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The Indonesia oil country tubular goods (OCTG) market size is forecast to increase by USD 101.44 million, at a CAGR of 9.03% between 2023 and 2028. The report includes historic market data from 2018 - 2022. The market is experiencing a surge in demand fueled by technological advancements. Innovations in this sector, coupled with the expansion of deep-water and ultra-deep-water exploration and production (E&P) operations, are driving growth. This trend underscores the industry's relentless pursuit of efficiency and productivity enhancements in oil and gas exploration and production activities. With a focus on optimizing operations, companies are leveraging these advancements to streamline processes and maximize output, reflecting a dynamic landscape poised for continued evolution.
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Advances in oil-country tubular goods is the primary trend shaping market growth. The market is influenced significantly by crude prices and shale production. With the current low crude prices, there is an increased demand for casing pipes due to the surge in drilling activities, including horizontal and directional drilling. Tubular product suppliers in Indonesia face the challenge of managing raw material costs, particularly steel, which is primarily sourced from iron ore and steel scrap. Steelmakers play a crucial role in the production of tube and pipe, couplings, connections, and accessories used in the oil and gas industry. The shale resource output and hydrocarbon exploration, both onshore and offshore, require various tubular products to withstand axial tensions, high internal pressures, and external pressures.
Seamless pipes and welded pipes are essential for line pipe applications, while casing pipes are critical for borehole stability. Drill fluid is used during drilling activities to ensure efficient operations. The OCTG market in Indonesia caters to various applications, including deep-water exploration and onshore drilling activities, and includes the production of crude oil and the processing of hydrocarbons. Such technologically cutting-edge products, which can enhance the oil and gas E&P activities, are likely to drive the Indonesia oil country tubular goods market during the forecast period.
The seamless segment is estimated to witness significant growth during the forecast period. Seamless segments are made in specialized mills employing round steel billets through hot rolling, cold rolling, or cold drawn processes and specially produced ingots. The excellent self-regulating effects of seamless segments, such as higher tensile strength, have resulted in their higher utilization in high-pressure drilling environments. This makes them more reliable compared to welded oil country tubular goods.
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The seamless segment was the largest segment and was valued at USD 88.95 million in 2018. Moreover, in order to capitalize on the market opportunity, players such as Tenaris have been supplying seamless oil country tubular goods in Indonesia. Thus, with such helpful product characteristics and a rising number of offshore projects in Indonesia, which demand the use of seamless segments due to the harsh environmental conditions, the seamless segment of the global market is expected to grow significantly during the forecast period.
The market is a significant component of the country's oil and gas industry. Drilling activities require a vast array of tubular goods, including casing and pipe threads, which are essential for the production process. The demand for OCTG in Indonesia is driven by the country's expanding oil and gas sector, with Producers and Drilling Companies requiring large quantities of these products. The Driving forces behind this growth include the Drilling projects and the need for deeper and more complex oil wells. Access to resources and Drilling technologies are also crucial factors. The market is expected to continue its growth trajectory, with the Driving forces being the increasing demand for oil and gas and the government's efforts to attract foreign investment. The Drilling industry in Indonesia is projected to remain a key consumer of OCTG in the coming years. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The increase in rig count is notably driving the market. The surge in crude oil prices has stimulated a rise in oil and gas drilling projects in Indonesia, leading to an uptick in drilling activities. This trend is particularly noticeable in shale production and horizontal drilling activities. Consequently, tubular product suppliers have experienced increased demand for their seamless pipes and welded pipes, used extensively in onshore applications for oil and gas production. The active rig count in Indonesia has risen, reflecting the heightened drilling activity. Crude oil production is on the upswing, with horizontal and directional drilling techniques gaining popularity.
Further, steelmakers are ramping up production of tube and pipe, the energy industry oil and gas industry's essential components, to cater to the growing demand. Line pipes, drill pipe, couplings, connections, and accessories are in high demand to withstand axial tensions, high internal pressures, and external pressures. The oil and gas industry's focus on deep-water projects and hydrocarbon extraction necessitates the use of advanced tubing pipes and drill fluids.
Environmental concerns related to drilling is a challenge that affects market growth. As a content expert, I'd be happy to provide an insightful analysis of the market within the context of the industry. With crude prices and commodity prices on the rise, there has been a significant increase in shale production, leading to a surge in horizontal drilling activities. Tubular product suppliers play a crucial role in supporting these drilling activities, supplying seamless pipes and welded pipes for onshore and offshore applications. Shale resource output has been a game-changer, driving the demand for tubing pipe and casing pipe in horizontal and directional drilling. Steelmakers have been ramping up production to meet the growing demand for tube and pipe, oil and gas connections, accessories, and casing. Horizontal drilling, which includes axial tensions and high internal pressures, requires specialized tubular products. External pressures, drill fluid, and borehole conditions also impact the selection of tubular products.
Deep-water exploration continues to be a significant market for OCTG, with line pipe and couplings being essential components. The Indonesian market is poised to benefit from this trend, given its rich oil and gas resources. In conclusion, the market is experiencing robust growth, fueled by the global increase in shale production and deep-water exploration. Tubular product suppliers are playing a vital role in supporting the industry's drilling activities, ensuring the safe and efficient production of hydrocarbons. Hence, such factors may impede the growth of the market during the forecast period.
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
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.
ArcelorMittal: The company offers oil country tubular goods products such as casing, tubing and various tubular accessories according to all international standards that are manufactured from seamless hot rolled tubes and fitted with different types of connections.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market plays a significant role in the country's oil and gas industry. The market is driven by the demand for exploration and production activities in the country's offshore and onshore fields. The government's efforts to attract foreign investment in the energy sector have also boosted the market's growth. OCTG is an essential component in the drilling and completion of oil and gas wells. In Indonesia, the major consumers of OCTG are state-owned companies, such as Pertamina and Schlumberger. The country's reserves are abundant, making it an attractive market for global players. The Indonesian market is competitive, with several local and international players operating in the country. Some of the key players include Vallourec, Tenaris, Tuboscope, and National Tube. These companies offer a range of OCTG products, including seamless pipes, welded pipes, and line pipes.
In addition, the Indonesian government's regulations and policies have a significant impact on the market. For instance, the country's import duties and taxes on OCTG can affect the market's competitiveness and profitability. However, the government's initiatives to develop the domestic oil and gas industry can create opportunities for local OCTG manufacturers. In conclusion, the market in Indonesia is a crucial part of the country's oil and gas industry. The market's growth is driven by the demand for exploration and production activities, and it is competitive, with several local and international players operating in the country. The government's regulations and policies have a significant impact on the market's competitiveness and profitability.
Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.03% |
Market Growth 2024-2028 |
USD 101.44 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.39 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcelorMittal, Aristirta Elprima Putra, Besmindo Group, Hart Energy, Hunting Plc, JFE Holdings Inc., Nippon Steel Corp., NOV Inc., PAO TMK, PT Citra Tubindo Tbk, PT Indo Kaya Energi, PT Telaga Mas, PT Tridaya Esa Pakarti, PT Tubular Services Indonesia, PT. Bakrie Pipe Industries, Sumitomo Corp., Tenaris SA, Tenergy Equipment and Service Ltd., The Weir Group Plc, and Vallourec SA |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Additional Value/Volume Data
6 Additional Value/Volume Data
7 Five Forces Analysis
8 Market Segmentation by Product
9 Market Segmentation by Application
10 Market Segmentation by Grade Type
11 Customer Landscape
12 Drivers, Challenges, and Trends
13 Vendor Landscape
14 Vendor Analysis
15 Appendix
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