Directional Drilling Services Market Size (2024 - 2029)

The directional drilling services market is poised for growth, driven by the need to enhance production from unconventional reserves through techniques that increase contact with pay zones. Despite challenges such as volatile crude oil prices and limited investments outside North America, the market is expected to expand, particularly in the offshore segment due to reduced operational costs. Technological advancements and the viability of deepwater projects are opening new markets, contributing to the market's expansion. North America, especially the United States and Canada, is anticipated to maintain its leading position in the global market.

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Market Size of Directional Drilling Services Industry

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Directional Drilling Services Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 6.00 %
Fastest Growing Market Middle East and Africa
Largest Market North America
Market Concentration Low

Major Players

Directional Drilling Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Directional Drilling Services Market Analysis

The directional drilling services market is expected to witness a CAGR of approximately 6% during the forecast period, 2022-2027. The COVID-19 outbreak witnessed a severe impact on the market due to stringent lockdown protocols implemented by respective governments. Factors such as drilling in unconventional reserves, which involve directional or horizontal drilling to increase contact with the pay zone, and increase the production significantly are expected to drive the directional drilling services market during the forecast period. Moreover, global crude oil demand is expected to grow by 1.2 mb/d in the next four years. Increasing pressure among the top oil and gas operating companies to increase their production is further promulgating the market. However, the volatile crude oil prices and low investments in regions excluding North America are likely to hinder the growth of the market being studied.

  • The offshore segment is expected to witness significant growth during the forecast period, owing to the cost of operation in the offshore locations declining significantly over the past few years. This factor is encouraging the industry to step up its expenditure gradually in the future and drive the directional drilling services market.
  • Factors, such as technological improvements and increasing viability of deepwater and ultra-deepwater projects, several new markets, such as Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Mexican side of the Gulf of Mexico are actively promoting the development of deepwater and ultra-deepwater reserves. This, in turn, is expected to create significant opportunities for the operating countries in the near future.
  • North America is expected to continue its dominance of the directional drilling services market globally, with the majority of the demand coming from the United States and Canada due to increasing horizontal and directional drilling activities.

Directional Drilling Services Industry Segmentation

The directional drilling services market report includes:

Location of Deployment
Onshore
Offshore
Type
Rotory Steerable System (RSS)
Conventional
Geography
North America
Asia-Pacific
Europe
South America
Middle-East and Africa
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Directional Drilling Services Market Size Summary

The directional drilling services market is poised for growth, driven by the increasing need to tap into unconventional reserves through horizontal drilling techniques. This approach enhances contact with pay zones, significantly boosting production levels. The demand for crude oil is anticipated to rise, prompting oil and gas companies to intensify their production efforts, thereby fueling the market's expansion. However, challenges such as fluctuating crude oil prices and limited investments outside North America may impede growth. The offshore segment is expected to experience substantial growth due to reduced operational costs in offshore locations, encouraging increased expenditure in this area. Technological advancements and the growing feasibility of deepwater and ultra-deepwater projects are opening new markets, offering significant opportunities for industry players.

North America is expected to maintain its leadership in the directional drilling services market, with the United States and Canada being the primary contributors due to their robust horizontal and directional drilling activities. The offshore oil and gas sector, accounting for a significant portion of global crude oil production, is witnessing a shift towards deepwater resources due to declining production costs and favorable economic conditions. This shift is expected to drive demand for directional drilling services in deepwater areas. The market is moderately fragmented, with major players like Schlumberger Ltd, Weatherford International PLC, Halliburton Company, and Baker Hughes Company leading the industry. Strategic agreements, such as Nabors Industries Ltd's partnership with Chesapeake Energy Corporation, are likely to further expand business portfolios and enhance market presence.

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Directional Drilling Services Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Shale Reserve by Country

    3. 1.3 Technological Advancements in Directional Drilling

    4. 1.4 Market Size and Demand Forecast in USD billion, till 2027

    5. 1.5 Onshore CAPEX Forecast in USD billion, till 2027

    6. 1.6 Offshore CAPEX Forecast in USD billions, by Regions, 2019-2027

    7. 1.7 Key Upstream Projects

    8. 1.8 Recent Trends and Developments

    9. 1.9 Market Dynamics

      1. 1.9.1 Drivers

      2. 1.9.2 Restraints

    10. 1.10 Supply Chain Analysis

    11. 1.11 Porter's Five Forces Analysis

      1. 1.11.1 Bargaining Power of Suppliers

      2. 1.11.2 Bargaining Power of Consumers

      3. 1.11.3 Threat of New Entrants

      4. 1.11.4 Threat of Substitutes Products and Services

      5. 1.11.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Location of Deployment

      1. 2.1.1 Onshore

      2. 2.1.2 Offshore

    2. 2.2 Type

      1. 2.2.1 Rotory Steerable System (RSS)

      2. 2.2.2 Conventional

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Asia-Pacific

      3. 2.3.3 Europe

      4. 2.3.4 South America

      5. 2.3.5 Middle-East and Africa

Directional Drilling Services Market Size FAQs

The Directional Drilling Services Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

Schlumberger Ltd, Weatherford International PLC, Halliburton Company, Baker Hughes Company and China Oilfield Services Limited are the major companies operating in the Directional Drilling Services Market.

Directional Drilling Services Market Report Snapshots

Directional Drilling Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)