Global Oil Country Tubular Goods Market Report and Forecast 2025-2034

Global Oil Country Tubular Goods Market Size

The global oil country tubular goods market reached approximately USD 25.39 billion in 2023. The market is further projected to grow at a CAGR of 6.8% between 2024 and 2032, reaching a value of USD 45.89 billion by 2032.

Oil Country Tubular Goods Market Growth

Oil country tubular goods refers to products such as piping, casing, pipelines, and tubing that are used in the production of oil and gas. They are subjected to loading conditions, axial tension, high torque, and internal pressure based on their specific applications.

Integration of various technologies such as remote monitoring, automation, and data analytics has helped in improving the efficiency and safety of oil country tubular goods operations including inspection, installation, and maintenance, resulting in an increased oil country tubular goods demand.

Oil Country Tubular Goods Market Trends

Manufacturers are focusing on improving the operational efficiency of the oil country tubular goods to offer longer lifespans and better performance and deploying advanced materials such as high-strength steel alloys, aiding the growth of the oil country tubular goods market.

Technological advancements in drilling techniques such as hydraulic fracturing and horizontal drilling have fuelled the requirement for specialised oil country tubular products as they provide better finishing. Additionally, these products have the ability to withstand high-pressure and corrosive environments, further boosting their demand.

Recent Developments

As per the oil country tubular goods market dynamics and trends, ArcelorMittal, a Luxembourg-based company, announced that it aims to purchase a 28.4 per cent equity interest in Vallourec, a France-based producer of recycled-content steel pipe and tube.

Industry Outlook

According to the oil country tubular goods industry analysis, the oil and gas sector accounts for around 4.8% of the GDP of the United States. In 2023, the global oil demand witnessed an increase of 30,000 barrels per day to reach 101.19 million barrels per day and this number is expected to reach 102.8 million barrels per day in 2024. The United States, Saudi Arabia, and Russia are the three biggest producers of oil in the world and account for around 43% of the total world production. This rise in the oil and gas sector is further expected to fuel the demand for tubular goods.

As per the industry reports, the demand for oil in India is expected to reach around 11 million barrels per day in 2045. The demand for diesel is expected to reach 169 million tonnes by 2029-30. The import of crude oil was expected to witness a growth of 5.7% during January 2024. The country further aims to commercialise 50% of its SPR (strategic petroleum reserves) to raise funds and build additional storage tanks. These statistics indicate a positive outlook for the growth of the oil country tubular goods industry.

Furthermore, Hunting, an oil and gas services company, announced on June 2024 that it had received an order of USD 86 million for oil-country tubular goods from Kuwait Oil Company. The order is expected to be delivered to the Kuwait Oil Company by 2025. The rising prominence of such orders can further increase the oil country tubular goods industry revenue.

The Growth of the Global Market Driven by Increasing Energy Demand and Technological Advancements

• Increasing Energy Demand: Rising global energy demand drives exploration and production activities, boosting demand for oil country tubular goods (OCTG).

• Technological Advancements: Innovations in drilling technologies and materials enhance the efficiency and durability of OCTG, boosting oil country tubular goods demand growth.

• Extensive Applications: Widely used in various stages of oil and gas extraction, including drilling, production, and transportation.

• Strength and Durability: OCTG products are designed to withstand harsh environments and high-pressure conditions.

• Regulatory Compliance: Strict industry standards and regulations ensure the quality and reliability of OCTG products.

Challenges Impacting the Growth of the Global Market Include High Costs and Environmental Concerns

• High Costs: Significant investment is required for high-quality OCTG products and advanced technologies which affect oil country tubular goods demand forecast.

• Environmental Concerns: Stringent environmental regulations and the push for cleaner energy sources can limit the growth of the OCTG market.

• Market Volatility: Fluctuations in oil and gas prices impact investment in exploration and production activities.

• Supply Chain Issues: Disruptions in the supply chain for raw materials and finished products can affect market stability.

• Technical Challenges: Challenges in manufacturing and maintaining the quality of OCTG products to meet industry standards.

Opportunities in the Global Market Driven by Shale Gas Exploration and Emerging Markets

• Shale Gas Exploration: Increasing exploration and production of shale gas, particularly in North America, drive demand of oil country tubular goods market.

• Emerging Markets: Expansion opportunities in emerging markets with growing energy needs and investment in oil and gas infrastructure.

• Technological Advancements: Continuous innovation in materials and manufacturing processes to enhance performance and reduce costs.

• Offshore Drilling: Growth in offshore drilling activities presents opportunities for specialized OCTG products. 

• Sustainability Initiatives: Development of eco-friendly and sustainable OCTG products to meet environmental regulations and market demand.

Key Price Indicators of the Global Market

• Steel Prices: The cost of steel, the primary raw material for OCTG, significantly affects the overall pricing of these goods as well as oil country tubular goods market value.

• Oil and Gas Prices: Fluctuations in oil and gas prices directly impact drilling activity levels, influencing the demand for OCTG.

• Rig Count and Drilling Activity: The number of active drilling rigs and the level of drilling activity provide insights into the demand for OCTG.

• Technological Advancements: Costs associated with new technologies for improved OCTG performance and efficiency, such as corrosion-resistant alloys and advanced threading technologies.

• Regulatory and Compliance Costs: Expenses related to meeting international and regional safety and environmental regulations for OCTG manufacturing and usage. 

• Supply Chain and Logistics Costs: Costs influenced by supply chain efficiency, transportation costs, and the availability of raw materials and finished products.

Oil Country Tubular Goods Industry Segmentations

Based on product, the market is divided into well casing, product tubing, and drill pipe, among others. By manufacturing process, the market is bifurcated into electric resistance welded (ERW) and seamless. On the basis of grade, the market is classified into API grade and premium grade. By application, the market is categorised into onshore and offshore. Based on region, the oil country tubular goods market segmentation includes North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• TMK Group

• Sumitomo Corporation

• Nippon Steel Corporation

• Iljin Steel Co., Ltd.

• Tenaris S.A

• U.S. Steel Tubular Products, Inc.

• Vallourec Group

• Oil Country Tubular Limited

• ArcelorMittal S.A.

• JFE Steel Corporation

• Others

Oil Country Tubular Goods Market Share by Manufacturing Process

The seamless segment accounts for a significant oil country tubular goods market share owing to the rising demand for seamless tubes from oil and natural gas industries across the globe. The high range of safety along with high pressure and strength offered by seamless tubes in comparison to the electric resistance welded tubes has boosted the segment growth. Additionally, the rise in exploration activities in the offshore fields and the development of several new oil fields is expected to further boost the requirement for seamless oil country tubular goods.

Competitive Landscape

TMK Group was founded in 2001 and is headquartered in Moscow, Russia. The company manufactures and supplies steel pipes, tubular solutions, and pipeline systems for oil and gas, chemical, and construction industries.

Nippon Steel Corporation is a steelmaking company that was founded in 1950 and is headquartered in Tokyo, Japan and the company is known for manufacturing and providing its consumers with steel sheets, steel plates, and pipes and tubes.

Iljin Steel Co., Ltd. was established in 1982 and has its headquarters located in Anyang, South Korea. This company in the oil country tubular goods industry offers power generation parts, mechanical tubes, stainless tubes, and textile, among others.

Other oil country tubular goods market key players include Sumitomo Corporation, Tenaris S.A, U.S. Steel Tubular Products, Inc., Vallourec Group, Oil Country Tubular Limited, ArcelorMittal S.A., and JFE Steel Corporation, among others.

Oil Country Tubular Goods Market Regional Analysis

North America held a significant share of the market over the historical period and is expected to grow further over the forecast period owing to the increasing crude oil production in countries such as Mexico, the United States, and Canada. The demand for premium quality oil country tubular goods increased in the region due to rising deep water exploration activities in remote areas with harsh environmental conditions. Moreover, the presence of major offshore deep-water reserves in Mexico are expected to aid the oil country tubular goods market opportunities.

Key Highlights of the Report

Oil Country Tubular Goods Market Report Snapshots

Oil Country Tubular Goods Market Size

Oil Country Tubular Goods Market Growth

Oil Country Tubular Goods Market Trends

Oil Country Tubular Goods Companies

Oil Country Tubular Goods Market Regional Analysis