Drilling Chemicals Category Intelligence
Report Coverage
- Global Market Outlook
- Market Analysis
- Market Drivers and Constraints
- Sustainability
Drilling Chemicals Market Trends
Category Intelligence on Drilling Chemicals covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
Drilling Chemicals Global Market Outlook:
MARKET OVERVIEW
Global market size:
About $6.91 billion (2020 E)
Expected to grow at a CAGR of about 7.1 percent to $8.49 billion by 2023.
MAJOR MARKET DRIVERS
• Rise in drilling activities
• Increase in CAPEX spending on offshore activities
Porter's Analysis on Drilling Chemicals
Supplier Power
- Drilling fluids are mandatory requirement during drilling operation. However, there are many regional and global providers present in the market, except for proprietary products
- Supply chain management skills are critical in handling bulk orders
- Some of the oilfield service companies are struggling to change onerous contracts signed with E&P companies
- Therefore, the supplier power is lower to medium for drilling fluids
Barriers to New Entrants
- Drilling fluids are commodity based and can be easily manufactured with right technology. Capex requirement for drilling fluids manufacturing is low. However, suppliers requires oil & gas expertise for entering into the business
- The market is highly competitive with many players, acquiring a steady contract would be a challenge for new entrants
- Therefore, the barriers to new entrants are low to medium
Intensity of Rivalry
- The market is fragmented with many global and regional suppliers
- Technology is available to many suppliers. The supplier market is mostly driven by wider service capability, economy of scale, and cost effectiveness of the services
- Low switching cost. Easy to switch among suppliers with a little product differentiation. The intensity of rivalry is higher
Threat of Substitutes
Buyer Power
- Buyers can negotiate the drilling fluids for lower prices, since there are many service providers around the globe
- Drilling fluids are commodity products, which are widely available
- Buyers spend in drilling fluids is crucial, a good quality product may provide huge cost savings
- The buyer power for drilling fluids is termed to be higher
