The global oil country tubular goods (OCTG) market is estimated to be worth US$65,940.3 Mn by 2026, up from US$34,286.8 Mn in 2020, according to Fairfield Market Research. The market is predicted to grow at a CAGR of 12.6 percent between 2021 and 2026, according to the estimate.
Oil country tubular goods is a category of tubular products that are subjected to loading conditions according on their specialized application, such as drill pipe, casing, line pipe, and tubing. Because of the increasing demand for energy resources, extensive product adoption for the exploration of onshore oil fields to generate a wide variety of chemical products and fuel is boosting market expansion.
Major countries throughout the world have liberalized oil and gas markets in order to attract more international investment, which has aided the oil and gas industry’s expansion. In the next years, this is likely to present enormous prospects for the worldwide OCTG industry.
The Global OCTG Market’s Premium-Grade Sector is Expected to Undergo Highest Growth
The global market is divided into onshore and offshore segments based on application. It is divided into two categories based on grade: API grade and Premium grade. With the rapid expansion of shale reserves, natural gas exploration is gaining a lot of traction. Furthermore, horizontal directional drilling has allowed for the production of natural gas from shale reservoirs, which has boosted the premium grade OCTG market significantly. Because of rising demand from oil and gas upstream activities, the premium-grade OCTG market is expanding.
Gas wells, horizontal wells, high pressure (over 5,000 psi) and high temperature (above 250 F) wells all use premium-grade applications. The premium-grade OCTG is used on connections that have more complicated applications and require gas-tight sealing. As a result of the aforementioned considerations, the premium-grade segment of the global OCTG market is likely to see significant demand over the forecast period.
North America Expected to Maintain Hold of the Largest Share Within the Global Oil Country Tubular Goods Market
The broad expansion of oil and gas reserves onshore and offshore in the North American region is expected to generate significant economic prospects for OCTG enterprises. Furthermore, as oil and gas activities have a direct impact on OCTG demand, increased oil and gas exploration and production operations in the region are likely to raise OCTG demand in the coming years. The development in deep-water exploration in distant places with severe environments has resulted in a rise in the utilization of high-quality items, which is propelling the market forward. These factors are expected to aid North America’s regional dominance over the market throughout the forecast period.
Key Players
Major players in the global oil country tubular goods market include United States Steel Corporation, EVRAZ plc, ArcelorMittal S.A., JFE Steel Corporation, Nippon Steel Corporation, NOV Inc., Oil Country Tubular Limited, Sumitomo Corporation, Iljin Steel Co. Ltd. (ILJIN Group), Tenaris S.A. (Techint), TMK Group, and Vallourec S.A.
