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The offshore drilling market size is forecast to increase by USD 8.18 billion at a CAGR of 4.42% between 2023 and 2028.
The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The shallow water segment of the market is experiencing significant growth due to several factors. Shallow water drilling, which refers to depths of up to 500 feet, has been a long-standing practice since the mid-20th century. Compared to deepwater and ultra-deepwater drilling, shallow water drilling is considered safer as oil spills are rare and less complex, leading to improved safety and economic viability. With the increasing natural gas demand and the global energy sector's shift towards reducing carbon emissions, the role of offshore drilling in meeting energy requirements is more crucial than ever.
In shallow water, drillships and submersibles are commonly used due to the requirement for their structures to rest on the seabed. These factors are expected to drive the expansion of exploration activities in shallow water during the forecast period.
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The Shallow water segment was valued at USD 17.70 billion in 2018 and showed a gradual increase during the forecast period.
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the market, North America holds significant importance, with Mexico and the United States being the primary contributors in 2023. The region's market growth is anticipated to accelerate over the forecast period due to the revival of deep and ultra-deep oil and gas projects In the Gulf of Mexico (GOM). The growth of these projects is driven by the increasing demand for natural gas and the subsequent rise in crude oil prices. Moreover, the untapped potential for exploration in offshore drilling has attracted substantial investments, further fueling the market expansion. Despite the growing emphasis on renewable energy sources and concerns over carbon emissions, offshore drilling remains a crucial global energy source. The market is characterized by the deployment of advanced technologies, including drillships, for exploration in shallow water areas.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in demand for oil and natural gas is the key driver of the market.
Declining costs of offshore projects is the upcoming market trend.
Environmental concerns associated with offshore E and P activities is a key challenge affecting the industry growth.
The market forecasting 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, offshore drilling market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 industry 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 is driven by the increasing demand for oil production from hydrocarbon exploration in both deepwater and shallow water resources. Automation and drillships technology play a significant role in reducing energy consumption and enhancing efficiency in offshore drilling operations. The market is also influenced by the exploration contracts awarded by global energy sources for hydrocarbon exploration in various regions. Deepwater resource development is a key trend In the offshore drilling industry, with drillships being used to extract oil and natural gas from the ocean floor in ultra-deepwater areas. Controlled pressure drilling, directed drilling, and robotics are some of the advanced technologies used in offshore drilling to ensure compliance with environmental regulations and minimize fuel consumption.
Financial incentives such as tax breaks, grants, and subsidies from domestic industries and governments are crucial for the growth of the market. However, the market faces challenges such as rising oil prices, environmental implications, and compliance monitoring. The increasing demand for renewable energy sources and the shift towards greenhouse gas emissions reduction may also impact the market In the future. The offshore drilling industry also has implications for the marine ecosystem, with concerns over seismic blasting and carbon emissions. The petrochemical industry and the oil supply chain are significant consumers of oil and gas produced through offshore drilling, contributing to the industry's overall impact on climate change. The use of artificial intelligence and advanced drilling technologies such as semi-submersibles is expected to further optimize offshore drilling operations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.42% |
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Market growth 2024-2028 |
USD 8.18 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.3 |
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Key countries |
US, Saudi Arabia, United Arab Emirates, China, and Russia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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