Drill Bits Market Size, Share and Global Trend By Drill Type (Fixed Cutter, Roller Cone), By Application (Onshore, Offshore) and By Regional Forecast, 2024-2032

A drill bit is a tool attached to the bottom of the drill string to excavate earth’s rock for producing a cylindrical hole by the rotary drilling method for the discovery and exploration of hydrocarbons such as crude oil and natural gas. Drilling is the first step in discovering hydrocarbons and companies are developing high-end technologies for efficient drilling operation to maximize production of oil and gas. The drill bits are available in various sizes for a variety of drilling applications which range from 3.5 inches to 30 inches. According to the requirement of penetration different sizes of drill bits are used in various application.

The drill bits market is segmented on the basis of drill type i.e. Fixed Cutter, and Roller Cone. Fixed cutter bits do not have moving parts and it works primarily by shearing and scrapping through rock. The fixed cutter bits include polycrystalline diamond compact (PDC) and natural diamond. PDC drill bits accounts major portion in overall drilling operations such as hard formation, directional wells, shale gas formations. Diamond bits are primarily used in a hard and highly abrasive formation that would be more damaging to other bits. Roller cone is steel body bits with cutters as the bits turn cutters crush the rock. Roller cone bits are mostly used in soft and sticky formations. Milled tooth and tungsten carbide Inserts are falling under the category of roller cone bits. Milled tooth is generally less expensive than other types of tools and best in softer formations. Tungsten carbide is one of the hardest material and is capable of drilling hard and abrasive formation.

To gain extensive insights into the market, Request for Customization

The ever-increasing demand for hydrocarbons stressing the operators for producing more oil and gas which is expected to increase the demand for drill bits. Hydrocarbons account an extensive share in total consumption of world energy resources proving to be a great potential of development to meet the demand. Companies are heavily investing for exploration activities and recent development in shale gas exploration in North America has driven the market for drill bits.

The oil and gas industry was in a downturn in 2015 due to the price of crude oil dropped significantly hampering the overall economic growth which in turn declined the exploration activities. Consistent fluctuation in prices of crude oil causes a major loss to the operator which slows down the exploration of hydrocarbons. These factors restraint the growth of the drill bit market.

KEY PLAYERS COVERED

The key supplier of drill bits for oil and gas industry are National Oilwell Varco, Baker Hughes, Halliburton, Varel International, Schlumberger, Rubicon Oilfield International, Ulterra, Atlas Copco, Bellwether Resource International, Bit Brokers International, Century Products, OTS International, Nile Petroleum Industrial Company, and Drilformance.

SEGMENTATION

REGIONAL ANALYSIS

The global drill bit market for oil & gas industry is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America is leading in drill bit market due to extensive drilling operation and recent discoveries of shale gas in the Gulf of Mexico & onshore US which enhance the growth of the drill bit market. The abundant crude oil available in Russia, Norway and Ukraine will increase the drilling operation in Europe and provide a lucrative market for drill bits. In the Asia Pacific, China is leading in the production of hydrocarbons and expected to invest enormously for the development of the exploration of oil and gas. The presence of rich oil countries in MEA will make a suitable market for drill bits. Countries like Saudi Arabia, UAE, Iran, Iraq, and Qatar, etc. having a large share of proven hydrocarbon reserves in the world. The ongoing exploration and extensive potential for new discoveries of hydrocarbon reserves expected to increase the growth of the drill bit market in MEA.

KEY INDUSTRY DEVELOPMENTS

• In January 2019, National Oilwell Varco’s Tektonic Drill Bit sets a curve record at 6.72 hours, which was 44% faster than any of the previous 83 offset runs. Tektonic bit offers enhanced hydraulic design method, lower frictional losses, higher cutting evacuation, and better distribution of cutting load.
• In October 2018, Blackstone has announced to acquire Ulterra Drilling Technologies, a leading manufacturer of drill bits specifically for oil and gas industry from affiliates of American Securities LLC.
• In January 2018, Haliburton launched Cerebro in-bit sensor package, the latest technology bridges the communication by capturing data close to cutting structure. This will optimize cutter engagement, reduce uncertainty, and increase drilling efficiency.