economic conditions, such as low breakeven prices and high crude oil prices, alongside technological innovations in hydraulic fracturing. While the offshore sector has seen limited activity, it is expected to gain momentum as government policies open up more coastal areas for drilling. The market is moderately fragmented, with key players like National-Oilwell Varco Inc., Halliburton Company, and Schlumberger Limited driving competition and innovation. Recent developments, such as Vertex Downhole Ltd's upgrades to its MWD tools and Schlumberger's introduction of Autonomous Directional Drilling, highlight the ongoing advancements in the industry. These factors, combined with increasing oilfield exploration and private investments in regions like Mexico, are anticipated to sustain the market's growth trajectory in the coming years.
Downhole Drilling Tools Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Active Rig Count, by Major Regions, till 2022
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1.4 Recent Trends and Developments
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1.5 Government Policies and Regulations
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1.6 Market Dynamics
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1.6.1 Drivers
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1.6.2 Restraints
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1.7 Supply Chain Analysis
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1.8 Porter's Five Forces Analysis
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1.8.1 Bargaining Power of Suppliers
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1.8.2 Bargaining Power of Consumers
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1.8.3 Threat of New Entrants
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1.8.4 Threat of Substitutes Products and Services
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1.8.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Location of Deployment
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2.1.1 Onshore
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2.1.2 Offshore
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2.2 Component
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2.2.1 Tubulars
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2.2.2 Drilling Bits
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2.2.3 Deflection Tools
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2.2.4 Other Downhole Drilling Tools
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2.3 Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 South America
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2.3.5 Middle-East and Africa
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Downhole Drilling Tools Market Size FAQs
What is the current Downhole Drilling Tools Market size?
The Downhole Drilling Tools Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)
Who are the key players in Downhole Drilling Tools Market?
Baker Hughes Co. , Halliburton Company , Hunting PLC , Schlumberger Limited and National-Oilwell Varco Inc. are the major companies operating in the Downhole Drilling Tools Market.
