Polycrystalline Diamond Compact Drill Bit Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 4.00 % |
| Fastest Growing Market | South America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Polycrystalline Diamond Compact Drill Bit Market Analysis
The polycrystalline diamond compact (PDC) drill bit market is expected to register a CAGR of over 4% during 2020-2025. Factors, such as increased exploration activity and focus on development of new oil and gas fields, are expected to drive the market for PDC drill bits. Drilling activity, especially footage drilled, are expected to drive the demand for PDC drill bits. However, the volatile oil prices over the recent period, owing to the supply-demand gap, geopolitics, and several other factors have been restraining the growth of the PDC drill bit market.
The onshore segment accounted for the maximum market share in 2018. Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production.
The increasing oil and gas discoveries, coupled with the liberalization in the industry, have been providing new opportunities for the market players. The new emerging markets are several developing nations of Middle East & Africa, Asia-Pacific, and South America.
North America accounted for the maximum market share in 2018. The growth rate of the South American region is expected to be the highest during the forecast period, primarily due to the rapidly increasing oil and gas activities in the region.
Polycrystalline Diamond Compact Drill Bit Market Trends
This section covers the major market trends shaping the Polycrystalline Diamond Compact Drill Bit Market according to our research experts:
The Onshore Segment to Dominate the Market
Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production. Onshore drilling is similar to offshore drilling but without the difficulty of deep water between the platform and the oil.
The global crude oil prices witnessed signs of recovery and are improving at a good pace and the onshore projects are easier to kick start than offshore projects. Therefore, riding on the optimism associated with the recovery of crude oil prices, onshore projects are expected to record significant growth over the forecast period. This, in turn, is expected to drive the demand for PDC drill bits.
In August 2018, Baker Hughes was awarded a development contract by Cairn, Vedanta Limited, to construct approx. 300 new wells and deploy a chemical enhanced oil recovery program aimed at increasing production from the Rajasthan area. The project marks the largest integrated project for BHGE in India, expanding its presence in the country and supporting the government's mission of reducing dependency on imports.
In 2019, ONGC announced that it allotted INR 6,000 crore for drilling 200 wells in Assam over the next seven years, to increase the output from the state. The wells are expected to be drilled during the next seven years.
Hence, with the new investment in the onshore oil and gas industry, increasing exploration of unconventional resources, and the crude oil price stability, the demand for PDC drill bits is expected to increase during the forecast period.
North America to Dominate the Market Growth
North America is expected to be the largest market for PDC drill bits, owing to the large chunk of activities for shale gas exploration in the region. Over the past decade, the lateral lengths of the unconventional wells drilled in the United States, increased by 180%.
The United States, as of 2019, is the largest producer of oil and gas. In the United States, there are more than 900,000 active oil and gas wells, and more than 130,000 have been drilled since 2010. In 2018, the United States witnessed three significant oil discoveries, including two in the Gulf of Mexico, at Ballymore (545 Mb) at a depth of 2,000 m underwater, and at Appomattox (140 Mb) under 2,300 m of water.
According to the Canadian Government, in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020, and the production is expected to increase from an offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.
The annual oil output of Mexico has been declining over the years, due to drying up of the giant Cantrell field in the shallow waters of the Gulf of Mexico. However, the Mexican government is trying to increase private investments in its controlled areas of the Gulf of Mexico.
Therefore, increasing oil and gas exploration and production activities and the increasing unconventional development activities in the region are expected to increase the demand for PDC drill bits over the forecast period in the North American region.
Polycrystalline Diamond Compact Drill Bit Industry Overview
The PDC drill bit market is partially fragmented due to the presence of, both, major players and small players. Some of the major players include National Oilwell Varco (NOV), Schlumberger Limited, Sandvik AB, Weatherford International PLC, and Baker Hughes Company.
Polycrystalline Diamond Compact Drill Bit Market Leaders
Baker Hughes Company
Schlumberger Limited
Sandvik AB
National Oilwell Varco
*Disclaimer: Major Players sorted in no particular order
Polycrystalline Diamond Compact Drill Bit Market Report - Table of Contents
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1. INTRODUCTION
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1.1 Scope of the Study
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1.2 Market Definition
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1.3 Study Assumptions
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2. EXECUTIVE SUMMARY
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3. RESEARCH METHODOLOGY
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4. MARKET OVERVIEW
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4.1 Introduction
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4.2 Market Size and Demand Forecast in USD billion, till 2025
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4.3 Active Rig Count, till 2019
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4.4 Historic and Demand Forecast of Upstream CAPEX in USD billion, by Onshore and Offshore, 2018-2025
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4.5 Recent Trends and Developments
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4.6 Government Policies and Regulations
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4.7 Market Dynamics
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4.7.1 Drivers
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4.7.2 Restraints
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4.8 Supply Chain Analysis
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4.9 Porter's Five Forces Analysis
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4.9.1 Bargaining Power of Suppliers
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4.9.2 Bargaining Power of Consumers
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4.9.3 Threat of New Entrants
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4.9.4 Threat of Substitutes Products and Services
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4.9.5 Intensity of Competitive Rivalry
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5. MARKET SEGMENTATION
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5.1 Type
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5.1.1 Matrix Body
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5.1.2 Steel Body
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5.2 Location of Deployment
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5.2.1 Onshore
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5.2.2 Offshore
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5.3 Geography
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5.3.1 North America
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5.3.2 Europe
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5.3.3 Asia-Pacific
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5.3.4 South America
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5.3.5 Middle East & Africa
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6. COMPETITIVE LANDSCAPE
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6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
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6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
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6.3.1 Baker Hughes Company
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6.3.2 Halliburton Company
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6.3.3 Landrill Oil Tools Co. Ltd
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6.3.4 National Oilwell Varco (NOV)
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6.3.5 Rockpecker Limited
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6.3.6 Sandvik AB
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6.3.7 Schlumberger Limited
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6.3.8 Schoeller-Bleckmann Oilfield Equip AG
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6.3.9 Ulterra Drilling Technologies LP
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6.3.10 Weatherford International PLC
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- *List Not Exhaustive
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7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Polycrystalline Diamond Compact Drill Bit Industry Segmentation
The polycrystalline diamond compact (PDC) drill bit market report includes:
| Type | |
| Matrix Body | |
| Steel Body |
| Location of Deployment | |
| Onshore | |
| Offshore |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle East & Africa |
Polycrystalline Diamond Compact Drill Bit Market Research FAQs
What is the current Polycrystalline Diamond Compact (PDC) Drill Bit Market size?
The Polycrystalline Diamond Compact (PDC) Drill Bit Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Polycrystalline Diamond Compact (PDC) Drill Bit Market?
Baker Hughes Company, Schlumberger Limited, Sandvik AB and National Oilwell Varco are the major companies operating in the Polycrystalline Diamond Compact (PDC) Drill Bit Market.
Which is the fastest growing region in Polycrystalline Diamond Compact (PDC) Drill Bit Market?
South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Polycrystalline Diamond Compact (PDC) Drill Bit Market?
In 2024, the North America accounts for the largest market share in Polycrystalline Diamond Compact (PDC) Drill Bit Market.
What years does this Polycrystalline Diamond Compact (PDC) Drill Bit Market cover?
The report covers the Polycrystalline Diamond Compact (PDC) Drill Bit Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Polycrystalline Diamond Compact (PDC) Drill Bit Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Polycrystalline Diamond Compact (PDC) Drill Bit Industry Report
Statistics for the 2024 Polycrystalline Diamond Compact (PDC) Drill Bit market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Polycrystalline Diamond Compact (PDC) Drill Bit analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
