Global Geothermal Drill Bits Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Geothermal Drill Bits Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Geothermal drilling is the process of creating boreholes in the earth to extract the earth's heat. Drill bits are cutting tools used to remove material to create holes, almost always of circular cross-section. Drill bits come in many sizes and shapes and can create different kinds of holes in many different materials. In order to create holes drill bits are usually Attached to a drill, which powers them to cut through the workpiece, typically by rotation. The drill will grasp the upper end of a bit called the shank in the chuck. Geothermal drill bits are the cutting tools that are deployed to drill geothermal wells to extract geothermal energy. Geothermal drill bits are used in dry steam power plants, flash steams, and binary cycle power plants. Types of drill bits used in geothermal drilling include tricone bits, PDC bits, and others.

Market Overview:

The latest research study on the global Geothermal Drill Bits market finds that the global Geothermal Drill Bits market reached a value of USD 28.83 million in 2022. It’s expected that the market will achieve USD 38.6 million by 2028, exhibiting a CAGR of 4.98% during the forecast period.

Influence of COVID-19 Outbreak on Geothermal Drill Bits Industry Development

In the specific environment based on the outbreak of COVID-19, the global economy has been significantly affected, resulting in challenges and opportunities for the development status of various industries. The report is based on the impact of COVID-19 and conducts research on the geothermal drill bits industry from different perspectives such as macroeconomics, industrial chains, and regions.

First of all, the global geothermal drill bits market is expected to witness decline in growth rate during the forecast period, owing to the outbreak of the COVID-19 pandemic. Demand for geothermal energy has been declining to COVID-19 related restrictions enforced by governments across the globe. The pandemic has disrupted the supply chain as well as affected availability of manpower due to lockdowns in various countries. It has also affected the timelines of geothermal projects as some projects have been delayed, while some have been put on the hold due to lack of funds. Governments of various countries have implemented lockdown, which has led to shutdown of factories in scores of cities and provinces across the world, thus leading to predictions of a sharp slowdown in the output of anything from the oil & gas industry to industrial sector. Geothermal drill bits industry is anticipated to expertise a direct impact for the next one or two years, if the growth of the oil & gas industry declines as it is one of the key consumers of geothermal drill bits. Moreover, companies are dealing with missing sales and disrupted supply chains as production activities shutdown.

In addition, upstream and downstream interactions will lead to disruption of business. The epidemic will have a short-term impact on geothermal drill bits industry, but it is relatively limited. The transportation of raw materials and products is restricted, resulting in an increase in product inventory and a decrease in equipment operating rate. Due to the impact of the epidemic, the production of raw materials and equipment procurement and transportation supply are difficult to be in place, and upstream enterprises affect the work schedule of downstream enterprises. Equipment manufacturing and product manufacturing enterprises in geothermal drill bits industry are affected to different degrees, and the production and delivery work may be delayed to some extent. Meanwhile, if it fails to meet the customer's delivery time requirements according to the contract, it may lead to the customer looking for another enterprise and lose business.

Moreover, the COVID-19 virus outbreak has affected the normal operation of the industry. The impact of COVID-19 on the geothermal drill bits industry will involve all major links and all entities in the industry chain. The company's management efficiency has declined, commuting has been severely hindered, production plans have been severely hindered, network expansion has been delayed, marketing has been delayed, brand adjustments have been forced, market sales have declined, and company and employee revenue have declined. The government has also put forward higher requirements for the production and operation of enterprises. Although various industries around the world are gradually resuming work, production and demand will not pick up rapidly and substantially, and will require a certain recovery period.

Increasing demand

Increase in industrialization and surge in population rate, globally, have resulted in growing consumption rate of energy, which is projected to fuel the demand for geothermal drill bits around the world. Geothermal energy is one of the innovations for renewable energy generation and has attracted substantial investments and funds over the past few years. This is anticipated to result in increase in the number of geothermal power projects, thus driving the growth of the global geothermal drill bits market during the forecast period. Equipment manufacturers and service providers notably benefitted from the use of high-performance elastomers used in drill bits production. Globally, a rapid increase in interest in geothermal energy as an alternative to conventional fuels has instilled new demand capacity for geothermal drill bits in the market.

Challenges associated with geothermal drilling

Challenges such as high capital requirement, competition from alternative energy sources, and challenges associated with geothermal drilling may hamper the growth of the geothermal drill bits industry over the forecast period. A number of barriers have resulted in a lack of interest within the geothermal drilling industry; these include: the absence of the drilling service industry from directly supporting geothermal well construction, and poor performance of PDC bits in field trials during their infancy. Risk aversion has slowed the adaptation of advanced methods in the geothermal drilling industry. Another barrier within geothermal drilling is that the drilling products developed are largely intended for the larger oil and gas and minerals drilling industries. This standard product line is subsequently offered to the geothermal drilling industry without specific regard for the application. This project engages service companies collaboratively with the problems faced by the geothermal drilling industry that forges participation and develops fit-for-purpose solutions specifically for the geothermal drilling industry, which is not beneficial for the development of geothermal drill bit industry.

Region Overview:

From 2023-2028, North America is estimated to witness robust growth prospects.

Company Overview:

Baker Hughes, a GE Co. LLC is one of the major players operating in the Geothermal Drill Bits market, holding a share of 12.33% in 2023.

Baker Hughes, a GE Co. LLC

Baker Hughes, a GE Co. LLC offers oilfield products and services. The Company provides services for oil and gas exploration, drilling, completion, and production. Baker Hughes Holdings serves clients worldwide.

America West Drilling Supply Inc.

Since 1987, America West Drilling Supply company has earned a reputation as a world leader, producer, and supplier of cutting edge drilling equipment. As manufacturers of Down the Hole Drilling Tools, America West Drilling Supply provides all-inclusive technological equipment for any small or large project around the globe.

Segmentation Overview:

As for product types, the Tricone Drill Bits segment held the largest market share in 2022.

Tricone Drill Bits

Based on type, the geothermal drill bits market can be classified into tricone drill bits, PDC drill bits, and others. A tricone drill bit is a mechanical drill bit located in the bottom hole assembly. The bit cuts away the surface of the rock being drilled through rotation and mechanical friction caused by the teeth of the bit. Tricone drill bits are designed to take the energy of the rotating drill string and the supply of mud and to apply this force to deepen the well. The tricone drill bits segment is estimated to expand at a high CAGR during the forecast period, as these bits provide high performance and high resistance to wear and tear.

PDC Drill Bits

Fixed-head bits rotate as one piece and contain no separately moving parts. When fixed-head bits use PDC cutters, they are commonly called Polycrystalline diamond compact (PDC) bits. The PDC bits use diamonds inserts embedded on the bit body. They operate by the diamonds embedding into the formation and dragged across the face of the rock in a ploughing action. The diamond bits drill according to the shear failure mechanism. They are of higher cost but their long life makes them cost economic in certain circumstances.
Other types such as drag drill bits, which is the oldest rotary tool still in use. The cutting blades are integrally made with the bit body. They are fixed to it and rotate as a unit with the drill string. The bit is used primarily in soft and gummy formations

Application Overview:

By application, the Offshore segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Geothermal Drill Bits market covered in Chapter 3:

National Oilwell Varco Inc.
Blast Hole Bit Co. LLC
Epiroc AB
Schlumberger Ltd.
Halliburton Co.
Bit Brokers International Ltd.
Torquato Drilling Accessories
Baker Hughes, a GE Co. LLC
Varel International Energy Services Inc.
America West Drilling Supply Inc.

In Chapter 4 and Chapter 14.2, on the basis of types, the Geothermal Drill Bits market from 2018 to 2029 is primarily split into:

Tricone Drill Bits
PDC Drill Bits
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Geothermal Drill Bits market from 2018 to 2029 covers:

Offshore
Onshore

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)