Drilling Tools Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Drilling Tools Market is segmented by Type (Drill Bit, Drill Collar, Drill Pipe, Drill Reamer and Stabilizer, Drill Swivel, and Others), Location of Deployment (Onshore and Offshore), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Drilling Tools Market Overview
Study Period: 2016 - 2026
Base Year: 2021
Fastest Growing Market: South America
Largest Market: North America
CAGR: 8.5 %
Drilling Tools Market Major Players

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Market Overview

The drilling tools market is expected to register a CAGR of approximately 8.5%, owing to the increasing number of drilling rigs, due to new discoveries in several regions of the world. The drill bit market is expected to register a CAGR of around 11% during the forecast period, which indicates huge possibilities for other drilling tools market to grow at a similar pace. Major factors driving the market include the rising exploration and development activities, increasing rig count, and increasing unconventional field development activities across the world. However, lack of investment in the offshore sector compared to that of onshore is expected to hinder the market growth in the coming years.

  • The market demand for the drilling tool is expected to grow at a faster pace in the offshore oil and gas sector than the onshore sector. The decline in the offshore rig count has slowed down in recent years, and offshore activity is expected to pick up after one to two years from now. Overall, the offshore sector in the drilling tools market is expected to witness more technological advancements and is likely to gain from the rising oil and gas prices.
  • Exploring new markets in emerging economies of South America and Asia-Pacific and innovations in the drill bit technological landscape are presenting itself as a market opportunity for investors and drilling tools manufacturers.
  • North America dominated the drilling tools market in 2018, and it is expected to continue its dominance during the forecast period.

Scope of the Report

The drilling tools market report includes:

Drill Bit
Drill Collar
Drill Pipe
Drill Reamer and Stabilizer
Drill Swivel
Other Types
Location of Deployment
North America
South America
Middle-East and Africa

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Key Market Trends

Drill Bit as a Prominent Drilling Tool in the Market

  • The drill bit is one of the major tools in oil and gas drilling operations. It is designed to cut down underneath earth layers consisting of various rocks, for the discovery and extraction of oil and gas from the earth's crust. The tool is divided into two types, based upon its design, i.e., roller cone bit and fixed cutter bit.
  • During 2018, fixed cutter bits had the majority market share than the roller cone bits, account nearly 80% of the global drill bit market. Although a very old technology, roller cone bits are still preferred in the drilling industry due to its cost efficiency and robustness. However, improvements in drilling practices, bit designs, and hydraulics, and continued technology developments in the fixed cutter technology paved the way for the commercial success of fixed cutter bits.
  • Fixed cutter bits have no moving parts or bearings, unlike roller cone bits. The cutters are permanently mounted onto blades, which are integral to the structure of the bit. Polycrystalline diamond compact (PDC) bits dominate this category and hold a much higher market share than Roller Cone Bits in the current drill bit market.
  • With newly discovered oil & gas fields, majorly in offshore market is expected to expand the drill bit market during the forecasting period. Around 26 oil and gas discoveries were found during the year 2019, which is estimated to have around 100 million barrel oil equivalent. Guyana in South America has the highest numbers of discoveries.
Drilling Tools Market Key Trends

North America to Dominate the Market

  • North America comprises developed economies with substantial oil and gas resources. The United States is one of the largest producers of crude oil and natural gas, which accounted for around 16.2% and 21.5% of global production respectively in 2018. The production surged in 2017-2018, mainly due to robust drilling in its shale reserves, led by the Permian Basin.
  • Permian Basin is the most important basin and the market for drilling tools in the United States. In 2018, in the Permian Basin, 6,759 wells were drilled highest among all the shale basins, creating a huge demand for drilling tools in the United States.
  • As the demand for drilling tools are directly related to the oil and gas activities, increased oil & gas exploration and production has resulted in higher demand for drilling tools in the United States.
  • Furthermore, in Canada, new investment in new oil & gas projects witnessed a significant decrease from the 2014-2016 period, the rebound of oil prices to a sustainable level is expected to increase the upstream exploration and production (E&P) activities, particularly in the oil sands and shale areas.
  • Therefore, North America is expected to be the dominant player in the drilling tools market, supported by increasing oil and gas exploration activities during the forecast period.
Drilling Tools Market Growth Rate

Competitive Landscape

The drilling tools market is fragmented. Some of the key players in this market include National-Oilwell Varco Inc., Halliburton Company, Schlumberger Limited, Baker Hughes Company, Weatherford International Plc, Hunting Plc, Guizhou Gaofeng Petroleum Machinery Co. Ltd, United Drilling Tools Ltd, Collidrill, and Texas Steel Conversion Inc. 

Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 4.3 Active Rig Count, by Major Countries, January 2016 - December 2019

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Drill Bit

      2. 5.1.2 Drill Collar

      3. 5.1.3 Drill Pipe

      4. 5.1.4 Drill Reamer and Stabilizer

      5. 5.1.5 Drill Swivel

      6. 5.1.6 Other Types

    2. 5.2 Location of Deployment

      1. 5.2.1 Onshore

      2. 5.2.2 Offshore

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 National-Oilwell Varco Inc.

      2. 6.3.2 Halliburton Company

      3. 6.3.3 Schlumberger Limited

      4. 6.3.4 Baker Hughes Company

      5. 6.3.5 Rival Downhole Tools

      6. 6.3.6 Hunting PLC

      7. 6.3.7 United Drilling Tools Ltd

      8. 6.3.8 Collidrill SpA

      9. 6.3.9 Texas Steel Conversion Inc.

      10. 6.3.10 Tejas Tubular Products

    4. *List Not Exhaustive

**Subject to Availability

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Frequently Asked Questions

The Drilling Tools Market market is studied from 2016 - 2026.

The Drilling Tools Market is growing at a CAGR of 8.5% over the next 5 years.

South America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

National-Oilwell Varco Inc, Halliburton Company, Schlumberger Limited, Baker Hughes Company, Weatherford International Plc. are the major companies operating in Drilling Tools Market.

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