Market Size of Rotary Drilling Rig Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 3.50 % |
| Fastest Growing Market | Middle-East and Africa |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Rotary Drilling Rig Market Analysis
The rotary drilling market is expected to register a CAGR of more than 3.5% over the period of 2022-2027. On account of the COVID-19 pandemic in 2020, the market witnessed a negative impact, with a suspension of various oil and gas projects. Moreover, major companies such as Saudi Aramco, Exxon Mobil, and Royal Dutch Shell, announced a drop of 22%, from their initial spending plans of USD 175 billion for 2020. Factors, such as improved viability of deepwater and ultra-deepwater projects and the global demand for oil, which is expected to witness an annual growth rate of 1.2 million barrels per day (mbd) till 2023, are likely to drive the rotary drilling rig market during the forecast period. However, over the years, countries across the world have witnessed rapid growth in the renewable energy sector, owing to strong policy support and sharp cost reductions. Moreover, governments of various countries are increasingly shifting toward cleaner energy sources, in order to reduce the emission levels from conventional fuels. This, in turn, is expected to hinder the market during the forecast period.
- The offshore drilling activities are expected to witness a significant growth rate over the forecast period owing to the upcoming exploration and production projects in countries, such as Brazil, Nigeria, and others.
- To meet the expected oil demand in the future, opportunities lie in offshore deep-sea beds, where oil and gas operators continue to discover new reserves. Globally, very few onshore regions are left yet-to-be-explored by oil companies. Hence, the offshore region is expected to provide an opportunity for the rotary drilling rig market.
- North America is expected to be the largest market for the rotary drilling rig market, with the majority of demand coming from the United States and Canada.
