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.
Growth Drivers
Challenges
Adverse impact of drilling the reserves on the environment
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 6% |
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Base Year Market Size (2022) |
~ USD 55 Billion |
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Forecast Year Market Size (2035) |
~ USD 70 Billion |
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Regional Scope |
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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:
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Type |
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Depth |
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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.
Weatherford International Plc
Author Credits: Payel Roy, Dhruv Bhatia
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