Polycrystalline Diamond Compact (PDC) Drill Bit Market - Segmented by Type, Location of Deployment, and Geography - Growth, Trends, and Forecast (2019 - 2024)

Polycrystalline Diamond Compact (PDC) Drill Bit Market - Segmented by Type, Location of Deployment, and Geography - Growth, Trends, and Forecast (2019 - 2024)

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Polycrystalline Diamond Compact (PDC) drill bits have almost a default selection, unless the formation is sticky or too hard, where other types of bits are used. Drilling activity, in particular, footage drilled, drives the demand for PDC drill bits. The market had been hit hard by the downturn in oil & gas industry in the past few years. However, the recovery in crude oil prices in 2017 has increased the confidence of investors. Drilling activity in 2018 is more robust compared to 2017. Also, the footage drilled is expected to increase due to growing number of horizontal wells in the United States, which currently leads the market.

Economic Benefits of PDC Drill Bits to drive the Market

Advances in PDC drill bits have sharply increased the penetration rates in oil & gas wells. Though PDC drill bits are more costly than roller cone bits, it has substantially lowered the total drilling cost, as higher rotary speed provides better drill rates and also reduces the chances of deviation. Drilling a horizontal well requires more time than vertical well due to increased length and hence, increases total drilling expenses. Several countries other than the United States, such as Canada, and China have started to exploit their shale reserves where horizontal drilling is preferred to increase the wellbore length exposed to the pay zone. As a result, the demand for PDC drill bit is expected to be driven by the exploitation of shale reserve due to the economic benefits of using PDC drill bits over the other types.

Recovery in South America’s Oil & Gas Industry is supporting the Market

Brazil and Argentina are important countries in South America’s oil & gas industry and accounts for 47% of rig count in the region. The new government in both the countries have made the oil & gas business more attractive, and the disinvestment scenario has come to an end. In order to attract sufficient investment in production, the government of Argentina is planning to eliminate natural gas subsidies by 2022 and increase the prices for upstream producers. On the other hand, the new government in Brazil has ended the monopoly of Petrobras over the countries prolific hydrocarbon resources and has opened the hydrocarbon reserves to foreign companies. Moreover, the country is aiming for additional oil production capacity of around 2 MMb/d by 2027. As a result, the positive outlook for oil & gas industry in South America is expected to support the market during the forecast period.          

United States is one of the Largest Market for PDC Drill Bit

The combination of horizontal drilling and hydraulic fracturing has increased the rate of US crude oil, lease condensate, and natural gas production in the past few years. Over the past decade, the lateral lengths of the unconventional wells drilled in the US, have increased by 180%. Each unconventional well, on average, is being drilled with longer lateral well sections. In 2016, the total drilled footage reached nearly 13 million feet, approximately 10.7 million of which were horizontally drilled. As a result, the country has witnessed strong demand for PDC drill bits in the past. With the stabilization in crude oil price in 2017, drilling activity improved and in 2018, it is expected to witness high growth in active rig count and hence, similar trend is expected to continue in the demand for PDC drill bits. However, the high growth is expected to be witnessed in onshore sector and offshore to register slower growth rate.


Key Developments in the Market

  • May 2017: Ulterra Drilling Technologies introduced its latest advancement in PDC bit engineering. The SplitBlade breakthrough design improves cuttings evacuation as much as 200% faster than conventional PDC bits

The major players include - Halliburton Company, Schlumberger Limited, National-Oilwell Varco, Inc., Sandvik AB, Rockpecker Limited, Baker Hughes A GE Co., Weatherford International plc, Landrill Oil Tools Co., Ltd., Varel International Energy Services, Inc., Ulterra Drilling Technologies, L.P., , among others.

Reasons to Purchase this Report

  • Current and future PDC drill bit market outlook in the developed and emerging markets
  • Analyzing various perspectives of the market with the help of Porter’s five forces analysis
  • The segment that is expected to dominate the market
  • Regions that are expected to witness fastest growth during the forecast period
  • Identify the latest developments, and strategies employed by the major market players
  • 3-month analyst support, along with the Market Estimate sheet (in excel)

Customization of the Report

  • This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs

1. Executive Summary                  

2. Research Methodology                           

3. Market Overview                       

                3.1 Introduction               

                3.2 Market Size and Demand Forecast until 2023              

                3.3 Global Active Rig Count (2010-2017)

                3.4 Onshore & Offshore CAPEX Forecast until 2023 (in USD billion)           

                3.5 Offshore CAPEX Forecast in USD billion by Region, until 2023               

                3.6 Brent Crude Oil & Henry Hub Spot Prices Forecast, until 2023               

                3.7 Key Upstream Projects for Investment Purposes      

                3.8 Recent Trends and Developments   

4. Market Dynamics                       

                4.1 Drivers          

                4.2 Restraints    

                4.3 Opportunities            

5. Supply Chain Analysis                               

6. Industry Attractiveness - Porter’s Five Forces Analysis                              

                6.1 Bargaining Power of Suppliers            

                6.2 Bargaining Power of Consumers       

                6.3 Threat of New Entrants         

                6.4 Threat of Substitutes             

                6.5 Intensity of Competitive Rivalry        

7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)                              

                7.1 By Type        

                                7.1.1 Matrix Body

                                7.1.2 Steel Body

                7.2 By Location of Deployment 

                                7.2.1 Onshore

                                72.2. Offshore

8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)                  

                8.1 North America          

                                8.1.1 United States

                                8.1.2 Mexico

                                8.1.3 Canada

                8.2 Europe         

                                8.2.1 Russia

                                8.2.2 Norway

                                8.2.3 United Kingdom

                                8.2.4 Rest of Europe

                8.3 South America          

                                8.3.1 Brazil

                                8.3.2 Argentina

                                8.3.3 Venezuela

                                8.3.4 Rest of South America

                8.4 Middle East & Africa

                                8.4.1 Saudi Arabia

                                8.4.2 United Arab Emirates

                                8.4.3 Iran

                                8.4.4 Nigeria

                                8.4.5 Rest of Middle East & Africa

                8.5 Asia-Pacific 

                                8.5.1 China

                                8.5.2 India

                                8.5.3 Indonesia

                                8.5.4 Rest of Asia-Pacific

9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Development, and Analyst View)                               

                9.1 Halliburton Company             

                9.2 Schlumberger Limited            

                9.3 National-Oilwell Varco, Inc. 

                9.4 Sandvik AB

                9.5 Rockpecker Limited

                9.6 Baker Hughes A GE Co.          

                9.7 Weatherford International plc           

                9.8 Landrill Oil Tools Co., Ltd.      

                9.9 Varel International Energy Services, Inc.        

                9.10 Ulterra Drilling Technologies, L.P.   

10. Competitive Landscape                         

                10.1 Mergers and Acquisitions  

                10.2 Joint Ventures, Collaborations, and Agreements    

                10.3 Strategies Adopted by Leading Players        

11. Appendix                    

                11.1 Contact Us

                11.2 Disclaimer 

                *List not Exhaustive                       

                **Subject to availability on public domain                           

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