Global Drilling Fluid Market 2020 (Includes Business Impact of COVID-19)

                                          
The global drilling fluid market is projected to register significant growth rate over the next 10 years. This upcoming report focuses on the ongoing trends, future opportunities, untapped markets, regulations regarding usage of drilling fluids, factors driving and challenging the growth of the market, prominent players and their detailed information such as CEO, total revenue, business segments, and segment revenue details, etc. The global drilling fluid market report has been segmented on the basis of product type, application, and region.

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Drilling Fluid: Product Overview

Drilling fluids are used at the time of drilling boreholes into the earth, especially while drilling of natural gas or oil extraction. Drilling fluid, also known as drilling mud, facilitates drilling operation by suspending, controlling pressure, cutting, stabilizing bare rock, lubricating and cooling. Drilling fluids are quintessential for successful drilling operations as it helps in minimizing the time taken to achieve first oil, and maximizing the recovery.

Global Drilling Fluid Market: Dynamics

The global drilling fluids market is expected to witness substantial growth over the 10-year period, owing to growing demand for natural gas and crude oil from various industries, especially energy-intensive related, including power generation, transportation, manufacturing, among others. This, in turn, is expected to increase investments in offshore and onshore drilling activities, thereby leading to increasing demand for drilling fluids. Growing demand for oil and gas from the emerging economies of the world, owing to rapid urbanization and industrialization is also expected to trigger demand for more oil and gas exploration activities which will further augment growth of the target market in the coming years. Increasing innovations in drilling technology, combined with continuous research and development is expected to result in new drilling technologies and contribute significantly to growth of the global market.

However, drilling fluids are toxic in nature as it contains high aromatic fraction and disposal of waste from drilling fluid can endanger life of terrestrial as well as marine species, and pollute the environment. Therefore, disposing of drilling fluid waste is a major challenge and several stringent regulations on account of environmental concerns may create restrictions on use of drilling fluids, especially the oil-based fluid. This could have a negative impact on growth of the global market to a certain extent.

Analysis by Segment

By Product Type:

Among the segments based on product types, the water-based fluid segment is expected to register considerable growth rate over the 10-years forecast period, owing to less toxic property of water-based drilling fluid and are therefore less harmful to the environment as compared to the oil-based drilling fluid. In addition, stringent regulations have obligated users to adopt water-based drilling fluid instead of oil-based fluids.

By Application:

Among the segments by application, the offshore segment is estimated to dominate with major revenue share in the global market, owing to increasing scope of applications in offshore oil and gas exploration activities that includes weighing agents & biocides, rock stabilizer, defoamers, shale inhibitors, emulsifiers, corrosion inhibitors, and filtration reducers.

Global Drilling Fluid Market: Regional Analysis

The market in North America is currently dominating in the global market in terms of revenue share and is expected to continue its dominance over the next few years, owing to increasing commercial expansion of shale reserves in countries in the region that includes specifically Canada. Additional factors expected to trigger demand for oil and gas exploration activities in North America market are established oil transportation infrastructure, plentiful of private energy firms with risk-taking ability, low density population in the regions with shale reserves and availability of water in abundance to pump into shale wells, which in turn, are anticipated to contribute significantly to revenue growth of the North America drilling fluid market.

The market in Europe is estimated to account for substantial share in terms of revenue in the target market, followed by the Asia Pacific market. In addition, the market in the Asia Pacific is projected to witness significant compound annual growth rate in the 10-year forecast period. The markets in Middle East & Africa and Latin America are also expected to account for moderate revenue shares in the target market.

Global Drilling Fluid Market Segmentation:

Segmentation by Product Type:

Water-based Fluid
Oil-based Fluid
Synthetic-based Fluid

Segmentation by Application:

Onshore
Offshore