Drill Pipe Market Size, Share & Trends Analysis Report By Grade (API, Premium), By Application (Onshore, Offshore), By Region (North America, Asia Pacific, Europe, Middle East), And Segment Forecasts, 2023 - 2030

Report Overview

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.

Grade Insights

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.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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.

Drill Pipe Market Report Scope

Global Drill Pipe Market Report Segmentation

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