The global drill bit market is expected to witness growth over the forecast period on account of increasing drilling meant for exploration and production of crude oil and natural gas in Australia, Middle East and the U.S. Growing construction industry in light of rapid industrialization and urbanization in emerging economies of India, China, and Brazil is likely to augment the market for drilling accessories. Drill bit are cutting tools used in the application of activities meant for creating cylindrical holes for drilling to produce crude oil and natural gas. Construction industry is expected to be a potential application for drill bit in light of increasing consumption in foundation work and maintenance in housing sectors. Numerous materials are incorporated for manufacturing of drill bit such as steel in the form of low carbon, high carbon and cobalt. Polycrystalline Diamond (PCD) is increasingly used as a material for manufacturing of drilling accessory for drilling in automotive and aerospace industries to drill carbon fiber reinforced plastic and abrasive aluminum alloys. The PCD cutting tool has application as cutters for crude oil exploration and hard rock mining. The demand for PCD drill bit is expected to increase in vague of providing wear resistance and imparting strength properties. Robust mining base for platinum in South Africa is expected to increase the demand for PCD material for drilling and thus fuelling the drill bit industry growth in the near future.
North America is expected to be a potential for drill bits market owing to the introduction of horizontal drilling technology that has led to the improvement in the rate of production of crude oil and natural gas at domestic level. Increasing expenditure on drilling of shale deposits on account of deployment of enhanced oil recovery in the U.S. is likely to augment the drill bit market. In 2015, Netherlands based Shell announced the Appomattox deepwater project aimed at building largest deepwater platform in the Gulf of Mexico which is expected to augment production growth of crude oil. This project is likely to open new opportunities for the exploration and drilling activities and thereby providing new market opportunities for drill bit. Europe is likely to be a lucrative market owing to abundance crude oil and natural gas reserves in Norway, Russia and Ukraine.
Government of Italy in 2012 lifted the ban aiming at offshore drilling and exploration activities which is likely to have a positive impact on market growth for drill bit. In 2015, the government of Italy renewed its agreement with Egypt aimed at investing funds for the development of crude oil industry following the significant discovery of petroleum reserves in Nile Delta, Egypt. This agreement is expected to augment the domestic level production of crude oil for Egypt and thereby fuelling the market demand for drill bit industry. Expansion of crude oil fields in Middle East owing to increasing production of crude oil at domestic level is expected to have positive impact on the market growth. In 2015, the government of Iran is expected to seek investments to increase the petrochemical production at domestic level which is likely to augment the drill bit industry.
Asia Pacific is expected to be a potential industry for drill bit owing to the presence of crude oil fields in China, Indonesia, Philippines, Australia, Brunei, Gulf of Thailand and Java. In 2015, Santos, an Australia based company, discovered presence of crude oil in its deep water exploration campaign in Malaysia which is likely to augment the crude oil and natural gas industry growth thereby providing new opportunities for drilling and machinery industry. In 2014, New Development Bank for BRICS countries was established for promoting infrastructure development at domestic level. In 2015, NDB BRICS commenced its operations with an aim to provide infrastructure funding for the emerging economies which will have a positive impact on the construction industry and in turn is likely to increase the application of drill bit.
Expeditive construction industry growth in Brazil in vague of upcoming Summer Olympics 2017 and promulgation & implementation of PAC program is expected to fuel the drill bit market demand. In 2015, Government of Brazil announced package of infrastructure projects aimed at improvement of country’s productivity with construction of roads, airports, ports and railways to be commenced from 2018 which is likely to have positive impact on drill bit market. Key market players include Atlas Copco, Baker Hughes, Halliburton Inc., National Oilwell Varco Inc, Scientific Drilling International Inc, Kingdream Public Ltd, Varel International Inc, Torquato Drilling Accessories, and Newtech Drilling Products LLC.
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The ongoing pandemic has led to a decline in exploration activities in the oil & gas sector. A number of EPC projects have also witnessed an indefinite pause that has transpired into a slump in the requirement for drilling and excavation services. Economic repercussions of the trend are expected to be highly evident in the Middle East. The report will account for Covid19 as a key market contributor.