According to a new report published by Allied Market Research, titled, “Drill pipe market by Type, Grade, and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global drill pipe market size is expected to reach $1.6 billion in 2027 from $1.3 billion in 2019, growing at a CAGR of 5.2% from 2020 to 2027. In 2019, North America dominated the market, in terms of revenue, accounting for 36.0% share of the global drill pipe market.
Drill pipe is a tubular steel conduit, which connects the rig surface equipment with the bottom hole assembly. The drill pipe has special threaded ends called as tool joints and it is used for pumping drilling fluid to the rig drilling bit for reducing torque generated in the pipe. A series of drill pipes is termed as drill string and the pipes are connected using different connections to maintain the length of the rig and secure the pipe joint.
North America and Asia-Pacific are the highest contributors in the drill pipe market. Countries such as China, the U.S., Japan, and Russia hold majority of the global share in the production and consumption of drill pipe, owing to the high investments on oil & gas exploration activities.
According to grade, the API grade drill pipes generated high revenues during 2019, owing to the standardized design and manufacturing of these pipes. However, the necessity for deep drilling of rigs is likely to boost the demand for heavy weight drill pipes (HWDP) hence, the segment is likely to exhibit significant growth during the forecast period.
The outbreak of COVID-19 pandemic has negatively affected the drill pipe market due to halt in international trade, prolonged lockdown, and ceased manufacturing processes. In addition, the major end-user companies in China, Germany, and the UK are facing financial impacts due to halted production and interrupted supply chains, which is expected to hinder the growth of the drill pipe market during 2020.
The global drill pipe market is segmented on the basis of type, grade, application, and region. Depending on type, the market is classified into standard drill pipe and heavy weight drill pipe (HWDP). According to grade, it is categorized into API and premium. On the basis of application, it is classified into offshore and onshore.
The global drill pipe market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Russia, UK, Norway, and rest of Europe), Asia-Pacific (China, India, Indonesia, and rest of Asia-Pacific), and LAMEA (Saudi Arabia, UAE, Brazil, Colombia, Rest of LAMEA). North America is expected to hold the largest market share throughout the study period; however, Asia-Pacific is expected to grow at the fastest rate.
Key Findings Of The Study
- On the basis of type, the standard drill pipe segment dominated the drill pipe market share in 2019.
- On the basis of grade, the API segment led the drill pipe market in 2019.
- On the basis of application, the onshore segment garnered major share of the drill pipe market in 2019.
- On the basis of region, North America dominated the market in 2019.
- On the basis of region, Asia-Pacific is expected to witness a high growth rate during the forecast period.
The major players operating in the drill pipe industry include Hilong Group of Companies, Jindal Saw Ltd. (Drill Pipes International LLC), NOV Inc., Oil Country Tubular Ltd., PetroMaterials Corporation, Tejas Tubular Products, Inc., Tenaris S.A., Texas Steel Conversion, Inc., TMK Steel Limited, and Weatherock Group Holding Limited.