NEW YORK, June 5, 2024 /PRNewswire/ — The global oil country tubular goods (OCTG) market size is estimated to grow by USD 19.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 7.3% during the forecast period.
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Technavio has announced its latest market research report titled Global oil country tubular goods (OCTG) market 2024-2028
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Oil Country Tubular Goods (OCTG) Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.3% |
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Market growth 2024-2028 |
USD 19.3 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
6.56 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 40% |
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Key countries |
US, China, Russia, Canada, and Saudi Arabia |
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Key companies profiled |
ArcelorMittal, 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, and Zekelman Industries |
Market Driver
The offshore oil and gas industry’s shift towards deeper waters has led to an increase in Exploration and Production (E&P) activities, particularly in regions like the Gulf of Mexico (GoM) and Brazil. This trend is expected to continue due to the depletion of easily accessible resources and the rise in crude oil prices.
As a result, investments in Offshore Country Tubular Goods (OCTG) are projected to grow significantly, with annual capital expenditures in Brazil reaching USD60 billion by 2040 and combined investments in GoM exceeding USD30 billion by the same year. This growth in OCTG demand will be driven by the increasing number of deepwater and ultra-deepwater drilling projects.
The Oil Country Tubular Goods (OCTG) market has seen significant demand due to increasing oil and gas exploration and production activities. Companies produce and supply various tubular products such as pipes and casings for use in drilling and production processes. The market is driven by factors like high oil prices, increasing shale gas production, and technological advancements in drilling techniques.
Countries like the US, Canada, and Russia are major contributors to the global OCTG market. Producers continue to focus on improving product quality and efficiency to meet customer requirements and stay competitive. The trend towards deeper and more complex wells is also driving innovation in the OCTG industry. Overall, the OCTG market is expected to grow steadily in the coming years due to these factors.
Market Challenges
The oil and gas industry’s environmental challenges, including oil spills, water and air pollution, and methane emissions from drilling and fracking, pose significant risks to the Oil Country Tubular Goods (OCTG) market. Regulatory focus on safety and activist protests against drilling activities may decrease demand for OCTG products.
International agencies and safety organizations are developing norms to ensure safe practices in the industry. Methane emissions from fracking contribute to climate change and require proper handling to prevent leaks and spills. Compliance with regulations and addressing environmental concerns are crucial for the sustainable growth of the OCTG market.
The Oil Country Tubular Goods (OCTG) market faces several challenges. Drilling and production processes require durable tubular products. However, the industry encounters issues with wear and tear, leading to frequent replacement needs. Drilldown to specific challenges, the market experiences pressure from increasing competition. Additionally, the industry grapples with price volatility due to fluctuating oil prices.
Furthermore, there’s a growing demand for lighter and stronger tubular solutions. Meeting these demands while maintaining cost-effectiveness is a significant challenge. Lastly, regulatory compliance adds another layer of complexity. Ensuring adherence to safety and environmental regulations is crucial for market players.
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Segment Overview
Product
1.1 Seamless
1.2 Welded
Application
2.1 Onshore
2.2 Offshore
Geography
3.1 North America
3.2 APAC
3.3 Europe
3.4 South America
3.5 Middle East and Africa
1.1 Seamless- The Seamless segment of the Oil Country Tubular Goods (OCTG) market is the largest and fastest-growing segment due to its superior mechanical properties, reliability, and ease of pressure calculation. Seamless OCTG are produced using specialized mills and are preferred in harsh environments for their high strength, corrosion resistance, and uniformity of shape. Despite being more expensive due to higher production costs, the increasing number of oil and gas exploration and production (E&P) activities globally will drive the growth of the Seamless OCTG market.
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Research Analysis
The Oil Country Tubular Goods (OCTG) market encompasses the production and supply of hydrocarbon operators with steel tubular products for various applications in the oil and gas industry. These products include well casing, tubing, and line pipe, which are essential components in the exploration, production, and transportation of hydrocarbons, both onshore and offshore. The process of drilling and completing a borehole involves the use of seamless tubing and casing to ensure the integrity of the well.
Hydraulic fracturing technology, a critical process in extracting shale gas reserves, also relies heavily on OCTG. The market’s growth is influenced by factors such as rig count, natural resource exploration activities, and the demand for hydrocarbons for power generation. Accessories and connections, including couplings, are also integral components of the OCTG market.
Market Research Overview
The Oil Country Tubular Goods (OCTG) market refers to the business sector that produces and supplies tubular products used in the oil and gas industry. These tubular goods include pipes and tubing used for drilling, production, transportation, and processing of oil and natural gas. The market is driven by various factors such as increasing oil and gas exploration and production activities, advancements in drilling technologies, and the need for efficient and cost-effective solutions.
The OCTG market caters to both onshore and offshore applications and is a significant contributor to the global energy sector. The demand for OCTG is expected to grow due to the ongoing energy transition towards renewable sources and the continued reliance on oil and gas for meeting energy demands. The market is segmented based on various factors such as pipe diameter, material type, and geography.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Product
Seamless
Welded
Application
Onshore
Offshore
Geography
North America
APAC
Europe
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
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Media & Marketing Executive
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UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
