April 22, 2024
Drilling Chemicals Market

The Global Drilling Chemicals Market is poised for Trends by Digitalization

The drilling chemicals market comprises drilling fluid additives, performance chemicals, cementing chemicals, and oilfield chemicals that are used in the oil & gas industry during drilling wells. Drilling chemicals form an integral part of drilling fluids that are pumped down the drill string during drilling operations. They enhance the lubrication properties of drilling fluids, improve shale stability, remove cuttings from the borehole, and maintain downhole pressure.

The Global Drilling Chemicals Market is estimated to be valued at US$ 15402.68 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Drilling Chemicals Market are Cerner Corporation, Elekta, Accuray, RaySearch Laboratories, Flatiron Health, Koninklijke Philips N.V., McKesson Corporation, Epic Systems Corporation, CureMD Healthcare, Varian Medical Systems, Inc. The growing demand from oil & gas exploration and production activities is fueling the drilling chemicals market growth. With increasing oil & gas exploration projects globally, especially in North America and Middle East regions, demand for drilling chemicals is expected to rise substantially over the coming years. Major players are focusing on strategic partnerships and regional expansion into high growth markets to leverage lucrative opportunities.

Market key trends

One of the key trends in the Drilling Chemicals Market Demand is the growing adoption of digital technologies. Drilling operations involve complexities and risks which can be reduced with digitalization. Drilling chemicals manufacturers are focusing on developing smart chemical solutions integrated with digital technologies like IoT, AI and cloud. This helps in real-time monitoring of drilling fluids parameters, performance optimization and predictive maintenance. Digital solutions enable remote operations and enhance productivity. With advancements in digital technologies, the drilling chemicals market is poised to witness innovations boosting efficiency and sustainability.

Porter’s Analysis

Threat of new entrants: New players find it difficult to enter the market due to high investment needs and established industry players.

Bargaining power of buyers: Buyers have low bargaining power due to limited alternatives and undifferentiated products.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute raw materials and focus on long term relationships.

Threat of new substitutes: Threat of substitutes is low as drilling chemicals have distinct properties compared to alternatives.

Competitive rivalry: Industry players compete on pricing, product quality and innovation to gain market share.

Geographical Regions

North America holds the major share in the drilling chemicals market in terms of value due to presence of vast shale reserves and increasing exploration & production activities.

Asia Pacific is expected to witness the fastest growth during the forecast period supported by rising demand from China, India and other emerging economies of the region on account of increasing deep-water and ultra-deepwater activities.

Geographical Regions

The drilling chemicals market in the Middle East & Africa region is concentrated majorly in GCC countries such as Saudi Arabia and UAE due to abundant oil & gas reserves. These countries are also investing heavily in offshore exploration which is propelling the regional market growth.

Other countries including Brazil, Mexico, Canada and Russia also account for sizeable shares in the global market supported by their hydrocarbon reserve base and ongoing drilling projects.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it