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.
|
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 |
|
Growth Drivers
Challenges
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 |
|
|
By Application |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this Report
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.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing demand for oil and gas, and higher need for other sources of energy are the major factors driving the market growth.
Ans: The market size of rotary steerable system is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2035.
Ans: 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.
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.
Ans: The market is segmented by type, application, and by region.
Ans: The onshore segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Ans: Growing need for renewable energy sources and negative environmental impact are estimated to be the growth hindering factors for the market expansion.
Ans: 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.
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?