Drilling rig is an equipment used for the purpose of drilling holes in the earth’s surface to extract oil and water wells. Drilling rigs can be big structures used to drill water, oil or natural gas extraction wells, or they can be small enough that can be moved manually by one person. They play an important role in producing hydrocarbons from wells. Around 70% hydrocarbon production is derived from onshore oil and gas fields and remaining comes from offshore fields.
Surface drilling rigs are used in quarrying, construction and surface mining industry. They are used to lay bore wells, depth foundations of high buildings in construction sites and also for rock cutting and blasting in the quarrying industry. These rigs use the power of hydraulic and mechanical processes for energy transmission when drilling.
Growing industrialization and burgeoning construction & mining activities have contributed towards the growth of surface drilling rigs market. Construction and mining activities witnessed stagnant growth after the global economy crisis in 2008-2009. Post the crises, both the industries recovered and had a stable growth. The introduction of oil and gas reserves in remote areas and increasing technological advancements has given boost to cost-effective and feasible drilling operations.
The global surface drilling rigs market is anticipated to record a CAGR of around 4.2% over the forecast period i.e. 2019-2027. The market is segmented by method & application. By method, the market is sub-divided into top hammer, down-the-hole and others, out of which, the top hammer segment is anticipated to have significant growth on account of its reliability and high penetration during toughest times. Down-the-hole segment also known as DTH, is the same as small jack hammer, and can drill up to 150 to 500 meters in a day.
The market is further segmented by application into quarrying, mining, civil engineering, dimension stone industry and others, out of which, civil engineering segment is anticipated to have leading shares on account of surface drilling rigs being used in construction sites to lay small split holes for depth foundations. Surface drilling rigs are also used in quarrying industry for rock cutting and blasting. CLICK TO DOWNLOAD FREE SAMPLE
In the recent years, the requirement pertaining to the type of drilling rig has changed. Now, high tech rig designs and bigger horse-power rigs are demanded. These rigs are being favored by the drilling business. Highly portable rigs require less manpower say, 2-3 man crew to do the same amount of work which was earlier done by 7-8 men. Land contractors have upgraded their fleet with high horsepower and adding powerful rigs with innovative technological capabilities which offer automated pipe handling and mobility to quickly move from one site to another.
Advancements in technology in relation to oil field discovery and oil drilling have led to the growth of the surface drilling market. Additionally, digital sensors have been used in drilling rigs for recording of massive data that can be later analyzed with the information collected from other fields and can be used to make better decisions. This technology helps in integrating the drilling process digitally such as drilling bit and bottom-hole assembly with the help of a software and in automating mechanical process. Demand for surface drilling rigs has increased to more than 40% as oil prices are improving. The advanced rigs are equipped with AC power system which increase drilling efficiency, consume less fuel and reduce wear & tear.
The construction and mining activities have increased in the recent years and new projects have been implemented which require surface drilling and this factor is the key driver contributing towards the growth of the surface drilling rigs market during the forecasted period.
In the recent times, the drilling rigs with latest technology have been manufactured which offers high performance and are made to meet the demand of the production cycles and this is anticipated to drive the growth of the market.
The cost of operating the surface drilling rigs is high as compared to the rotary drilling rigs which is predicted to restrain the growth of the market during the forecasted period.
Our-in depth analysis of the surface drilling rigs market includes the following segments:
On the basis of regional analysis, the global surface drilling rigs market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia Pacific region holds a major share in the global revenue of surface drilling rigs market owing to the presence of growing economies, such as India and China. Middle East follows Asia Pacific region in terms of market share attributing to huge investments and infrastructural developments in industrial and commercial sector. Additionally, rising construction activities in countries such as Qatar and Saudi Arabia and increasing production of iron, copper in the mining industry has contributed towards the growth of the surface drilling market globally. Europe and North America has been estimated to witness significant growth on account of rising investment in construction activities and growth of the mining industry in the regions.
The surface drilling rigs market is further classified on the basis of region as follows:
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