Drilling Rig Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 98.40 Billion |
| Market Size (2029) | USD 104.88 Billion |
| CAGR (2024 - 2029) | 1.28 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Drilling Rig Market Analysis
The Drilling Rig Market size is estimated at USD 98.40 billion in 2024, and is expected to reach USD 104.88 billion by 2029, at a CAGR of 1.28% during the forecast period (2024-2029).
- In the medium term, rising drilling activities, coupled with an increasing demand for natural gas and the expansion of gas infrastructure, are poised to propel the market during the study period.
- On the flip side, the global shift towards renewable energy technologies is anticipated to pose challenges to the market.
- Meanwhile, advancements in hydraulic fracturing technology present promising growth opportunities for the market in the coming years.
- Regionally, North America is set to take the lead. Specifically, the uptick in upstream activities in the United States bolsters North America's dominant position during the study period.
Drilling Rig Market Trends
Offshore Segment to Witness Significant Growth
- Drilling rigs, equipped with advanced tools and machinery, are pivotal in extracting oil and gas reserves from the ocean floor. Primarily stationed in offshore locales, these rigs serve as stable platforms, enabling engineers and workers to access reserves buried deep beneath the seabed, sometimes reaching depths of several kilometers.
- Driven by a global surge in oil and gas demand and the depletion of onshore reserves, the offshore drilling rig market has witnessed consistent growth. This depletion has necessitated exploration in deeper, more remote waters. Regions like Brazil, the Gulf of Mexico, and West Africa, boasting vast untapped reserves, have become prime targets for heavy investments in offshore projects.
- As of March 2024, the global offshore drilling rig count rose to 257, up from 228 in March 2023. With increasing investments in the offshore sector, the rig count is expected to continue its upward trajectory in the coming years.
- In March 2023, Brazil's Minister of Mines and Energy launched the "Potencializa" exploration and production program. This initiative, aimed at amplifying oil exploration investments, seeks to elevate Brazil to the status of the world's fourth-largest oil producer. Projections for 2029 forecast Brazil's production at 5.4 million barrels daily, an 80% increase from 2021, with pre-salt areas accounting for roughly 80% of this output. The program will emphasize key exploration zones and advocate for investments in both mature and marginal fields, thereby amplifying the demand for drilling rigs.
- In August 2023, SFL Corporation Ltd. secured a drilling contract in Canada, valued at an estimated USD 100 million, with Equinor ASA's subsidiary for the semi-submersible rig Hercules. The contract encompasses one primary well, with an option for a second, and is slated to commence in Q2 2024.
- In March 2024, Dolphin Drilling, an offshore drilling contractor, clinched a long-term contract with Oil India Limited for its semi-submersible rig. Set off the coast of India, the operations involve drilling three wells over 14 months, with a projected cost of around USD 145 million.
- Given this investment landscape and the government's pivot to offshore activities due to dwindling onshore reserves, the segment is poised for growth during the study period.
North America to Dominate the Market
- North America stands as a dominant player in the global oil and gas market, largely because the United States has emerged as one of the world's leading crude oil producers in recent years.
- Moreover, the United States consistently ranks among the top in capital expenditures within the oil and gas industry, a trend that's expected to persist in the coming years.
- The United States boasts a robust offshore oil and gas industry, primarily centered around the Gulf of Mexico and offshore Alaska. As drilling depths have progressed, the surge in technically recoverable reserves has drawn significant investments to the region.
- In March 2023, the Biden administration, amidst environmental debates, sanctioned a significant oil drilling venture in Alaska. They approved a modified version of the Willow project, permitting ConocoPhillips to initiate drilling in Alaska's National Petroleum Reserve. ConocoPhillips projects a daily output of 180,000 barrels from this venture.
- Major oil and gas corporations have unveiled above-average hikes in their capital expenditures for 2023 and the years to follow. For example, Chevron Corporation, in December 2022, set its 2023 organic capital expenditure budgets at USD 14 billion for its consolidated subsidiaries and an additional USD 3 billion for its equity affiliates.
- In December 2023, ConocoPhillips took a significant step by commencing construction for oil production, a move expected to elevate the demand for drilling rig services.
- In June 2024, US Energy Development Corporation (US Energy) unveiled its ambitious plans in the Permian basin, earmarking over USD 750 million for the upcoming year, with a primary emphasis on Permian projects.
- Given these strategic investments, North America is poised to maintain its dominance in the oil and gas market in the foreseeable future.
Drilling Rig Industry Overview
The drilling rig market is fragmented. Some of the major players operating in the market (in no particular order) include Nabors Industries Ltd., Transocean Ltd., Saipem SpA, Seadrill Ltd, and Schlumberger NV, among others.
Drilling Rig Market Leaders
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Nabors Industries Ltd.
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Transocean Ltd.
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Saipem SpA
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Seadrill Ltd
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Schlumberger NV
*Disclaimer: Major Players sorted in no particular order
Drilling Rig Market News
- July 2024: Helmerich & Payne Inc. (H&P) announced its plans to acquire KCA Deutag International for USD 1.97 billion in cash, which is to result in H&P’s rig count in the Middle East reaching 88 from 12.
- May 2024: Patterson-UTI International Holdings Inc. signed a non-binding term sheet with ADNOC Drilling, under which the former is expected to hold a minority equity interest in Turnwell (formed by ADNOC Drilling). The interest will be given in exchange for Patterson-UTI, which will primarily provide drilling, completion, and other oilfield service expertise to Turnwell and a limited cash contribution to fund a portion of working capital.
Drilling Rig Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Crude Oil Production in Million Barrels Per Day, till 2023
4.4 Natural Gas Production in Billion Cubic Feet, till 2023
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.1.1 Growing Demand for Natural Gas And Developing Gas Infrastructure
4.7.1.2 Increase in Drilling Activities
4.7.2 Restraints
4.7.2.1 Adoption of Cleaner Alternatives
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
4.10 Investment Analysis
5. MARKET SEGMENTATION
5.1 Location of Deployment
5.1.1 Onshore
5.1.2 Offshore
5.2 Type
5.2.1 Jack-ups
5.2.2 Semisubmersible
5.2.3 Drill Ships
5.2.4 Other Types
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Russia
5.3.2.3 Norway
5.3.2.4 Spain
5.3.2.5 NORDIC Countries
5.3.2.6 Turkey
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Australia
5.3.3.4 Malaysia
5.3.3.5 Thailand
5.3.3.6 Indonesia
5.3.3.7 Vietnam
5.3.3.8 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Colombia
5.3.4.4 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Egypt
5.3.5.4 Nigeria
5.3.5.5 Qatar
5.3.5.6 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Nabors Industries Ltd.
6.3.2 Transocean Ltd.
6.3.3 Noble Corporation PLC
6.3.4 Saipem SpA
6.3.5 Arabian Drilling Company
6.3.6 ADES International Holding PLC
6.3.7 Shelf Drilling Holdings, Ltd.
6.3.8 Seadrill Ltd
6.3.9 Saudi Arabian Oil Company (Saudi Aramco)
6.3.10 Schlumberger NV
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Hydraulic Fracturing Process
Drilling Rig Industry Segmentation
A drilling rig is an integrated system that drills wells, such as oil or water wells or holes for piling and other construction purposes, into the earth's subsurface. Major components of the rig include mud tanks, mud pumps, derrick or mast, rotary table or top drive, drill string, power generation equipment, and auxiliary equipment.
The drilling rig market is segmented by location of deployment, type, and geography. By location of deployment, it is segmented into Onshore and Offshore. By type, it is segmented into Jack-Ups, Semisubmersible, Drill Ships, and Other Types. and by Geography, it is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa. The report also covers the market size and forecasts for the emergency power generators market across major regions. The market sizing and forecasts for each segment were made based on revenue (in USD).
| Location of Deployment | |
| Onshore | |
| Offshore |
| Type | |
| Jack-ups | |
| Semisubmersible | |
| Drill Ships | |
| Other Types |
| Geography | ||||||||||
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Drilling Rig Market Research Faqs
How big is the Drilling Rig Market?
The Drilling Rig Market size is expected to reach USD 98.40 billion in 2024 and grow at a CAGR of 1.28% to reach USD 104.88 billion by 2029.
What is the current Drilling Rig Market size?
In 2024, the Drilling Rig Market size is expected to reach USD 98.40 billion.
Who are the key players in Drilling Rig Market?
Nabors Industries Ltd., Transocean Ltd., Saipem SpA, Seadrill Ltd and Schlumberger NV are the major companies operating in the Drilling Rig Market.
Which is the fastest growing region in Drilling Rig Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Drilling Rig Market?
In 2024, the North America accounts for the largest market share in Drilling Rig Market.
What years does this Drilling Rig Market cover, and what was the market size in 2023?
In 2023, the Drilling Rig Market size was estimated at USD 97.14 billion. The report covers the Drilling Rig Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Drilling Rig Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Drilling Rig Industry Report
Statistics for the 2024 Drilling Rig market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Drilling Rig analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
