Drill Bit Market

Drill Bit Market Size (2024-2029):

The Global Drill Bit Market was valued at USD 7.02 billion in 2023 and is expected to reach USD 9.35 billion by 2029, with a current CAGR of 5.91% during the forecast period 2024 - 2029.

Market Overview:

Drill bits are one of the important tools in any drilling operation. They are used to cut rocks to drill any oil and gas well. The bit has a rotating device that cuts through the rock. Drill bits are generally made of two or three cones, which are made of solid materials like steel, tungsten carbide, diamonds, etc. The global market for drill bits is expected to see growth during the forecast period due to increased drilling for crude oil and natural gas exploration and production in Australia, the Middle East, and the United States. The economies of India, China, and Brazil are likely to increase the drilling bit market. The construction industry is expected to be a potential application for the drill bit given the increasing consumption of foundation and maintenance work in the housing sectors.

Market Drivers:

The leading factors driving the global drill bit market include increased exploration and development activity, increased unconventional field development activity, and increased directional drilling. The demand for drill bits is expected to increase in the direction of providing wear resistance and strength properties. The growing demand for fast drilling with minimal wear in terms of medium hard and hard formations is driving the global market. A strong platinum mining base in South Africa is expected to increase the demand for PCD rigs and thus drive the drilling industry growth in the near future. Increased spending on shale field drilling due to the deployment of enhanced oil recovery in the United States is likely to enhance the market for drilling bits. The expansion of crude oil fields in the Middle East due to the increase in crude oil production domestically is expected to positively impact market growth. The Iranian government is expected to seek investments to increase petrochemical production domestically, which is likely to increase the drilling bit industry.

Market Restraints:

The rapid awareness of environmental damage due to excessive mining activities in different regions of the world is expected to restrict the growth or demand for mining bits in the near future. The high cost of drilling and strict government regulations on offshore drilling are major factors that can hamper the market growth. The lack of investment in the offshore sector compared to onshore is expected to slow down the growth of the market in the coming years.

Market Recent Developments:

• Halliburton announced the launch of GeoTech HE, a robust bit that incorporates new features and materials to offer better performance and greater reliability in today's high-energy drilling systems characterized by heavyweight and very high drilling torque.
• Equinor, a leading oil company in Norway, confirmed that the coronavirus had a negative impact on its offshore development projects, but the combined portfolio of projects is still very resilient.

DRILL BIT MARKET REPORT COVERAGE:

Market Segmentation:

Drill Bit Market - By Type:

• Fixed bits

• Rolling cone bits

In stationary bits, polycrystalline diamond bits and natural diamond bits contribute a lot. Roller cone cutter bits are further classified as countersunk tooth bits and tungsten carbide inserts.

Drill Bit Market - By Application:

• Onshore

• Offshore

With the advancement of unconventional drilling techniques such as horizontal and vertical drilling businesses, the market is expected to see further increase for drill bits.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America is expected to be the largest market for drill bits with an increase in horizontal and unconventional drilling activity. The United States has recently established itself as one of the top crude oil-producing countries with the most onshore drilling activity for the extraction of shale oil and gas. In addition, the Gulf of Mexico region is experiencing an increase in enhanced oil and gas recovery projects that can extend the life of mature oil wells. With the rise of shale gas development projects in China, the Asia-Pacific region is also expected to see rapid growth in the market for drilling bits. With increasing oil and gas discovery activity in countries such as Indonesia, Australia, and the Philippines, the area is expected to suppose high demand for bits.

Impact of COVID-19 on the Global Drill Bit market:

The COVID-19 outbreak has taken its toll on the global economy as many industries have been affected by current circumstances and operations in various sectors have come to a halt. In the oil and gas industry, companies are facing various challenges due to falling oil prices following the COVID-19 outbreak. Consumption of petroleum products in the United States has fallen to its lowest level in decades due to travel-limiting measures and the general economic downturn triggered by COVID-19 mitigation efforts. The US EIA assesses declining demand for petroleum products by examining changes in total products supplied. In the week ending April 3, 2020, total petroleum products supplied to the US fell by 3.4 million barrels per day, the biggest weekly drop in the EIA data series. This would affect the operations of the drilling equipment as this equipment is useful for oil and gas extraction processes and also transforms crude oil into useful petroleum products. However, the European oilfield services market, which was expected to remain stable this year from the 2019 level of $ 47 billion in pre-coronavirus estimates, is now facing various hurdles due to the outbreak.

Market Key Players:

The key players in the Global Drill Bits Market are

1. Atlas Copco (Sweden)
2. Baker Hughes Inc. (U.S)
3. Cangzhou Great Drill Bits Co., Ltd.  (China)
4. ESCO Corporation (U.S)
5. Equinor
6. Halliburton Company (U.S.)
7. Irwin Industrial Tool Company (U.S.)
8. NewTech Drilling Products LLC  (Russia)
9. National Oilwell Varco Inc. (U.S.)
10. Scientific Drilling International Inc. (U.S.)
11. Kingdream Public Limited Company (China)
12. Varel International, Inc. (U.S.)
13. Torquato Drilling Accessories, Inc. (U.S.)
14. Ulterra Drilling Technologies (U.S)