Significant Investments and Ascending Demand Propels Growth Across the Oil Country Tubular Goods Market
Fairfield Market Research finds out that the worldwide oil country tubular goods market size was valued at US$34,286.8 Mn in 2020 and projected to reach US$65,940.3 Mn by 2026, exhibiting a CAGR of 12.6% from 2021 to 2026.
Oil country tubular goods (OCTG) are a group of seamless and welded rolled products that include drill pipes, casing, and tubing solutions. Based on their intended use, these goods are subjected to specific loading conditions. In recent years, the OCTG market has gained momentous growth which is accredited to a mounting number of fresh projects to be operated in formidable environments, proliferation in upstream oil & gas operations, and rig counts.
During the COVID 19 tragedy, the OCTG market witnessed a steep decline in demand due to the shutdown of various manufacturing industries caused by significant disruptions in transportation of raw materials and the availability of low labor. However, considering the current and backlog oil & drilling projects, the OCTG goods have been smoothly making their way back to the market. Going forward, the oil country tubular goods market is envisaged to thrive with growth opportunities, operational efficacy while working in harsh conditions, and a higher application rate of hydrocarbons across a range of industries. Moreover, the report foresees tremendous growth and development in the OCTG domain owing to robust investments by government and private entities coupled with the development of favorable policies.
Prominent Highlights and Trends Across the Global Oil Country Tubular Goods Market
- By value, North America garnered 41.9% of the global oil country tubular goods market in 2020. However, based on volume, the market is likely to favor Asia Pacific with an expected CAGR of 9.1% during the forecasted period.
- On the basis of OCTG market type, the market is bifurcated as seamless and welded. Amongst these types, the seamless segment is anticipated to rule the market during the forecasted period. A major share of 59.1% of OCTG market value was held by seamless OCTG products in 2020.
- In 2020, based on application, the onshore segment reigned supreme with a lion’s share of 74.5% in the oil country tubular goods market across the globe.
Premium OCTG Grade Upholds Superior Performance
The report envisions a positive trend for the premium grade segment of the OCTG market. Higher efficacy, viability, and ability to work well in challenging and harsh upstream oil and gas operations make premium-grade OCTG products a preferable choice. Additionally, the increased focus on the development of deepwater and offshore reserves has further accelerated the demand for premium grade OCTG products.
With Highest Market Share, North America Emerges as Regional Leader
North America is predicted to sustain its dominance as the regional leader in the global oil country tubular goods market. The region is anticipated to command the highest market over the prophesied period with remunerative investments and rising demand for casing, drill pipes, and tubing OCTG products. This favorable growth is further attributed to the relevant government policies and augmentation of drilling activities and shale gas reserves exploitation.
Prominent players gaining a competitive edge in the global oil country tubular goods (OCTG) market include CONTINENTAL ALLOYS & SERVICES, United States Steel, ArcelorMittal, NIPPON STEEL CORPORATION, Iljin Steel Co., Ltd, TMK Group, Henan Anson Steel Corporation, GE Steel Resources, Tenaris S.A, and Tianjin Pipe Corporation.