Indonesia Oil Country Tubular Goods (OCTG) Market by Product, Application and Grade Type - Forecast and Analysis 2024-2028

Indonesia Oil Country Tubular Goods (OCTG) Market Forecast 2024-2028

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 witnessing growing demand for advancements in oil country tubular goods (OCTG), driven by technological innovations in this sector. Additionally, the expansion of deep-water and ultra-deep-water exploration and production (E&P) operations is contributing to the market's growth. These trends highlight the industry's focus on enhancing efficiency and productivity in oil and gas exploration and production activities.

Market Overview :

•  Seamless is the fastest-growing segment during the forecast year
• The seamless was the largest segment and was valued at USD 88.95 million in 2018.
•  It also includes an in-depth analysis of the declining prices of raw materials, the advances in oil country tubular goods, and the fluctuations in crude oil prices.

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Market Trends 

Advances in oil-country tubular goods is the primary trend shaping market growth. The growth of oil and gas exploration and production activities through unconventional sources and offshore locations has resulted in a significant demand for oilfield tubular product connections to various specifications. and improved performance levels. Furthermore, as the operators require premium oil country tubular goods connections, vendors are providing advanced, premium oil country tubular goods, which address long laterals, increased torque requirements, and high load limits while maintaining cost-efficiency. 

Moreover, some market players are trying to increase the life span of oil-country tubular goods. The adoption of high-speed ultrasonic systems has been increasing widely in the non-destructive testing of oil country tubular goods pipes. 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.

Market Largest-Growing Segments 

Seamless

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.

Market Dynamics and Customer Landscape

The market in Indonesia is driven by oil and gas exploration and production activities, necessitating seamless and welded pipes for drilling, well casing, and production tubing. Technological advancements like Electric Resistance Welding (EWR) enable efficient manufacturing. However, challenges such as environmental concerns, government policies, and fluctuating oil prices impact the market. Meeting the demands of onshore and offshore operations amidst the shale revolution and gas-tight sealing requirements poses additional complexities. 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. 

Key Drivers of the Market

Declining prices of raw materials is notably driving the market. Competitive pricing is critical for the commercial success of any equipment used in the industry, as it has a direct impact on the capital costs of the overall project. In the case of oil country tubular goods, drill pipe, casing, and tubing, one of the key costs incurred pertains to the cost of raw materials, which primarily comprise steel.

Hence, any fluctuations in steel prices in Indonesia have a significant impact on the market. Currently, steel prices are low, which is expected to spur the demand for casings significantly. The market is expected to benefit significantly from the decline in raw material prices. In addition, Indonesia's exploration and production sectors rely heavily on well casing and production tubing made of seamless and welded pipes to ensure efficient operations. The reduction in raw material prices will further increase the profits of oil-country tubular goods manufacturers and will subsequently drive the growth of the market in Indonesia during the forecast period.

Significance Challenges of Market

Fluctuations in crude oil prices is a challenge that affects market growth. Falling crude oil and natural gas prices have negatively impacted the upstream sector. Upstream companies are affected by crude oil price fluctuations because the selling price of crude oil is determined by the market, while production costs are fixed.

Consequently, expensive and capital-intensive E&P operations will have a negative impact on investment decisions and profits. Fluctuations in prices result in delayed or cancellation of oil and gas drilling activities, which will reduce the consumption of oil country tubular goods. Hence, fluctuation in crude oil prices may impede the growth of the market during the forecast period.

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

Major Market Companies

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:

• 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
• Vallourec SA

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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Seamless
  • Welded
• Application Outlook
  • Onshore
  • Offshore
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market in Indonesia is experiencing significant growth driven by several key factors. Seamless and Welded Pipes are in high demand, particularly with the surge in hydrocarbon exploration and production activities. The country's focus on power generation and transportation infrastructure development further fuels this demand.

Additionally, advancements in Electric Resistance Welding (EWR) technology enhance production efficiency. The emergence of the shale revolution and the discovery of new oil well reserves have led to increased investment in OCTG, supported by favorable government policies and investments from prominent companies like ExxonMobil Guyana. Despite challenges such as crude oil price crashes and environmental concerns, technological advancements in directional drilling and horizontal directional drilling enable access to unconventional fuel sources and shale reserves even in remote and harsh environments.

Moreover, this also benefits from the growing global drilling activity and the liberalization of oil and gas markets, attracting foreign investments. Moreover, the demand for Premium Grade Segment products, suitable for high-pressure and high-temperature wells, including gas-tight sealing, remains robust, especially for offshore deepwater reserves such as the Uaru project. Long-term agreements (LTAs) between suppliers and operators ensure stability in supply amid fluctuating market conditions.

However, the market in Indonesia is witnessing significant growth driven by the country's robust upstream oil and gas activities. Indonesia's exploration and production sectors rely heavily on well casing and production tubing made of seamless pipes to ensure efficient operations. Despite challenges such as oil break-even prices and import duty, the market remains resilient.

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 forecast period.
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Oil Country Tubular Goods (OCTG) Market in Indonesia between 2023 and 2028
• Precise estimation of the market  size and its contribution to the Oil Country Tubular Goods (OCTG) Market in Indonesia on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Indonesia
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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