Market Size of Downhole Drilling Tools Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Downhole Drilling Tools Market Analysis
The downhole drilling tools market is expected to record more than 6.5% CAGR throughout 2022-2027. Due to the COVID-19 pandemic, the oil and gas industry witnessed a significant decline in demand due to the various lockdowns and restrictions, which resulted in decreased demand for downhole drilling tools. Additionally, the outbreak of COVID-19 in Q1 2020 delayed significant drilling projects worldwide, affecting the market for downhole drilling tools. For instance, in April 2020, Beach Energy announced a termination notice to Diamond Offshore for its year-long offshore drilling program in the Otway basin in Southern Australia with the semi-submersible Ocean Onyx, citing the logistical difficulties caused by the COVID-19 pandemic. Increased rig counts during the forecast period due to discoveries in several regions may drive the downhole drilling tools market. Also, the high requirement for tubular and increased directional drilling activities in the United States, North Sea, and Russia present more opportunities for the downhole drilling tools market. However, the unfavorable environmental effect of E&P activities, such as the release of crude oil into the environment and heavy metals, can have profound ecological implications. These ecological effects, coupled with stringent government regulations, are likely to restrain the market's growth during the forecast period.
- The onshore had the maximum share in the market in 2020. Onshore drilling encompasses all the drilling sites on dry land and accounts for 70% of worldwide oil production.
- The development of new-generation automated drilling tools and technological advancements breeding from automation in drilling activities are expected to present many opportunities for downhole drilling companies.
- North America, specifically the United States, dominates the market, accounting for most of the downhole drilling tools due to many wells being drilled each year in its shale and tight reserves.
