An auger is a mechanical device, which is used for drilling holes in ground or in wood. Auger drilling machines are commonly used in global construction, mining, and oil & gas industries. It is also employed for soil sampling. These machines can be broadly divided into two types, which are flight auger and bucket auger. Flight auger consists of one or more flights of helical or spiral fluting attached to a torque bar. Moreover, owing to this design, flight augers maybe be further subdivided into single-flight and continuous-flight augers. In flight auger, removed material is brought to the surface by helical edges of a drill bit. A bucket auger is an open-top metal cylinder with one or more slots in its bottom that permits soil to enter as the bucket is rotated and downward pressure is applied. In bucket auger, the removed material is collected in a bucket. It is used for rapid excavation and digging deep boreholes. These machines may be truck mounted or handheld/portable for smaller projects.
COVID-19 scenario analysis:
- COVID-19 pandemic has shut-down production of various products in the global auger drilling industry, mainly owing to prolonged lockdown in major global countries. This has hampered growth of the global auger drilling market significantly from past few months, as is likely to continue during 2020.
- COVID-19 has already affected sales of equipment and machinery in the first quarter of 2020, and is likely to cause a negative impact on the market growth throughout the year.
- The major demand for equipment and machinery was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, the UK, and China, which is badly affected by the spread of coronavirus, thereby halting demand for equipment and machinery.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Equipment and machinery companies can afford a full lockdown only for a few months, after which the players would have to modify their investment plans.
- Equipment and machinery manufacturers must focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19 infection cases start to decrease.
Top impacting factors: Market Scenario Analysis, Trends, Drivers, Opportunities, Restraints and Impact Analysis
Growth of global urbanization; increase in industrialization and population; growth of automotive, and airline industries; and increase in construction activities worldwide are some of the major factors behind growth of the global oil & gas industry and as a result, the global auger drilling market is also expected to expand. Auger drilling machines are also widely used in local construction, mining, railways industries among other end users. It is also used for environmental and geotechnical sampling and is utilized in construction of sewer lines, in fence post setting, tree planting, and road construction in the construction sector. It is used in sewer construction, as it helps to accurately control diameter of a sewer bore. It is also used in the mining industry to extract coal, gold, and other minerals, owing to its low cost. Artificial lift systems are employed in case of lack of natural flow pressure. This is considered a major restraining factor for growth of the global auger drilling market. On the other hand, number of deepwater and ultra-deepwater petroleum drilling projects is increasing, and this factor is expected to provide growth opportunities for the global auger drilling market in the future.
The global auger drilling market trends are as follows:
Growth of global oil & gas industry, owing to rise in demand for petroleum products
Growth in population, urbanization, and disposable income of people around the world is expected to increase demand for oil & gas. Growth in number of automobile sales around the world, increase in airline traffic, growth in industrialization, and rise in construction activities around the world are expected to drive the demand for petroleum products. More and more people are buying personal vehicles due to increase in disposable income levels worldwide. Moreover, number of nuclear families and dual earning families is an important reason behind this phenomenon. An average consumer is increasingly using airlines to travel both internationally and domestically for better comfort and time saving. Growth of new industries and expansion of production facilities around the globe is expected to keep the oil & gas demand high. In addition, rise in amount of construction activities around the world is also expected to help the global oil & gas industry grow as the construction sector is a major end user of oil & gas. Hence, with the increase in demand for oil & gas around the world, the global auger drilling market is also expected to grow.
Increase in government initiatives and investments in oil & gas industry
The global oil and gas exploration and production sector is very important to the global economy. Economic experts predict that the global oil production will increase from the current rate of approximately 85 million barrels to 100 million barrels per day in the near future. The emerging economies of the world, especially the BRICs nations including Brazil, Russia, India, and China are expected to drive the demand for oil and gas production due to their high population. The GDP of the global oil and gas industry was estimated to be around $86 trillion in 2019, and the oil and gas drilling sector itself is estimated to contribute approximately 3.8% of the global economy. According to information released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), Government of India, the petroleum and natural gas sector received foreign direct investment (FDI) of around US$ 7.82 billion between April 2000 and March 2020. As per Union Budget 2019-20, Government of India declared plans to invest US$ 2.86 billion in the upstream oil and gas production by 2022 and US$ 9.97 billion to expand the gas pipeline network across the country. These initiatives and investments by various governmental bodies and petroleum industry companies around the world are expected to help the global oil and gas industry grow and as a result, the global auger drilling market is also expected to expand.
Key benefits of the report:
- This study presents the analytical depiction of the global auger drilling industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global auger drilling market share.
- The current market is quantitatively analyzed to highlight the global auger drilling market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed global auger drilling market analysis based on competitive intensity and how the competition will take shape in coming years.
Auger Drilling Market Report Highlights
By Drill Type
By Industry verticals
Key Market Players
Solar Alert Sdn Bhd, Delta Corp., TechnipFMC Plc, The Weir Group Plc, Schlumberger Ltd., Baker Hughes Co., Halliburton Co., Aker Solutions ASA, Dril-Quip Inc., Worldwide Oilfield Machine