Robotic Drilling Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Robotic Drilling Market is Segmented by Deployment (Onshore and Offshore), Component (Hardware and Software), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

Market Snapshot

Robotic Drilling Market-Market Summary
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >7.1 %

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Market Overview

The robotic drilling market is expected to record a CAGR of over 7.1% during the forecast period (2022-2027). The COVID-19 outbreak negatively impacted the oil and gas industry. The decreasing prices and demand for crude oil due to the pandemic significantly reduced various upstream projects in 2020, thus negatively impacting robotic drilling activities. Factors such as increased exploration activity and focus on the development of new oil and gas fields in a risk-free, cost-efficient, and time-efficient manner are expected to help drive the market for robotic drilling systems. However, the volatile nature of oil prices in recent years, cybersecurity concerns, and high initial costs hampered the growth of the robotic drilling market.

  • The onshore is expected to have the maximum share in the market. Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of worldwide oil production.
  • The demand for oil and gas production has been increasing, leading to increased exploration activities. This factor is expected to help grow the market during the forecast period. Also, there has been an increasing demand for safe and time-efficient drilling methods, which may create a good opportunity for robotic drilling systems in the future.

North America is the biggest market for robotic drilling due to the increased drilling activity in shale plays in the region. The recent development of shale plays, horizontal drilling, and fracking resulted in increased demand for a faster and time-efficient robotic drilling system in the region.

Scope of the Report

The scope of the robotic drilling market report includes:

Deployment
Onshore
Offshore
Component
Hardware
Software
Geography
North America
Europe
Asia-Pacific
Rest of the World

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Key Market Trends

Onshore to Dominate the Market

  • The market for robotic drilling systems saw a growth slowdown due to the volatile oil prices in recent years. However, with the oil prices becoming stable, the market is expected to grow during the forecast period.
  • There has been increasing pressure on drilling companies to reduce the risk and number of accidents related to the drilling industry. This factor is resulting in the operator companies moving toward robotic drilling systems to reduce human error and increase efficiency.
  • Onshore oil production accounts for around 70% of global oil production. Increased onshore exploration activity worldwide during the forecast period is expected to boost the market for robotic drilling.
  • As of 2020, global oil production reached 88,391 thousand barrels per day, increasing by 6.12% since 2010.
  • In October 2021, the Italian energy services group Saipem signed onshore drilling contracts in the Middle-East and South America worth USD 70 million.
  • Moreover, in January 2022, Indonesia Energy Corp. Ltd planned to begin drilling its two new wells at 63,000-acre Kruh block onshore Sumatra and a third well before the end of the year. The wells (Kruh 27, Kruh 28, Kruh 29) are estimated to be worth USD 1.5 million each to drill and complete.
  • As the crude oil prices increase, the upstream investment is expected to grow significantly and bring several projects online, thereby driving the market.
Robotic Drilling Market-Oil Production

North America to Dominate the Market

  • North America is a major market for robotic drilling systems due to the recent shale gas exploration. Exploration in the Gulf of Mexico is also on the rise, further boosting the robotic drilling systems market in the region.
  • As a result of higher oil prices and declining drilling costs, the offshore rig count and oil production in the United States increased significantly, indicating growing offshore drilling, which is expected to be a major driver for the robotic drilling market in the country.
  • As of May 1, 2021, the Bureau of Ocean Energy Management (BOEM) manages about 2,287 active oil and gas leases on approximately 12.1 million Outer Continental Shelf (OCS) acres in the United States. In 2020, offshore federal production reached approximately 641 million barrels of oil and 882 billion cubic feet of gas, which is improving the demand for robotic drilling in the region.
  • In November 2021, Petrobras awarded two contracts worth USD 549 million to the offshore drilling contractor Seadrill Limited for the West Carina and West Tellus rigs, which will work on the Búzios field offshore Brazil.
  • Therefore, rising oil and gas investments, the development of shale plays, and increasing focus on reducing risk, time, and cost of drilling activities are expected to boost the robotic drilling systems market during the forecast period.
Robotic Drilling Market

Competitive Landscape

The robotic drilling market is moderately consolidated with a few active players, namely, National-Oilwell Varco Inc., Nabors Industries Ltd, Drillform Technical Services Ltd, Huisman Equipment BV, and Drillmec Inc.

Recent Developments

  • In March 2021, Schlumberger won a USD 480 million contract to drill 96 oil wells in southern Iraq for Basra Oil Company and ExxonMobil, which operates the giant West Qurna-1 field with partners from Iraq, Japan, Indonesia, and China.
  • In October 2021, Nabors Industries Ltd announced its PACE-R801, the world’s first fully automated land drilling rig combined with Canrig robotics. It reached total depth on its first well in the Permian Basin. It created an unmanned rig floor to remove crews from red zone areas and deliver consistent drilling performance.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Active Rig Count, till January 2022

    4. 4.4 Global Upstream CAPEX Forecast in USD billion, till 2027

    5. 4.5 Recent Trends and Developments

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Deployment

      1. 5.1.1 Onshore

      2. 5.1.2 Offshore

    2. 5.2 Component

      1. 5.2.1 Hardware

      2. 5.2.2 Software

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Ensign Energy Services Inc.

      2. 6.3.2 Huisman Equipment BV

      3. 6.3.3 Drillmec Inc.

      4. 6.3.4 Sekal AS

      5. 6.3.5 Abraj Energy Services SAOC

      6. 6.3.6 Drillform Technical Services Ltd

      7. 6.3.7 National-Oilwell Varco Inc.

      8. 6.3.8 Rigarm Inc.

      9. 6.3.9 Automated Rig Technologies Ltd

      10. 6.3.10 Nabors Industries Ltd

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Robotic Drilling Market market is studied from 2019 - 2027.

The Robotic Drilling Market is growing at a CAGR of >7.1% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

National-Oilwell Varco, Inc. , Huisman Equipment BV, Drillmec Inc., Drillform Technical Services Ltd, Nabors Industries Ltd are the major companies operating in Robotic Drilling Market.

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