USD 7.62 billion
Report ID:
SQMIG20G2046 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|Tables:
88
|Figures:
72
Directional Drilling Services Market size was valued at USD 8.68 Billion in 2023 and is poised to grow from USD 9.88 Billion in 2024 to USD 27.78 Billion by 2032, growing at a CAGR of 13.8% during the forecast period (2025-2032).
The directional drilling services market is increasing at a healthy pace due to its growing importance in onshore and offshore oil and gas exploration activities. Also, increasing utilization of these systems in underground activities such as building, surveying, and cable installation is contributing to the overall market growth. The North American region is the most profitable marketplace for directional drilling service providers to earn high profits. This can be due to the presence of major end-use industries. As the world population is exhibiting continuous growth, the need for energy is increasing. Directional drilling services are likely to witness major demand in emerging economies due to the increasing need for power. The oil and gas industry across the globe is also a major consumer of directional drilling services. Furthermore, technological advancements are leading to the development of drilling systems with improved performance. Integration of technologies such as real-time data monitoring and measurement while drilling is boosting the overall efficiency of drilling services.
Global Market Size
USD 7.62 billion
Largest Segment
Onshore
Fastest Growth
Offshore
Growth Rate
13.8% CAGR
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The global directional drilling services market is segmented based on type, location, well type, and region. In terms of type, the market is segmented into conventional and rotary steerable systems (RSS). Based on location, the market is bifurcated into onshore and offshore. Based on well type, the market is bifurcated into horizontal, multilateral, and extended reach. Based on region, the market is segmented into Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa.
Analysis by Type
The conventional segment is currently holding a major share of the directional drilling service market. Conventional drilling services are cost-effective. These drilling systems are integrated with various equipment such as mud motors, specific drill bits, whipstocks, and more to stray the wellbore. Its versatility and cost-effectiveness are likely to continue its market dominance throughout the forecast period. Conventional drilling technologies are built in such a way that hardly disturbs the overall surface. The reduced environmental impact leads to the popularity of conventional drilling services.
Rotary steerable system sales are likely to expand at a fast CAGR during the study period. Improved drilling outcomes, correct wellbore placement, easy adaptability to complex reservoirs, and integration of advanced technologies such as real-time data analysis, sensors, and automation are majorly boosting the demand for rotary steerable systems. Rotary steerable systems are widely popular in the oil and gas industry. Their feature to adjust the drilling process in real time is set to increase their importance in end-use industries.
Analysis by Location
The onshore segment holds a high share of the global directional drilling services market. Onshore regions have a high presence of oil and gas reserves. This increases the onshore oil and gas exploration activities leading to high use of directional drilling services. Directional drilling services aid in reducing the complexities associated with working in the onshore region. Working in the onshore region also requires less upfront costs associated with exploration and production. This results in cost savings and high operational activities.
Access to remote services and the ability to work in complex geographical areas are driving the sales of directional drilling services in offshore locations. Offshore locations are often complex to work in due to their structure and formations. Advanced direct drilling systems effectively operate in such areas and maximize the production of offshore wells. Offshore drilling activities adhere to strict environmental regulations. Drilling multiple wells from a single offshore platform further helps to minimize the environmental impact.
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The North American region holds a dominant share of the global directional drilling services market. North America, particularly the United States and Canada is witnessing robust demand for directional drilling services. The ongoing shale gas exploration projects are fueling the market growth in North America. The growing popularity of well pad development is further increasing the need for directional drilling services. The operators in North America seek to maximize reservoir recovery, and directional drilling allows for the precise targeting of specific zones within reservoirs
Demand for directional drilling services is increasing at a rapid pace in the Asia Pacific region, driven by the ongoing infrastructure development projects including the construction of transportation networks or pipelines. India and China are some of the key countries in the Asia Pacific region witnessing high demand for directional drilling services. The rising energy demand due to rapid urbanization and industrialization is leading to a high need for directional drilling services. Increasing investments in shale gas and oil exploration projects are further creating opportunities for directional drilling services providers in the Asia Pacific region.
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Drivers
Increasing Oil & Gas Exploration Activity
Advancements in Drilling Technology
Restraints
Regulatory Challenges
Volatile Oil & Gas Pricing
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Directional drilling service providers can focus on providing custom services to different industries that will help them maximize their business potential on a global scale. Companies can also leverage automated drilling systems and use advanced drilling technologies to maximize their revenue generation potential. Directional drilling services market players can also utilize specialized drilling equipment to improve the efficacy of their services and give the best experience to their users. Collaborations, alliances, and partnerships could also be attractive strategies that allow directional drilling service companies to enter new markets and expand their business presence on a global level.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per our analysis, the global demand for directional drilling services is projected to be driven on the back of rapidly rising demand for energy and growing infrastructure development activity around the world. Advancements in drilling technology will also play a crucial role in determining future directional drilling services demand outlook. However, regulatory challenges are estimated to slow down the directional drilling services market growth in the future. North America accounts for the highest share of the global directional drilling services market owing to the presence of a robust oil & gas industry and quick adoption of advanced drilling technologies. Companies should focus on incorporating automated drilling systems and advanced drilling technologies to maximize their business potential in the long run.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 7.62 billion |
Market size value in 2031 | USD 24.41 billion |
Growth Rate | 13.8% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Directional Drilling Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Directional Drilling Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Directional Drilling Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Directional Drilling Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG20G2046
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