Drill Pipe Market Size, Share, Growth Analysis, By Grade(API Grade and Premium Grade), By Application(Onshore and Offshore) - Industry Forecast 2024-2031

Global Drill Pipe Market size was valued at USD 2.41 billion in 2022 and is poised to grow from USD 2.50 billion in 2023 to USD 3.40 billion by 2031, growing at a CAGR of 3.9% during the forecast period (2024-2031). 

The global demand for oil and gas continues to rise, driving the need for increased exploration and production activities. Drill pipes are a crucial component in drilling operations, and the growing E&P activities worldwide create a demand for drill pipes. Significant oilfield expansions, particularly in North America and the Middle East, as well as improved drilling techniques with increased productivity, have been important factors driving industry growth in recent years. The drop in crude oil prices since mid-2020 has resulted in a significant reduction or cessation of drilling efforts, mostly in the United States, Saudi Arabia, the United Kingdom, and Canada. This has had a significant impact on the total operating profitability of the majority of E&P businesses operating globally.

The aforementioned issues have considerably impeded industry expansion during the last two years. Growth is also projected to be driven by the anticipated return of onshore activity, as well as E&P firms attempting to meet current energy demand. High production costs are likely to hinder the whole sector over the projection period. Regulatory authorities including the Fund for Wild Nature (FWN) have issued numerous directives concerning petroleum production. This is expected to slow the industry as a whole, reducing the market's expansion during the forecast period.

Growing environmental concerns over toxic fume emissions from exploration are also projected to stymie market development. New contracts in the equipment rental business have also fallen dramatically. However, by the end of 2016, it had recovered due to a revival in oil activities and projected stabilization of petroleum prices. The most recent discovery of fresh hydrocarbon reserves, particularly in the South China Sea, as well as in the nation of Pakistan, Israel, Australia, Senegal, & Egypt, is expected to generate profitable prospects for industry participants in the coming years. Increased investment in research and development by key vendors to optimize drill pipe production and improve overall material durability to satisfy API criteria is expected to underpin future demand.

Independent contractors increased their operations in the U.S. and Canada during the final quarter of 2021, leveraging stabilized WTI crude oil prices. The expected recovery in onshore activities, coupled with efforts by Exploration and Production (E&P) companies to meet current energy demands, is anticipated to drive growth. However, high production costs are foreseen as a potential hindrance to the overall market during the forecast period. Regulatory directives from entities like the Fund for Wild Nature (FWN) pertaining to petroleum production are likely to impact the industry negatively, impeding market growth. Concerns about environmental impact due to harmful emissions from exploration activities are also expected to impede market development. The equipment rental services sector experienced a significant downturn in new contracts, but it saw a resurgence by the close of 2016, aligning with the recovery in oilfield activities and the expected stabilization of petroleum prices. The discovery of new hydrocarbon reserves, particularly in regions like the South China Sea, Pakistan, Israel, Australia, Senegal, and Egypt in recent years, is poised to offer lucrative opportunities for industry participants in the near future. Key vendors are increasing their Research and Development (R&D) spending to optimize drill pipe production, enhance material strength, and meet API specifications, which is expected to contribute to future demand.

US Drill Pipe Market is poised to grow at sustainable CAGR for the next forecast year.