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2022

Kelly drive Market

Kelly drive Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Component, Application : Global Opportunity Analysis and Industry Forecast, 2022-2031

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Author's: Chakshu Kasturi | Eswara Prasad
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The global kelly drive market was valued at $1.6 billion in 2021, and is projected to reach $2.3 billion by 2031, growing at a CAGR of 3.7% from 2022 to 2031.

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Report Key Highlighters

  • The kelly drive market is consolidated in nature with few players such as NOV Inc., SANY Group, BAUER Maschinen GmbH (Subsidiary of BAUER Group), Jereh Global Development LLC (As a Subsidiary of Jareh Group) and Liebherr-International Deutschland GmbH. that hold significant share of the market.
  • The study covers in-depth analysis of 16 countries from different regions including North America, Europe, Asia-Pacific, and LAMEA. In addition, country-wise data of every country has been provided for better understanding of kelly drive market dynamics in every country.
  • The kelly drive market includes company profiles of 10 key players who are actively engaged in production various kelly drive.

A kelly drive is a particular kind of well drilling tool which uses a section of pipe with a polygonal or splined outer surface and feeds it through a rotary table and matching kelly (mating) bushing which have the same shape or splines. The Kelly is a long, four- or six-sided steel bar having a hole bored through the center to allow drilling fluid to pass through. The kelly bushing allows the drill string to be lifted or lowered while it rotates by transferring rotating motion from the rotary table or kelly bushing to the drill string. Crewmembers make up several attachments to the kelly. The attachments include the upper kelly cock, the lower kelly cock (drill pipe safety valve), and the kelly saver sub.

Kelly drilling is one of the most used dry rotary drilling techniques. The kelly drive is used to create large-diameter bored piles (from a size of approx. 500 mm). With the increasing drilling activities is booting the kelly drive market share in coming year. The kelly drive works with almost any kind of rock and soil. According to kelly drive market forecast, the demand for short rotary drilling instruments, such as augers, core barrels, buckets, and specialized drilling tools which are used to move the dirt will be more in the market. The drill rod which is also known as a kelly bar, is a typical component of this drilling technique. The strong kelly bars enables deep drilling and help in boosting the kelly drive market trend in forecast period.

Globally, there has been a surge in oil exploration activity, which is driving the demand for kelly drive in rig and drilling industry. Apart from the pandemic time, a boom in exploration has tripled over the last five years. Kelly drive market analysis showcase the owing to a global boom in exploration of oil reserves, several oil companies are getting into the rig sector. With the ongoing expansion in petroleum products, large oil extraction companies are contracting with drilling equipment manufacturers for the rent and sale of drilling equipment. Oil exploration companies and equipment companies collaborate to provide offshore support services that can increase production. Factor such as oil exploration activities is likely to boost the market for kelly drive in near future. 

Advances in technology and equipment have enabled more oil and natural gas to be recovered from the length of each well, improving production and reducing the environmental footprint of energy production. Kelly drive is cheaper however, technology is slow, inefficient, and unsafe as compared to the other technology which are present or coming in the market. These factors may restrain customers from using kelly drive; thus, hampering the market growth.

With combination of seismic surveys and drilling wells, companies are doing the search of oil reserve and deposits beneath the surface of the earth. Exploration projects can be expensive, time-consuming, and risky, drilling a well may cost tens of millions of dollars. Several factors are considered the number of wells to be drilled, recovery method, type of installation to be used, separation systems for the gas & fluids, and how the oil and gas will be transported to a processing facility. High demand for the petroleum products in the market resulting into several new excavations projects in different regions. This factor is anticipated to increase the sales of kelly drive; thus, creating lucrative kelly drive market opportunities.

The kelly drive market is segmented into product type, and region. On the basis of product type, the market is bifurcated into cleaners, braking oil, grease and lubes, degreaser, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Kelly drive market, by Type

In 2021, the square kelly segment was the largest revenue generator, and is anticipated to grow at a CAGR of 3.6% during the forecast period. With the increasing horizontal drilling operations result in increasing demand for square kelly in the market. To increase the output from a single well, drilling square kelly equipment are being used frequently in the market. Square Kelly is advantageous for end-users, however equipment can be used for both onshore and offshore drilling operations. Drilling activities are becoming more challenging which are demanding the high quality of kelly equipment. Several oil firms engage in new types of drilling on land, such as horizontal well drilling which covers a significantly larger area under the earth. With the increasing horizontal well drilling creates the opportunity for square kelly segment in global kelly drive market.

Kelly drive Market
By Type
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Square Kelly is the most lucrative segment

Kelly drive market, by Component

In 2021, the kelly bar segment was the largest revenue generator, and is anticipated to grow at a CAGR of 4.0% during the forecast period. With the increasing number of excavation projects and finding of deep oil reserves will increase the demand for kelly bars in the market. Companies are entering into the agreement for the drilling operations which is driving the kelly bars market. Today, reserves are found very deep under the land of sea which require the high strength bars for handling the pressure. Vertical and horizontal drilling activities are increasing which is increasing the demand for different shapes of kelly bars.

Kelly drive Market
By Component
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Kelly Bars is the most lucrative segment

Kelly drive market, By Application

In 2021, the onshore segment was the largest revenue generator, and is anticipated to grow at a CAGR of 3.8% during the forecast period. The rise in production activities and decrease in non-productive time are anticipated to propel the market for the onshore segment during the coming years. The onshore oilfields in North America and LAMEA have witnessed a high market share, regions mainly focus on efficiency improvement, decline in non-productive drilling activity time, and enhancement in health, safety, and environment aspects while drilling.

Kelly drive Market
By Application
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Onshore is the most lucrative segment

Kelly drive market, by Region

The North America kelly drive market size is projected to grow at the highest CAGR during the forecast period. The region is experiencing more drilling activities of oil and gas extraction as the demand for oil-related goods rises worldwide. Kelly drive equipment is particularly helpful for drilling through hard rock and getting to the oil deposits. The Kelly Drive can be used to reduce operational expenses in drilling operations. For field operators and engineers, it ensures long-term project success and a high rate of return.

Kelly drive Market
By Region
2031
North America 
Europe
Asia-Pacific
LAMEA

North America would exhibit highest CAGR of 4.0% during 2022-2031.

LAMEA was the second-largest contributor in terms of revenue in the global kelly drive market in 2021, and is anticipated to grow at a CAGR of 3.8% during the forecast period. Accelerated investment across the upstream sector along with crude oil price recovery will foster the drilling activities in the region. Robust growth in petrochemical products demand along with increase in industrial and commercial activities across the developing economies will boost the kelly drive market growth in LAMEA region.

For instance, The natural gas production in Saudi Arabia has been planned to increase by two-fold in the coming decade, which is expected to result in increased drilling activities related to gas production.

The leading players operating in the global kelly drive market include, NOV Inc., SANY Group, BAUER Maschinen GmbH (Subsidiary of BAUER Group), Jereh Global Development LLC (As a Subsidiary of Jareh Group) and Liebherr-International Deutschland GmbH, Bridges Equipment LTD, Lake Petro., TEXAS INTERNATIONAL OILFIELD TOOLS, LTD, Goldman, Tianhe Oil Group Co. Ltd., XI'AN KINGWELL OILFIELD MACHINERY CO.,LTD, El Didi Group.

The global kelly drive market report provides in-depth competitive analysis as well as profiles of these major players.

Key benefits for stakeholders

  • Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • It outlines the current Kelly drive market trends and future estimations from 2021 to 2031 to understand the prevailing opportunities and potential investment pockets.
  • The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
  • The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
  • The profiles of key players and their key strategic developments are enlisted in the report.

IMPACT OF RUSSIA AND UKRAINE WAR ON THE GLOBAL KELLY DRIVE MARKET

The invasion of Russia has further worsened an already precarious scenario for the energy and drilling markets, notably in Europe. To minimize the possibility of an interruption in Russian oil and gas supply, oil and gas corporations must collaborate with governments. In longer term, the sector needs to increase its adaptability and relevance in a rapidly evolving energy environment. The scenario brought about by the conflict between Russia and Ukraine influences the Kelly Drive market as well. Many projects that were previously underway in the nations are now on hold, and new projects are being delayed, which has slowed the market's expansion in recent years.

Kelly drive Market Report Highlights

Aspects Details
Kelly drive Market By Type
By Type
  • Square Kelly
  • Hexagonal Kelly
Kelly drive Market By Component
By Component
  • Kelly Bars
  • Kelly Bushing
    • Kelly Spinner
Kelly drive Market By Application
By Application
  • Offshore
  • Onshore
Kelly drive Market By Region
By Region
  • North America  (U.S., Canada)
  • Europe  (Russia, Norway, UK, Germany, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, Mexico, Rest of LAMEA)
Kelly drive Market By Key players in the global kelly drive market are:
By Key players in the global kelly drive market are:
  • Liebherr-International Deutschland GmbH
  • NOV Inc.
  • Bridges Equipment LTD
  • Lake Petro.
  • TEXAS INTERNATIONAL OILFIELD TOOLS, LTD
  • Goldman
  • Tianhe Oil Group Co. Ltd.
  • XI'AN KINGWELL OILFIELD MACHINERY CO.,LTD
  • El Didi Group
  • BAUER Maschinen GmbH
  • Jereh Global Development LLC
  • SANY group

Analyst Review

The CXOs of major corporations claim that the spread of COVID-19 caused a considerable and quick reduction in global economic activity. This therefore has an impact on the demand for oil as well as for other goods and services such as Kelly Drive and solutions. Pandemic had a detrimental effect on the market.

Other pandemic consequences include decreased client spending, negative net income and revenue, operations interruptions such as drilling activity delays or cancellations, shutdowns of oil and gas production, and exploration activities. The demand for digital products and services has decreased during this moment of severe economic disruption and low oil prices, which is anticipated to last for some time.

Kelly drives and other drilling equipment are expected to be in high demand in the upcoming years due to the booming oil and gas drilling industry. Manufacturers of drilling equipment are anticipated to enhance their manufacturing capacity and merge to broaden their customer base and global presence. Other technologies, such as the top drive system, have higher rental costs than the kelly drive system, which may lead to greater use of the kelly drive in North America and LAMEA for oilfield drilling. It is projected that TDS adoption is anticipated to surpass the Kelly Drive market in the upcoming years due to several benefits, including superior pipe handling time and drilling cost, particularly in deeper wells.

Author Name(s) : Chakshu Kasturi | Eswara Prasad
Frequently Asked Questions?

The square segment was the largest revenue generator in 2021, however hexagonal Kelly is growing with the highest CAGR during the forecast period.

The North America is the largest regional market in the global kelly drive market, contributing near to half of the global market in 2021.

The global kelly drive market is projected to reach $2.3 billion by 2031, growing at a CAGR of 3.7% from 2022 to 2031.

Increasing the number of oils well excavation projects.

The leading players operating in the global kelly drive market include NOV Inc., SANY Group, BAUER Maschinen GmbH (Subsidiary of BAUER Group), Jereh Global Development LLC (As a Subsidiary of Jareh Group) and Liebherr-International Deutschland GmbH

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Kelly drive Market

Global Opportunity Analysis and Industry Forecast, 2022-2031