Market Size of Directional Drilling Services Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.00 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Directional Drilling Services Market Analysis
The directional drilling services market is expected to witness a CAGR of approximately 6% during the forecast period, 2022-2027. The COVID-19 outbreak witnessed a severe impact on the market due to stringent lockdown protocols implemented by respective governments. Factors such as drilling in unconventional reserves, which involve directional or horizontal drilling to increase contact with the pay zone, and increase the production significantly are expected to drive the directional drilling services market during the forecast period. Moreover, global crude oil demand is expected to grow by 1.2 mb/d in the next four years. Increasing pressure among the top oil and gas operating companies to increase their production is further promulgating the market. However, the volatile crude oil prices and low investments in regions excluding North America are likely to hinder the growth of the market being studied.
- The offshore segment is expected to witness significant growth during the forecast period, owing to the cost of operation in the offshore locations declining significantly over the past few years. This factor is encouraging the industry to step up its expenditure gradually in the future and drive the directional drilling services market.
- Factors, such as technological improvements and increasing viability of deepwater and ultra-deepwater projects, several new markets, such as Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Mexican side of the Gulf of Mexico are actively promoting the development of deepwater and ultra-deepwater reserves. This, in turn, is expected to create significant opportunities for the operating countries in the near future.
- North America is expected to continue its dominance of the directional drilling services market globally, with the majority of the demand coming from the United States and Canada due to increasing horizontal and directional drilling activities.
