Market Size of North America Directional Drilling Services Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Directional Drilling Services Market Analysis
The North America directional drilling services market is expected to register a CAGR of more than 4.5% 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 of the countries in North Ameria. Factors such as drilling in unconventional reserves, which involves directional or horizontal type drilling to increase contact with the pay zone along with increasing the production is expected to drive the directional drilling services market in North America during the forecast period. However, the high volatility of crude oil prices and low-price scenarios (operators cut-down the drilling and porduction activities) in countries like United States, Canada, etc. is expected to hinder the market growth during the forecast period.
- Offshore segment is expected to witness significant growth during the forecast period, owing 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 in North American region.
- Factors, such as technological improvements and increasing viability of deepwater and ultra-deepwater projects, several new markets, such as Gulf of Mexico is 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.
- United States is expected to continue its dominance for directional drilling services market in North American region during the forecast period.
North America Directional Drilling Services Industry Segmentation
The North America directional drilling services market report includes:
North America Directional Drilling Services Market Size Summary
The North America directional drilling services market is poised for growth, driven by the increasing need to explore unconventional reserves and enhance production efficiency. The market experienced a setback due to the COVID-19 pandemic, which imposed strict lockdowns across the region. However, the demand for directional drilling services is expected to rise as companies focus on drilling in unconventional reserves, utilizing horizontal and directional drilling techniques to maximize contact with pay zones. Despite challenges such as crude oil price volatility, which can lead to reduced drilling activities, the market is anticipated to grow steadily. The offshore segment, in particular, is expected to see significant expansion due to declining operational costs and technological advancements that make deepwater and ultra-deepwater projects more viable. The Gulf of Mexico remains a key area for offshore exploration, contributing to the market's growth prospects.
The United States is expected to maintain its dominance in the North American directional drilling services market, supported by its vast shale gas and tight oil reserves. Technological advancements in hydraulic fracturing and horizontal drilling have significantly boosted production, making unconventional reserves more accessible and profitable. The country's strategic focus on becoming a net energy exporter further fuels the demand for directional drilling services. The market is moderately fragmented, with major players like Schlumberger, Weatherford, Halliburton, and Baker Hughes actively participating. Recent contractual agreements and technological innovations, such as the extended use of horizontal directional drilling in Canada, highlight the ongoing efforts to expand and optimize drilling operations across the region. These developments are expected to drive the market forward, despite the challenges posed by fluctuating oil prices and the need for cost-effective drilling solutions.
North America Directional Drilling Services Market Size - Table of Contents
-
1. MARKET OVERVIEW
-
1.1 Introduction
-
1.2 Market Size and Demand Forecast in USD billion, till 2027
-
1.3 Upstream Oil & Gas CAPEX Analysis, North America, till 2027
-
1.4 Recent Trends and Developments
-
1.5 Government Policies and Regulations
-
1.6 Market Dynamics
-
1.6.1 Drivers
-
1.6.2 Restraints
-
-
1.7 Supply Chain Analysis
-
1.8 Porter's Five Forces Analysis
-
1.8.1 Bargaining Power of Suppliers
-
1.8.2 Bargaining Power of Consumers
-
1.8.3 Threat of New Entrants
-
1.8.4 Threat of Substitutes Products and Services
-
1.8.5 Intensity of Competitive Rivalry
-
-
North America Directional Drilling Services Market Size FAQs
What is the current North America Directional Drilling Services Market size?
The North America Directional Drilling Services Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in North America Directional Drilling Services Market?
Weatherford International plc, Halliburton Company, Baker Hughes Co, KLX Energy Services Holdings, Inc. and Schlumberger NV are the major companies operating in the North America Directional Drilling Services Market.
