Directional Drilling Services Market to Record CAGR of 7.39% Over 2025-2032; Ongoing Exploration and Discovery of Oil Reserves and Fields to Drive Market Growth

The global directional drilling services market size was valued at USD 12.84 billion in 2024 and is predicted to reach USD 13.87 billion in 2025. The market is anticipated to touch USD 22.85 billion by 2032, recording a CAGR of 7.39% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Directional Drilling Services Market Size, Share & Industry Analysis, By Type (Conventional and RSS), By Location (Onshore and Offshore), By Service (Logging While Drilling (LWD), Measurement While Drilling (MWD), Rotary Steerable System (RSS), Mud Motors, and Others) and Regional Forecast, 2025-2032”.

Directional drilling services involve sophisticated techniques for navigating subsurface trajectories to enhance hydrocarbon extraction and penetrate geological reservoirs effectively. This approach offers various advantages, such as increased flexibility, minimal site restoration needs, reduced soil contamination, and a lower risk of geological issues. The rise in exploration and production activities across diverse locations, along with the implementation of advanced methods and the capability to drill multiple wells from a single site, is expected to boost the demand for directional drilling services.

The COVID-19 pandemic adversely affected the global directional drilling services market, leading to lower demand for oil and gas. This caused less drilling activity and reduced demand for services. However, the pandemic also led to the use of remote drilling and monitoring technologies. It increased the focus on eco-friendly and sustainable drilling practices.

SLB Obtained Series of Major Drilling Contracts from Shell to Support Deepwater Energy Development

In January 2025, SLB was awarded a series of significant drilling contracts from Shell to support deepwater energy development, focusing on deep- and ultra-deepwater assets. The total value of these contracts is approximately USD 800 million. The services will be provided across the U.K. North Sea, Trinidad and Tobago, and the Gulf of Mexico.

Ongoing Exploration and Discovery of Oil Reserves and Fields to Drive Market Growth

The ongoing exploration and discovery of oil reserves and fields around the world are driving growth in the global market. Key discoveries include the Alpine High in West Texas, the Golan Heights in Israel, oil reserves in Alaska, finds in the Stabroek block in Tilapia, and an offshore gas discovery associated with the Lang Lebah-1RDR2 exploration well. It is expected that oil prices will increase soon, prompting oil field operators, gas producers, and independent exploration firms to engage in investments for oil and gas exploration and discovery efforts.

However, fluctuations in oil prices and the rise in alternative energy technologies are limiting the directional drilling services market growth.

Leading Oil Producers Launch New Products and Form Strategic Alliances to Remain Competitive in the Market 

Several regional and international companies are actively working on introducing innovative technologies and specialized services for directional drilling applications in the oil and gas sector. Leading oil producers are focusing on strategies such as launching new products, pursuing mergers and acquisitions, and forming strategic alliances to enhance their presence in the competitive market.

Notable Industry Development

• November 2024: Halliburton Company announced its expansion in Namibia by establishing new facilities in Windhoek, Walvis Bay, Swakopmund, and Lüderitz. This effort is designed to bolster the rapidly developing oil and gas sector in the country. The total area of these facilities spans 20,000m², and will offer a wide range of services across various operational areas.

List of Key Companies Profiled in the Report

• Schlumberger (U.S.)
• Baker Hughes (U.S.)
• Halliburton (U.S.)
• Weatherford (U.S.)
• National Oilwell Varco (U.S.)
• Nabors Industries (Bermuda)
• Leam Drilling Systems LLC (U.S.)
• Jindal Drilling & Industries Limited (India)
• Gyrodata (U.S.)
• China Oilfield Services Limited (China)
• Phoenix Technology Services (Canada)
• Scientific Drilling (U.S.)
• AlMansoori Specialized Engineering (UAE)
• NewTech Services (Russia)
• Integra (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/directional-drilling-services-market-100867

Further Report Findings:

• The North American region is expected to account for a dominant directional drilling services market share in the near future. This growth can be attributed to the increasing discoveries in the oil and gas sector, along with significant potential for oilfield exploration. The U.S. is a major contributor to this market due to its abundant shale gas reserves and tight oil resources.
• The Asia Pacific region is projected to account for the second-largest market share during the forecast period. Growth of this region is driven by technological advancements in drilling, including long-reach horizontal wells and completion techniques such as multi-stage hydraulic fracturing.
• In terms of market types, the conventional segment is anticipated to capture the largest share globally. The advantages of conventional directional drilling services, such as low operating expenses and effective drilling of low-angle wells in complex formations, contribute to its significant growth in the market.

Table of Segmentation: