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The oil country tubular goods market size is estimated to grow at a CAGR of 6.85% between 2022 and 2027. The market size is forecast to increase by USD 16.86 billion. The growth of the market depends on several factors, including increasing investments in upstream activities, increasing focus on unconventional oil and gas exploration and production activities, and increasing global active rig count.
This oil country tubular goods market report extensively covers market segmentation by product (seamless and welded), application (onshore and offshore), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing investments in upstream activities are notably driving the market growth, although fluctuations in crude oil prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investments in upstream activities are notably driving the Oil Country Tubular Goods (OCTG) Market growth. Globally, as population and industrial development increase dramatically, energy security becomes important to meet energy demand. As a result, many countries are exploring untapped oil and gas resources using cutting-edge technologies in the oil and gas industry. In addition, oil and natural gas production is declining from some traditional oil fields. To solve this problem and maximize the revenue from these oil fields, oil and gas operators are increasing their investment in mature oil and gas fields.
Governments in many countries are increasing oil and gas production as part of their initiatives to ensure energy security. For example, in 2022, the ONGC announced plans to invest USD 4 billion between 2022 and 2025 to increase exploration in India. Similarly, in China, in 2022, crude oil production will increase by 7% (52.04 million tons) compared to crude oil production in 2021. The new policies announced by the government are expected to attract domestic and foreign investment, increase exploration activities in untapped oil and gas fields, and at the same time increase domestic oil and gas production. Increased investment in the upstream oil and gas sector will lead to the growth of oil and gas exploration and production activities, which will drive the use of oil country tubular goods products, such as drill pipes, casings, and tubes, in industries oil and gas drilling and finishing operations. , which will drive the growth of the market during the forecast period.
Declining prices of raw materials is a key trend influencing the OCTG Market growth. Competitive prices are essential to the commercial success of any equipment used in the oil and gas industry, as they have a direct impact on the investment costs of the entire project. In the case of oil country tubular goods equipment, drill rod, housing, and housing, one of the main costs incurred is the cost of raw materials, which mainly consists of steel. Therefore, any fluctuations in world steel prices will have a significant impact on the market. Currently, steel prices are low, which will significantly boost the demand for enclosures.
Iron ore and scrap steel are the main raw materials used in steel production. Steel scrap demand is determined by fluctuations in iron ore prices. Therefore, when iron ore prices are low, scrap steel demand is also low. As a result, manufacturers are turning to iron ore as the main raw material. According to the World Bank Group, iron ore prices in Europe fell 3.2% in 2022. Global iron ore prices are expected to fall to USD 76.6/ton by 2024. As a result, the market is expected to benefit significantly from lower commodity prices. The decline in raw material prices will continue to boost the profitability of oil country tubular goods equipment manufacturers and subsequently drive the growth of the market during the forecast period.
Fluctuations in crude oil prices are challenging the Oil Country Tubular Goods Market growth. The drop in global crude oil production has caused disruptions in the oil and gas industry, which has had a significant impact on crude oil prices. Falling crude oil and natural gas prices have had a negative impact on the upstream oil and gas sector. Several oil and gas exploration and production projects have been canceled or postponed around the world. Upstream companies have been negatively affected when crude oil prices fluctuate because the selling price of crude oil is determined by the market, while production costs are fixed. As a result, costly and capital-intensive exploration and production operations will negatively impact investment decisions and profitability.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Oil Country Tubular Goods Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ArcelorMittal: The company offers different types of oil country tubular goods (OCTG) such as Seamless OCTG casing and tubing, Roman OCTG, Jubail OCTG, and many more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the seamless segment will be significant during the forecast period. Seamless is the largest segment in the market. This segment is expected to grow faster than the entire market between 2022 and 2027. Its position will remain the largest market in 2027. Seamless oil country tubular goods are manufactured by special rolling mills from solid cylindrical steel called billets. The heated billet is pierced in the center with a mandrel, rolled, and stretched to the dimensions and thickness required by the customer. Due to its high tensile strength, its use in high-pressure drilling environments is increasing.
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The seamless segment was valued at USD 27.69 billion in 2017 and continued to grow until 2021. Seamless oil country tubular goods are more reliable than welded oil country tubular goods because there are no welds to cause leaks. Also, it is easy to accurately calculate the pressure for seamless pipes. In addition, since seamless pipes are made by uniformly extruding alloys, they are thinner and lighter than welded pipes and have a uniform shape. Seamless oil country tubular goods have higher strength than welded oil country tubular goods, so they are being adopted all over the world.
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North America is estimated to contribute 43% to the growth of the global oil country tubular goods market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is expected to grow faster than the overall market between 2023 and 2027. Its position will remain the largest market in 2027. The United States and Canada will make the largest contribution to the market in North America. The United States is one of its major oil producers. Oil and gas production in North American countries has increased significantly due to unconventional exploration and production activities such as drilling in US shale reserves and Canadian oil sands. According to the U.S. Energy Information Administration (EIA), in 2018 the United States produced about 6.5 million barrels per day (MBPD) of crude oil from scarce oil reserves. High exploration and production activity in unconventional oil and gas wells such as oil sands and shale in the region has contributed to the increase in overall crude oil and gas production in North America. Therefore, increased exploration and production activity in such crude oil and gas resources will lead to increased demand for casings, drill pipes, and pipes in the region.
A spike in the number of COVID-19 cases across the world in the first half of 2020 prompted governments to implement lockdowns across the world. This caused several oil and gas exploration projects to be postponed and oil prices to fluctuate wildly. Additionally, several refineries delayed planned turnarounds. In addition, manufacturing and supply chain activities were adversely affected. Therefore, all these factors hampered the growth of the market globally in the first half of 2020. However, since 2021, a massive vaccination campaign was launched across the world, allowing lockdown restrictions to be lifted and operations to resume in various industries, including manufacturing and supply chain activities. This led to the recovery of the market during the forecast period.
The oil country tubular goods market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global oil country tubular goods market as a part of the global oilfield equipment and services within the global oil and gas market. The global oilfield equipment and services market includes upstream exploration and production (E&P) operations, products, and companies engaged in equipment manufacturing or service contracts, and also major manufacturers serving the needs of the upstream oil and gas sector.
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Oil Country Tubular Goods Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.85% |
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Market growth 2023-2027 |
USD 16.86 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.45 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 43% |
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Key countries |
US, Canada, Saudi Arabia, China, and Russia |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ArcelorMittal, EVRAZ Plc, Hunting Plc, Iljin Co. Ltd., JFE Holdings Inc., Jindal SAW Ltd., Nippon Steel Corp., PAO TMK, SB International Inc., Tenaris SA, Tenergy Equipment and Service Ltd., The Weir Group Plc, Tianjin Pipe International Economic and Trading Corp., Trident Steel Corp., UMW HOLDINGS BERHAD, United States Steel Corp., US Steel Tubular Products Inc., Vallourec SA, voestalpine AG, and Zekelman Industries |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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