Drilling Equipment & Consumables Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Drilling Equipment & Consumables Category Overview

This drilling equipment & consumables category is anticipated to grow at a CAGR of 4.2% from 2023 to 2030. North America holds the largest market in this category. This is due to the high volume of drilling activity in the region, the regulatory environment, and the growing importance of unconventional oil and gas resources.

This category is experiencing growth driven by multiple factors. These include the surge in exploration and operations in both offshore and onshore oilfields, advancements in drilling tools technology, and the development of unconventional hydrocarbon reserves. Additionally, the expanding demand for fabricated metal products, growth in the heavy equipment sector, and increasing industrial automation are contributing to the industry's expansion. Advancements in machinery production and government initiatives focused on machine tools further enhance the market's potential. Rising investments by companies to discover new oil and gas reservoirs are boosting demand for drilling equipment and components, while the transition towards renewable energy and regulatory considerations might present challenges in the market.

This category is constantly evolving with technological advancements using sensors, automation features, and real-time data monitoring capabilities. Sensors collect data on drilling conditions, enhancing efficiency and accuracy. Automation features control drilling operations more precisely, reducing accidents and improving labor safety. Real-time data monitoring can track drill operations to identify potential problems early and prevent costly delays.

This category is highly fragmented with the presence of both global and regional players. Key players in the drilling equipment and consumables market use acquisitions, product development, and expansion to consolidate positions, meet market demand and gain a competitive edge. They focus on innovative solutions, distribution networks, and after-sales support.

• In March 2023, Drilling Tools International (DTI) was named the sole United States dealer of CT Energy's RotoSteer technology. DTI and CT Energy will work together to maximize the effective launch of RotoSteer in the United States, Canada, and other international regions.

• In February 2022, CHETO Corporation SA, a leading manufacturer of CNC deep drilling and milling machines, has introduced a new technical assistance service management application that uses augmented reality (AR) to reduce response time and enhance service quality.

• In March 2021, Enteq introduced the SABRE Tool. This was an alternative to traditional rotary steerable systems (RSS) for directional drilling. The SABRE Tool offered true "at-bit" geo-steering, which meant that it could steer the drill bit from the drill bit face using internally directed pressure differentials. This made it more precise and efficient than traditional RSS systems.

This category has major cost components based on specific operations. These components include raw materials, labor and manufacturing, research and development, transportation, regulatory compliance, maintenance and support. These costs vary depending on the specific products and services offered. Investing in advanced technology and innovations can drive up costs, while shipping, handling, and delivering equipment and consumables to customers can increase costs. Fixed pricing is often used in this category to manage demand and maximize revenue. Suppliers charge a fixed price for each unit of equipment or consumable, regardless of demand or market conditions. This model is popular for drilling equipment and consumables, offering predictable costs for customers and helping suppliers manage margins. It benefits both suppliers and customers by providing predictable sales and margins.

When sourcing for this category, it is vital to prioritize quality, sustainability, and regulatory compliance. This involves thorough supplier verification, traceability, alignment with industry rules, and a sustainability commitment. Emphasizing robust quality control and continuous improvement, along with validating supplier certifications like ISO standards, is crucial. Transparent operations, traceability, and adherence to recognized regulatory bodies bolster accountability. Sustainability is achieved through conscientious sourcing and eco-friendly practices. Open communication with suppliers fosters collaboration and strategy refinement. By integrating these practices, companies ensure high-quality, compliant, and sustainable products, enhancing operational excellence and customer trust.

Drilling Equipment & Consumables Procurement Intelligence Report scope