Global Drill Pipe Market Size, Share & Industry Trends Analysis Report By Type (Standard and Heavy Weight), By Application (Onshore and Offshore), By Grade (API and Premium), By Regional Outlook and Forecast, 2022 - 2028

Analysis of Market Size & Trends

The Global Drill Pipe Market size is expected to reach $1.8 billion by 2028, rising at a market growth of 5.5% CAGR during the forecast period.

A drill pipe is a hollow, thick-walled conduit used during rig drilling operations to transmit drilling fluid from the wellbore to the drill bit. Drill pipes are steel pipes that are seamless and are included in the assembling of the drill string. These pipes are designed to withstand the tremendous external and internal pressures that fluids during drilling produce. It is produced, examined, and tested in accordance with the requirements established by the American Petroleum Institute (API).

According to their API grade, drill pipes are categorized as X-95, E grade, G-105, and S-135. With a total yield strength lesser than 80,000 psi, Grade E drill pipe, sometimes known as mild steel, per unit area has the lowest yield strength. Compared to drill pipe grades with higher strengths, it may withstand more stretch or strain before breaking. Additionally, it is less prone to cracking and corrosion. In wells of medium depth between 10,000 and 15,000 feet, Grade E is used. The grades S-135, X-95, and G-105 are regarded as being of high strength. They have higher yield strengths, which are necessary to serve deeper wells.

Private grades frequently go above what is required by API SPEC 5DP. They were developed for critical service, sour service, as well as other user-defined requirements because of their improved performance characteristics. Sulfide stress corrosion is resistant to sour service grades (SSC). When hydrogen sulfide is present, SSC may happen. Ingress of hydrogen reduces the ductility of steel grades, making them more vulnerable to crack growth and failure along with higher stresses, low pH, lower temperatures, and high chloride content.

COVID-19 Impact Analysis

In the beginning, the pandemic severely damaged the drill pipe market. The coronavirus (COVID-19) spread quickly across many nations and regions, having a significant negative effect on both individual lives and the community as a whole. It became a serious threat to international trade, the economy, and the financial system. Due to lockdowns brought on by the COVID-19 pandemic, several products in the making were put on hold. The reduced crude oil prices brought on by the COVID-19 pandemic hindered upstream activities such that they were temporarily postponed or stopped, which had a negative impact on various upstream players.

Market Growth Factors

Increasing Automation of Oil and Gas Industry

Oil and natural gas automation, often known as oilfield mechanization or automation, is a developing set of procedures, many of which make use of digitalization that could also help energy companies compete more successfully on the world market. Top prospects for automation in the oil and gas sector include drilling, manufacturing activities and process monitoring, transportation, supply chain, safety, and retail operations. Some sectors of the economy are more amenable to automation than others.

Rising Demand for Petrol and Petrol Based Products

Since the first petroleum well was drilled, the resource has become a vital component of daily life. It has served as fuel for vehicles, a source of electricity for power companies and equipment. It is also an important commodity to make fertilizer to boost food production, and a source of plastic to make a variety of items that are used every day. Additionally, petrochemical chemicals are utilized in a variety of industries, including automotive, agribusiness, textile, electrical and electronics, construction, household goods, medical devices, packaging, and pharmaceutical.

Market Restraining Factors

Fluctuating Raw Material Prices and Lack of Interoperability

A major concern with drill pipes is their lack of interoperability. While standards are available by API, they are only necessary to an extent. Manufacturers can still produce pipes with respect to a customer's priorities. This restricts their usage beyond a certain operation and machine. Additionally, the recessive interoperability actually magnifies the dearth of management in the pipes' after use or its premium nature. This factor has the potential to stifle expansion by these ringing interoperability problems in a number of nations.

Type Outlook

Based on type, the drill pipe market is bifurcated into standard drill pipe and heavy weight drill pipe (HWDP). The heavy-weight drill pipe segment garnered a significant revenue share in the drill pipe market in 2021. Heavy weight drill pipe (HWDP) is a tube that functions as a transitional piece or to add weight to the drill string. It serves as a connecting segment of the drill pipe in between the drill collar and the regular drill pipe to lessen fatigue failures. The HWDP is employed in other applications as an extra weight to slow down the drill pipe.

Application Outlook

Based on the application, the drill pipe is categorized into offshore and onshore. The onshore segment garnered the maximum revenue share in the drill pipe market in 2021. This is because onshore wells are more readily available and very simple to dig, which facilitates the extraction process. Onshore wells are used to extract a lot of oil and gas. These are easier to extract than offshore wells since they are more readily available and relatively simple to drill.

Grade Outlook

On the basis of grade, the drill pipe market is divided into API and premium. The premium segment recorded a substantial revenue share in the drill pipe market in 2021. The Premium Class designation applies only to the used normal-weight drill pipe. The tube's remaining wall thickness (WT) shall not be less than 80% of the new nominal wall thickness. These pipes have become the norm throughout the industry. Since they are used, they are cost-effective and easily available as well.

Drill Pipe Market Report Coverage

Report Attribute	Details
Market size value in 2021	USD 5.5 Billion
Market size forecast in 2028	USD 1.8 Billion
Base Year	2021
Historical Period	2018 to 2020
Forecast Period	2022 to 2028
Revenue Growth Rate	CAGR of 5.5% from 2022 to 2028
Number of Pages	166
Number of Tables	320
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling
Segments covered	Type, Application, Grade, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Increasing Automation of Oil and Gas Industry Rising Demand for Petrol and Petrol Based Products
Restraints	Fluctuating Raw Material Prices and Lack of Interoperability

Regional Outlook

Region-Wise, the drill pipe is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America dominated the drill pipe market with the highest revenue share in 2021. It is owing to the emergence of modern drilling techniques like hydraulic fracturing and horizontal drilling. Due to improvements in unconventional drilling technology that have attracted significant expenditures for oil and gas drilling projects, the US currently owns the greatest part of the regional market.

Free Valuable Insights: Global Drill Pipe Market size to reach USD 1.8 Billion by 2028

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Hilong Group of Companies, Drill Pipes International LLC (Jindal Saw Ltd.). NOV, Inc., Oil Country Tubular Ltd., PetroMaterials Corporation, Tejas Tubular Products, Inc., Tenaris S.A., TEXAS STEEL CONVERSION, INC., PAO TMK and WEATHEROCK GROUP HOLDING LIMITED.

Strategies deployed in Drill Pipe Market

• Jul-2022: Tenaris took over Benteler Steel & Tube Manufacturing Corporation, a Benteler group company. From this acquisition, Tenaris increased its production capacity and manufacturing penetration in the local US market. Additionally, Benteler Steel & Tube Manufacturing Corporation is a U.S. developer of seamless steel pipe, with a yearly pipe rolling capacity of up to 400,000 metric tons at its manufacturing facility located in Shreveport, Louisiana.
• Mar-2022: Texas Steel Conversion took over intellectual property rights for the PTECH+ thread connection. Through this acquisition, TSC acquired the necessary patents, associated trademarks, and licenses, for this connection technology. The PTECH+ group of drill pipe thread connections would integrate exceptional torsional properties and fatigue resistance which are important in extended lateral oil and gas drilling. Adding the PTECH+ high torque connection technology to TSC's portfolio provided the company with an innovative solution to long laterals and demanding drilling conditions.
• Feb-2022: NOV acquired the advanced drilling solutions (ADS) business of AFGlobal, an oil and gas OEM specializing in technology, products, and services. Under this acquisition, NOV’s experience and expertise combined with AFGlobal’s extensive portfolio provided the company with promising breakthrough opportunities in MPD.
• Jan-2022: Jindal Saw formed a joint venture with Hunting Energy Services, the global leader in developing premium connection solutions. Through this joint venture, Jindal made way for the connection of OCTG from India to the world, and the Middle East in particular. The joint venture placed Jindal as an important player in the drilling activities of Oil and Gas and also added value to the company's product portfolio. The joint venture would further assist Jindal in developing an ancillary service industry locally.
• May-2021: NOV collaborated with Schlumberger, the world's largest offshore drilling company. Under this collaboration, the company focused on expediting the adoption of automated drilling?solutions by oil and gas operators and drilling contractors. The collaboration enabled customers to merge Schlumberger surface and downhole drilling automation solutions with NOV’s rig automation platform. This combined offering allowed the digitization of manual workflows and also improved safety, decision-making, consistency, and efficiency in drilling fieldwork. Through this collaboration, NOV renewed its commitment?to provide?an open digital automation platform that gave access to drilling contractors?to?achieve increased consistency and efficiency with improved wellbore quality.
• Mar-2021: Tenaris acquired Baker Hughes Argentina, an American international industrial service company and one of the world's largest oil field services companies. Through this acquisition, Tenaris got hold of onshore hydraulic fracturing and wireline assets which included a pressure pumping fleet, coiled tubing unit, and related equipment. The acquisition aimed to accelerate Tenaris towards becoming the world's largest oil field services company.
• May-2019: Tenaris formed a joint venture with PAO Severstal, a Russian company mainly operating in the steel and mining industry. Through this joint venture, the companies aimed to build a welded pipe plant that would manufacture OCTG products in the Surgut area of Siberia, the Russian Federation. In this joint venture, the companies combined their strengths and commitment to industrial excellence. The joint venture would propel Tenaris to support the Russian and CIS oil and gas sector with a world-class and highly competitive alternative for improved quality OCTG products and services.
• Jul-2018: TEXAS STEEL CONVERSION acquired Superior Drillpipe Manufacturing, the industry leader in manufacturing large diameter friction welded Horizontal Directional Drilling (HDD) drill pipe. From this acquisition, TSC received support to increase its expansion by accelerating the latest product volume capacity by adding to size range capability and opening new markets.

Scope of the Study

Market Segments Covered in the Report:

By Type

• Standard
• Heavy Weight

By Application

• Onshore
• Offshore

By Grade

• API
• Premium

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Hilong Group of Companies
• Drill Pipes International LLC (Jindal Saw Ltd.)
• NOV Inc.
• Oil Country Tubular Ltd.
• PetroMaterials Corporation
• Tejas Tubular Products, Inc.
• Tenaris S.A.
• TEXAS STEEL CONVERSION, INC.
• PAO TMK
• WEATHEROCK GROUP HOLDING LIMITED