DIRECTIONAL DRILLING SOLUTIONS & SERVICES MARKET ANALYSIS

Global directional drilling solutions & services market generated revenue of US$ 11.23 billion in 2021. By 2030, the directional drilling solutions & services market is expected to be valued at US$ 25.05 billion with a CAGR of 9.5% over the forecast period. Rental segment in the market is expected to exhibit the highest growth rate during the forecast period. As costs of purchasing directional drilling equipment such as rotary steerable systems and mud motors is quite high, preference is being given to rental services wherein required tools and services can be rented out as per requirements.

Recent Developments:

• On July 6, 2022, Halliburton, an American multinational company providing product and services to oil and gas, military services introduced Hedron Platform of fixed cutter polycrystalline diamond compact (PDC) drill bits. The combination of hardware technologies and transformative digital helps the Hedron drill bits to perform efficiently on challenging drilling applications in oil and gas industry.
• In February 2021, Hunting Energy Services Inc., energy and services provider to oil and gas industry acquired Enpro Subsea Limited, a company that leads in subsea production technology. Through this acquisition, high technology products will be added to the product gallery of Hunting Energy Services Inc., strengthening the product portfolio.

Restraint:

The increasing use of renewable energy resources such as solar energy, wind energy, hydraulic energy among people is restraining the growth of the global directional drilling solutions & services market. The government bodies are also encouraging people to use these energy resources as they are beneficial for the environment and help reduce carbon footprints and decency on fossil fuels. 

Global Directional Drilling Solutions & Services Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has affected the global directional drilling solutions & services market significantly. Lockdown was imposed across the globe as a precautionary measure by governments globally. This led to the temporary suspension of all businesss across the globe. Trades across countries were disrupted causing a shortage of raw material and components required for providing drilling solutions and services to the oil and gas industry. This had a negative impact on the global directional drilling solutions & services market during the pandemic and hence witnessed slow growth during pandemic.

North America held a dominant position in the global directional drilling solutions & services market in 2021

Statistics:

North America held dominant position in the global directional drilling solutions & services market in 2021, accounting for 33.0% share in terms of volume, followed by Asia Pacific region

Figure 1: Global Directional Drilling Solutions & Services Market Share (%), By Region, 2021

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North America is expected to account for the largest market share for the global directional drilling solutions & services market during the forecast period owing to the rapidly growing petroleum sector in the U.S. and Canada. For instance, according to the U.S. Energy Information Administration (EIA), in August 2018, the U.S. crude oil production exceeded 11.3 million barrels per day, which is further expected to generate demand for directional drilling services for crude oil production in the region. According to the U.S. EIA, the U.S. surpassed Russia and Saudi Arabia in crude oil production in 2018.

Asia Pacific region is expected to gain traction during the forecast period. The countries like China, India, and Indonesia are the leading oil producing nations in Asia Pacific region. Many new reserves have been discovered in the Asia Pacific region. Furthermore, oil industry in Asia Pacific region is led by largest energy companies such as PetroChina, airn Oil & Gas, Vedanta Limited, and others which require drilling solutions and services continuously and hence the demand for directional drilling solutions & services market is expected to show significant growth in the forecast period.

MWD tools segment is expected to drive the Global Directional Drilling Solutions & Services Market during the forecast period

Among solutions, the MWD tools segment held dominant position in the directional drilling solutions & services market in 2017 and is projected to retain its dominance throughout the forecast period. Increasing number of unconventional and deep-water exploration & production (E&P) and drilling activities and growing demand for higher productivity and efficiency of drilling activities are some of the key factors driving demand for measurement while drilling tool (MWD). This in turn is expected to boost the growth of the segment in the market during the forecast period. Moreover, increasing demand for petroleum products and natural gas is leading to extensive drilling, which requires MWD. For instance, according to 2017 World Oil Outlook Report, oil demand for the period 2016–2022 will increase by 6.9 mb/d (millions of barrels per day), from 95.4 mb/d to 102.3 mb/d. This leads to a healthy average annual increase of around 1.2 mb/d.

Figure 2: Global Directional Drilling Solutions & Services Market (US$ Bn) Analysis and Forecast, 2017 - 2030

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The global directional drilling solutions & services market was valued at US$ 11.23 Bn in 2021 and is expected to reach US$ 25.05 Bn by 2030, growing at a CAGR of 9.5% between 2022 and 2030.

Major players operating in the global directional drilling solutions & services market in the manufacture sector include Schlumberger Limited., Halliburton Company, Downhole Drilling Services, LLC, Segofs Energy Services Limited, General Electric Company, KAMBI Enterprises Inc., Tolteq Group, LLC (National Oilwell Varco, Inc.), APS Technology, Inc., Shanghai Oilfield Equipment Co., Limited (SOECO), Beijing Geoshine Oilfield Technology Services Co., Ltd., Compass Directional Guidance, Inc., Scientific Drilling International, CBG Corp, China Oilfield Services Limited (COSL). Weatherford, Bench Tree, Newsco International Energy Services Inc.

Major players operating in the global directional drilling solutions & services market in the rental services providers sector are Hunting Energy Services Inc., Calmena Energy Services Inc., Oilwell Solutions, LLC, W-Technology Inc., Micro-Smart Systems Inc., MICROTESLA, Ranger Directional Rentals, WORLD HDD, Beijing Hailan Science & Technology Development Co., Limited, Bench Tree, Vertex Downhole, Weatherford, National Oilwell Varco, MWD Supply, Geoglide Australia Pty Ltd., Parker Drilling, Nabors Industries Ltd.