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The North America directional drilling market size is forecast to increase by USD 1.99 billion, at a CAGR of 8.04% between 2023 and 2028. The market growth and forecasting report includes historic market data from 2018-2022. The market is witnessing a growing demand for the emergence of automation, the rise in deepwater and ultra-deepwater E&P activities, and the discovery of new oil and gas resources.
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The emergence of automation is the primary trend sharing the market. Automation is revolutionizing the oil and gas industry by improving efficiency, accuracy, and safety. With the increasing availability of advanced technologies, companies are embracing automation to optimize their operations. Moreover, one important aspect is the use of robotic systems. These systems are equipped with sensors, cameras, and artificial intelligence algorithms that allow them to make real-time adjustments during the operations.
Additionally, automated systems can detect and respond to potential hazards, such as high-pressure zones or unstable formations, in real-time, ensuring the safety of both workers and equipment. Moreover, automation has significant economic benefits. By increasing efficiency and accuracy, companies can save time and resources. In addition, automation can contribute to the optimization of parameters, such as weight on bit and rotary speed, resulting in improved drilling efficiency and reduced fuel consumption. Thus, such factors are expected to drive the market during the forecast period.
Onshore refers to the process of drilling wells on land. This method has gained popularity due to its cost-effectiveness and accessibility, making it an attractive option for oil and gas companies. The US is one of the countries to contribute to the onshore segment expansion. Furthermore, the cost-effectiveness of onshore, compared with offshore, is another driver of market growth.
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Moreover, onshore drilling eliminates the need for expensive offshore platforms, besides the installation and maintenance of subsea equipment and the transportation of equipment and personnel by sea. This reduces the overall costs significantly, making onshore drilling more economically viable for operators, especially in regions with vast onshore reserves of oil and gas. Therefore, the abovementioned factors are expected to increase the demand in the onshore segment, which will propel the North America directional drilling market during the forecast period.
The rising investments in the upstream oil and gas sector is the key factor driving the market. Energy security is becoming a critical factor in most countries owing to population growth and rapid industrialization. Therefore, many countries are exploring untapped oil and gas resources using advanced technologies. Moreover, the production of oil and natural gas from conventional oilfields is declining. To address this issue and maximize the revenue from oilfields, oil and gas operators are increasing their investments in mature oil and gas fields.
Moreover, oil and gas E&P companies are also increasing their upstream investments to boost their production. In addition, global upstream oil and gas investment increased by 9-10% in 2021. The investment also includes the addition of three new rigs. Thus, the increasing investments in the upstream oil and gas sector are likely to boost the market growth during the forecast period.
The adoption of alternative energy sources is a significant challenge for the market. Factors such as the high energy demand, clean energy initiatives, and subsidies for power generation using sustainable sources promote the use of renewable energy sources such as solar and wind. Renewable energy sources are clean and inexhaustive and are becoming less carbon-intensive and more sustainable. Also, governments are undertaking several initiatives to mitigate GHG emissions.
Additionally, the consumption of renewable energy, such as solar, hydropower, and wind, has increased over the years. Many countries are using fuels such as electricity and hydrogen fuels in the transportation sector as a part of the clean energy initiatives started by governments in North America. Thus, the rising dependence on renewable energy sources will negatively impact the use of conventional fossil fuels such as oil and gas. This, in turn, will hamper offshore oil and gas activities as well as the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth, particularly in offshore projects where traditional drilling methods face limitations. This market caters to various sectors including pipelines, petrochemical, and refinery industries, where precision is important. Horizontal directional drilling (HDD) techniques have revolutionized the industry, offering efficient solutions for navigating complex terrains. Further, the advent of mini and midi HDD machines has further expanded capabilities, enabling the completion of diverse ongoing projects and facilitating future developments. In the U.S., the market is gaining traction, supported by insights from the U.S. Energy Information Administration (EIA).
Offshore regions like the Gulf of Mexico witness extensive activities, driven by crude oil exploration and production. Regulatory frameworks established by federal administrations and industry publications such as the American Oil & Gas Reporter help monitor rig count and analyze machine type trends. Additionally, various equipment such as utility vibratory plows, pile drivers, and boring machines cater to different machine sizes and segments, serving diverse sectors including the telecommunications industry for infrastructure development and broadband services.
Besides, mini-HDD machines are pivotal for fiber cable installation projects and offer versatility with interchangeable parts type including rigs, pipes, bits, and reamers. These components ensure precision in oil & gas extraction, utility, and telecommunication applications, particularly in the offshore segment and onshore fields.
North America Directional Drilling Market Scope |
|
Report Coverage |
Details |
Page number |
136 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.04% |
Market Growth 2024-2028 |
USD 1.99 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
APA Corp., Baker Hughes Co., Cathedral Energy Services, Chevron Corp., Direct Horizontal Drilling, Granite Construction Inc., Halliburton Co., Intrepid, Laney Drilling, LEAM Drilling Services, Nabors Industries Ltd., NOV Inc., RPB Industries Group, Scientific Drilling International, Stryker Directional, Terra Contracting, Texas Directional Boring, Texas Roc Contracting, Vermeer Corp., and Weatherford International Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technique
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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