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
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.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2022 | Market Size in 2022: | US$ 4,619.6 Mn |
| Historical Data for: | 2017 to 2021 | Forecast Period: | 2023 to 2030 |
| Forecast Period 2023 to 2030 CAGR: | 4.35% | 2030 Value Projection: | US$ 6,494.5 Mn |
| Geographies covered: |
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| Companies covered: |
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 |
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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
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.
Polycrystalline diamond compact (PDC) bits are used in the drilling tools. These bits are necessary tools for carrying out drilling operations primarily in the oil and gas industry, where PDC bit drills cylindrical boreholes for assembling crude oil and gas. Moreover, these bits are less expensive than roller cone bits, and hence, it lessen the total cost of drilling, owing to higher rotary speed that allows enhanced drill rates while reducing the deviation. Artificial diamond cutters are used for manufacturing of PDC bits as diamond is the hardest material due to its superior properties. Furthermore, PDC is a key component for drilling as it combines inexpensive, man-made, tiny diamonds into large masses of erratically oriented crystals.
Market Dynamics
Polycrystalline diamond compact (PDC) drill bits is one of the most significant advancements in drilling tools in recent years. With high rate of penetration (ROP) potential, these bits have revolutionized the oil and gas drilling industry. These drill bits are typically made with synthetic diamond cutters in either a matrix body or a steel body material. Polycrystalline diamond compact cutter is used in the formation of diamond tables that are a part of the cutter. PDC diamond tables are hard, and possess a broad spectrum of characteristic for bit cutters. Moreover, rising performance and increasing production of shale gas are expected fuel the global polycrystalline diamond compact cutter market growth during the forecast period. However, ecological risks and stringent government policies for hydrocarbon- based fuel sources are hindering the global polycrystalline diamond compact cutter market growth. Matrix body drill bits offer numerous advantages including longer life, high volume of fluid, and multiple runs. This tool also offers superior structural strength along with resistance to erosion, wear and tear. Demand for matrix body PDC drill bits will increase the the need of advanced and efficient drilling technologies in near future.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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