Rotary Steerable System Market Size & Share, by Type (Push the Bit, Point the Bit); Application (Onshore, Offshore) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4994
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

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

Rotary Steerable System Market size is poised to reach USD 8 Billion by the end of 2035, growing at a CAGR of 7% between 2023 and 2035. In the year 2022, the industry size of rotary steerable system was USD 4 Billion. With the surging demand for renewable energy resources, the rotary steerable system (RSS) has found its potential application in this energy extraction. For instance, RSS technology can assist in effectively reaching and intersecting geothermal deposits, hence increasing overall energy output.

Following Russia's invasion of Ukraine, global oil prices skyrocketed to more than $120 per barrel. The emphasis on cost optimization and operational efficiency has increased as a result of increased oil prices. The adoption of rotary steerable system will increase as it aids correct well placement and higher drilling frequency thus significantly contributing to reducing operational cost.


Rotary Steerable System Market-min
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Global Rotary Steerable System Market: Growth Drivers and Challenges

Growth Drivers

  • Surging Consumption of Energy– Owing to rapid industrialization, and urbanization, there has been a surge in the consumption of energy. Hence, the increasing production of energy depends upon the rotary steerable system. Energy consumption is predicted to increase by 50% between 2005 and 2030, with developing countries accounting for the majority of the demand.
  • Growing Reserves of Unconventional Energy–Rotary steerable system (RSS) are commonly used in unconventional oil and gas drilling, such as shale gas, and oil sand, they also act as directional drilling tools. Oil sands are discovered in many nations across the globe, but the largest volumes are found in Venezuela, and Alberta. Alberta's oil and sand reserves are the world's largest single oil reserves. It is estimated to hold oil accounting for 2 to 3 trillion barrels contained in complex oil sands and mixtures.
  • Rising Investment in Offshore Drilling – In order to make up for the expanding demand for hydrocarbons, there has been rising investment in offshore drilling areas.

Challenges

  •  Negative Impact on the Environment- Hydraulic crushing procedures cause groundwater contamination, pollutants in the air, the release of methane, the motion of toxic gases, the groundwater quality degradation. Therefore, one of the biggest challenges impeding the rotary steerable system market growth is the adverse ecological effects of hydraulic fracturing activity.
  • Growing demand for renewable energy
  • Higher competition from conventional drilling technologies

Global Rotary Steerable System Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 7%

Base Year Market Size (2022)

~ USD 4 Billion

Forecast Year Market Size (2035)

~ USD 8 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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Rotary Steerable System Segmentation

Application (Onshore, Offshore)

The onshore rotary steerable system market is estimated to gain the largest revenue share of about ~60% in the year 2035. The higher number of oil rigs present on the land and the extraction of crude oil from onshore rigs and other oilfield services will boost the segment growth. Onshore wells require drilling extended-reach sections to access remote or offshore. A rotary steerable system enables longer horizontal section drilling. The majority of the world's oil rigs are on land. There were around 1,309 operational onshore oil rigs at the end of 2021. Moreover, it is expected that by 2025, around 72 percent of the crude oil produced globally will be produced onshore.

Type (Push the Bit, Point the Bit)

Rotary steerable system market from the push the bit segment is gaining popularity owing to improved drilling efficiency and it even reduces the drilling time by increasing the penetration rates. The International Association of Directional Drilling (IADD) estimates that there were 70 different RSS tools on the market by August 2020 from various businesses. Out of which, 70% of these are push-the-bit systems, demonstrating the popularity of this method over alternative steerable technologies like mud motors and point-the-bit RSS.

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

     By Type

  • Push the Bit
  • Point the Bit

     By Application

  • Onshore
  • Offshore

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Rotary Steerable System Industry - Regional Synopsis

North American Market Statistics

The rotary steerable system market in North America is projected to be the largest with a share of about 38% by the end of 2035. The rising production of shale gas is increasing the need for directional drilling with the use of rotary steerable system. According to the U.S. Bureau of Labor Statistics, shale gas extraction in the United States is poised to increase from around 7.8 million MMcf in 2011 to 16.7 million MMcf by 2040. Moreover, shale gas production in the United States is expected to account for more than 40% of total natural gas production in China by 2040. Moreover, shale gas output in Canada is set to rise further, accounting for over 30% of total natural gas production by 2040.

European Market Forecast

The European rotary steerable system market is predicted to be the second largest, registering a share of about 25% by the end of 2035. The growth of the market can be attributed majorly to the higher consumption of oil which will increase the need for faster drilling and higher production of oil with the use of a rotary steerable system. As the COVID-19 limits were gradually abolished in the EU in 2021, consumption of most oil products surged, with jet kerosene increasing by 25.55% as stated by Eurostat.

Research Nester
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Companies Dominating the Global Rotary Steerable System Market

top-features-companies
    • D-Tech Rotary Steerable
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Halliburton Energy Services, Inc.
    • Schlumberger Limited
    • Weatherford International Plc
    • APS Technology, Inc.
    • Baker Hughes Company
    • NOV, Inc.
    • Double Barrel RSS
    • Nabors Corporate Services, Inc.
    • Gyrodata Incorporated

In-the-news

In The News

  • Schlumberger announced the launch of autonomous directional drilling which offers options for autonomously steering through any region of the wellbore.
  • Halliburton Company introduced the iCruise XTM Intelligent Rotary Steerable System, the next generation of drilling platform designed for longer, harsher applications that need precision.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 4994
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for oil and gas, and higher need for other sources of energy are the major factors driving the market growth.

The market size of rotary steerable system is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Halliburton Energy Services, Inc., Schlumberger Limited, Weatherford International Plc, APS Technology, Inc., Baker Hughes Company, NOV, Inc., Double Barrel RSS, Nabors Industries, Ltd., Gyrodata Incorporated, and D-Tech Rotary Steerable.

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, application, and by region.

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

Growing need for renewable energy sources and negative environmental impact are estimated to be the growth hindering factors for the market expansion.

T he 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.
Rotary Steerable System Market Report Scope
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