POLYCRYSTALLINE DIAMOND COMPACT CUTTER MARKET ANALYSIS

Global polycrystalline diamond compact cutter market was valued at US$ 4,619.6 Mn in 2022 and is expected to reach US$ 6,494.5 Mn, exhibiting a CAGR of 4.35% during the forecast period 2023 to 2030.

Global Polycrystalline Diamond Compact Cutter Market- Drivers:

Rising oil and gas exploration and production

Rising oil and gas exploration and production in the North America region is expected to drive the global polycrystalline diamond compact cutter market growth in near future. Moreover, increasing unconventional development offshore activities in North America will create lucrative opportunity in global polycrystalline diamond compact cutter market growth in the near future.

Rapid shift towards unconventional energy resources such as shale gas

Rapid shift towards unconventional energy resources such as shale gas is expected to fuel the global polycrystalline diamond compact cutter market growth in forecast period. Moreover, advancement in techniques of horizontal drilling and hydraulic drilling that are used for drilling the shale gas is also expected to boost the global polycrystalline diamond compact cutter market growth.

Figure 1. Global Polycrystalline Diamond Compact Cutter Market Revenue Share (%), By Region, 2022

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Among region, North America held a dominant position in the global polycrystalline diamond compact cutter market in 2022, accounting for 34.6% market revenue share, followed by Asia Pacific and Latin America. Increasing production of oil and gas due to strong focus of key market players in carrying drilling activities in Permian Basin, North America. Rising oil and gas exploration and production in the U.S. is expected to boost the global polycrystalline diamond compact cutter market growth in near future.

Global Polycrystalline Diamond Compact Cutter Market- Restraints

Government control over oil and gas price

Government control over oil and gas price can hinder the adoption of new technologies in the global polycrystalline diamond compact cutter market. Moreover, high cost of advanced drill bit technology is expected to hinder the global polycrystalline diamond compact cutter market growth in near future.

Dropped prices of crude oil

Due to dropped prices of crude oil in 2015, the oil and gas industry decrease that hampered the global polycrystalline diamond compact cutter market growth. Regular fluctuation in prices of crude oil causes major loss to the operator that slows down the exploration of hydrocarbons, and this can hinder the global polycrystalline diamond compact cutter market growth.

Global Polycrystalline Diamond Compact Cutter Market- Trends

Increasing adoption of inorganic strategies

Increasing adoption of inorganic strategies such as new product launches, expansion, collaboration, joint ventures, mergers & acquisitions, partnerships, strategic alliances, takeovers, and others by key market players is expected to boost the global polycrystalline diamond compact cutter market growth in near future. For instance, in February 2019, Rockwell Automation, an industrial automation & data firm, and Schlumberger, a drilling, manufacturing, and processing technology supplier of oil and gas industry, announced that both companies had signed a joint venture agreement to create Sensia. Sensia is the integration of process automation and petrotechnical expertise in order to create a automation specialist in oil and gas production, transportation, and processing.

Rising technological advancement

Rising technological advancement in polycrystalline diamond compact cutter is expected to drive the market growth in near future. For instance, in February 2021, NOC Inc., a global provider of equipment and components that are used in oil and gas drilling, and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry, introduced ION+ polycrystalline diamond compact cutter technology. ION+ cutters feature a wide range of application-specific cutter grades, incorporating refined diamond feeds, higher manufacturing pressure, new non planer interfaces, and thicker diamond tables with enhanced thermal stability.

Figure 2. Global Polycrystalline Diamond Compact Cutter Market Revenue Share (%), By Technology, 2022

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Among technology, the rolling cutting technology segment held a dominant position in the global polycrystalline diamond compact cutter market in 2022, accounting for 39.9% of market share. An advancement in rolling cutter technology reduces wear flats, and manages frictional heat. When polycrystalline diamond compact bits with fixed cutting elements are fully rolling, frictional heat and wear flat problems are reduced that improves performance and service life.

Global Polycrystalline Diamond Compact Cutter Market - Impact of Coronavirus (COVID-19) Pandemic

COVID-19 pandemic had a negative impact on the global oil and gas industry that resulted in reduced exploration activities and lower demand for drilling equipment. Governments considers oil and gas exploration as an essential activity and has exempted exploration from lockdown restrictions. However, pandemic led to either stoppage or slowing down of physical operations of oil and gas companies. Throughout the pandemic, operations weredifficult to maintain due to shortage of labor, and practical difficulties were caused due to social distancing and other precautionary measures. Furthermore, lack of raw materials and equipment hampered inspection, drilling, repair, maintenance, and replacement efforts.

Competitive Section

Major players operating in the global polycrystalline diamond compact cutter market include Baker Hughes Company, Atlas Copco, Bit Brokers International Ltd., Blast Hole Bit Company, LLC, C&H Bit Co, Cangzhou Great Drill Bits Co., Ltd., East West Machinery & Drilling, Epiroc AB, Halliburton, Hejian Longyue Drill Bit Manufacture Co., Ltd, Hejian Ruida Petroleum Material Co., Hunan Drillmaster Engineering Technology Co., Ltd., NOV Inc., Palmer Bit Co, and Rockpecker Limited.