USD 7.62 billion
Directional Drilling Services Market Size, Share, Growth Analysis, By Type(Conventional, and Rotary Steerable Systems (RSS)), By Location(Onshore, and Offshore), By Well Type(Horizontal, Multilateral, and Extended Reach), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20G2046 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|Tables:
88
|Figures:
72
Directional Drilling Services Market Insights
Global Directional Drilling Services Market size was valued at USD 7.62 billion in 2022 and is poised to grow from USD 8.68 billion in 2023 to USD 24.41 billion by 2031, growing at a CAGR of 13.8% in the forecast period (2024-2031).
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.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Onshore
Fastest Growth
Offshore
Growth Rate
13.8% CAGR
Global Directional Drilling Services Market ($ Bn)
Country Share for North America Region (%)
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Directional Drilling Services Market Segmental Analysis
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.
Global Directional Drilling Services Market By Location
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Directional Drilling Services Market Regional Insights
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.
Global Directional Drilling Services Market By Region
- Largest
- Fastest
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Directional Drilling Services Market Dynamics
Drivers
Increasing Oil & Gas Exploration Activity
- Surging demand for energy from a rapidly expanding world population has resulted in high investments in the oil & gas industry to increase oil & gas exploration activity, which is projected to be a key factor driving directional drilling services demand outlook.
Advancements in Drilling Technology
- Drilling systems are becoming more and more advanced by the day as drilling technology advances around the world. Availability of novel drilling fluids and technologies that allow drilling companies to monitor real-time measurements whilst drilling are some examples how advancements could bolster market growth in the future.
Restraints
Regulatory Challenges
- Drilling operations if not carried out properly could lead to severe damages to the environment as well as the ecosystem in the drilling area and this is why governments around the world are implementing stringent regulations to monitor responsible drilling, which could slow down directional drilling services market growth in the future.
Volatile Oil & Gas Pricing
- While majority of drilling services are required in the oil & gas industry, the volatile nature of oil & gas prices could hamper directional drilling services market growth potential in the future. Moreover, increasing focus on sustainability and adoption of electric vehicles could also destabilize the oil & gas industry and hurt the demand for directional drilling services.
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Directional Drilling Services Market Competitive Landscape
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
- Nabors Industries Ltd.
- Halliburton Company
- Scientific Drilling
- Schlumberger Limited
- NewTech Services
- Jindal Drilling & Industries Limited
- Baker Hughes Incorporated
- Leam Drilling Systems LLC
- General Electric Oil & Gas
- Gyrodata
- National Oilwell Varco
- China Oilfield Services Limited
- Weatherford International Plc
- Phoenix Technology Services
- Integra
- Cathedral Energy Services Ltd
Recent Developments
- Schlumberger, a renowned provider of drilling services and products, announced the launch of its new autonomous directional drilling services in August 2021. The launch was part of Schlumberger’s efforts to bolster digital transformation and enhance drilling process efficiency.
- In March 2021, Enteq Technologies, a leading name in the energy technology space, announced the launch of a new directional drilling system named SABER Tool. The system uses internally directed pressure differential to function smoothly.
Directional Drilling Services Key Market Trends
- Use of Advanced Drilling Technology: Companies providing directional drilling services could focus on incorporating automated and advanced drilling technologies to improve their business scope and revenue generation potential going forward. Integration of advanced drill bits with automated drilling machines could help companies maximize their productivity and profitability in the long run. Directional drilling service providers need to leverage advanced drilling technology to enhance their business potential over the coming years.
Directional Drilling Services Market SkyQuest Analysis
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 |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Directional Drilling Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Directional Drilling Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
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.
Analyst Support
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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