Directional Drilling Market Size, Share, Growth Analysis, By Type(Conventional, and Rotary Steerable Systems), By Location(Onshore, and Offshore), By Service(Measurement While Drilling (MWD), Logging While Drilling (LWD), Rotary Steerable Systems (RSS), Mud Motors), By Region - Industry Forecast 2024-2031

Drivers

• Increasing Investment in Untapped Oil and Gas to Accelerate Market Growth

The expansion of the oil and gas industry has created a worldwide demand for energy. Over the years, oil & gas has been widely used in power generation, manufacturing, transportation, and other end-use industries. However, the huge demand for unconventional fuels such as shale gas, tight gas, coal bed methane due to increasing urbanization, globalization and high economic growth is estimated to lead to negative market growth that many countries are increasing their capital expenditures (CAPEX) to secure the inflow of energy. Hydrocarbons, offshore oil and gas have proven to be the most efficient and reliable source of energy attracting many investors and oil and gas companies so growing interest in oil is expected and scrap gas will drive the market size.

• Increased Energy Requirements

The United Nations predicts that the world population will increase from 6.7 billion in 2011 to 8.7 billion in 2035. During that time, energy demand should increase dramatically. Population growth and high living standards for many people in developing countries will lead to a significant increase in energy demand. More than 70% of the increase in energy demand comes from developing countries led by China and India. United Nations Organization (UNO) estimates show that urbanization continues, from 52% in 2011 to 62% in 2035 to 70% of the world by 2050. Moreover, by 2040, the global urban population has nearly doubled.

Restraints

• Volatility in Oil Prices and Rise in New Energy Generation Technologies

Oil prices depend on oil demand and supply and fluctuate frequently. Higher oil prices stifle the inflow of jobs and investment, and the mining industry. The significant increase in alternative energy technologies such as solar, wind and hydro will reduce their reliance on oil & gas, which could affect oil refinery operations. Thus, volatility in oil prices and development of new energy generation technologies restrain the market growth during the forecast period.