Market Analysis
Market Growth: The geothermal energy sector has been experiencing growth in recent years as countries seek to transition to cleaner and more sustainable energy sources. Geothermal drill bits are a crucial component in the exploration and development of geothermal energy resources.
The geothermal drill bits market size will touch USD 5.33 billion at a 7% CAGR in the forecast period (2023 - 2032), states the latest Market Research Future (MRFR) report.
Drivers
Demand for Pollution-Free Energy Generation to Boost Market Growth
Stringent government regulations and rules on emission of greenhouse gases as well as carbon are influencing companies in introducing highly effective pollution-free energy generation methods. Geothermal energy is an alternative for fissile fuel.
Hence, rise in production of geothermal energy across the globe will boost the geothermal drill bits market value over the forecast period.
Key Players
- Baker Hughes Co. (US)
- America West Drilling Supply Inc. (US)
- Epiroc AB (Sweden)
- Halliburton (US)
- Torquato Drilling Accessories (US)
- National Oilwell Varco (US)
- Varel International Energy Services (US)
- Schlumberger Ltd. (US)
- Weatherford International plc (US)
- Bit Brokers International Ltd. (US)
The global geothermal drill bits market is both fragmented and also competitive for the presence of different international domestic key players. These players have incorporated innovative strategies to remain at the vanguard and also suffice the burgeoning demand of the customers including collaborations, contracts, partnerships, joint ventures, geographic expansions, new product launches and more.
Opportunities
Advancements in Drill Bits-Three-Dimensional Bit Designs to Offer Robust Opportunities
Different vendors in the market are constantly focusing to make advances to augment the performance of drill bits. Through the latest dynamics modeling, drill bit manufacturers are developing three-dimensional bit designs for integrating features like advanced material use, rock interaction analysis, cutter technology for increased longevity and ROP, and depth of cut control.
While other vendors are coming up with drill bits that feature a diamond-impregnated matrix in the gauge, shoulder, cone, and nose areas to augment bit life. These advances are likely to offer robust opportunities for the market over the forecast period.
Restraints
Less Spending in Offshore Industry to act as Market Restraint
Less spending in offshore industry coupled with high capital investment may act as a market restraint over the forecast period.
Challenges
Competition from Alternative Energy Sources to act as Market Challenge
Competition from alternative energy sources and challenges related to geothermal drilling may act as market challenges over the forecast period.
COVID-19 Analysis
The demand for geothermal energy saw a decline due to the COVID-19 related restrictions that the government enforced across the globe. The crisis has led to supply chain disruption and also impacted the availability of manpower owing to lockdowns in different countries. This also affected the timelines of geothermal projects as few projects got delayed, while few were put on hold for the lack of funds.
Besides, shutdown of factories in various cities and provinces also affected market growth. It led to predictions of a sharp slowdown in the output of anything from industrial sectors to oil and gas industries. The geothermal drill bits market share is likely to expertise a direct impact for the following one or two years if the oil and gas industry’s growth declines as this is a leading consumer of geothermal drill bits. Besides, companies are handling missing sales.
Market Segmentation
The global geothermal drill bits market size is bifurcated based on type and application.
By application, the onshore segment will lead the market over the forecast period and at a high CAGR for the improvements in the movement of hydrocarbons in the wellbores coupled with rise in onshore drilling activities.
By type, the tricone segment will dominate the market over the forecast period as these bits offer high performance and also high resistance to wear and tear.
Regional Analysis
North America to Lead Geothermal Drill Bits Market
North America will lead this market in the forecast period. Advances in drilling technology, heavy investments owing to liberal regulatory policies in the region, the presence of key oil and gas companies that are engaged in developing geothermal drill bits and other drilling activities, and the US Department of Energy having invested USD 11.4 million in RD of geothermal technologies are adding to the global geothermal drill bits market growth in the region.
Europe will grab the second-largest share in the market for the significant increase in investment in the market. Turkey is a leading country that has the utmost share in the market due to number of geothermal projects.
APAC will have significant share in the market over the forecast period and at a high CAGR for the rapid increase in geothermal projects. Indonesia has the utmost market share for the growing number of geothermal projects.
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