February 21, 2024

Functional Textile Chemicals Are Driven By Rising Demand From Sports And Activewear Industry

Drilling chemicals are primarily used to enhance oil extraction and improve drilling efficiency. Drilling chemicals such as drilling mud, cementing chemicals, drill bits & completion chemicals, and drill pipe & collars are extensively used in oil & gas exploration activities. Drilling mud helps in removing rock cuttings from the borehole, controlling underground pressure, and stabilizing porous formations during drilling. Cementing chemicals aid in sealing the borehole and prevent underground contaminations. Drill bits & completion chemicals improve drill bit performance and life. Drill pipe & collar chemicals protect drill pipes from corrosion and wear & tear. With growing oil & gas exploration activities across the globe, demand for effective drilling chemicals is expanding.

The global Drilling Chemicals Market accounted for US$ 15,402.68 Million in 2024 and is estimated to be valued at Us$ 21,200 million in 2031, exhibiting a CAGR Of 7.8% during the forecast period from 2024 to 2031.

Market key trends:

Some of the major trends driving the drilling chemicals market include rising shale gas exploration, increasing ultra-deep drilling activities, and growing demand for water-based drilling fluids. Shale gas exploration in the U.S. and China has stimulated demand for drilling chemicals that can efficiently drill horizontal and directional oil & gas wells through shale formations. Meanwhile, increasing deepwater and ultra-deep drilling projects are fueling consumption of premium drilling fluids and solids control additives that can withstand high pressure and temperature conditions. Moreover, stringent environmental regulations regarding offshore drilling have catalyzed development of organic and hybrid water-based drilling fluids. Growing penetration of water-based drilling fluids worldwide is a key trend in the drilling chemicals market.

Porter’s Analysis

Threat of new entrants: The drilling chemicals market requires high R&D investments and established distribution networks. These barriers make it difficult for new companies to enter the market.

Bargaining power of buyers: The presence of several established drilling chemical manufacturers gives buyers the bargaining power to negotiate prices.

Bargaining power of suppliers: Major drilling chemical suppliers possess specialized production technologies, providing them higher bargaining power.

Threat of new substitutes: There are limited substitution threats as drilling chemicals provide unique functionalities compared to alternatives.

Competitive rivalry: The market is highly competitive with companies focusing on product differentiation and customer retention to survive.

Key Takeaways

The Global Drilling Chemicals Market Demand is expected to witness high growth over the forecast period. The global drilling chemicals market accounted for US$ 15,402.68 million in 2024 and is estimated to be valued at US$ 21,200 million in 2031, exhibiting a CAGR of 7.8% during the forecast period from 2024 to 2031.

Regional analysis :

 

North America has the largest share in the drilling chemicals market due to growing shale gas production. However, the Asia Pacific region is anticipated to grow at the fastest pace with China, India, and other Asian countries significantly ramping up investments in drilling projects.

Key players :

 

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. These market leaders are focusing on developing advanced chemicals to improve drilling efficiency of complex oil and gas wells.

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