Hole Opener Market

Hole Opener Market Outlook (2022-2032)

The global hole opener market was valued at US$ 1.5 billion at the end of 2021 and is expected to expand at a CAGR of 4.2% to reach a market valuation of US$ 2.32 billion by 2032.

The United States hole opener market is expected to reach US$ 827.1 million by 2032.

Report Attributes	Details
Hole Opener Market Size (2021A)	US$ 1.5 Billion
Estimated Market Value (2022E)	US$ 1.53 Billion
Forecasted Market Value (2032F)	US$ 2.32 Billion
Global Market Growth Rate (2022-2032)	4.2% CAGR
North America Market Share (2021)	~39.5%
Middle East & Africa Market Growth Rate (2022-2032)	~5% CAGR
United States Market Growth Rate (2022-2032)	~4.2% CAGR
Market Share of Top 5 Companies	~28.6%
Key Companies Profiled	Atlas Copco Secoroc Bit Brokers International Drilling Tools International Drillstar Industries Epiroc Ocma Radius HDD Direct Raymonds Supply Schlumberger Sovonex Technology Tasman Oil Tools Titan Tools Services Ltd Torquato TRANSCO Transco Manufacturing

North America accounted for close to 40% of the global market share at the end of 2021 and is expected to remain a leading market for hole openers over the coming years as well. Overall, revenue from the sales of hole openers accounts for nearly 1% of the global oil & gas drilling market.

Sales Analysis of Hole Openers (2017-2021) Vs. Market Outlook (2022-2032)

Hole opener utilization is on the rise across a wide range of industries, such as the oil & gas industry, water, metal mining industry, etc. The hole opener market continues to develop, expand, and evolve across the world with the increase in demand for precious Earth materials and compounds.

Moreover, increased government and institution expenditure on exploration programs is resulting in increased integration of hole openers across regional markets in the world. Accessories that support hole openers, new trends in emerging technologies, and the growing importance of rare Earth materials are all evidence for the higher adoption of drilling and hole opening machinery.

• Short Term (2022 Q2 to 2025): Elevating utilization of hole openers in metal mining to positively impact hole opener market growth.
• Medium Term (2025-2028): Asia Pacific and Middle East & Africa anticipated to witness higher demand for hole openers on the back of abundant crude and mineral availability, coupled with favorable government initiatives.
• Long Term (2028-2032): Increase in the use of hole openers for onshore and offshore exploration activities to be witnessed.

During the historical years (2017-2021), the global hole opener market registered a CAGR of 0.8%. According to Fact.MR, a market research and competitive intelligence provider, the hole opening equipment market is projected to exhibit growth at 4.2% CAGR between 2022 and 2032.

Market share analysis of hole openers on the basis of number cutters and region is provided in a nutshell in the above image. Under the number cutters segment, 3-5 cutters dominated the market with 42.4% market share in 2021.

Which Market Factors are Affecting Demand for Hole Openers?

“High-Tech Hole Opener Penetration Rising for Smooth Drilling Operations”

The global hole market is being driven by increased technological advancements, as well as the development of favorable international and national regulations in this direction. Owing to this, there has been significant cost reduction in exploration activities, thereby making hole openers more affordable than in the past.

Technological developments in hole openers are being witnessed, such as the manufacturing of products using high-standard metals (carbides, diamonds, etc.), gyro, pressure monitoring, at-bit inclination, passive magnetic ranging intersect technology, and surface coils.

All these are projected to increase the demand for hole openers. These developments will result into smooth drilling operations and further increase the life of bits.

“Increasing Depth of Oil Wells to Drive Hole Opening Device Sales”

With the move towards deeper offshore drilling, the demand for complex straight and directional wells with many casing strings has increased. Over the last decade, more hole openers and under reamers have been used to improve casing sizes and reduce tubular costs while maintaining drilling viability in the oil & gas industry.

With time, the depth of oil wells has to be increased, as oil is a finite commodity, and due to continuous exploration, the depth of reservoirs has increased.

For instance, in the 1950’, the average depth of oil wells was around 3,500 feet, which has now increased to almost 6,000 feet. Some oil wells have reached an incredible depth of more than 40,000 feet.

Such instances are likely to provide more prominence to hole openers as they become more important with increasing depths of oil wells. Increasing depths of wells tends to increase pressure and temperature, and hole openers will be required to tackle this issue.

“Growing Demand for Renewable Energy Hampering Demand for Hole Opening Systems”

Crude oil & gas production and mining have a negative influence on the environment. Growing consumer knowledge of the importance of lowering carbon emissions has moved their preference towards renewable energy sources. Electricity-related carbon emissions are predicted to rise by 3.5% in 2021 and roughly 2.5% in 2022.

Regional government initiatives serve as a catalyst for promoting the use of renewable energy. Biofuels, replacements, energy efficiency, conservation strategies, and alternatives to fossil fuels are all being promoted to reduce the volume of oil & gas shipments.

Reduced oil needs will result in lower output, which will influence oil well drilling, leading to the lower penetration of hole openers. A gradual decrease in oil rigs can clearly be observed, which will proportionally reduce the demand for hole openers as well.

Country-wise Insights

Why is the U.S. a Huge Market for Hole Opener Manufacturers?

The United States hole opener market is currently estimated at US$ 545.7 million and is expected to reach US$ 827.1 million by 2032.

The United States has one of the largest crude oil & natural exploration systems in the world. The country has a significant share of reservoirs - around 14% in the world - and has the highest daily oil production at 18.6 million barrels per day.

The responsible development of America's shale gas resources presents significant opportunities for market players. Because of developments in horizontal drilling and hydraulic fracturing technologies, the United States has large deposits of such resources that are commercially viable. These technologies make it easier to get oil & gas from shale deposits.

Growing reservoir exploration through developing injection wells and horizontal drilling in the United States will create added opportunities for U.S. manufacturers in the near future. New regulations in this direction shall be a positive transition for the hole opening systems market in the country.

What is the Market Scenario in MEA Countries?

The Middle East & Africa (MEA) is one of the most dominating regions in oil & gas resources and minerals, which is driving the growth of the hole opener market in the region. GCC countries (UAE, Saudi Arabia, Oman, Kuwait, Bahrain, and Qatar) constitute nearly 52.1% of MEA’s petroleum and other mineral production.

Turkey holds a commanding position on a country level accounting for roughly 14.3% of petroleum and other mineral production. Consumption is also high in comparison to other prominent countries. Demand is primarily driven by established conventional industries and high fleet of automobiles in the country.

GCC countries are expected to reach a market valuation of US$ 225.3 million in 2022. This has proven to be an opportunity for hole opener manufacturers to enter local markets with advanced product offerings.

Category-wise Insights

Which Hole Opener Cutter Type Holds Dominance in the Market?

Utilization of roller cone hole openers has increased steadily in recent years, surpassing a market valuation of US$ 1.12 billion at the end of 2021. Roller cone openers have been identified as being offered by a variety of manufacturers and suppliers across the world.

In the past half-decade, the hole opener market has not shown significant growth owing to a slowdown in economies, further fueled by the COVID-19 pandemic. This has resulted in a Y-o-Y decrease of 0.4% across 2017 to 2021. However, with the global economy on the way back up, by the end of 2032, the roller cones sub-segment is predicted to expand 1.6X.

Will Demand for Hole Openers Rise for Onshore Exploration Activities?

Growing application of hole opener systems in onshore exploration in oil & gas and mining fields is anticipated to drive high demand during the forecast period. These systems are extensively utilized for improving the depth of existing wells and reducing the need for other well drilling operations.

Oil & gas fields make use of several tools and equipment, and, as such, space requirement is a huge issue in onshore and offshore fields. Due to this, small- to medium-sized diameter between 20 to 40 inches is the most attractive segment for oil & gas industries.

The onshore deployment vertical is set to create an absolute $ opportunity of US$ 629.6 million by the end of the assessment period.

Competitive Landscape

Prominent hole opener manufacturers are Atlas Copco Secoroc, Bit Brokers International, Drilling Tools International, Drillstar Industries, Ocma, Radius HDD Direct, Raymonds Supply, Schlumberger, Sovonex Technology, Tasman Oil Tools, Titan Tools Services Ltd, Torquato, TRANSCO, and Transco Manufacturing.

Key manufacturers are always developing new product designs to address today's problems in terms of component placement in tough environments. Companies are forming productive relationships and collaborations with governments and end-use industries such as mining and oil & gas.

Market participants are focusing on expanding their product offerings due to the increased demand for hole openers from a variety of end-use industries, both offshore and onshore. They are also using their capital and resources on R&D while attempting to increase their geographical footprint.

For instance :

• In March 2022, Schlumberger was awarded a gas drilling project by Saudi Aramco. To improve customer performance, the integrated well construction project will employ specialized drilling technology, digital solutions, and regional domain experience.
• In Sept. 2021, Epiroc unveiled the Valoria VA20, a brand-new water well drilling rig. Africa, Asia, the Middle East, South America, and Latin America are among the markets where the all-new VA20 rig is offered.

Fact.MR has provided detailed information about the price points of key manufacturers of hole openers positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Hole Opener Industry Research

• Hole Opener Market by Cutter Type :

  • Roller Cone Cutters
    • Mill Tooth
      • Interrupted
      • Uninterrupted
    • TCI (Tungsten Carbide Inserts)
  • Drag Cutters
    • PDC (Polycrystalline Diamond Compact)
    • ADD (Advanced Drilling Design)

• Hole Opener Market by Number of Cutter :

  • Up to 3 Cutter Hole Openers
  • 3 to 5 Cutter Hole Openers
  • Above 5 Cutter Hole Openers

• Hole Opener Market by Diameter Size :

  • Less than 20 Inch Hole Openers
  • 20 to 40 Inch Hole Openers
  • Above 40 Inch Hole Openers

• Hole Opener Market by Deployment :

  • Onshore Hole Openers
  • Offshore Hole Openers

• Hole Opener Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA