Geothermal drill bits are one of the most important accessories used in drilling operation while constructing geothermal power plants. These are used to cut and drill geothermal wells. Geothermal drilling bits are used in dry steam power plant, flash steam power plant, and binary cycle power plants. Major types of bits used in geothermal drilling include tricone bits, polycrystalline diamond compacts (PDC) bits, and others (drag bits, etc.). PDC bits and tricone bits are mostly preferred for drilling geothermal wells and also for drilling onshore and offshore oil wells. PDC bits allow the drilling companies to aggressively dig into the well and exert a three dimensional pressure of up to one million pounds per square inch while drilling the well. Tricone bits are mainly made from tungsten carbide, which is one of the strongest materials used for drilling operation, as it can withstand high temperatures and pressures during drilling operations.
Rapid industrialization and increasing population have led to increasing use of electricity, which is expected to drive demand for geothermal drill bits across the globe. For instance, according to the United Nations – World Population Prospects document (2017), global population is estimated to reach 8.6 billion by the end of 2030 and 11.2 billion by 2100.
The rising awareness about geothermal resources has led to increasing geothermal power production capacities across the globe. According to International Renewable Energy Agency, total geothermal energy capacity reached 13.0 GW in 2018, an increase of 539 MW as compared to 2017. New capacities came on stream in Turkey and Indonesia in 2017, with a production capacity of around 219 MW and 137 MW, respectively. Other countries that increased its geothermal power plant capacities included the U.S., New Zealand, and Mexico.
On the basis of bits type, the global geothermal drill bits market is segmented into tricone bits, polycrystalline diamond compacts (PDC) bits, and other bits such as drag bits. PDC bits segment is expected to exhibit highest growth rate in terms of revenue in the global geothermal drill bits market over the forecast period (2019-2027). Moreover, major players are focused on launching new geothermal drill bits, in order to strengthen their market presence. For instance, in June 2018, Baker Hughes launched a new series of ‘Vanguard’ - tricone drilling bits with enhanced elastomer seal for better drilling performance.
On the basis of plant type, the market is segmented into dry steam plant, flash steam plant, and binary cycle plant. Among these, flash steam plant segment is expected to witness significant growth over the forecast period, owing to increasing popularity of this power plant, as it uses high pressure steam with high temperatures of around 182 °C for power generation.
On the basis of region, North America market is expected to account for the highest market share in terms of value in the global geothermal drill bits market over the forecast period (2019-2027), owing to large number of geothermal plants in the region, which directly increases the demand for geothermal drill bits. For instance, according to the Geothermal Energy Association (GEA), geothermal electricity is currently being produced in 26 countries and geothermal energy for heating is used in 70 countries, with U.S. being the largest producer of geothermal energy and accounted for a production of 2,511 MW of geothermal energy in 2016.
Key players in the global geothermal drill bits market include Schlumberger Ltd., Baker Hughes (GE), America West Drilling Supply Inc., Blast Hole Bit Co. LLC, Bit Brokers International Ltd., National Oilwell Varco Inc, Halliburton Co., Varel International Energy Services Inc., Torquato Drilling Accessories, and Epiroc AB.
On the basis of bits type, the global geothermal drill bits market is segmented into:
On the basis of plant type, the global geothermal drill bits market is segmented into:
On the basis of region, the global geothermal drill bits market is segmented into: