Drilling Lubricants Market Size, Share & Trends Analysis Report By Technique (Down The Hole Drills, Diamond Drilling), By End-use (Mining, Oil & Gas), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global drilling lubricants market size was valued at USD 2.55 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. This is attributable to the growing utilization of drilling lubricants in the oil and gas sector due to increasing pace of the industry towards deeper reserves and unconventional resources. The drilling industry is highly competitive and constantly evolving due to technological advancements and changing market conditions. The industry can be divided into two main segments including onshore and offshore drilling. Onshore involves drilling wells on land, while offshore involves drilling wells in the sea or other bodies of water. Offshore drilling is generally more expensive and technically challenging due to the harsh marine environment.

The drilling industry has faced numerous challenges in recent years, including low oil prices, declining production levels, and increasing regulatory requirements. However, there are also opportunities for growth, such as increased demand for natural gas, the development of unconventional oil and gas resources, and the adoption of new technologies like automation and digitalization. This is anticipated to fuel the growth of drilling lubricants over the forecast period.

The raw materials used for manufacturing the product include crude oil, vegetable oil, and additives. Crude oil is further used for manufacturing synthetic oils and base oils, which is used for manufacturing the product. Vegetable oils such as rapeseed, castor oil, sunflower oil, and others are being used as raw materials in the manufacturing process.

Technique Insights

The diamond drilling segment dominated the market with a revenue share of over 30% in 2022. This is attributed to uncontaminated and high quality sampling obtained in the technique. This technique can drill hole in all directions and has ability to penetrate compact and hard rock formation. Drilling up to 1200 meter to 1800 meter is common in this technique which enables drilling at higher depths.

The down the hole drills/rotary air blast technique segment held the second-largest market share in 2022. The growth is attributed to its properties such as faster, cheaper, and large sample volumes. The technique uses a pneumatic reciprocating hammer which is piston-driven to drive a heavy drill bit in the rock. It can drill holes of diameter up to 20 cm and depth of 100 to 150 meters.

Other techniques include top hammer drilling, reverse circulation drilling, auger drill, calyx drill, and rotary drill. Reverse circulation technique is relatively cheap as compared to the diamond drilling and is able to drill holes up to depth of 350 meters.

End-use Insights

The oil and gas segment dominated the market with a revenue share of over 36.0% in 2022. This is attributed the growing importance of the industry as it is one of the crucial industries in the energy sector and is a primary fuel sources across the globe. According to the Organization of the Petroleum Exporting Countries, the global oil demand is projected to grow by 38 million barrels a day to 115 mb/d by 2025. This is expected to boost the product demand in the near future.

Mining was the second-largest segment and is anticipated to grow at a significant CAGR over the forecast period. The growth is attributed to the rising demand for minerals and metals, new technologies, and increasing investment in exploration and production. The mining industry is a major sector that is critical to the world's economy. It involves the extraction of minerals, metals, and other valuable resources from the earth's crust, which are used in a variety of applications, such as construction, manufacturing, and energy production.

Other applications include construction, geothermal, water wells, and military operations. Drilling is used in the construction industry to create foundations for buildings, bridges, and other structures. This includes creating holes for pilings, caissons, and piers.

Regional Insights

The Asia Pacific was the dominating region and accounted for a revenue share of over 40% in 2022. The growth is attributed to the rapid growth of several end-use industries including oil and gas and construction industry in the region. According to the International Energy Agency, the number of refineries in Asia is expected to increase by 60% by 2050. Additionally, the demand for oil in the region is predicted to rise by 9 million barrels per day by 2040.

According to the Government of Canada, China has around 1,500 major mining operations and produces over USD 400 million per year. The country has around 40,000 mines. 1,254 mining companies have been listed on the national green mine directory as of 2021. China has 163 proven reserves in minerals and has discovered around 173 minerals. The flourishing mining industry in the country is expected to drive the product demand in the country over the predicted years.

Europe accounted for a revenue share of over 18.0% in 2022. The construction industry in Europe is among the largest sectors in the region and accounts for around 9% of the total GDP. The construction industry in the region is also embracing digitalization and innovation to improve efficiency, reduce costs, and minimize environmental impact. This includes the use of Building Information Modelling (BIM), 3D printing, and other digital technologies. This is expected to boost the construction industry thereby having a positive impact on the market in the coming years.

Key Companies & Market Share Insights

The market is fragmented and characterized by the adoption of various strategic initiatives such as new product development and collaborations and technology partnerships to gain the competitive edge. For instance, in 2021, Schlumberger Limited announced its collaboration with NOV Inc., an American multinational engaged in providing equipment used in oil & gas drilling and production and oilfield services, to accelerate the adoption of its automated drilling solutions. This will enable its customers to combine Schlumberger Limited’s downhole and surface drilling automation solutions with NOV Inc.’s rig automation platform to deliver superior well construction performance. Additionally, in 2023, Petro-Canada Lubricants launched a product named PRODURO TO-4+ UHP to improve the performance of construction and mining equipment operating in the extreme conditions. Some prominent players in drilling lubricants market include:

• Imdex Limited

• SINO MUD

• Baroid Industrial Drilling Products

• Baker Hughes, Inc.

• Halliburton, Inc.

• Chevron Corporation

• Schlumberger Limited

Drilling Lubricants Market Report Scope

Global Drilling Lubricants 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 drilling lubricants market report on the basis of technique, end-use, region:

• Technique Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Down The Hole Drills (DTH)/ Rotary Air Blast Drilling (RAB)

  • Diamond Drilling

  • Top Hammer Drilling

  • Reverse Circulation Drilling

  • Other Techniques

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Mining

  • Oil & Gas

  • Construction

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa