by Directional drilling is a technique used for underground boring, mining, and construction that allows digging horizontally or at an angle to avoid obstacles in the drilling path. It is used for developing oil & gas fields, installing pipelines and telecommunication cables, excavating tunnels, and placing drainage and irrigation systems. The technique minimizes disruption at the ground surface and requires smaller work areas.
The global directional drilling services market is estimated to be valued at US$ 9.58 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growth in microtunneling and pipe jacking projects: Directional drilling is increasingly being used for microtunneling and pipe jacking projects for installing underground pipes and cables. Microtunneling involves trenchless construction of pipelines 2-4 m in diameter, while pipe jacking involves pushing pipelines several meters in diameter. Both the techniques use directional drilling for accurate installation of pipelines underground with minimal disruption to infrastructure and traffic above ground. Increasing adoption of these techniques for infrastructure development is expected to boost the directional drilling services market over the forecast period.
SWOT Analysis
Strength: Directional drilling services offer accuracy and efficiency in drilling complex wells as compared to traditional vertical drilling. It allows drilling multiple drain holes from a single wellbore thus maximizing production from reservoirs.
Weakness: Directional drilling requires specialized equipment and highly skilled labor which increases project costs. Uncertainties in complex geological formations can also lead to drilling challenges and failures.
Opportunity: Growing extraction of oil and gas from unconventional resources is driving demand for directional drilling worldwide. Developing regions with complex geology also present opportunities.
Threats: Volatile oil prices impact capital spending of explorers and producers. Rising environmental concerns pose regulatory challenges for onshore drilling activities.
Key Takeaways
The Global Directional Drilling Services Market Size is expected to witness high growth over the forecast period. The global directional drilling services market is estimated to be valued at US$ 9.58 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024-2031.
North America currently dominates the market buoyed by ongoing developments in shale basins of the United States. Strategic investments by service providers have enhanced capabilities to drill long reach wells. The market is anticipated to grow at a significant pace in Middle East & Africa and Latin America regions over the coming years. Countries like Saudi Arabia, UAE, Argentina and Mexico are investing heavily in upstream E&P activities to meet rising energy demand. This will further drive requirement of directional drilling operations across varied oil & gas reservoirs.
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
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
