The global drilling fluids market size was valued at USD 7.60 billion in 2016. Growing crude oil & natural gas demand in various energy-intensive industries such as power generation, manufacturing, and transportation has urged the exploration & production companies to increase their investments in onshore and offshore drilling activities.
Increasing participation to sustain the energy demand mainly from North America and Europe coupled with growing number of deep water discoveries in Persian Gulf and Pacific regions is projected to drive drilling fluids market over the forecast period. Manufacturing companies are shifting their focus on developing new solutions based on nanotechnology to overcome technological and environmental challenges.
U.S. drilling fluids market revenue by product, 2014 - 2025 (USD Million)
Growing concern towards environmental impact associated with disposal of waste drilling fluids has urged regulatory bodies in various regions of the UK, Norway, Australia, the U.S., Saudi Arabia, and Canada to issue stringent regulations regarding disposal and treatment of waste drilling fluids.
OSPAR Commission has laid procedures regarding discharge of waste WBF and OBF in the UK and Norway. Atmospheric Administration, National Oceanic and Canadian Association of Petroleum Producers have issued strict guidelines for disposal of waste drilling fluids in North America.
In addition, companies have been extensively involved in R&D to develop bio-based drilling fluids derived from vegetable oils. Increasing environmental concerns owing to harmful effects associated with using oil-based fluids are leading to growing adoption of water-based drilling fluids. Growing environmental, health and safety concerns regarding mud discharge and disposal of cuttings are expected to hamper the market growth over the forecast period.
Water-based mud (WBF) led the global demand and the market for the same was valued at USD 3.8 billion in 2016. Water-based fluids are estimated to possess high penetration and growth rate on account of cost-effectiveness and lower environmental impacts of the discharged cuttings and mud. The rising focus on improving the inhibitive and thermal performance of water-based systems in order to compete with non-aqueous fluids used in challenging and drilling environment is anticipated to raise demand over the next seven years.
Synthetic muds are anticipated to grow at a CAGR exceeding 3.5% from 2017 to 2025, on account of their ability to provide excellent thermal stability, borehole control, penetration rates and lubricity which are beneficial in reducing overall costs. Oil-based fluids segment is anticipated to witness stagnant growth over the forecast period owing to adverse environmental impact associated with waste discharge.
Onshore was the largest application sector while accounting for over 60% of the global drilling fluids market share in 2016. Increasing number of oil drilling activities in order to fulfill growing energy needs is anticipated to drive product demand over the forecast period. Increasing upstream spending to sustain oil production targets is expected to drive oil & gas industry over the forecast period.
The offshore drilling mud market is projected to reach over USD 4 billion by 2025. Growing demand for the mud in deep water, harsh environments and remote locations is expected to drive demand over the forecast period. Increased maintenance costs and environmental risks associated with offshore locations, have urged companies to deploy synthetic or water-based muds for cost-efficient E&P activities.
Global drilling fluids market share by application, 2016 (%)
North America continued its dominance in the global market with net revenue estimated to exceed USD 2.5 billion by 2025. Factors such as shale boom, growing offshore drilling activities in the Gulf of Mexico, and surge in finding potential untapped oil and gas reserves are expected to drive the regional market growth over the forecast period.
Large reserves of unconventional hydrocarbon reserves in the form of shale gas, tight oil and oil sands coupled with high investments from multinational oil and gas majors such as Suncor Energy, Husky Energy, Shell, Imperial Oil, Cenovus, and ExxonMobil is expected to steer drilling activities in the region over the forecast period.
Middle East is anticipated to witness stagnant growth at a CAGR of 3.8% by 2025. Recent developments in offshore activities such as contract signature and increasing oil production in various regions including Iran and Qatar is anticipated to drive offshore E&P in the region over the next eight years. Additional factors such as revival of abandoned oil wells in the Persian Gulf and selling off ongoing rig operations are also expected to drive offshore oil and gas production in the region.
Key market players in the global industry include Baker Hughes, Newpark Resources, Halliburton, National Oilwell Varco Weatherford International, , and Schlumberger. These companies offer a diverse portfolio in the drilling muds sectors both in terms of products and services for the operator companies and are highly integrated across the value chain.
Companies are more focused towards developing advanced technology based products owing to the growing industrial demands for advanced technology for drilling purpose. The manufacturing companies concentrates on batch testing and field service, which can support application problems and opportunities.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America & MEA
U.S., Canada, Mexico, UK, Russia, Norway, Azerbaijan, Kazakhstan, China, India, Indonesia, Malaysia, Pakistan, Myanmar, Singapore, Australia, Vietnam, Thailand, Brazil, Argentina, Venezuela, Columbia, Peru, Saudi Arabia, UAE, Qatar, Kuwait, Iran, Iraq, Algeria, Libya, Nigeria, Gabon, Zaire
Revenue forecast, company share, competitive landscape, growth factors and trends
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Segments covered in the report
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global drilling fluids market on the basis of product, application and region:
Product Outlook (Revenue, USD Million, 2014 - 2025)
Oil-based fluids (OBF)
Water based fluids (WBF)
Synthetic based fluids (SBF)
Application Outlook (Revenue, USD Million, 2014 - 2025)
Onshore oil & gas
Offshore oil & gas
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
Central & South America
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