Offshore Drilling Market Size & Share, by Type (Jackups, Semisubmersible, Drill Ships); Depth (Shallow Water, Deep Water & Ultra-Deepwater) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4895
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

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

Offshore Drilling Market size is estimated to reach ~USD 237.19 Billion by the end of 2035 by growing at a CAGR of ~7.54% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of offshore drilling was ~USD 99.14 Billion. The growth of the market can be attributed to growing demand for heat and electricity. By 2030, the total amount of electricity required worldwide would increase by about 5,899 terawatt-hours (TWh) under the Stated Policies Scenario (STEPS) and by over 6,999 TWh under the Announced Pledges Scenario (APS), which is the same amount as the combined demand for electricity in the United States and the European Union today. The majority of heat and power are produced using conventional fuel. Additionally, a significant portion of the electricity used for heating and cooling is projected to increase demand for hydrocarbons, hence further boosting the market growth.

Moreover, with the growing interest in hydrocarbons the demand for natural gas is estimated to grow by about 49% by 2040 globally. Hence, the offshore drilling is estimated to increase. Despite the increased expenses involved in producing oil and gas offshore, offshore well reserves are higher than those in onshore wells. Upstream businesses would probably use and produce these vast reserves. As a result, the worldwide offshore drilling industry would be driven as the need for oil and gas increases. Furthermore, surge in investment in offshore drilling is also estimated to drive the growth of the market over the forecast period.

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Global Offshore Drilling Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 99.14 Billion

Forecast Year Market Size (2035)

~ USD 237.19 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)

Global Offshore Drilling Market: Growth Drivers and Challenges


Growth Drivers

  • Growth in Urban Population Approximately 4.4 billion people, or 56% of the world's population, reside in cities. By 2050, approximately 7 out of 10 people would live in cities, with the urban population predicted to more than double from its current level. Hence with the growing urban population the demand for energy is also increasing. Urban populations have substantially higher energy needs than rural ones. This is owing to the higher standard of living and increased energy requirements of metropolitan residents' lifestyles. Energy demand is skyrocketing in metropolitan areas. Hence, with this the market for offshore drilling is also growing.
  • Growing Offshore Drilling Activities About 15.2% of the crude oil produced in the United States in 2021 came from offshore wells in the Gulf of Mexico's federally controlled waters.
  • Rise in Price of Crude Oil Brent crude oil, a global benchmark valued in Northwest Europe, closed at USD 85 per barrel (b) on the last trading day of 2022, USD 7 more than the price on January 3, 2022 (USD 78/b). Hence, with the growing prices of crude oil large number of organizations are expected to invest more on offshore drilling hence boosting the market growth.
  • Surge in Investment by Government Initiatives -The Indian government wants to double its exploration acreage to 0.5 million square kilometers by 2025 and 1.0 million square kilometers by 2030.
  • Upsurge in Demand for Vehicles -From approximately 65 million vehicles sold globally in 2021 to approximately 66 million vehicles sold globally in 2022. Hence, the demand for oil is estimated to increase. When crude oil is fractionally distilled into different petroleum products, petrol is created. The completed product is then transported via pipelines to petrol stations. The majority of internal combustion engine vehicles require gasoline to operate. Hence, this factor is estimated to boost the market growth.


  • High Operational Cost
  • Rising Demand for Electric Vehicles
  • Diverse Effect on Marine Organism - Adult fish exposed to oil may exhibit stunted growth, enlarged livers, altered heart and respiration rates, fin erosion, and impaired reproductive. Fish eggs and larvae may be particularly vulnerable to harmful effects, both fatal and nonfatal. Even in cases when no fatal effects are seen, oil may render fish and shellfish unfit for human consumption. Hence, this factor is estimated to restrain the growth of the market.

Global Offshore Drilling Market Segmentation

The global industry is segmented and analyzed for demand and supply by depth into shallow water, deep water & ultra-deep water. Out of which, the deep water & ultra-deep water segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing deep water activities. Moreover, growing demand for crude oil is also estimated to boost the growth of the segment. According to projections, the demand for crude oil (including biofuels) was estimated to rise to about 95 million barrels per day in 2021 from approximately 90 million barrels per day in 2020 across the globe. Hence, the demand for offshore drilling is estimated to increase in deep water or ultra-deep water. Although exploring and drilling in shallow water has historically been less expensive and technically difficult, shifting economic conditions and the depletion of some shallow offshore resources have pushed producers to look for deepwater or, in some cases, ultra-deepwater (at depths of 1,500 meters or more) resources.

The global offshore drilling industry is also segmented and analyzed for demand and supply by type into jackups, semisubmersible, and drill ships. Amongst which, the jackups segment is anticipated to have a significant growth over the forecast period. Initially, sea and wind conditions regularly caused disruptions to the oil drilling process. Hence, the importance for jackups grew and is still growing. A jack-up rig's capacity to tolerate adverse weather or environmental conditions after it is attached to a spot is one of its main advantages. Additionally, a jack-up rig transmits motion produced by weather and ocean currents to the subsea. To create a more stable system that considerably reduces equipment damage, engineers may combine jack-ups with high-pressure risers. The load on the surface and subsea components is reduced when a jack-up rig is used. Tree handling and installation tasks may be completed using jack-up rigs. Given their low fuel usage, these rigs are very economical. When in use, the rigs also aid in lowering pollution. Owing, to this the preference is growing.

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


     By Type

  • Jackups
  • Semisubmersible
  • Drill Ships


    By Depth

  • Shallow Water
  • Deep Water & Ultra-Deep Water

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Global Offshore Drilling Market Regional Synopsis

The market share of offshore drilling in Middle East & Africa, amongst the market in all the other regions, is projected to have the highest growth by the end of 2035, backed by growing oil demand and surging exports of oil from Africa. In 2021, Africa exported more than about 925 thousand barrels of petroleum products daily. The offshore oil and gas markets in the Middle East and Africa are among the most significant in the world, with Saudi Arabia, the United Arab Emirates, South Africa, and Nigeria among the major producers. The economies of the nations in the region are reliant on the export of hydrocarbons. As hydrocarbon prices rise, offshore exploration and production are therefore anticipated to rise. Moreover, two new contracts for two high-specification Jack-Up drilling rigs, the Perro Negro 12 and Perro Negro 13, which were chartered by outside parties for drilling and workover operations on the particular projects, were awarded in the Middle East. According to estimates, the first unit's operations would last five years plus two additional optional years while the second unit's operations would last three years plus an additional optional year. Both projects were set to begin between the third and fourth quarters of 2023. Hence, such projects are also estimated to boost the growth of the market in this region.

The Asia Pacific offshore drilling market is estimated to be the second largest, to have the highest growth over the forecast period. The growth of the market in this region can be attributed to growing imports of oil in this region. In this region, China is the world's biggest energy consumer. However, the nation is mostly dependent on energy imports since of the relatively lower conventional hydrocarbon reserves. The nation has been making significant investments to optimize the potential of its local reserves in an effort to lessen its reliance on energy imports. Hence, this factor is estimated to boost the growth of the market in this region. Also, with growing demand for automotive engine oil the market is anticipated to grow in this region.

Additionally, the market in North America is also estimated to have the significant growth over the forecast period. The petrochemical sector is a major driver of the market in this area. The petrochemical industry has expanded as a result of increased petrochemical product usage in end-use industries. Additionally, the cost of oil and gas in North America influences market expansion through political and economic factors. Hence, this factor is estimated boost the growth of the market in this region.

Research Nester
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Top Featured Companies Dominating the Global Offshore Drilling Market

    • Transocean, Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Nabors Industries, Ltd.
    • Seadrill Limited
    • Saipem S.p.A.
    • Valaris Limited
    • Diamond Offshore Drilling, Inc.
    • Noble Corporation
    • China Oilfield Services Limited
    • Pacific Drilling Co.  
    • KCA Deutag


In The News

  • New offshore drilling contracts worth more than 159 million USD was given to Saipem S.p.A. in Romania and Abu Dhabi. According to one deal, the business was estimated to drill a well in the Black Sea off the coast of Romania, most likely in the fourth quarter of 2019. Owing to its capacity to lower its tower, which allows for the crossing of the Bosphorus Strait, the semi-submersible rig Scarabeo 9 was expected to be used to complete the work.
  • Transocean Ltd. announced that it has reached a deal with its client Equinor to licence and install Automated Drilling Control ("ADC") systems on four high-spec, harsh environment rigs that are currently under contract in Norway and a fifth semisubmersible that was anticipated to start operations in Norway in the summer.

Author Credits:  Payel Roy, Dhruv Bhatia

  • Report ID: 4895
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Key Questions Answered in the Report

1) What are the major factors driving the growth of the offshore drilling market?

Ans: The major factors driving the growth of the market are growth in urban population, growing offshore drilling activities, rise in price of crude oil, and others.

2) What would be the CAGR of offshore drilling market over the forecast period?

Ans: The market size of offshore drilling is anticipated to attain a CAGR of ~7.54% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the offshore drilling market growth?

Ans: High operational cost, rising demand for electric vehicles, and diverse effect on marine organism are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of offshore drilling market in future?

Ans: The market in the Middle East & Africa region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the offshore drilling market?

Ans: The major players in the market are Transocean, Ltd., Nabors Industries, Ltd., Seadrill Limited, Saipem S.p.A., and more.

6) How are the company profiles selected?

Ans: 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.

7) What are the segments in the offshore drilling market?

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

8) Which segment captures the largest market size in the type segment in the offshore drilling market?

Ans: The jackups segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.


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