Oil Country Tubular Goods (OCTG) Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Russia, Canada, Saudi Arabia - Size and Forecast 2024-2028

Oil Country Tubular Goods Market Size 2024-2028

The oil country tubular goods (OCTG) market size is forecast to increase by USD 19.3 billion, at a CAGR of 7.3% between 2023 and 2028. The market is driven by several key factors, including the rise in deep-water and ultra-deep-water exploration and production (E&P) activities, declining prices of raw materials, and advances in oil country tubular goods (OCTG). The expansion of E&P activities into deeper waters necessitates advanced equipment and technologies, boosting demand for specialized OCTG products. Simultaneously, falling raw material prices lower production costs, making these activities more economically viable. Advances in OCTG technology enhance the efficiency and safety of drilling operations, further supporting market growth. 

Market Overview :

• The market segmentation by Product categories as seamless and welded
• The  Application segment consists of onshore and offshore
• Seamless is fastest-growing segment during the forecast year
• The Seamless  was the largest segment and was valued at  USD 29.10 billion in 2018
• North America is most dominating region during the forecast period
•  It also includes an in-depth analysis of increasing investments in upstream activities, rise in deep-water and ultra-deep-water E and P activities, and environmental concerns related to drilling

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Significant Market Trends 

The rise in deep-water and ultra-deep-water E and P activities is a key trend influencing the Market growth. The market has experienced significant growth due to the increasing exploration and production (E&P) activities in the oil and gas industry, particularly in shale gas reserves. As onshore drilling shifted focus towards unconventional resources, the demand for OCTG increased.

However, the transition from shallow to deepwater and ultra-deepwater resources in offshore E&P presented new challenges. The harsh environments of offshore drilling sites necessitate the use of high-strength and durable tubular goods. The depletion of easily accessible oil reserves and the subsequent rise in hydrocarbon acquisition costs have led to a geographical displacement of drilling operations. Despite these challenges, the OCTG market continues to thrive, driven by the demand for efficient and reliable drilling solutions. Hence, these factors are expected to drive the growth of the market during the forecast period. 

Market Segmentation

Product Segment Analysis

Seamless was the largest segment of the global OCTG market in 2023. The segment is expected to grow faster than the overall market during the forecast period. Its position will remain the same as the largest market in 2028.Seamless OCTG are produced in specialized mills using solid cylindrical steel called a billet. Hot billets are pierced through the center with a mandrel and then rolled and stretched until they meet the required dimensions and thickness as specified by customers. Superior mechanical properties of seamless OCTG, such as high tensile strength, have resulted in their increased utilization in high-pressure drilling environments. Seamless OCTG are more reliable than welded OCTG due to the absence of any welded seam, which can be the source of leakage. The market encompasses line pipes, couplings, connections, and accessories essential for oil or gas exploration and production. These components are crucial for stabilizing tubing pipes against axial tensions and high internal pressures, as well as withstanding external pressures and the surrounding rocks' complexities. In high-pressure and extreme temperature boreholes, seamless OCTG have gained prominence due to their superior qualities, such as high tensile strength and reliability, which outperforms welded OCTG in terms of leakage.

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The seamless segment was valued at 29.10 billion in 2018. Drilling activities in emerging economies, driven by energy demand and energy security, have led to an increased focus on domestic energy resources. Solar, wind, and other renewable energy investments have not diminished the significance of the OCTG market, as tight oil and the paradigm shift towards horizontal drilling continue to require high-quality tubular goods. Hydraulic fracturing technology and Hunting Energy Services are among the key players contributing to the market's growth. Electric Resistance Welded (ERW) and seamless tubing pipes are employed based on specific drilling requirements. Tenaris, a leading OCTG manufacturer, caters to exploration activities by providing customized tubular goods that meet the unique needs of natural resources extraction. Rig count and drilling fluid management are critical factors influencing the market's dynamics. The OCTG market's future is shaped by advancements in drilling technology, rig count, and the evolving energy landscape.

Regional Analysis

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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The market encompasses the production and distribution of line pipes, couplings, connections, and accessories for the oil and gas industry. These components are essential for transporting crude oil and natural gas from boreholes to processing facilities, enduring axial tensions, high internal pressures, and external pressures. The surrounding rocks and drilling fluid in the annulus play a crucial role in maintaining stability during drilling activities. In emerging economies, the increasing energy demand and focus on energy security have driven the utilization of domestic energy resources. OCTG market participants provide customized tubular goods, including Electric Resistance Welded (ERW) and seamless pipes from industry leaders like Tenaris, to cater to the specific requirements of drilling rigs.

The paradigm shift towards tight oil, horizontal drilling, and high-pressure, extreme temperature operations necessitates the development of advanced OCTG solutions. Hydraulic fracturing technology and Hunting Energy Services have significantly impacted the market, enabling the exploration of natural resources in complex geological conditions. Efficiency and safety are paramount in the OCTG industry, with a focus on continuous improvement and innovation. The market's growth is influenced by rig count, drilling activities, and investment in renewable energy sources such as solar and wind. Despite these challenges, the OCTG market remains a vital component of the oil and gas industry, ensuring the reliable transportation of resources while addressing the demands of drilling operations.

Market Dynamics and Customer Landscape

The market encompasses the production and supply of steel tubular products for the hydrocarbon industry. These products include well casing, tubing, and line pipe, utilized in both onshore and offshore hydrocarbon exploration and production processes. The market caters to hydrocarbon operators engaged in the drilling and production of oil and gas resources. Hydrocarbon exploration activities, driven by the discovery of significant shale gas reserves, have led to an increased demand for OCTG. The transportation of hydrocarbons from borehole to processing facilities necessitates the use of seamless tubing and line pipe. Casing and tubing are essential components in drilling and maintaining the integrity of wellbores. Hydraulic fracturing technology, a critical process in extracting shale gas, relies on the use of OCTG. Hunting Energy Services and other industry players provide various accessories, connections, and couplings to ensure the efficient and safe operation of OCTG in hydrocarbon production. The rig count, an indicator of industry activity, continues to influence the demand for OCTG. Natural resources, such as oil and gas, remain the primary focus of the OCTG market, with ongoing exploration and production activities driving market growth. The market's scope extends to the provision of OCTG for power generation applications, further expanding its reach.

Key Market Drivers

Increasing investments in upstream activities are notably driving market growth. Amidst the global surge in population and industrial growth, securing a reliable energy supply has emerged as a critical priority. With conventional oil and gas resources dwindling and untapped reserves becoming increasingly difficult to access, advanced technologies are being employed in the oil and gas industry to extract resources from shale formations.

Furthermore, this trend is particularly prominent in regions with significant shale gas reserves. In response to this challenge, oil and gas operators are investing heavily in mature oil and gas fields to maximize revenue and ensure energy security. For instance, ONGC, India's leading oil and gas company, announced a USD4 billion investment plan from 2022-2025 to boost exploration activities in the country. This strategic move underscores the importance of Oil Country Tubular Goods (OCTG) in the oil and gas industry, as these products are essential for drilling and completing wells in challenging environments. The OCTG market is expected to witness steady growth due to the increasing demand for oil and gas, as well as the ongoing exploration and production activities in shale formations.

Significant Market Challenges

Environmental concerns related to drilling are challenging the market growth. Oil and gas, as essential fuels, serve numerous purposes in transportation, heating, and the production of commodities like plastics and fertilizers. However, the exploration and production (E&P) sector associated with these resources carries environmental consequences.

Notably, oil spills, air and water pollution from chemical emissions, and climate change due to methane emissions are significant issues arising from oil and gas drilling. In the context of shale gas reserves, Oil Country Tubular Goods (OCTG) play a crucial role in the drilling process. OCTG are tubes and pipes used to transport oil and gas from wells to processing facilities. During deepwater drilling, drilling fluids are employed to cool and lubricate drill bits and pipes. Regrettably, these fluids introduce toxic chemicals into the water, posing risks to marine life.

Key Market Customer Landscape

The market research 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.

Customer Landscape

Key Companies & Market Insights

Companies 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.

Arcelor Mittal: 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• EVRAZ Plc
• Hunting Plc
• Iljin Co. Ltd.
• JFE Holdings Inc.
• Jindal SAW Ltd.
• Nippon Steel Corp.
• SB International Inc.
• Tenaris SA
• Tenergy Equipment and Service Ltd.
• The Weir Group Plc
• Tianjin Pipe International Economic and Trading Corp.
• TMK
• Trident Steel Corp.
• UMW HOLDINGS BERHAD
• United States Steel Corp.
• US Steel Tubular Products Inc.
• Vallourec SA
• voestalpine AG
• Zekelman Industries

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments. 

• Product Outlook 
  • Seamless
  • Welded
• Application Outlook 
  • Onshore
  • Offshore

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is a significant sector within the global oil and gas industry. This market primarily focuses on the production and supply of tubular products used in oil and natural gas exploration and production. Key components of OCTG include seamless and welded pipes, casing pipes, and tubing. The demand for OCTG is driven by various factors, including the increasing exploration and production activities in both conventional and unconventional oil and gas reserves.

Additionally, the ongoing shift towards the use of technologically advanced drilling methods, such as horizontal drilling and hydraulic fracturing, is further fueling the growth of the market. Moreover, the market is influenced by several trends, including the rising focus on cost reduction and efficiency improvements, the growing adoption of high-performance tubular products, and the increasing importance of sustainability and environmental considerations in the oil and gas industry. In conclusion, the market plays a crucial role in enabling the exploration and production of oil and natural gas resources. The market is expected to continue growing due to the increasing demand for energy and the ongoing technological advancements in the oil and gas industry.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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