Land Drilling Rigs Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 43.62 Billion |
| Market Size (2029) | USD 51.70 Billion |
| CAGR (2024 - 2029) | 3.46 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Land Drilling Rigs Market Analysis
The Land Drilling Rig Market size is estimated at USD 43.62 billion in 2024, and is expected to reach USD 51.70 billion by 2029, growing at a CAGR of 3.46% during the forecast period (2024-2029).
- Over the medium period, the land rig market has evolved significantly in recent years with the increasing use of high horsepower and hi-tech rigs and the increasing demand for heavy rigs. Moreover, exploiting unconventional reserves to meet the increasing demand for crude oil and natural gas is expected to create significant demand for the land drilling rig market during the forecast period.
- On the other hand, the global shift towards renewable energy sources for electricity generation poses a huge threat to the oil and gas sector, which, in turn, is expected to be a major challenge for the growth of the land drilling rig market during the forecast period.
- Nevertheless, the high-volume and demand markets in Asia-Pacific and the Middle Eastern regions are investing highly in midstream infrastructure. New infrastructure and relatively robust CAPEX budgets provide rigs opportunities to enter/re-enter these geographies.
- North America is one of the largest markets for land drilling rigs, led by the United States, mainly due to increased exploration and production activities of its tight oil and shale reserves.
Land Drilling Rigs Market Trends
The Mobile Rig Segment to Dominate the Market
- A portable or mobile rig is a truck-mounted unit that contains the derrick, draw-works, and mud pumps. The principal advantage of the portable rig includes low rig-up and rig-down time, as well as lower truck hire requirements.
- Portable rigs are used frequently in workover operations and when drilling to depths of about 10,000 ft. The rigs may be used on an 8, 12, or 24-hr/day basis and have several advantages over conventional rigs.
- Many land rig contractors have upgraded their fleet with higher-horsepower new builds, adding more powerful rigs with advanced technological capabilities, from top drives to automated pipe handling and the mobility to quickly move from one well site to another.
- According to Baker Hughes, as of October 2023, the total land rig counts accounted for 736 units, approximately 75% of the total rig counts. With the increasing rig counts on the land region, drilling and production activity are expected to be in demand, which, in turn, will drive the land drilling rig market.
- Moreover, as drilling in unconventional reserves is gradually gaining momentum in countries (other than the United States) such as Canada, China, and Argentina, portable rigs with high-tech rig designs and bigger horsepower are expected to create a significant opportunity for the mobile rigs soon.
- Also, the increasing crude oil prices have favored the gradual shift towards developing unconventional fields. As a result, the upcoming projects in unconventional reserves are expected to drive the demand in the land drilling market.
- Thus, owing to the above points, the mobile rig segment is expected to dominate the market in the forecast period.
North America to Dominate the Market
- Drilling activities in North America have increased amid rising oil and gas prices. The North American land rig count reached 897 in 2022, i.e., an increase of around 48% from 2021.
- The United States has increased its drilling activity and has the highest active rig counts. As of June 2023, the active rig count increased by around 9%, i.e., the count crossed 687, resulting in high demand for drilling rigs.
- Technological improvements in hydraulic fracturing and low breakeven prices support the robust drilling activity in the country. As a result, fleet utilization in the country rose to 46% after two years of decline. The increasing share of horizontal drilling in the United States has resulted in high demand for high-specification drilling rigs.
- In addition to receiving new rig orders, some large contractors upgrade their rigs to meet these requirements. As the United States drills better in the coming years, the demand for high-spec drilling rigs is expected to grow.
- Also, there is a significant potential growth for rig demand in Canada, driven by the start-up and expansion of numerous planned oil sand projects, leading to the development of the land drilling rig market during the forecast period.
- Therefore, based on the factors mentioned above, North America is expected to dominate the global land drilling rig market during the forecast period.
Land Drilling Rigs Industry Overview
The land drilling rig market is moderately consolidated. The key players in the market (in no particular order) include Nabors Industries Ltd, Helmerich & Payne Inc., Schlumberger Limited, Saipem SpA, and Weatherford International PLC, among others.
Land Drilling Rigs Market Leaders
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Schlumberger Limited
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Saipem SpA
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Nabors Industries Ltd.
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Weatherford International PLC
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Helmerich & Payne, Inc.
*Disclaimer: Major Players sorted in no particular order
Land Drilling Rigs Market News
- March 2023: The Oil and Natural Gas Corporation (ONGC) received ten indigenous rigs from Megha Engineering and Infrastructure Limited (MEIL) to explore oil and natural gas in its onshore fields in the Krishna-Godavari basin.
- March 2023: Adnoc Drilling Company, a subsidiary of Adnoc Group, agreed to purchase ten newbuild hybrid power land drilling rigs for USD 252 million. China Petroleum Technology and Development Corporation in China will create the newbuild hybrid power rigs, which will have the Fast Desert Moving design and the ability to work in cluster wells.
- December 2022: KCA Deutag received contract awards and extensions totaling over USD 85 million in Oman, Northern Iraq, and Europe. Three rigs (T849, T858, and T899) have been extended for seven years of work in Oman. KCA Deutag's Kenera business unit will also provide a grid container for rig T-899.
Land Drilling Rigs Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2028
- 4.3 Global Onshore Active Rig Count of Major Countries, till 2022
- 4.4 Onshore CAPEX Forecast in USD billion, till 2028
- 4.5 Recent Trends and Developments
- 4.6 Government Policies and Regulations
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4.7 Market Dynamics
- 4.7.1 Drivers
- 4.7.1.1 Increasing Use of High Horsepower and Hi-Tech Rigs
- 4.7.1.2 Exploiting Unconventional Reserves
- 4.7.2 Restraints
- 4.7.2.1 The Global Shift Towards Renewable Energy Sources
- 4.8 Supply Chain Analysis
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4.9 Porter's Five Forces Analysis
- 4.9.1 Bargaining Power of Suppliers
- 4.9.2 Bargaining Power of Consumers
- 4.9.3 Threat of New Entrants
- 4.9.4 Threat of Substitutes Products and Services
- 4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Conventional
- 5.1.2 Mobile
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5.2 Drive Mode
- 5.2.1 Mechanical
- 5.2.2 Electrical
- 5.2.3 Compound
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Rest of the North America
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 France
- 5.3.2.3 Italy
- 5.3.2.4 Germany
- 5.3.2.5 Rest of the Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 South Korea
- 5.3.3.4 Rest of the Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of the South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 Saudi Arabia
- 5.3.5.3 Iran
- 5.3.5.4 Iraq
- 5.3.5.5 Qatar
- 5.3.5.6 Rest of the Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Nabors Industries Ltd
- 6.3.2 Helmerich & Payne Inc.
- 6.3.3 Eurasia Drilling Company Limited
- 6.3.4 Ensign Energy Services Inc.
- 6.3.5 Precision Drilling Corp.
- 6.3.6 Patterson-UTI Energy Inc.
- 6.3.7 Schlumberger Limited
- 6.3.8 Saipem SpA
- 6.3.9 Weatherford International PLC
- 6.3.10 KCA Deutag Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 New Infrastructure and Relatively Robust CAPEX Budgets
Land Drilling Rigs Industry Segmentation
A drilling rig is machinery used to bore a wellbore. The mud tanks and pumps, the derrick, the draw works, the rotary table, the drill string, the power generation equipment, and the auxiliary equipment are all a drilling rig's components.
The land drilling rig market is segmented by type, drive mode, and geography. By type, the market is segmented into conventional and mobile. The market is segmented by drive mode into mechanical, electrical, and compound. The report also covers the market size and forecasts for the land drilling rig market across major regions. The market sizing and forecasts have been done for each segment based on revenue (USD).
| Type | Conventional | |
| Mobile | ||
| Drive Mode | Mechanical | |
| Electrical | ||
| Compound | ||
| Geography | North America | United States |
| Canada | ||
| Rest of the North America | ||
| Geography | Europe | United Kingdom |
| France | ||
| Italy | ||
| Germany | ||
| Rest of the Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| South Korea | ||
| Rest of the Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of the South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| Iran | ||
| Iraq | ||
| Qatar | ||
| Rest of the Middle-East and Africa |
Land Drilling Rigs Market Research FAQs
How big is the Land Drilling Rig Market?
The Land Drilling Rig Market size is expected to reach USD 43.62 billion in 2024 and grow at a CAGR of 3.46% to reach USD 51.70 billion by 2029.
What is the current Land Drilling Rig Market size?
In 2024, the Land Drilling Rig Market size is expected to reach USD 43.62 billion.
Who are the key players in Land Drilling Rig Market?
Schlumberger Limited, Saipem SpA, Nabors Industries Ltd., Weatherford International PLC and Helmerich & Payne, Inc. are the major companies operating in the Land Drilling Rig Market.
Which is the fastest growing region in Land Drilling Rig Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Land Drilling Rig Market?
In 2024, the North America accounts for the largest market share in Land Drilling Rig Market.
What years does this Land Drilling Rig Market cover, and what was the market size in 2023?
In 2023, the Land Drilling Rig Market size was estimated at USD 42.11 billion. The report covers the Land Drilling Rig Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Land Drilling Rig Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key segments covered in the Land Drilling Rigs Market report?
The key segments covered in the Land Drilling Rigs Market report are a) Type: Conventional Rigs and Mobile Rigs b) Application: Oil and Gas Industry, Metal and Mining Industry, Construction and Building
Land Drilling Rig Industry Report
The Land Drilling Rigs Market is segmented by type, including conventional and mobile rigs, and by application across industries such as oil and gas, metal and mining, and construction. The market's growth rate is driven by increasing demand and advancements in high-tech rigs, particularly with the exploitation of unconventional reserves. Key market trends include the dominance of mobile rigs, which offer reduced rig-up and rig-down time, and the increasing investment in midstream infrastructure in high-demand regions.
The industry analysis reveals a competitive landscape featuring major players evaluated on their product offerings, financial health, and strategic market positioning. The market overview includes a detailed segmentation to facilitate targeted marketing strategies for land rig drilling companies. The market forecast and industry outlook indicate significant growth potential, with market leaders poised to capitalize on emerging opportunities.
The market report provides comprehensive industry information, including market data, market growth, market value, and market predictions. Additionally, the market review and market segmentation highlight the various factors influencing market dynamics. The report example and report PDF offer a detailed analysis of market trends, industry reports, industry research, and industry statistics.
Research companies will find valuable insights in the market analysis, which includes a market forecast outlook and historical overview. The industry reports and industry sales data provide a thorough understanding of market size and market share. The industry trends and market outlook suggest a positive trajectory for the land drilling rigs market, with significant market growth expected in the coming years.
