Oil Country Tubular Goods (OCTG) Market Size Poised to Reach US$66 Bn by 2026 End

April 2022

The oil country tubular goods (OCTG) market is set to witness robust growth owing to its comprehensive applications in the oil and gas industry. These goods are developed under specific conditions to handle oil and gas operations, establishing greater viability, corrosion resistance and resilience to breakage and failure. In this regard, the oil country tubular goods market is thriving with accelerated demand for OCTG. Majorly, these products are seamless and rolled, comprising drill pipes, tubing solutions, and casing. The OCTG enables loading conditions based on their specific applications. To ensure that products can withstand harsh conditions, several norms regarding standardization and API certification have been implemented.

A broader spectrum of applications in the upstream oil and gas industry coupled with potential applications in oil and gas drilling including the well testing phase and well intervention have augmented growth prospects of the oil country tubular goods market.

According to Fairfield Market Research, the market would be thriving at a whopping CAGR of 12.6% during the forecast years of 2021 to 2026. The market demonstrated a steady rise in market worth reaching nearly US$66 Bn by 2026, up from US$34.2 Bn in 2020.

Key Trends in Oil Country Tubular Goods Market

  • In 2020, 41.9% of worldwide oil country tubular goods market value was held by North America. On the flip side, Asia Pacific emerged as the regional leader in terms of volume, expected to grow at a healthy CAGR of 9.1%

  • Onshore applications of OCTG products gained significant prominence, acquiring 74.5% of the global market in 2020

  • Seamless OCTG products witnessed robust sales in the fiscal year of 2020, garnering 59.1% of the market share value

Spiralling Demand for Seamless OCTG Products Adds to Market Valuation

There are two types of OCTG available in the market, i.e., seamless and welded. At present, 59.1% of the global oil country tubular goods market valuation was held by the seamless segment in 2020. Threaded drill pipe, tubing, and casing deployed during drilling, operating oil and gas wells, and equipping are a few examples of seamless OCTG. Demand for improved and reliable products has been on the rise, recently. Unlike welded OCTGs that are viable, these products demonstrate greater resistance to high temperatures, high pressure, and higher mechanical stress. Furthermore, the anti-corrosive properties of these seamless OCTG have fuelled their demand in the oil and gas industry, making major contributions to the market.

Asia Pacific Reigns Supreme with Robust Demand & Supply of OCTG Products

During the projection timeframe, the oil country tubular goods market in the Asia Pacific is likely to grow at breakneck speed, maturing at 9.1% CAGR. Underpinning this growth are skyrocketing sales of OCTG products. Demand and supply for these products are very high in China. In addition, emphasis on offshore drilling activities and international tenders have propelled substantial growth across China. Various facilities are also being transferred to China, further amplifying the regional market growth.

Distinguished Market Players

Some of the most prominent players in the global oil country tubular goods market include ArcelorMittal, Iljin Steel Co., Ltd, Tenaris S.A, United States Steel, Henan Anson Steel Corporation, GE Steel Resources, TMK Group, Tianjin Pipe Corporation, Nippon Steel Corporation, Continental Alloys & Services.