Drilling Rig Market Size & Share, by Type (Drill Ships, Jack Up Rigs); Depth (Shallow, Deep Water) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4976
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Drilling Rig Market size is set to reach USD 70 Billion by the end of 2035, witnessing around 6% growth rate from 2023 to 2035. In the year 2022, the industry size of the drilling rig was USD 55 Billion. The growth of the market is primarily aided by the rising demand for oil and gas in the world. Between 2021 and 2025, global gas demand is expected to climb by 140 billion cubic meters (bcm). Furthermore, global oil demand is expected to climb by 1.9 million barrels per day in 2023. The rising demand is propelling manufacturers to extract more oil and gas and thus increasing the demand for drilling rigs and other equipment.

The new advancements in the technology of drilling rigs will also drive the opportunities for drilling rig market growth. Environmental hazards were one of the primary concerns of drilling the reserves. However, advanced drilling rigs have eradicated these issues to some extent. For instance, new rigs are capable of drilling small holes and making greater extraction, and minimizing the production of waste.


Drilling Rig Market-min
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Global Drilling Rig Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Investment in Energy Sector – With rising the investment in energy sector, companies are increasing exploration and production activities, leading to more drilling rigs being employed.
  • Growing Exploration in the Sector– With the new finding, the need for commercializing its use increased the need for drilling and extracting the energy, which in turn drive the demand for drilling rigs. Also, there has been a rise in exploration activities across the globe which is one of the major factors contributing to the increasing requirement of drilling rig. The global oil and gas exploration industry enjoyed a banner year in 2022, with an average of more than 150 million barrels of oil equivalent discovered, about doubling the previous decade's average.
  • Rising Production of Unconventional Oil & Gas –Drilling rig is used for injecting the high-pressure fluid in the fractures which are required for the extraction of unconventional energy resources. Moreover, it also aids the construction of wells, deep into the earth’s crust for its storage.  Global unconventional oil production, comprising shale oil from the United States, is expected to reach around 6 million barrels per day by 2035.

Challenges

  • Transition to Renewable Energy – There is various renewable energy that is vastly exceeding the use of oil and gas. Solar energy, wind energy, and geothermal energy are replacing the oil and gas application from various industries, including water heating, space heating, electricity generation, and even in transportation.
  • Uncertain prices in the energy sector

Adverse impact of drilling the reserves on the environment

Drilling Rig Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 6%

Base Year Market Size (2022)

~ USD 55 Billion

Forecast Year Market Size (2035)

~ USD 70 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Drilling Rig Segmentation

Type (Drill Ships, Jack Up Rigs)

The jack up rigs segment is estimated to hold 60% share of the global drilling rig market by 2035. Moreover, this segment is set to have the fastest growth between 2023 and 2035. The demand for jack-up rigs is continuously rising especially in the region of the middle east is driving the segment’s growth. Moreover, leading jack-up fleet owners expect that the global demand for modern jack fleets will surpass 95% in the near quarters. Moreover, many offshore development projects are underway around the world, jack-up drilling is employed in these projects for oilfield services due to their ability to operate in moderate water depths and harsh environments.

Depth (Shallow, Deep Water)

The drilling rig market from deep water segment is expected to garner a notable share of around ~55% in the year 2035. The higher number of deepwater reserves in the world will boost the segment growth. These wells require a drilling rig for constant maintenance and repair to prevent any environmental and security hazards. Deepwater reserves account for around 100 billion barrels of reserves globally, or roughly 10% of total reserves. The Gulf of Mexico alone has 3,400 deepwater wells. Moreover, deep water reserves primarily use two drilling rigs, the semi-submersible platforms, and drillships.

Our in-depth analysis of the market includes the following segments:

    Type

  • Drill Ships
  • Jack Up Rigs

     Depth

  • Shallow
  • Deep Water

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Drilling Rig Industry - Regional Synopsis

North American Market Statistics

The drilling rig market share of drilling rig in North America, is predicted to be the largest with a share of about 35% by the end of 2035. Moreover, it is also estimated to be the fastest-growing region in the drilling rig market as compared to the other regions. A rise in the number of oil reserves is likely to increase the demand for drilling rigs for extracting the oil and further maintenance. Since the 1990s, proven crude oil reserves in the United States have been growing. The reserves of the North American country reached 8.2 billion metric tonnes in 2020, up from 3.7 billion tonnes at the start of the decade.

APAC Market Analysis

The Asia Pacific drilling rig market is estimated to be the second largest, garnering a share of about 28% by the end of 2035. The growth of the market is due to rising expenditure on deepwater reserves. Around 85% of total spending done in global deepwater reserves is expected to be in Malaysia, Indonesia, India, Australia, and China. Moreover, the Asia Pacific region will be the fastest-growing area for the development of deep-water reserves. These spending and development are likely to capture advanced machinery and new equipment.

Research Nester
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Companies Dominating the Global Drilling Rig Market

top-features-companies
    • Maersk A/S
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Archer Ltd.
    • China Oilfield Services Ltd.
    • Eni Spa
    • Helmerich and Payne Inc
    • KCA Deutag
    • Loews Corporation
    • Nabors Industries Ltd.
    • Transocean Ltd.

    Weatherford International Plc


In-the-news

In The News

  • Transocean Ltd. announced that it got selected for a drilling contract by Equinor. In support of the Northern Lights Carbon Capture Storage Project, the Transocean Enabler will drill one carbon injection well and a sidetrack for another carbon injection, which was earlier drilled in 2020.
  • Nabors Industries Ltd. announced the launch of the first-ever fully automated land drilling rig, PACE-R801. It was developed with the combination of Smart Suite software with Canrig robotics.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 4976
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for oil and gas and higher drilling of unconventional resources are the major factors driving the market growth.

The market size of drilling rig is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Maersk A/S, Archer Ltd., China Oilfield Services Ltd., Eni S.p.A, Helmerich and Payne Inc., KCA Deutag, Loews Corporation, Nabors Industries Ltd., Transocean Ltd., Valaris Plc, and Weatherford International Plc

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, depth, and by region.

The jack-up rig segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The rising popularity of renewable energy and the high process of oil and gas are estimated to be the growth hindering factors for the market expansion.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Drilling Rig Market Report Scope
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