The global Directional Drilling market size is estimated to be US$ 17.2 Billion in 2023. Between 2023 and 2030, the market size is poised to register a 7.39% CAGR (Compounded Annual Growth Rate) to reach a US$ 28.34 Billion market size in 2030.
Further, the demand for the use of advanced equipment across hydrocarbons, mining, and other and other industries supports the market outlook.
Directional Drilling market analysis
Directional drilling continues to be an integral part of the oil and gas industry. The global directional drilling market continues to witness steady growth over the forecast period, driven by increased preference for enhanced oil recovery techniques, growing oil and gas demand, and technological advancement in directional drilling technology.
With the increasing demand for unconventional oil reserves, directional drilling service providers are gaining business growth. Advancement in technology opens up new frontiers in exploration, allowing access to previously untapped or difficult-to-reach reserves.
Potential advantages of directional drilling including increased yield, reduced environmental impact, safety, economics, and greater accuracy over traditional types support the long-term market outlook. On the other hand, Directional drilling can be costly and time-consuming, involves high technical difficulties, and limited depth capability, which can result in overall project cost escalation and delays.
Comprehensive worldwide support systems are marketed by companies to attract consumers in competitive market conditions. Companies offering optimum and direct service to address the concerns and challenges of customers tend to gain significant business growth.
The market is poised to register a 7.39% CAGR, driven by the high oil price environment, increasing offshore exploration activities, deployment in mining activities, and others. Potential advantages of directional drilling, Increase in Oil and Gas Exploration Activities, Increased Investment in Unconventional Oil and Gas Resources, Steady Growth in International Oil Rig Count, improved directional drilling techniques, Growth in Production rate through directional drilling, and others drive the market demand.
Market Dynamics
Market Driver- Potential advantages of directional drilling support adoption across onshore and offshore applications
Directional drilling provides significant strategic advantages for oil and gas operators, ranging from enhanced reservoir exploitation and operational efficiency to cost savings, environmental stewardship, and extended reach capabilities.
Technological advancements including multilateral, horizontal, and extended reach drilling (ERD) and other enhanced oil recovery (EOR) techniques are encouraging the growth of directional drilling services.
Directional drilling enables operators to optimize reservoir exploitation by accessing a larger area of the reservoir from a single wellbore. By deviating from vertical drilling and targeting specific angles and distances, operators can intersect multiple layers of the reservoir, significantly increasing reservoir contact.
Further, potential cost savings associated with directional drilling are encouraging companies to opt for a wide range of services. In particular, as multiple laterals are drilled from a single vertical well, operators tap into multiple reservoir sections, minimizing the operational footprint and lowering associated costs.
Market Trend- Increase in Oil and Gas Exploration Activities
Following the high profitability of the oil and gas industry in 2022, an increase in oil and gas exploration, in particular, natural gas exploration is estimated for 2023 and beyond. World oil supply/demand fundamentals improved markedly in 2022. The optimistic outlook of the oil and gas industry and the underinvestment of recent years in oil and gas exploration are likely to witness swift acceleration.
The investments in offshore oil and gas exploration activities are likely to increase significantly over the forecast period to 2030, fuelling the demand for OCTG. In 2021, world oil demand substantially outpaced 2020’s historically low levels, supporting the recovery in OCTG demand. Economic stimulus coupled with recovering mobility and supply chain activities, and robust growth in trade volumes supported the oil and gas exploration activities.
Leading oil and gas majors are focusing on building diversified and balanced oil and gas portfolios including deep offshore exploration, capitalizing on technological advancements in the exploration field including 3D and 4D modelling technologies.
Market Segmentation
The global Directional Drilling Market is segmented into Types, Applications, and Countries.
Onshore Directional Drilling to register the highest growth rate during the forecast period
Directional drilling to install pipeline without trench excavation by using surface-launched drilling rigs. Onshore directional drilling benefits from existing infrastructure, such as roads, pipelines, and power supply networks, which can facilitate drilling operations. A large number of maturing onshore wells is encouraging the use of directional drilling in onshore wells.
The technology benefits from proximity to infrastructure, potentially reducing costs and logistical complexities. On the other hand, Onshore drilling requires proper management of groundwater resources, prevention of surface contamination, and mitigation of habitat disruption.
Rotary steering system (RSS) held the dominant market share in 2022
Rotary steering system (RSS) is the dominant drilling technique used in directional drilling that uses specialized downhole equipment to replace conventional directional tool mud motors. With the continuous development of rotary steering drilling technology and the continuous expansion of the market, rotary steering drilling technology is gradually becoming a common drilling method for wells with complex structures.
The system provides precise control and steering capabilities, allowing operators to navigate the wellbore with enhanced accuracy, reduced drilling time, and improved overall performance. The technology enables operators to drill complex well trajectories allowing for maximum exposure to productive reservoir zones.
The market for Rotary Steering Systems is highly competitive and leading companies continue to invest in research and development to improve the performance and capabilities of their RSS offerings.
North America Pacific generated the highest revenue from Directional Drilling in 2022
The regional market is well established and the introduction of new technologies from leading companies supports the market potential.
Increasing deep and ultra-deep-water exploration in the country presents robust market growth prospects for companies offering directional drilling services in the US. Key projects including the Permian Basin, eagle ford shale, Bakken Formation, Appalachian Basin shales, offshore Gulf of Mexico, and others are among the leading projects in the country.
In particular, the Gulf of Mexico presents robust growth prospects. According to the EIA, offshore oil and natural gas production in the Federal Gulf of Mexico accounted for about 15% of total U.S. crude oil production and about 2% of total U.S. dry natural gas production.
Amidst strong market potential in the country, leading US producers such as Halliburton, Schlumberger, Baker Hughes, National Oilwell Varco Inc, Gyrodata International, Scientific Drilling International, Leam Drilling Systems LLC, and others are witnessing steady business growth. Further, technological advancements in the industry are likely to result in new product launches and diversifying applications.
Segmentation
By Type
By Application
Drilling Technique
By Region
Key Players
On the competitive landscape, the industry is concentrated in nature, with companies focusing on aggressive marketing to gain market shares in the industry
Directional Drilling Market Outlook 2023
1 Market Overview
1.1 Introduction to Directional Drilling Market
1.2 Scope of the Study
1.3 Research Objective
1.3.1 Key Market Scope and Segments
1.3.2 Players Covered
1.3.3 Years Considered
2 Executive Summary
2.1 2023 Directional Drilling Industry- Market Statistics
3 Market Dynamics
3.1 Market Drivers
3.2 Market Challenges
3.3 Market Opportunities
3.4 Market Trends
4 Market Factor Analysis
4.1 Porter’s Five Forces
4.2 Market Entropy
4.2.1 Global Directional Drilling Market Companies with Area Served
4.2.2 Products Offerings Global Directional Drilling Market
5 COVID-19 Impact Analysis and Outlook Scenarios
5.1.1 Covid-19 Impact Analysis
5.1.2 Post-COVID-19 Scenario- Low Growth Case
5.1.3 Post-COVID-19 Scenario- Reference Growth Case
5.1.4 Post-COVID-19 Scenario- Low Growth Case
6 Global Directional Drilling Market Trends
6.1 Global Directional Drilling Revenue (USD Million) and CAGR (%) by Type (2018-2028)
6.2 Global Directional Drilling Revenue (USD Million) and CAGR (%) by Applications (2018-2028)
6.3 Global Directional Drilling Revenue (USD Million) and CAGR (%) by Regions (2018-2028)
7 Global Directional Drilling Market Revenue (USD Million) by Type, and Applications (2018-2022)
7.1 Global Directional Drilling Revenue (USD Million) by Type (2018-2022)
7.1.1 Global Directional Drilling Revenue (USD Million), Market Share (%) by Type (2018-2022)
7.2 Global Directional Drilling Revenue (USD Million) by Applications (2018-2022)
7.2.1 Global Directional Drilling Revenue (USD Million), Market Share (%) by Applications (2018-2022)
8 Global Directional Drilling Development Regional Status and Outlook
8.1 Global Directional Drilling Revenue (USD Million) By Regions (2018-2022)
8.2 North America Directional Drilling Revenue (USD Million) by Type, and Application (2018-2022)
8.2.1 North America Directional Drilling Revenue (USD Million) by Country (2018-2022)
8.2.2 North America Directional Drilling Revenue (USD Million) by Type (2018-2022)
8.2.3 North America Directional Drilling Revenue (USD Million) by Applications (2018-2022)
8.3 Europe Directional Drilling Revenue (USD Million), by Type, and Applications (USD Million) (2018-2022)
8.3.1 Europe Directional Drilling Revenue (USD Million), by Country (2018-2022)
8.3.2 Europe Directional Drilling Revenue (USD Million) by Type (2018-2022)
8.3.3 Europe Directional Drilling Revenue (USD Million) by Applications (2018-2022)
8.4 Asia Pacific Directional Drilling Revenue (USD Million), and Revenue (USD Million) by Type, and Applications (2018-2022)
8.4.1 Asia Pacific Directional Drilling Revenue (USD Million) by Country (2018-2022)
8.4.2 Asia Pacific Directional Drilling Revenue (USD Million) by Type (2018-2022)
8.4.3 Asia Pacific Directional Drilling Revenue (USD Million) by Applications (2018-2022)
8.5 South America Directional Drilling Revenue (USD Million), by Type, and Applications (2018-2022)
8.5.1 South America Directional Drilling Revenue (USD Million), by Country (2018-2022)
8.5.2 South America Directional Drilling Revenue (USD Million) by Type (2018-2022)
8.5.3 South America Directional Drilling Revenue (USD Million) by Applications (2018-2022)
8.6 Middle East and Africa Directional Drilling Revenue (USD Million), by Type, Technology, Application, Thickness (2018-2022)
8.6.1 Middle East and Africa Directional Drilling Revenue (USD Million) by Country (2018-2022)
8.6.2 Middle East and Africa Directional Drilling Revenue (USD Million) by Type (2018-2022)
8.6.3 Middle East and Africa Directional Drilling Revenue (USD Million) by Applications (2018-2022)
9 Company Profiles
10 Global Directional Drilling Market Revenue (USD Million), by Type, and Applications (2023-2028)
10.1 Global Directional Drilling Revenue (USD Million) and Market Share (%) by Type (2023-2028)
10.1.1 Global Directional Drilling Revenue (USD Million), and Market Share (%) by Type (2023-2028)
10.2 Global Directional Drilling Revenue (USD Million) and Market Share (%) by Applications (2023-2028)
10.2.1 Global Directional Drilling Revenue (USD Million), and Market Share (%) by Applications (2023-2028)
11 Global Directional Drilling Development Regional Status and Outlook Forecast
11.1 Global Directional Drilling Revenue (USD Million) By Regions (2023-2028)
11.2 North America Directional Drilling Revenue (USD Million) by Type, and Applications (2023-2028)
11.2.1 North America Directional Drilling Revenue (USD) Million by Country (2023-2028)
11.2.2 North America Directional Drilling Revenue (USD Million), by Type (2023-2028)
11.2.3 North America Directional Drilling Revenue (USD Million), Market Share (%) by Applications (2023-2028)
11.3 Europe Directional Drilling Revenue (USD Million), by Type, and Applications (2023-2028)
11.3.1 Europe Directional Drilling Revenue (USD Million), by Country (2023-2028)
11.3.2 Europe Directional Drilling Revenue (USD Million), by Type (2023-2028)
11.3.3 Europe Directional Drilling Revenue (USD Million), by Applications (2023-2028)
11.4 Asia Pacific Directional Drilling Revenue (USD Million) by Type, and Applications (2023-2028)
11.4.1 Asia Pacific Directional Drilling Revenue (USD Million), by Country (2023-2028)
11.4.2 Asia Pacific Directional Drilling Revenue (USD Million), by Type (2023-2028)
11.4.3 Asia Pacific Directional Drilling Revenue (USD Million), by Applications (2023-2028)
11.5 South America Directional Drilling Revenue (USD Million), by Type, and Applications (2023-2028)
11.5.1 South America Directional Drilling Revenue (USD Million), by Country (2023-2028)
11.5.2 South America Directional Drilling Revenue (USD Million), by Type (2023-2028)
11.5.3 South America Directional Drilling Revenue (USD Million), by Applications (2023-2028)
11.6 Middle East and Africa Directional Drilling Revenue (USD Million), by Type, and Applications (2023-2028)
11.6.1 Middle East and Africa Directional Drilling Revenue (USD Million), by Region (2023-2028)
11.6.2 Middle East and Africa Directional Drilling Revenue (USD Million), by Type (2023-2028)
11.6.3 Middle East and Africa Directional Drilling Revenue (USD Million), by Applications (2023-2028)
12 Methodology and Data Sources
12.1 Methodology/Research Approach
12.1.1 Research Programs/Design
12.1.2 Market Size Estimation
12.1.3 Market Breakdown and Data Triangulation
12.2 Data Sources
12.2.1 Secondary Sources
12.2.2 Primary Sources
12.3 Disclaimer
List Of Tables
Table 1 Market Segmentation Analysis
Table 2 Global Directional Drilling Market Companies with Areas Served
Table 3 Products Offerings Global Directional Drilling Market
Table 4 Low Growth Scenario Forecasts
Table 5 Reference Case Growth Scenario
Table 6 High Growth Case Scenario
Table 7 Global Directional Drilling Revenue (USD Million) And CAGR (%) By Type (2018-2028)
Table 8 Global Directional Drilling Revenue (USD Million) And CAGR (%) By Applications (2018-2028)
Table 9 Global Directional Drilling Revenue (USD Million) And CAGR (%) By Regions (2018-2028)
Table 10 Global Directional Drilling Revenue (USD Million) By Type (2018-2022)
Table 11 Global Directional Drilling Revenue Market Share (%) By Type (2018-2022)
Table 12 Global Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Table 13 Global Directional Drilling Revenue Market Share (%) By Applications (2018-2022)
Table 14 Global Directional Drilling Market Revenue (USD Million) By Regions (2018-2022)
Table 15 Global Directional Drilling Market Share (%) By Regions (2018-2022)
Table 16 North America Directional Drilling Revenue (USD Million) By Country (2018-2022)
Table 17 North America Directional Drilling Revenue (USD Million) By Type (2018-2022)
Table 18 North America Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Table 19 Europe Directional Drilling Revenue (USD Million) By Country (2018-2022)
Table 20 Europe Directional Drilling Revenue (USD Million) By Type (2018-2022)
Table 21 Europe Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Table 22 Asia Pacific Directional Drilling Revenue (USD Million) By Country (2018-2022)
Table 23 Asia Pacific Directional Drilling Revenue (USD Million) By Type (2018-2022)
Table 24 Asia Pacific Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Table 25 South America Directional Drilling Revenue (USD Million) By Country (2018-2022)
Table 26 South America Directional Drilling Revenue (USD Million) By Type (2018-2022)
Table 27 South America Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Table 28 Middle East and Africa Directional Drilling Revenue (USD Million) By Region (2018-2022)
Table 29 Middle East and Africa Directional Drilling Revenue (USD Million) By Type (2018-2022)
Table 30 Middle East and Africa Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Table 31 Financial Analysis
Table 32 Global Directional Drilling Revenue (USD Million) By Type (2023-2028)
Table 33 Global Directional Drilling Revenue Market Share (%) By Type (2023-2028)
Table 34 Global Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Table 35 Global Directional Drilling Revenue Market Share (%) By Applications (2023-2028)
Table 36 Global Directional Drilling Market Revenue (USD Million), And Revenue (USD Million) By Regions (2023-2028)
Table 37 North America Directional Drilling Revenue (USD)By Country (2023-2028)
Table 38 North America Directional Drilling Revenue (USD Million) By Type (2023-2028)
Table 39 North America Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Table 40 Europe Directional Drilling Revenue (USD Million) By Country (2023-2028)
Table 41 Europe Directional Drilling Revenue (USD Million) By Type (2023-2028)
Table 42 Europe Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Table 43 Asia Pacific Directional Drilling Revenue (USD Million) By Country (2023-2028)
Table 44 Asia Pacific Directional Drilling Revenue (USD Million) By Type (2023-2028)
Table 45 Asia Pacific Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Table 46 South America Directional Drilling Revenue (USD Million) By Country (2023-2028)
Table 47 South America Directional Drilling Revenue (USD Million) By Type (2023-2028)
Table 48 South America Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Table 49 Middle East and Africa Directional Drilling Revenue (USD Million) By Region (2023-2028)
Table 50 Middle East and Africa Directional Drilling Revenue (USD Million) By Region (2023-2028)
Table 51 Middle East and Africa Directional Drilling Revenue (USD Million) By Type (2023-2028)
Table 52 Middle East and Africa Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Table 53 Research Programs/Design for This Report
Table 54 Key Data Information from Secondary Sources
Table 55 Key Data Information from Primary Sources
List Of Figures
Figure 1 Market Scope
Figure 2 Porter’s Five Forces
Figure 3 Global Directional Drilling Revenue (USD Million) By Type (2018-2022)
Figure 4 Global Directional Drilling Revenue Market Share (%) By Type (2022)
Figure 5 Global Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Figure 6 Global Directional Drilling Revenue Market Share (%) By Applications (2022)
Figure 7 Global Directional Drilling Market Revenue (USD Million) By Regions (2018-2022)
Figure 8 Global Directional Drilling Market Share (%) By Regions (2022)
Figure 9 North America Directional Drilling Revenue (USD Million) By Country (2018-2022)
Figure 10 North America Directional Drilling Revenue (USD Million) By Type (2018-2022)
Figure 11 North America Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Figure 12 Europe Directional Drilling Revenue (USD Million) By Country (2018-2022)
Figure 13 Europe Directional Drilling Revenue (USD Million) By Type (2018-2022)
Figure 14 Europe Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Figure 15 Asia Pacific Directional Drilling Revenue (USD Million) By Country (2018-2022)
Figure 16 Asia Pacific Directional Drilling Revenue (USD Million) By Type (2018-2022)
Figure 17 Asia Pacific Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Figure 18 South America Directional Drilling Revenue (USD Million) By Country (2018-2022)
Figure 19 South America Directional Drilling Revenue (USD Million) By Type (2018-2022)
Figure 20 South America Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Figure 21 Middle East and Africa Directional Drilling Revenue (USD Million) By Region (2018-2022)
Figure 22 Middle East and Africa Directional Drilling Revenue (USD Million) By Type (2018-2022)
Figure 23 Middle East and Africa Directional Drilling Revenue (USD Million) By Applications (2018-2022)
Figure 24 Global Directional Drilling Revenue (USD Million) By Type (2023-2028)
Figure 25 Global Directional Drilling Revenue Market Share (%) By Type (2028)
Figure 26 Global Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Figure 27 Global Directional Drilling Revenue Market Share (%) By Applications (2028)
Figure 28 Global Directional Drilling Market Revenue (USD Million) By Regions (2023-2028)
Figure 29 North America Directional Drilling Revenue (USD Million) By Country (2023-2028)
Figure 30 North America Directional Drilling Revenue (USD Million) By Type (2023-2028)
Figure 31 North America Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Figure 32 Europe Directional Drilling Revenue (USD Million) By Country (2023-2028)
Figure 33 Europe Directional Drilling Revenue (USD Million) By Type (2023-2028)
Figure 34 Europe Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Figure 35 Asia Pacific Directional Drilling Revenue (USD Million) By Country (2023-2028)
Figure 36 Asia Pacific Directional Drilling Revenue (USD Million) By Type (2023-2028)
Figure 37 Asia Pacific Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Figure 38 South America Directional Drilling Revenue (USD Million) By Country (2023-2028)
Figure 39 South America Directional Drilling Revenue (USD Million) By Type (2023-2028)
Figure 40 South America Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Figure 41 Middle East and Africa Directional Drilling Revenue (USD Million) By Region (2023-2028)
Figure 42 Middle East and Africa Directional Drilling Revenue (USD Million) By Region (2023-2028)
Figure 43 Middle East and Africa Directional Drilling Revenue (USD Million) By Type (2023-2028)
Figure 44 Middle East and Africa Directional Drilling Revenue (USD Million) By Applications (2023-2028)
Figure 45 Bottom-Up and Top-Down Approaches For This Report
Figure 46 Data Triangulation
The global Directional Drilling market size is estimated at US$ 17.2 Billion during 2023.
Between 2023 and 2030, the market size is poised to register a 7.39% CAGR (Compounded Annual Growth Rate).
Baker Hughes, Weatherford International, China Oilfield Services Limited, Halliburton Corp, Schlumberger, Jindal Drilling and Industries Ltd, National Oilwell Varco, Nabors Industries Ltd, Cathedral Energy Services Ltd, General Electric Oil and Gas
Onshore Directional Drilling, Rotary steering system (RSS) drilling technique, and North America are the fastest-growing segments in the market.