PDC Drill Bits Market: Introduction
- Drill bits are essential tools for any drilling operation in the oil and gas industry. It is used to drill cylindrical boreholes for the production of crude oil and gas.
- Polycrystalline diamond compact or PDC drill bits, are largely used in oil & gas industry. If the formation is sticky or too hard, then only other types of bits are used.
- Advancement in PDC drill bits have increased their penetration in oil & gas wells. PDC drill bits are costlier than roller cone bits; however, they substantially reduce the total drilling cost, as these provide higher rotary speed, which enable better drill rates and reduce the chances of deviation.
Key Drivers of PDC Drill Bits Market:
- Rise in demand for oil and gas in emerging economies due to industrialization, urbanization, and population growth is driving the global drilling industry. This is projected to boost the PDC drill bits market.
- Increase in exploration and new discovery of oil and gas deposits are fueling the market. In January 2019, BP announced a discovery of more than 1 billion barrels of oil in its Thunder Horse field in the Gulf of Mexico. These discoveries are likely to spark long-term drilling and exploration operations over the coming years, leading to a steady rise in the demand from the global PDC drill bits market over the forecast period.
- Furthermore, increase in demand for speedy drilling with minimum wear and tear in terms of hard and medium-hard formations is driving the global PDC drill bits market.
- Rise in investments in the oil & gas sector is also boosting the market. For instance, in April 2018, U.S. Oil & Gas Plc (USOIL) started a new exploration drilling at the Hot Creek Valley project in Nevada in the U.S.
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High cost of drilling to Hamper Market:
- High cost of drilling and stringent government regulations on offshore drilling are major factors that may hamper the growth of the market
Matrix Body Type Segment and Offshore Application Segment to Offer Attractive Opportunities:
- The global PDC drill bits market can be segmented in terms of type, size of PDC cutter, application, and region.
- Based on type, the market can be bifurcated into matrix body and steel body. The matrix body segment accounted for a dominant share of the PDC drill bits market in 2018. The matrix body can withstand an impact load and is capable of drilling medium-hard to hard formations.
- In terms of size of PDC cutter, the market can be divided into less than 9 mm, 9 mm to 24 mm, and above 24 mm. The 9 mm to 24 mm segment accounts for a large share of the market. The segment is estimated to expand at a substantial pace during the forecast period.
- In terms of application, the market can be categorized into onshore and offshore. The onshore segment constitutes a large share of the market, while the offshore segment is estimated to expand at a substantial pace during the forecast period.
North America expected to hold Lion’s Share in the Global PDC Drill Bits Market:
- Based on region, the global PDC drill bits market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
- North America dominated the global market in 2018. This trend is estimated to continue during the forecast period owing to the discovery of shale reserves in the U.S. and presence of a large number of private oil companies in the region.
- According to General Electric Company’s Baker Hughes Inc., the oil rig count in the U.S. increased by approximate 42% in 2017 as compared to that in 2016 owing to the recovery in crude oil prices.
- Middle East & Africa is a major producer of oil in the world. Increase in offshore developments and discoveries, especially in the Red Sea, by countries such as Qatar, the UAE, and Saudi Arabia, is anticipated to drive the PDC drill bits market in the Middle East.
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Key Players Operating in the PDC Drill Bits Market:
- Demand within PDC drill bits market is highly concentrated with top manufacturers accounting approximately 45-50% of the market. Few of the key players operating in the PDC drill bits market include
- Halliburton Inc.
- Schlumberger Limited
- National-Oilwell Varco, Inc.
- Sandvik AB
- Rockpecker Limited
- Baker Hughes a GE Company
- Weatherford International plc
- Landrill Oil Tools Co., Ltd
- Varel International Energy Services, Inc.
- Ulterra Drilling Technologies, L.P.
Global PDC Drill Bits Market: Research Scope
Global PDC Drill Bits Market, by Type
- Matrix Body
- Steel Body
Global PDC Drill Bits Market, by Size of PDC Cutter
- Less than 9 mm
- 9 mm to 24 mm
- Above 24 mm
Global PDC Drill Bits Market, by Application
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.