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

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

Leak-proof connections that are strong and durable are critical to oil and gas distribution networks. Oil Country Tubular Goods (OCTG) used for developing and producing oil, gas and geothermal energy are connected to each other with threaded connections. There are numerous types of connections for OCTG that vary according to the depth, pressure and environment of the wells where they are used.

Market Overview:

The latest research study on the global OCTG Connections market finds that the global OCTG Connections market reached a value of USD 2750.39 million in 2022. It’s expected that the market will achieve USD 5379.19 million by 2028, exhibiting a CAGR of 11.83% during the forecast period.

The epidemic situation has led to a decline in downstream market demand

OCTG Connections are used both onshore and offshore for the production of oil and gas. In the course of the coronavirus pandemic, global crude oil production has been majorly curtailed as lockdowns led to the demand - and the price - of gasoline falling. North America has been the main driver behind the global increase in crude oil production over the past two decades, while the Middle East remained the biggest producer. Both regions saw major dips in oil production in 2020 and 2021, as did Africa and CIS countries.

The oil and gas industry affected by the epidemic is constrained by many aspects such as supply chain. Two years ago, after the massive unemployment in the oil industry, many people have left the industry. Affected by COVID-19, the operating cost has increased, and the limited supply of special pipes for petroleum industry has also limited the exploitation. COVID-19 leads to the decrease of oil and gas production, which directly affects OCTG Connections market demand.

Oil price rises

In 2021, although the international oil price rose, on the one hand, the uncertainty caused by the continuous impact of the epidemic, on the other hand, the investment in exploration and development of oil and gas companies was lagging behind, and the OCTG Connections market recovered relatively slowly. In 2022, the demand for refined oil recover, the international oil price will go up all the way, the global energy price will remain at a high level, the global oil and gas exploitation activities will gradually become active, and the prosperity of OCTG Connections will rise.

With the steady rise of crude oil prices, the willingness of upstream exploration and development is enhanced, and the willingness of oil and gas companies to invest is enhanced. The substantial increase in capital expenditure has brought substantial benefits to OCTG Connections enterprises. It is expected that the order volume of OCTG Connections will continue to increase.

Rising raw material prices

The manufacturing materials of OCTG Connections include Carbon Steels, Correction Resistant Alloy, 13cr/S13cr Materia, etc., which are directly related to the prices of various bulk metals. With the recovery of the global economy, the recovery of manufacturing industries in various countries has boosted the consumption growth of iron ore and coking coal and boosted their prices. In addition, affected by the Russian-Ukrainian war, the energy cost has increased. Short-term raw material and energy price increases are expected to have an impact on corporate profits.

Region Overview:

In global comparison, a significant portion of the revenue was generated in Americas (59.71% in 2021).

Company Overview:

The major players operating in the OCTG Connections market include Vallourec,Tenaris,Hunting,JFE, Nippon Steel & Sumitomo Metal, etc. Among which, Vallourec ranked top in terms of sales and revenue in 2022.

Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec's pioneering spirit and cutting-edge R&D open new technological frontiers. Operating in more than 20 countries, its 20,000 dedicated and passionate people work hand-in-hand with their customers to offer more than just tubes: they deliver innovative, safe, competitive and smart tubular solutions, to make every project possible.

Tenaris is a leading supplier of tubes and related services for the world's energy industry and certain other industrial applications. Tenaris mission is to deliver value to customers through product development, manufacturing excellence, and supply chain management. Tenaris employees around the world are committed to continuous improvement by sharing knowledge across a single global organization.

Segmentation Overview:

By type, Premium Connections segment accounted for the largest share of market in 2021.

Premium connections

Premium connections are proprietary connections that offer premium features not available on API connections. Most offer a metal-to-metal seal (e.g. VAM joint and Hydril joint) for improved high pressure seal integrity. Premium connections exist with features such as flush connections, recess free bores, and special clearance. This type of connection is preferred for gas wells, high-pressure wells, as well as for wells producing corrosive effluents.

Semi-Premium Connections

Semi-Premium Connections is a term used in the industry to identify proprietary connections that offers enhanced features over API Connections, yet compatible with one or more of the API connections types.

API Connections

API Connections main including short round thread casing (STC), long round thread casing (LTC) and buttress thread casing (BTC). STC and LTC both feature a non-runout design of round threads, each with eight round crested threads per inch. BTC has a square thread with a flat root and crest, a runout design, and five buttress threads per inch.

Corrosion-Resistant Alloy (CRA) Connections

Corrosion-Resistant Alloy (CRA) Connections are employed in severe oil and gas production environments that operate at high pressures and temperatures and contain chlorides, CO2, and H2S. They exhibit high resistance to uniform corrosion in these environments due to their passivity.

Application Overview:

By application, the Onshore segment occupied the biggest share from 2017 to 2022.

Key Companies in the global OCTG Connections market covered in Chapter 3:

Evraz
Hunting
Nippon Steel & Sumitomo Metal
ArcelorMittal
Voestalpine
Tenaris
Baosteel
Vallourec
JFE
TMK Group
Interpipe
Jindal Saw
TPCO

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

Premium Connections
Semi-Premium Connections
API Connections
Corrosion Resistant Alloy (CRA) Connections

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the OCTG Connections market from 2018 to 2029 covers:

Onshore
Offshore

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)