The global drilling fluids market size was valued at USD 7.78 billion in 2018, at a CAGR of 3.8% from 2019 to 2025. Growing crude oil and natural gas demand in various energy-intensive industries such as power generation, manufacturing, and transportation has urged the exploration and 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 Pacific regions and Persian Gulf is projected to drive the product demand over the estimated period. Manufacturing companies are shifting their focus on developing new solutions based on nanotechnology to overcome technological and environmental challenges.
Growing concerns towards environmental impact associated with disposal of waste drilling fluids has urged regulatory bodies in various regions of U.K., Norway, Australia, 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 U.K. 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 drilling fluids market and was valued at USD 3.97 billion in 2018. 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. Rising focus on improving the inhibitive and thermal performance of water-based systems to compete with non-aqueous fluids used in challenging and drilling environment is anticipated to drive the demand over the next seven years.
Synthetic based fluids segment is anticipated to expand at a CAGR exceeding 3.9% from 2019 to 2025, on account of the ability to the product offer excellent thermal stability, borehole control, penetration rates, and lubricity which are advantageous 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 market share in 2018. Increasing number of oil drilling activities to fulfill growing energy needs is anticipated to drive demand over the forecast period. Mounting upstream expenditures to achieve optimum hydrocarbon production targets is anticipated to drive demand for innovative mud formulations to maintain the required cash flow at sustained operating costs.
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 growth over the forecast period. Increased costs of maintenance and potential environmental risks associated with offshore drilling operations, have led to development of cost-effective synthetic or water-based formulations.
North America is anticipated to continue its dominance in the global market with net revenue estimated to exceed USD 2.54 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 oil sands, tight oil, and shale gas coupled with huge investments from international oil and gas majors such as Husky Energy, Cenovus, Suncor Energy, Imperial Oil, ExxonMobil, and Shell is projected to steer drilling activities in the region over the forecast period.
Middle East is anticipated to witness stagnant CAGR of 4% 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.
Key market players include Baker Hughes, Halliburton, Newpark Resources, Weatherford International, National Oilwell Varco, 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 concentrate on batch testing and field service, which can support application problems and opportunities.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Middle East, Africa, and Central & South America
U.S., Canada, Mexico, U.K., Russia, Norway, Azerbaijan, Kazakhstan, China, India, Indonesia, Malaysia, Pakistan, Myanmar, Singapore, Australia, Vietnam, Thailand, Brazil, Argentina, Columbia, Venezuela, Peru, UAE, Saudi Arabia, Qatar, Kuwait, Iran, Iraq, Algeria, Libya, Nigeria, Gabon, and Zaire
Revenue forecast, company share, competitive landscape, and growth factors and trends
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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 2014 to 2025. For this study, Grand View Research has segmented the global drilling fluids market report on the basis of product, application, and region.
Product Outlook (Revenue, USD Million, 2014 - 2025)
Application Outlook (Revenue, USD Million, 2014 - 2025)
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Central & South America
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