The global drill pipe market size was valued at USD 2,406.5 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2023 to 2030. Significant oilfield expansions, particularly in the North America and Middle East regions, along with improving drilling techniques with enhanced productivity have been the key factors steering industry growth over the past few years. The crude oil price slump since mid-2020 has led to a substantial decline or discontinuation of drilling activities majorly in the U.S., Saudi Arabia, the U.K., and Canada. This has earnestly affected the overall operating profitability of most of the E&P companies operating globally.
The above factors have dramatically hindered the industry growth over the past two years. Independent contractors ramped-up operations in the U.S. and Canada in the last quarter of 2021 with stabilized WTI crude oil prices. The anticipated recovery of onshore activities along with E&P companies striving to meet the current energy demand is also estimated to steer growth.High production costs are estimated to hamper the overall market over the forecast period. Regulatory agencies, such as Fund for Wild Nature (FWN), have issued numerous directives concerning petroleum production. This is expected to retard the overall industry, thereby hindering market growth over the forecast period.
Growing atmospheric distress concerning hazardous fumes emission due to exploration is also expected to hinder market development.The equipment rental services sector also witnessed a steep decline in new contracts. However, it rebounded by the end of 2016 with a recovery in oilfield activities and anticipated stabilized petroleum prices. Discovery of new hydrocarbon reserves, especially in the South China Sea, Pakistan, Israel, Australia, Senegal, and Egypt, in the past few years is anticipated to provide lucrative opportunities to industry participants in the near future.Increasing R&D spending by key vendors to optimize the production of drill pipes and improve the overall material strength to meet the API specifications is projected to support future demand.
On the basis of grades, the global industry has been further bifurcated into API-grade and premium-grade drill pipes. The API-grade drill pipes segment dominated the global industry in 2022 and accounted for the maximum share of more than 63.0% of the overall revenue. The standardization of the finished products along with the relatively low prices of API-grade drill pipes is anticipated to promote the segment’s market penetration.
Utilizing these products also ensures reduced operational costs to the E&P and operator companies. API-grade products are mostly preferred in a normal environment, and conventional basins owing to the easy availability and reduced OpEx to both E&P and contractor companies. Exploration in unconventional and harsh environmental conditions, particularly in shale, CBM, and tight reserves,is expected to steer premium-grade drill pipes’ demand over the forecast period.
The onshore application segment dominated the industry in 2022 and accounted for the largest share of more than 60.0% of the overall revenue. Significant developments in onshore basins, particularly in the Middle East, Venezuela, Nigeria, and the U.S., over the last decade have led to the domination of the segment in the global petroleum industry.High IRR, high rate of rig activities, low risk as compared to offshore drilling, and significant familiarity with the key operators in the sector has been the key factor responsible for the market penetration in the segment.
The petroleum industry witnessed an estimated decline of around 35% to 40% in the overall rig count across all the regional markets. Momentous development in several offshore locations, such as the Golden Triangle, which includes the Gulf of Mexico, Brazil, and West Africa, the South China Sea, and the Persian Gulf, is expected to drive demand in the segment over the forecast period. The segment is estimated to witness the fastest growth rate over the forecast period.
On the basis of geographies, the industry has been further categorized into North America, Asia Pacific, Central & South America, Middle East, Europe, and Africa. The North America region dominated the global industry in 2022 and accounted for the largest share of more than 26.0% of the overall revenue. The region is estimated to expand further at a steady growth rate maintaining its position throughout the forecast period. Heavy investments by major E&P companies in both conventional and unconventional fields have been the major factors responsible for initial market penetration in the region.
The other regions, such as Asia Pacific and Central & South America, are also anticipated to witness above-average expansion rates over the next few years. The expected increase in rig activities along with several new field developments including the offshore basins, especially in economies, such as China, Indonesia, Australia, and India, is expected to drive the market growth in the Asia Pacific region.
Theindustryis highly competitive with a strong presence of many global and a few regional players.Established players are developing new products through R&D suitable for drill pipes applications. For instance, in December 2018, Schlumberger and NOV Inc. secured a wired drill pipe contract from Equinor ASA with a contract value of USD 117.8 million. Some of the prominent players operating in the global drill pipemarket include:
Hilong Group
NOV Inc.
Tenaris S.A.
Vallourec S.A.
TMK Group
Oil Country Tubular Ltd.
Tejas Tubular Grades Inc.
Texas Steel Conversion Inc.
DP Master
Jiangyin Long Bright Drill Pipe Manufacture Co. Ltd.
Drill Pipe International LLC
Superior Drill Pipe Manufacturing, Inc.
Report Attribute |
Details |
Market size value in 2023 |
USD 2,212.7 million |
Revenue forecast in 2030 |
USD 2,895.2 million |
Growth rate |
CAGR of 3.9% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Volume in kilotons, revenue in USD million/billion, and CAGR from 2023 to 2030 |
Report coverage |
Volume forecast, revenue forecast, company profiles, competitive landscape, growth factors, and trends |
Segments covered |
Grade, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East; Africa |
Country scope |
U.S.; Canada; Mexico; U.K.; Russia; Norway; China; Indonesia; India; Brazil; Venezuela; Argentina; Saudi Arabia; UAE; Qatar; Kuwait |
Key companies profiled |
NOV Inc.; Inter Drill Asia Ltd.; Superior Drill Pipe Manufacturing Inc.; DP Master Manufacturing Pte Ltd.; Shanghai Hilong Drill Pipe Co. Ltd.; TPS TECHNITUBE RÖHRENWERKE GmbH; Tenaris Company; Drill Pipe International LLC; Vallourec; RK Pipe LLC |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global drill pipe market report based on grade, application, and region:
Grade Outlook (Revenue, USD Million, 2018 - 2030)
API Grade
Premium Grade
Application Outlook (Revenue, USD Million, 2018 - 2030)
Onshore
Offshore
Regional Outlook (Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
U.K.
Russia
Norway
Asia Pacific
China
Indonesia
India
Central & South America
Brazil
Venezuela
Argentina
Middle East
Saudi Arabia
UAE
Qatar
Kuwait
Africa
b. The global drill pipe market size was estimated at USD 2,406.5 million in 2022 and is expected to reach USD 2,212.7 million in 2023.
b. The global drill pipe market is expected to grow at a compound annual growth rate of 3.9% from 2023 to 2030 to reach USD 2,895.2 million by 2030.
b. API grade drill pipes dominated the global drill pipes market in the grade segment and accounted for more than 63.0% of the overall revenue share in 2022. This is attributed to the standardization of the finished products along with the relatively low prices.
b. Some key players operating in the drill pipe market include NOV Inc., Inter Drill Asia Ltd., Superior Drill Pipe Manufacturing Inc., DP Master Manufacturing Pte Ltd., Shanghai Hilong Drill Pipe Co. Ltd., TPS TECHNITUBE RÖHRENWERKE GmbH, Tenaris Company, Drill Pipe International LLC, Vallourec, and RK Pipe LLC.
b. Rising global hydrocarbon exploration and production and the global shift in trend toward developing unconventional resources is anticipated to boost the demand for the drill pipe market over the forecast period.
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