The Drilling Tools Market to Reach $11.01 Billion by 2029, The Demand for High-Performance Drilling Tools Soars as Oil and Gas Companies Reshaping the Market Expansion - Arizton - Seite 2

Global players, such as Continental, Infineon Technologies, benchmark, and Baker Hughes, have tried to expand their markets through profitable partnerships and merger strategies. In contrast, the domestic vendors have capitalized on the product portfolio that best suits the domestic needs and wants. However, being a technology-oriented product, the scope of differentiation lies with sophistication and deployment of advanced features, such as energy efficiency, COP, eco-friendly refrigerant, installation costs, geographical climate, and services analysis, and much more, through which the product can stay away from the competitive environment.

With the recent advances in engineering and technological features, the changing dynamics of the drilling tools industry demand highly effective drilling tools & equipment for universal applications. The presence of expanded global and regional vendors characterizes the market. As international players would raise their footprint in the market, regional vendors will likely find it more difficult to compete with global players.

Rise in Agricultural Industry Booming the Drilling Tools Market

Investments are essential for the growth of the agricultural sector. The global population is rising and is expected to reach 10 billion by 2050. An increase in population is anticipated to create more demand for food. According to the Food and Agriculture Organization (FAO) and the Agricultural Outlook by the Organization for Economic Co-operation and Development (OECD), global cereal production is expected to increase by 13% by 2027. Farming activities, crop production, and trade volumes have increased due to the rising population. Hence, the government has invested in helping the agriculture industry.

On the other hand, agricultural companies increase acquisitions in farmland to expand and raise crop production. Agriculture companies are expected to increase their presence and activities to meet the increased demand for farming activities. This is expected to fuel the demand for drilling tools.

Key Highlights:

• In 2022, the US had two million acres of land for farming and cultivating. According to the US gross domestic product (GDP) analysis, the industries and firms related to the agricultural production sector contributed around $1.055 trillion in 2023.
• In Brazil, nearly 2.1 billion acres of total land area, around 867.4 million acres occupied for agriculture production. In the last two decades, the agricultural industry has generated 25% of Brazil's GDP.
• Agricultural production by country, animal husbandry, and horticulture contributes 60% of India's total agricultural GDP. Agriculture production in India increased by 11% over the last 14 years, from $87 billion to $397 billion.

Application of Drilling Tools Across the Oil and Gas Industry to Contribute the Largest Share