Oil Country Tubular Goods Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Oil Country Tubular Goods Manufacturers and it is segmented by manufacturing process (seamless and electric resistance weld), grade (premium grade and API grade), and geography (North America, Europe, Asia-Pacific, South America, and the Middle-East and Africa). The market size and forecast in revenue (USD billion) for all the above segments.

Oil Country Tubular Goods (OCTG) Market Size

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Oil Country Tubular Goods Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 4.50 %
Fastest Growing Market South America
Largest Market North America
Market Concentration Low

Major Players

Oil Country Tubular Goods Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Oil Country Tubular Goods (OCTG) Market Analysis

The oil country tubular goods (OCTG) market is expected to register a CAGR of more than 4.5% during the forecast period.

The market was negatively impacted by COVID-19 due to regional lockdowns and the 2020 crude oil price crash. Currently, the market has reached a pre-pandemic level.

  • Major factors driving the market study include increasing exploration and production activities, low oil breakeven prices due to rising non-oil revenues and technological advancements, reduced oil service costs, and increased directional drilling.
  • On the other hand, the increased import duty in countries like the United States, the volatile nature of oil prices in recent years, and environmental concerns could hamper the growth of the OCTG market during the forecast period.
  • There has been liberalization of oil and gas by major countries across the world to increase foreign investments, thereby helping the growth of the oil and gas industry. This will likely provide immense opportunities for the global OCTG market in the coming years.
  • North America is expected to dominate the global OCTG market, with the majority of the demand coming from countries like the United States, Mexico, etc.

Oil Country Tubular Goods (OCTG) Market Trends

Premium Grade Segment to Witness Significant Demand

  • The premium-grade OCTG market is growing because of the increasing demand from upstream oil and gas activities. Premium-grade applications are widespread in gas wells, horizontal wells, high-pressure (above 5,000 psi), and high-temperature (above 250 F) wells. The premium-grade OCTG is applied to such connections that have more complex applications and where gas-tight sealing is required.
  • The exploration of natural gas is receiving huge impetus with the surge in the development of shale reserves. Moreover, horizontal directional drilling has promoted natural gas production from shale reserves, which, in turn, is a big boost for the premium-grade OCTG market.
  • The increase in deepwater exploration in remote areas with harsh environments has resulted in an increase in the use of premium quality drilling equipment, which has resulted in the growth of the market. The Middle East is one of the major offshore deepwater reserves and is expected to increase production during the forecast period.
  • In December 2022, Vallourec secured a third major order in the framework of the Long-Term Agreement (LTA) signed in 2021 with ExxonMobil Guyana. Under the contract, Vallourec will deliver line pipe for ExxonMobil Guyana's deep-water Uaru project.
  • Therefore, based on the above-mentioned factors, the premium-grade segment is expected to witness significant demand for the global OCTG market during the forecast period.
Oil Country Tubular Goods Market - Revenue Share (%), by Grade, Global, 2022

North America to Dominate the Market

  • The widespread development of oil and gas fields in the North American region, onshore and offshore, will likely provide substantial business opportunities for companies operating OCTG businesses. Further, as the demand for OCTG is directly affected by oil and gas activities, increasing oil and gas exploration and production operations in the region are expected to boost the demand for OCTG in the coming years.
  • In the United States, shale drilling and hydraulic fracturing operations have expanded the use of horizontal and directional drilling, adding thousands of feet in the lateral run to what previously had been vertical-only drill strings. Horizontal laterals, which can be 5,000 feet or more in length, have significantly increased the number of tons of tubular products used per well.
  • Further, the deployment of the total rig counts in the United States surged from 369 in January 2021 to around 601 in January 2022, witnessing a growth of 63% due to the country's increasing oil and gas drilling activities. A similar trend was seen in Canada, which recorded an increase of 39% in drilling rig deployment from 137 in January 2021 to 190 rigs in January 2022. Such market scenarios are expected to continue and increase OCTG demand during the forecast period.
  • According to the Canadian Association of Petroleum Producers (CAPP), upstream oil and gas capex in Canada increased from USD 20.7 billion in 2021 to USD 22.7 billion in 2022, an increase of nearly 10 percent. Further, Canadian upstream oil and gas capex is expected to rise even further, reaching over USD 44.3 billion by 2030. Additionally, between 2021 and 2030, Canadian upstream oil and gas capex is expected to be USD 356.3 billion under the mid-case growth rate, which is likely to provide ample opportunities to the OCTG Market.
  • Therefore, based on the above-mentioned factors, North America is expected to dominate the global oil-country tubular goods market during the forecast period.
Oil Country Tubular Goods Market - Growth Rate by Region, 2022-2027

Oil Country Tubular Goods (OCTG) Industry Overview

The oil country tubular goods market is fragmented. The key companies include (in no particular order) National-Oilwell Varco Inc., ILJIN Steel Co., Nippon Steel & Sumitomo Metal Corporation, ArcelorMittal SA, and Tenaris SA.

Oil Country Tubular Goods (OCTG) Market Leaders

  1. ILJIN Steel Co.

  2. Nippon Steel & Sumitomo Metal Corporation

  3. Tenaris SA

  4. ArcelorMittal SA

  5. National-Oilwell Varco Inc.

*Disclaimer: Major Players sorted in no particular order

Oil Country Tubular Goods Market Concentration
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Oil Country Tubular Goods (OCTG) Market News

  • January 2022: Jindal SAW announced that it had formed a joint venture (JV) with Hunting Energy Services to set up an oil country tubular goods (OCTG) threading plant in Nashik, India. The plant will manufacture the equipment used in oil and gas drilling services. The initial investment will be around USD 20-25 million in a 51:49 partnership in which Jindal SAW is the majority shareholder. The facility is scheduled to be operational by the end of 2022.
  • August 2022: Abu Dhabi National Oil Company (ADNOC) was awarded a five-framework agreement valued at USD 1.83 billion for directional drilling and logging while drilling. The project includes wellheads and related components, downhole completion equipment and associated services, liner hangers, cementing services, wireline logging, and directional drilling. The company aims to drill new wells and expand its production capacity with this framework agreement.

Oil Country Tubular Goods (OCTG) Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2028

    3. 4.3 Recent Trends and Developments

    4. 4.4 Market Dynamics

      1. 4.4.1 Drivers

      2. 4.4.2 Restraints

    5. 4.5 Supply Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Consumers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitutes Products and Services

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Manufacturing Process

      1. 5.1.1 Seamless

      2. 5.1.2 Electric Resistance Welded

    2. 5.2 Grade

      1. 5.2.1 Premium Grade

      2. 5.2.2 API Grade

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Asia-Pacific

      3. 5.3.3 Europe

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    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 ILJIN Steel Co.

      3. 6.3.3 Nippon Steel & Sumitomo Metal Corporation

      4. 6.3.4 Tenaris SA

      5. 6.3.5 TMK Ipsco Enterprises Inc.

      6. 6.3.6 U.S. Steel Tubular Products Inc.

      7. 6.3.7 Vallourec SA

      8. 6.3.8 ArcelorMittal SA

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Oil Country Tubular Goods (OCTG) Industry Segmentation

Oil country tubular goods, or OCTG, are tubes and pipes used in oil and gas activities such as drilling and production. OCTG is used both onshore and offshore for oil and gas production. The Oil Country Tubular Goods Market is segmented by manufacturing, grade, and geography. By manufacturing process, the market is segmented into seamless and electric resistance welded. By grade, the market is segmented into premium grade and API grade. The report also covers the size and forecasts of the OCTG market across the region. The market size and forecasts are based on revenue (in USD billions) for each segment.

Manufacturing Process
Seamless
Electric Resistance Welded
Grade
Premium Grade
API Grade
Geography
North America
Asia-Pacific
Europe
South America
Middle-East and Africa
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Oil Country Tubular Goods (OCTG) Market Research FAQs

The Oil Country Tubular Goods Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)

ILJIN Steel Co., Nippon Steel & Sumitomo Metal Corporation, Tenaris SA, ArcelorMittal SA and National-Oilwell Varco Inc. are the major companies operating in the Oil Country Tubular Goods Market.

South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Oil Country Tubular Goods Market.

The report covers the Oil Country Tubular Goods Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Oil Country Tubular Goods Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Oil Country Tubular Goods Industry Report

Statistics for the 2024 Oil Country Tubular Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oil Country Tubular Goods analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Oil Country Tubular Goods Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)