Land Drilling Rig Market Size (2024 - 2029)

The land drilling rig market is projected to experience growth over the forecast period, driven by the increasing demand for high horsepower and hi-tech rigs, as well as the need to exploit unconventional reserves for crude oil and natural gas. Despite the challenges posed by the global shift towards renewable energy sources, which threatens the oil and gas sector, the market is supported by significant investments in midstream infrastructure, particularly in the Asia-Pacific and Middle Eastern regions. North America, especially the United States, remains a major market due to its active exploration and production of tight oil and shale reserves.

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Market Size of Land Drilling Rig Industry

Land Drilling Rig Market Summary
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

Land Drilling Rig Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
Europe
United Kingdom
France
Italy
Germany
Rest of the Europe
Asia-Pacific
China
India
South Korea
Rest of the Asia-Pacific
South America
Brazil
Argentina
Rest of the South America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Iran
Iraq
Qatar
Rest of the Middle-East and Africa
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Land Drilling Rig Market Size Summary

The land drilling rig market is poised for growth over the forecast period, driven by the increasing demand for high horsepower and technologically advanced rigs. The market is experiencing a shift towards the exploitation of unconventional reserves to meet the rising demand for crude oil and natural gas. This trend is expected to bolster the market, despite the challenges posed by the global transition towards renewable energy sources. The Asia-Pacific and Middle Eastern regions are particularly promising, with significant investments in midstream infrastructure and robust capital expenditure budgets, providing opportunities for rigs to enter or re-enter these markets. North America, led by the United States, remains a key player due to its active exploration and production activities in tight oil and shale reserves.

The mobile rig segment is anticipated to dominate the market, supported by the increasing rig counts and the demand for drilling and production activities. Portable rigs, known for their low rig-up and rig-down times, are frequently used in workover operations and are gaining traction in unconventional reserves in countries like Canada, China, and Argentina. The rise in crude oil prices is encouraging the development of unconventional fields, further driving demand in the land drilling market. North America is expected to maintain its dominance, with significant potential growth in Canada due to planned oil sand projects. The market is moderately consolidated, with key players like Nabors Industries Ltd, Helmerich & Payne Inc., and Schlumberger Limited leading the charge. Recent developments, such as new rig orders and upgrades, underscore the market's dynamic nature and the ongoing demand for high-specification drilling rigs.

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Land Drilling Rig Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD, till 2028

    3. 1.3 Global Onshore Active Rig Count of Major Countries, till 2022

    4. 1.4 Onshore CAPEX Forecast in USD billion, till 2028

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

        1. 1.7.1.1 Increasing Use of High Horsepower and Hi-Tech Rigs

        2. 1.7.1.2 Exploiting Unconventional Reserves

      2. 1.7.2 Restraints

        1. 1.7.2.1 The Global Shift Towards Renewable Energy Sources

    8. 1.8 Supply Chain Analysis

    9. 1.9 Porter's Five Forces Analysis

      1. 1.9.1 Bargaining Power of Suppliers

      2. 1.9.2 Bargaining Power of Consumers

      3. 1.9.3 Threat of New Entrants

      4. 1.9.4 Threat of Substitutes Products and Services

      5. 1.9.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Conventional

      2. 2.1.2 Mobile

    2. 2.2 Drive Mode

      1. 2.2.1 Mechanical

      2. 2.2.2 Electrical

      3. 2.2.3 Compound

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Rest of the North America

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 France

        3. 2.3.2.3 Italy

        4. 2.3.2.4 Germany

        5. 2.3.2.5 Rest of the Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 India

        3. 2.3.3.3 South Korea

        4. 2.3.3.4 Rest of the Asia-Pacific

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of the South America

      5. 2.3.5 Middle-East and Africa

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 Iran

        4. 2.3.5.4 Iraq

        5. 2.3.5.5 Qatar

        6. 2.3.5.6 Rest of the Middle-East and Africa

Land Drilling Rig Market Size FAQs

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.

In 2024, the Land Drilling Rig Market size is expected to reach USD 43.62 billion.

Land Drilling Rig Market Report Snapshots

Land Drilling Rig Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)