May 22, 2024
Directional Drilling Services Market

The Global Directional Drilling Services Market Is Driven By Increasing Oil And Gas Exploration Activities

The directional drilling services allow oil and gas drillers to steer drilling tools and reach targets horizontally or vertically. This enables companies to extract trapped oil and gas reserves from locations that were previously inaccessible using conventional vertical drilling methods. Directional drilling also helps minimize surface disruptions and reduces environmental impacts by drilling multiple wells from the same drilling pad. Directional drilling tools help achieve the optimum drilling path and bypass existing wells and reservoirs. The global directional drilling services market enhances recovery rates from mature oilfields through horizontal and multi-lateral drilling.

The global directional drilling services Market is estimated to be valued at US$ 9.58 billion in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends driving the growth of directional drilling services market is the increasing complexity of drilling operations in unconventional reservoirs such as tight oil & gas fields and shale basins. Directional drilling with horizontal wellbores helps optimize production from these complex reservoirs. Advancements in measurement-while-drilling (MWD) and logging-while-drilling (LWD) technologies have enabled accurate surveying and steering of directional well paths. Integration of various technologies such as rotary steerable systems, permanent downhole magnetometers, inclination & azimuthal resistivity sensors, and closed-loop drilling optimization systems is also fueling market growth. Stringent regulations around wellbore integrity and environmental protection are prompting directional drilling service providers to develop technologies for accurate well placement and monitoring. This is expected to open new growth opportunities for advanced directional drilling solutions such as geosteering and integrated wellbore construction over the forecast period. However, high capital requirements and operational risks associated with directional drilling pose challenges for market growth.

Porter’s Analysis

Threat of new entrants: The directional drilling services market requires high capital investment and technical expertise which creates entry barriers for new players.

Bargaining power of buyers: Major oil and gas companies have significant influence on directional drilling services providers due to their large scale operations.

Bargaining power of suppliers: Key technology providers influencing the market are directional drilling tool suppliers and measurement-while-drilling equipment providers.

Threat of new substitutes: There exist limited alternatives to directional drilling for tapping reserves buried deep under the earth or in offshore locations.

Competitive rivalry: The market dominated by global players compete on the basis of technical expertise, product innovation and competitive pricing.

Key Takeaways

The Global Directional Drilling Services Market Demand is expected to witness high growth. The global directional drilling services Market is estimated to be valued at US$ 9.58 billion in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024 to 2031.

The market in North America region is expected to dominate during the forecast period owing to increasing exploration and production activities in the Canadian and U.S shale reserves. Asia Pacific region is expected to grow at fastest pace owing to increased oil and gas activities China, India and other developing countries in the region. Growing demand for energy along with increased offshore exploration will drive the growth.

Key players: Key players operating in the directional drilling services market are B. Braun Melsungen AG, Fresenius Kabi, Leventon, S.A.U, Ambu A/S, Baxter International Inc., Halyard Health, and Nipro Corporation. The key players compete on the basis of technological innovations, service quality and competitive pricing.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it