SAN FRANCISCO, October 24, 2016 /PRNewswire/ --
The global drill pipes market is expected to reach USD 1.31 billion by 2025, according to a new report by Grand View Research, Inc. Increasing innovation regarding improving product strength is a major trend in the industry. Industry players are focused on developing new technologies and raw materials for better performance in all type of drilling conditions including onshore and offshore remote oil and gas fields.
However, the dip in the crude oil prices over the last two years has restricted the market growth. Rig rental capital is declining in the offshore market, and customers have significantly higher bargaining power in negotiating new contracts and extensions, leading to lower day rates and an oversupply of rigs.
API grade drill pipes held the largest share in global demand and are expected to continue their dominance over the forecast period. Standardization of the finished products along with the relatively low prices of this grade are anticipated to promote market penetration. Utilizing these products also ensure reduced operational cost to the E&P and operator companies.
API grade products are mostly preferred in normal environments and conventional basins owing to the easy availability and reduced OpEx to both E&P and contractor companies. Exploration in unconventional and harsh environmental conditions particularly in shale, CBM, and tight reserves are expected to steer premium grade drill pipes demand over the forecast period.
Browse full research report with TOC on "Drill Pipe Market Analysis By Grade (API Grade, Premium Grade), By Application (Onshore, Offshore) And Segment Forecast To 2025" at: http://www.grandviewresearch.com/industry-analysis/drill-pipe-market
Further key findings from the report suggest:
- Premium grade drill pipes are expected to account for over 25% of the revenue by 2025. The increasing use of premium grade in tight oil and gas formation is anticipated to drive the segment growth over the next eight years.
- Onshore fields dominated the global drill pipe market with a net demand of over USD 580 million in 2015. Hike in E&P in shale and CBM fields particularly in the U.S., Canada, and China have been the key factors responsible for high market penetration.
- The U.S. market demand in offshore basins exceeded a net value of USD 64 million in 2015 and is estimated to grow at a CAGR of 4.3% from 2016 to 2025
- Asia Pacific is anticipated to witness the fastest growth over the forecast period owing to the flexible regulatory scenario in economies including India, China, Indonesia, and Singapore. The Indonesian drill pipe industry is anticipated to reach a net value exceeding USD 19 million by 2025.
- The global market is dominated mostly by regional players. Some of the multinational players include Inter Drill Asia, TPS TECHNITUBE RÖHRENWERKE, Vallourec, and National Oilwell Varco.
Browse related reports by Grand View Research:
- Crude Oil Carrier Market - http://www.grandviewresearch.com/industry-analysis/crude-oil-carrier-market
- Fuel Injection Systems Market - http://www.grandviewresearch.com/industry-analysis/fuel-injection-systems-market
- Very Large Gas Carrier Market - http://www.grandviewresearch.com/industry-analysis/very-large-gas-carrier-market
- Top Drive System Market - http://www.grandviewresearch.com/industry-analysis/top-drive-system-market
Grand View Research has segmented the global drill pipes market on the basis of grade, application and region:
- Global Drill Pipes Grade Outlook (Revenue, USD Million, 2014 - 2025)
- API Grade
- Premium Grade
- Global Drill Pipes Application Outlook (Revenue, USD Million, 2014 - 2025)
- Global Drill Pipes Regional Outlook (Revenue, USD Million, 2014 - 2025)
- North America
- Asia Pacific
- Central & South America
- Middle East
- Saudi Arabia
- North America
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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SOURCE Grand View Research, Inc.