COVID-19 Impact on Wired Drill Pipe Market
- The COVID-19 outbreak is hampering the demand for wired drill pipe in many applications. Governments of various countries across the globe have enforced lockdown measures to curb the spread of the coronavirus. This has resulted in slowdown and even halt in manufacturing operations, thus hampering the demand for wired drill pipes.
- Key players operating in the wired drill pipe market are primarily tier I and tier II manufacturers and suppliers. Manufacture and supply chain facilities of these players are spread across various countries in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Many of these players have halted their production output over the last few months due to the COVID-19 pandemic. The pandemic has negatively impacted the demand and supply chain of these pipes.
- The COVID-19 outbreak has directly affected the production and demand for wired drill pipes. The industrial shutdown caused by the COVID 19 pandemic has created disruption in the supply chain. Disruption in supply of raw materials is projected to hamper full-scale operations of companies operating in the market.
Key Drivers of Wired Drill Pipe Market
- Wired drill pipe is used for high speed communication. It drills faster and drives down well construction costs. Real-time data is transferred by using the conventional telemetry method, which is simple and faster. Rise in usage of wired drill pipe in the drilling industry is driving the wired drill pipe market.
- Wired drill pipes have inductive coils, which are durable and offer better data transfer capability. The flexibility of wired drill pipes make it more suitable for usage.
Restraints of Wired Drill Pipe Market
- Wired drill pipe drilling uses measurement while drilling (MWD). Statistical analysis indicates the higher failure rate of MLD/LWD tools for various combinations of downhole high temperature. The operating time and number of tool runs indicate that wired drill pipes cannot operate in harsh conditions. This is expected to restrain the wired drill pipe market.
Asia Pacific to Constitute Significant Share of Global Wired Drill Pipe Market
- In terms of region, the global wired drill pipe market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific dominated the global market in 2020. It is the largest market for wired drill pipe due to substantial investments in China, Japan, and India for continual improvements in energy efficiency, eco-friendliness, and drilling in the wired drilling industry. Asia Pacific is expected to account for the leading share of the wired drill pipe market during the forecast period owing to growth in urbanization and rise in spending power of countries in the region. The wired drill pipe market in the region is expected to expand at a rapid pace throughout the forecast period.
- Europe is also one of the key consumers of wired drill pipe. The region is expected to account for significant growth in the wired drill pipe market, owing to the increase in the number of manufacturers in the region.
Competitive Landscape of Global Wired Drill Pipe Market
Major players operating in the global wired drill pipe are adopting various organic and inorganic growth strategies such as joint ventures, mergers & acquisitions, expansion, collaborations, new product launches, strategic alliances, and research and development to increase their regional presence and business operations. The market is currently witnessing fierce competition among several leading players. Key players operating in the market include:
- Reelwell AS
- National Oilwell Varco
- Rexal Tubes
- Altus Intervention
Global Wired Drill Pipe Market
Global Wired Drill Pipe Market, by End-use
Global Wired Drill Pipe Market, by Technology
- Electrical Conductor
- Sensor System
Global Wired Drill Pipe Market, by Application
- Real-time Data Collection
- Drilling Rig Tests
- Pressure Drilling
Global Wired Drill Pipe Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
Wired Drill Pipe Market: Introduction
- Wired drill pipe (WDP) enhances real-time data technology. It is a conventional double-shouldered drill pipe. Wired drill pipe technology creates opportunities for greater efficiency in the drilling industry.
- Wired drill pipe technology has multifunctional tools. It can be used not only for the usual function of drilling, but can also provide the speed of 57,000 bits per second between downhole tools and surface for the drillstring.