Market Size of Rotary Drilling Rig Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 3.50 % |
| Fastest Growing Market | Middle-East and Africa |
| Largest Market | North America |
| 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?
Rotary Drilling Rig Market Analysis
The rotary drilling market is expected to register a CAGR of more than 3.5% over the period of 2022-2027. On account of the COVID-19 pandemic in 2020, the market witnessed a negative impact, with a suspension of various oil and gas projects. Moreover, major companies such as Saudi Aramco, Exxon Mobil, and Royal Dutch Shell, announced a drop of 22%, from their initial spending plans of USD 175 billion for 2020. Factors, such as improved viability of deepwater and ultra-deepwater projects and the global demand for oil, which is expected to witness an annual growth rate of 1.2 million barrels per day (mbd) till 2023, are likely to drive the rotary drilling rig market during the forecast period. However, over the years, countries across the world have witnessed rapid growth in the renewable energy sector, owing to strong policy support and sharp cost reductions. Moreover, governments of various countries are increasingly shifting toward cleaner energy sources, in order to reduce the emission levels from conventional fuels. This, in turn, is expected to hinder the market during the forecast period.
- The offshore drilling activities are expected to witness a significant growth rate over the forecast period owing to the upcoming exploration and production projects in countries, such as Brazil, Nigeria, and others.
- To meet the expected oil demand in the future, opportunities lie in offshore deep-sea beds, where oil and gas operators continue to discover new reserves. Globally, very few onshore regions are left yet-to-be-explored by oil companies. Hence, the offshore region is expected to provide an opportunity for the rotary drilling rig market.
- North America is expected to be the largest market for the rotary drilling rig market, with the majority of demand coming from the United States and Canada.
Rotary Drilling Rig Industry Segmentation
The rotary drilling rig market report includes:
| Location of Deployement | |
| Onshore | |
| Offshore |
| Application | |
| Oil and Gas | |
| Mining | |
| Others |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Rotary Drilling Rig Market Size Summary
The rotary drilling rig market is poised for growth, driven by the increasing demand for oil and gas, particularly in offshore regions. Despite the initial setbacks caused by the COVID-19 pandemic, which led to a reduction in spending by major oil companies, the market is expected to recover and expand. The viability of deepwater and ultra-deepwater projects, along with the discovery of new reserves, is anticipated to bolster the market. However, the shift towards renewable energy sources and government policies aimed at reducing emissions from conventional fuels pose challenges to the market's growth trajectory. The offshore drilling sector, especially in regions like Brazil and Nigeria, is expected to see significant growth, providing opportunities for rotary drilling rig operators.
North America is projected to be the largest market for rotary drilling rigs, with the United States and Canada leading in demand. The region's dominance is attributed to its substantial oil and gas production, driven by activities in shale gas and tight oil plays. The development of these resources, coupled with increased offshore drilling activities, is expected to sustain the market's growth in North America. The market is moderately fragmented, with key players such as Schramm Inc., BAUER AG, and Caterpillar Inc. actively participating. Investments in new exploratory wells, particularly in the Gulf of Mexico and offshore Canada, are likely to further enhance the demand for rotary drilling services during the forecast period.
Rotary Drilling Rig Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitutes Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Location of Deployement
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2.1.1 Onshore
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2.1.2 Offshore
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2.2 Application
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2.2.1 Oil and Gas
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2.2.2 Mining
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2.2.3 Others
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2.3 Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 South America
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2.3.5 Middle-East and Africa
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Rotary Drilling Rig Market Size FAQs
What is the current Rotary Drilling Rig Market size?
The Rotary Drilling Rig Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Rotary Drilling Rig Market?
Schramm, Inc. , BAUER AG , Caterpillar , SANY Group Co., Ltd and Zoomlion Heavy Industry Science&Technology Co., Ltd. are the major companies operating in the Rotary Drilling Rig Market.
