The global drill bits market for the oil and gas industry is highly competitive in nature with the dominance of a large number of multinational players in the market, finds a new analysis by Transparency Market Research. The key companies collectively held a massive 69.3% share of the global market in 2013. Some of the prominent players in the global drill bits for oil and gas industry application market are Schlumberger Ltd., Halliburton Inc., Baker Hughes, Inc., and National-Oilwell Varco, Inc. These players are emphasizing on reach and development activities and adopting vertical integration techniques to optimize product cost.
According to the research report, the global market opportunity in the drill bits for oil and gas industry application will rise from 2,968.9 hundred units in 2015 to 3,604.7 hundred units by 2019, in terms of volume. By product, the segment for roller cone bit is estimated to remain in the leading position and reach 2,507.1 hundred units by the end of 2019. The demand for roller cone bits has been increasing across the globe, owing to their effective capability of handling challenging directional drills in wells with an intense dogleg severities.
High Demand from North America to Drive Global Drill Bits Market for Oil and Gas Industry Application
The rise in production and exploration activities is encouraging the growth of the North America market for drill bits for oil and gas application. This region is projected to remain in the leading position and account for a 36.7% share in the global market by the end of 2019. The high growth of this region can be ascribed to the rising oil drilling activities, boosting the demand for drilling equipment.
Most of the prominent oilfield service players in the U.S. are anticipating onshore rig counts to rise significantly in the next few years. Moreover, the rising inclination towards pad drilling techniques is expected to accelerate the growth of the drill bits market for oil and gas industry application in this region.
Growing Demand for Energy to Encourage Drill Bits Sales
The rising demand and increasing cost of natural gas and crude oil prices are the primary factors estimated to augment the growth of the global market for drill bits for oil and gas industry application in the coming years. This is expected to enhance offshore drilling activities in the next few years. Furthermore, the growing demand for energy from developed and emerging nations is the key factor propelling the global market for drilling equipment, including drilling equipment, field production machinery, and others.
Technological advancements in this field are estimated to augment the growth of the overall market in the next few years. Moreover, the emergence of innovative and effective machinery is predicted to contribute extensively towards the growth of the drill bits market for oil and gas industry application across the globe.
High Cost of Equipment to Restrict Growth of Drill Bits Market for Oil and Gas Industry Application
The oil and gas industry is regulated by government organizations across the globe. The sole control of government organizations over the cost of oil and gas is one of the key factors estimated to restrict the growth of the overall market in the coming years. In addition, the high cost of equipment is estimated to dampen the growth of the market in the coming years. Nonetheless, the introduction of the hybrid drill bits is expected to generate potential opportunities in the next few years.
This information is based on the findings of a report published by Transparency Market Research, titled “Drill Bits Market for Oil and Gas Industry Application - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.”
The global drill bits for oil and gas industry application market has been segmented as below:
- Roller cone bits
- Milled-tooth bits
- Tungsten carbide inserts (insert bits)
- Fixed cutter bits
- Polycrystalline diamond bits (PDC)
- Natural diamond bits
- North America
- Rest of the World (RoW)
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