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Drilling Services Market to Showcase 8.6% CAGR till 2027; Rising Demand for Directional Drilling Technologies to Accelerate Market Growth

February 11, 2021 | Energy & Power

The global drilling services market size is projected to reach USD 17.44 billion by 2027 owing to the increasing investments in offshore drilling projects by oil & gas majors, highlights Fortune Business Insights™ in its report, titled “Drilling Services Market Size, Share & COVID-19 Impact Analysis, By Service (Directional Drilling {Measurement While Drilling, Logging While Drilling, Rotary Steerable System, Gyro Drilling, Magnetic Drilling, and Others} and Non-Directional Drilling), By Application (Onshore and Offshore {Shallow Water, Deepwater, and Ultra-Deepwater}), By End-User (Oil & Gas, Mining, Water Exploration, and Others), and Regional Forecast, 2020-2027”. As per the report, the value of the market stood at USD 12.88 billion in 2019 and the market is expected to register a CAGR of 8.6% from 2020 to 2027.


The COVID-19 pandemic has hampered the drilling services market growth, with the market exhibiting a negative CAGR of -23.8% and hitting a value of USD 9.82 billion in 2020. The unprecedented fall in the demand for oil & gas, widespread supply chain disruptions in the oil and gas industry, halted investments, and volatility in crude oil prices have together hindered the growth of this market.


Rival Downhole Acquires Operating Assets of Hunting Energy


Hunting PLC announced in December 2020 that the operating assets of Hunting Energy Services, its wholly-owned subsidiary, will be purchased by Rival Downhole Tools. In exchange, Hunting will acquire a minor equity stake in Rival as part of the agreement. This move, according to Rival’s CEO, will put the company into a leading position in the drilling services industry and rapidly enhance the company’s brand value in the market. Furthermore, the addition of Hunting’s drilling assets will augment Rival’s product development capacities and place it in an enviable position to launch a series of offerings in the international sphere in 2021. For Hunting, the synergies established by the unification of the two businesses will give it a strategic edge in the US onshore drilling market.


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


https://www.fortunebusinessinsights.com/drilling-services-market-104784


Rising Investments in Renewables to Limit Market Growth


Drilling services form the core of exploration & production (E&P) activities in the hydrocarbon industry. However, with environmental concerns taking center stage in the global political and economic dynamics, countries are adopting various strategies to reduce their dependence on fossil fuels. As a result, investments in renewable energy sources have surged over the past few years. According to the International Renewable Energy Agency (IRENA), renewables generated 6,586 TWh of electricity in 2018, with hydro, wind, and solar leading the charge. Electricity generation from renewable sources increased by 6.1% in 2018 from 2017 levels, with solar power accounting for 28% of this rise and wind contributing 11%. The IRENA estimates that total public investment in renewables stood at USD 21 billion in 2018. Moreover, the coronavirus has further depleted the demand for oil globally, while renewables depicted resilient growth, according to the International Energy Agency (IEA). With countries steadily transitioning towards clean energy, the adoption of these services is highly likely to diminish over the next couple of decades.


Expansive Collaborations between Top Competitors to Stimulate Innovation


Key players in this market are focused on fortifying their market position by entering into expansive, extensive, and long-term partnerships with fellow competitors. Through these alliances, companies are aiming at diversifying their operations and bolstering their portfolios, which will also enable them to engage in lucrative ventures. Further, the augmented revenues resulting from such collaborations will allow players to increase investments in sophisticated drilling technologies, which in turn will deepen their market footprint.


Industry Development:



  • July 2019: Halliburton and Kuwait Oil Company inked an Integrated Offshore Drilling Services contract. Under the agreement, Halliburton, through its Halliburton Project Management, will provide comprehensive services for E&P activities in the Arabian Gulf. 


List of Key Players Profiled in this Market Report:



  • Emerson (U.S.)

  • Schneider Electric (France)

  • Erdos Miller (U.S.)

  • Oliden Technology (U.S.)

  • Gyro Australia (Australia)

  • Phoenix Technology Services (Canada)

  • Center Drill Inc. (U.S.)

  • Gyro Drilling (Netherlands)

  • JAE (Japan)

  • Radial Drilling Services, Inc. (U.S.)

  • Integra (Russia)

  • JINDAL DRILLING & INDUSTRIES LTD. (India)

  • NewTech Services (Russia)

  • NOV (U.S.)

  • Huracan Pty Ltd. (Australia)

  • Baker Hughes (U.S.)

  • Archer - the well company (Norway)

  • DIDRILLSA LTDA (Colombia)

  • Drill Tech Solution (Azerbaijan)

  • China Oilfield Services Limited (China)

  • AnTech (UK)

  • Weatherford (Switzerland)

  • Nabors Industries (U.S.)

  • Scientific Drilling (U.S.)

  • Brownline (Netherlands)

  • Icefield Tools Corporation (Canada)

  • Schlumberger (U.S.)

  • Sumitomo Precision Products Co (Japan)

  • Siemens (Germany)

  • DV8 Technology Ltd. (UK)

  • REFLEX NOW (Australia)

  • Motive Drilling Technologies (U.S.)

  • Kearfott Corporation (U.S.)

  • ION Geophysical (U.S.)

  • Zupt, LLC (U.S.)

  • KLX Energy Services (U.S.)

  • Welltec (Denmark)

  • International Drilling Services LLC (Oman)

  • Boart Longyear (U.S.)

  • The Weir Group PLC (UK)

  • AlMansoori Specialized Engineering (United Arab Emirates)

  • Leam Drilling Systems LLC (U.S.)

  • Petrofac (UK)

  • Superior Energy Services (U.S.)

  • VES Survey International (U.S.)

  • Unitech Drilling Company Limited (Nigeria)

  • Compass Directional Guidance, Inc. (U.S.)

  • Oceaneering (U.S.)

  • TechnipFMC (UK)

  • Halliburton (U.S.)

  • Inertial Sensing One AB (Sweden)

  • Axis Mining Technology (Australia)

  • Devico AS (Norway)

  • Stockholm Precision Tools AB (SPT) (Sweden)

  • Gyrodata (U.S.)


Further Report Findings:



  • The expansion of existing mining sites in various parts of the world will ensure lasting growth of the mining segment during the forecast period. The segment held a market share of 22.6% in 2019.

  • North America is expected to lead the drilling services market share on account of the presence of unconventional hydrocarbon reserves across the US and Canada. The region’s market size stood at USD 4.93 billion in 2019.


Table of Segmentation


















































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion)



Segmentation



Service; Application; End-User; and Geography



By Service




  • Directional Drilling

    • Measurement While Drilling

    • Logging While Drilling

    • Rotary Steerable System

    • Gyro Drilling

    • Magnetic Drilling

    • Others



  • Non-Directional Drilling



By Application




  • Onshore

  • Offshore

    • Shallow Water

    • Deepwater

    • Ultra-Deepwater





By End-User




  • Oil & Gas

  • Mining

  • Water Exploration

  • Others



By Geography




  • North America

    • By Service

    • By Application

    • By End-User

    • By Country

      • The U.S.

      • Canada





  • Europe

    • By Service

    • By Application

    • By End-User

    • By Country

      • The UK

      • Germany

      • France

      • Italy

      • Norway

      • Russia

      • Rest of Europe





  • Asia Pacific

    • By Service

    • By Application

    • By End-User

    • By Country

      • China

      • India

      • Japan

      • Australia

      • Southeast Asia

      • Rest of Asia Pacific





  • Latin America

    • By Service

    • By Application

    • By End-User

    • By Country

      • Brazil

      • Mexico

      • Rest of Latin America





  • The Middle East & Africa

    • By Service

    • By Application

    • By End-User

    • By Country

      • GCC

      • South Africa

      • Rest of the Middle East & Africa






Global Drilling Services Market
  • PDF
  • 2019
  • 2016-2018
  • 246

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