PDC Drill Bits Market: Current Analysis and Forecast (2021-2027)

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The PDC drill bits market is estimated to grow at a CAGR of ~5% during the forecast period. Factors, such as increased exploration activity and focus on the development of new oil and gas fields, are expected to drive the market for PDC drill bits. Drilling activities, especially footage drilled, are expected to drive the demand for PDC drill bits. In addition, major players are investing in new offshore drilling sites is further expected to drive the market growth. For instance, in 2020, Royal Dutch Shell submitted plans for seismic activity and exploratory drilling in its West Harrison Bay license in the Beaufort Sea just offshore from the National Petroleum Reserve in Alaska, U.S. In its 5-year plan, the company suggests conducting seismic studies to update geological data and finalize well and reservoir design in 2021-22 and begin and subsequently expand exploratory drilling in 2023-24.

Offshore power is an important part of the world’s oil and natural gas supply and could be an increasingly important source of renewable electricity. The resources are enormous, and offshore projects are proving their worth in a changing market and in a political context under various stresses on the world’s oceans. For instance, global offshore gas production in 2016 was 17.5 mboe/d and according to IEA’s New Policy Scenario, it is expected to increase to 29.6 mboe/d in 2040. Therefore, with increasing production of oil and gas and with high investments in offshore wind energy would propel the market.

Insights Presented in the Report

“Amongst Type, Matrix Body to Witness Higher CAGR During the Forecast Period”

Based on type, the market is bifurcated into matrix body and steel body. Among these, matrix body category to witness strong growth during the forecast period and is expected to hold a significant market share by 2027. Matrix body PDC drill bits are made of tungsten carbide and are known for their high wear resistance and erosion resistance. In terms of cutter count, they are typically a heavier set than their steel body counterparts. Matrix body drill bits are best suited for high volume or high sand applications because they have a longer life and multiple bit runs. Therefore, the demand for matrix body PDC drill bits will be augmented by the need for advanced and efficient drilling technologies. Moreover, key players in the market are launching new products, further supporting the category’s growth. For instance, In 2020, Halliburton Company introduced Crush & Shear Hybrid Drill Bit, a new technology that combines the efficiency of traditional polycrystalline diamond compact (PDC) cutters with the torque-reducing capabilities of rolling elements to increase drilling efficiency and maximize bit stability through changing formations.

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“Amongst Application, Matrix Body to Witness Higher CAGR During the Forecast Period”

On the basis of application, the market has been categorized into onshore and offshore. In 2020, onshore held a significant share in the market. Increase of onshore oilfields in regions like North America and Europe are witnessing a technology-driven revolution that focuses on efficiency enhancements, reduction in non-productive drilling activity time, and improvements in drilling tools. As per the Baker Hughes’ International Rig Count in 2018, the average number of onshore operating rotary rigs globally was 1,972 compared to 220 offshore rigs during the same year. The increasing production activities and reduction in non-productive time are expected to drive the onshore segments of the market. Furthermore, onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production. The global crude oil prices witnessed signs of recovery and are improving at a good pace and the onshore projects are easier to kick start than offshore projects.

 “North America to Hold Significant Share in The Market”

With the demand of crude oils rising, the oil and gas companies have started to redirect their exploration focus toward unconventional and deep reservoirs such as shale gas, coal bed methane (CBM), tight gas, heavy oil, and pre-salt- considered as original due to low availability of conventional reservoirs. Globally around 93 million barrels of crude oil are consumed every day. Out of this 20% of the consumption is done in the United States which is equivalent to 19.69 million barrels per day. The demand for oil increased by 0.1 MMb/d month-over-month in August to 98.4 MMb/d, mainly driven by North America. Thus, North America is expected to hold a significant share in the PDC drill bits market, owing to the large chunk of activities for shale gas exploration in the region. Over the past decade, the lateral lengths of the unconventional wells drilled in the United States, increased by 180%. Similarly, According to the Canadian Government, in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020, and the production is expected to increase from an offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the PDC Drill Bits Market were the three major steps undertaken to create and analyze the demand and sales of PDC Drill Bits Market across major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below.

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Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the PDC Drill Bits Market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the PDC Drill Bits Market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are type, size, and application. Further regional level analyses were conducted to evaluate the overall demand for PDC Drill Bits Market in a global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing vehicle ownership and technological advancement in the healthcare sector, etc. Historical trends and their year-on-year impact on the market size and share were analyzed. The demand and supply-side scenarios were also thoroughly studied.

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Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the market, and market shares of the segments and company. All the required percentage split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and sub-segments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the demand for PDC Drill Bits Market across the major regions globally
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the PDC Drill Bits Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

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Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the PDC Drill Bits Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type, size, application, and regions.

The main objective of the PDC Drill Bits Market Study

The current & future market trends of the PDC Drill Bits Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of PDC Drill Bits Market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments of the industry
• Segments in the study include type, size, application, and regions
• Defined analysis of the regulatory framework for the PDC Drill Bits Market industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry
• Analyze the current and forecast market size of the PDC Drill Bits Market across the globe. Major regions analyzed in the report include North America (US, Canada), Europe (Germany, UK, France, Spain, Rest of Europe), APAC (China, India, Australia, Rest of APAC), & LAMEA (Brazil, Mexico, Saudi Arabia, U.A.E., Rest of LAMEA). Define and analyze the competitive landscape of the PDC Drill Bits Market sector and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry