Global Mobile Offshore Drilling Units Market Size

Mobile Offshore Drilling Unit Market Analysis

The Mobile Offshore Drilling Units (MODU) Market is expected to witness a CAGR of 12.5% during the forecast period. The COVID-19 pandemic effect was explicitly seen in the market growth, with the reduction or cancellation of the offshore drilling contracts. Around 10% of contract volumes were canceled in 2020, which resulted in the estimated loss of USD 3 billion for offshore drilling contractors at the global level. The MODU market is expected to grow more in the future due to an increase in demand for offshore drilling due to the abundance of petroleum resources in the offshore rock formations and the steadily increasing crude oil prices, which have led to the affordability of offshore drilling operations. However, the market is likely to get impeded by tedious and complicated offshore operations.

• The drillship segment is expected to grow at the fastest rate during the forecast period due to the facility of ultra-deepwater drilling and ease of mobility from one well to another.
• The technological advancements in the horizontal drilling process, digitalization of well-construction, and the introduction of rig automation place a tremendous opportunity for the offshore drilling market. It is claimed that with rig automation, the efficiency and step reduction performance of a drilling unit can be improved. Moreover, the drilling companies have even noticed a reduction in operational costs, which is currently the biggest concern for offshore operations.
• North America is expected to dominate the market during the forecast period due to the increased number of drilling projects in the Gulf of Mexico.