Directional Drilling Service Market

Directional Drilling Service Market Overview for 2024 to 2034

The directional drilling service market is estimated to be valued at USD 10.3 billion in 2024. The pace of progress for the market from 2024 to 2034 is projected to be promising, with a CAGR of 6.3%. By 2034, the directional drilling service industry value is forecasted to hit USD 19.0 billion.

Directional Drilling Service Market Dynamics

• Petroleum and oil play key roles in the economies of developing nations, thus encouraging the use of directional drilling services in these economies.
• The demand for directional drilling services is increasing alongside the non-abating rise of the petroleum sector in developed and Middle Eastern countries.
• As the demand for shale gas increases, there is a growing need for directional drilling services to enhance the efficiency of the gas extraction process.
• Demand for directional drilling services is getting increased with the discovery of new oilfields, leading to the geographical expansion of the market.
• With the increasing number of onshore wells, there is a rising demand for directional drilling services to extract oil at a faster rate.

Attributes	Details
Directional Drilling Service Market Value for 2024	USD 10.3 billion
Projected Market Value for 2034	USD 19.0 billion
Value-based CAGR of Market for 2024 to 2034	6.3%

Directional Drilling Service Market Trends

• Vertical drilling becomes cumbersome for extracting and measuring oil in certain unconventional reserves. This is where directional drilling services step in, using non-vertical angles to reach further and extract oil that is unreachable by traditional drilling methods.
• The demand for crude oil shows no signs of decreasing; instead, it is increasing exponentially. In such cases, directional drilling services are experiencing rising demand.
• To meet the rising demand for fuel, fuel-producing companies are increasing production rates, with directional drilling services enabling them to do so.
• While onshore drilling is the traditional method in the market, the increasing convenience of offshore drilling is leading to a more positive outlook for offshore directional drilling services.
• The rise in the number of deepwater drilling sites is benefiting the market, as directional drilling services are making more inroads into the deepwater area.
• Oil extraction and the drilling services associated with it are often affected by geopolitical conditions in prominent oil extraction areas. With several oil-producing nations embroiled in geopolitical conflicts, oil extraction and drilling become difficult, negatively impacting the directional drilling service industry.
• Regulatory pressure on enterprises in the oil and gas industry is increasing due to the rising demand for sustainability. Thus, companies in the directional drilling service market have to navigate around standards even while trying to expand.

Category-wise Outlook

When it comes to the type of directional drilling services, the conventional method still rules the market. On the other hand, although offshore drilling is gaining popularity, onshore drilling remains the predominant location in the market.

Comfortability with Conventional Equipment Ensures Conventional Mode of Drilling Remains the Top Mode in the Market

The conventional type of directional drilling services are expected to progress at a CAGR of 6.0% during the forecast period. Factors driving the growth of the conventional directional drilling service market include:

• Conventional equipment, such as mud motors used for directional drilling, has earned the trust of end users. This makes conventional directional drilling services the most frequently utilized.
• Although rotary steerable systems offer various benefits, such as better measurement, they are also costlier and face issues related to drillers' lack of awareness on how to operate them. Thus, conventional drilling remains the preferred type.

Attributes	Details
Top Type	Conventional
Forecasted CAGR (2024 to 2034)	6.0%

Onshore Drilling Continues to Enjoy Popularity among End Users in the Market

Onshore directional drilling services are predicted to register a CAGR of 5.8% during the forecast period. Some factors contributing to the growth of the onshore drilling segment in the directional drilling service market include:

• While offshore drilling has experienced a surge in popularity, complex geopolitical conditions limit the growth of this type of drilling. Thus, onshore drilling continues to be the preferred location for directional drilling services.
• Onshore drilling enables gas sector companies to closely monitor proceedings, thereby driving demand for onshore directional drilling services.

Attributes	Details
Top Location	Onshore
Forecasted CAGR (2024 to 2034)	5.8%

Country-wise Analysis

Europe is home to numerous areas where oil rigs and oil drilling are integral parts of life for a significant portion of the population. Similarly, North America also hosts several countries where activities related to oil and gas are prominent features of economies and people's lives. With increasing foreign investment, the market in the Asia Pacific is receiving a boost. The discovery of new oilfields is another factor propelling demand in the region.

Countries	Forecasted CAGR (2024 to 2034)
United States	6.6%
United Kingdom	5.3%
China	7.4%
Japan	7.7%
South Korea	3.4%

Surging Demand for Shale Gas in Japan’s Automobile Sector Powers Growth in Directional Drilling Services

The market in Japan is anticipated to register a CAGR of 7.7% during the forecast period. Some factors driving the growth of the market in the country include:

• Japan's automobile industry requires significant quantities of shale gas. To meet these needs, shale gas extraction is increasing in the country, benefiting the directional drilling service market.
• Crude oil demand in Japan shows no signs of abating, driven by the increased adoption of vehicles in the region. As a result, directional drilling services are being regularly called upon.

South Korea's Fuel Firms Ramp up Production, Fostering Growth in Directional Drilling Service Market

South Korea is set to see the market expand at a CAGR of 3.4% over the forecast period. Prominent factors driving the growth of the market include:

• Petroleum companies in South Korea, both local and foreign multinationals, are increasing production to meet the growing demand in South Korea. Consequently, there is an increased demand for directional drilling services.
• Higher-end companies based in South Korea are increasing their investment in offshore drilling, leading to a boost in offshore directional drilling services in the country.

China's Government Drive Boosts Petroleum Prowess, Spurring Directional Drilling Service Market Growth

The market in China is expected to register a CAGR of 7.4% through 2034. Some factors driving the growth of the market in China include:

• The government's aim is to establish China as a significant player in the petroleum industry. Thus, the conditions are favorable for the growth of the directional drilling service industry in the country.
• Drilling of onshore wells is a prominent activity for petroleum sector players in China, and directional drilling services are assisting these companies in their endeavors.

The United Kingdom's Collaborative Approach Elevates Directional Drilling Services to Prominence

The market is set to progress at a CAGR of 5.3% in the United Kingdom between 2024 and 2034. Factors influencing the growth of the market in the United Kingdom include:

• Companies in the United Kingdom are leveraging partnerships to expand the scope of their operations.
• United Kingdom-based market players are increasing investment in regions with high oil extraction, such as the Middle East, as a way of keeping the drilling process going.

Expansive Oil and Gas Sector of the United States Fuels Soaring Demand for Directional Drilling Services

The market is expected to register a CAGR of 6.6% in the United States from 2024 to 2034. Some reasons for the growth of directional drilling services in the country include:

• The United States oil and gas sector is renowned and considered to be the largest in the world, leading to a thriving directional drilling service industry in the country.
• Onshore gas drilling in the United States is on the rise, with companies particularly attracted to the economic nature of the activity. As a result, directional drilling services are becoming increasingly common in the country.

Competitive Landscape in the Directional Drilling Service Market

While companies interested in directional drilling to increase fuel output are concentrated, market players providing those services are plentiful. Thus, the nature of the market is fragmented, with local companies competing with reputable names for a piece of the pie. Market players are adopting collaborative strategies to streamline the drilling process. The manufacturing of tools that make the drilling process more efficient is a common concern among market players.

Recent Developments in the Directional Drilling Service Market

• In August 2023, OCU invested about USD 950,000 to buy two LaValley Tongh attachments and two Cat 320 excavators to make its services more efficient.
• In November 2021, Nabors Industries Ltd. teamed up with Chesapeake Energy Corporation for an oil and gas drilling project in the United States.
• In February 2024, Seros Group showcased its services, including directional drilling services, at the India Energy Week.

Key Companies in the Directional Drilling Service Market

• Schlumberger
• Baker Hughes
• Halliburton
• Weatherford
• National Oilwell Varco

Key Coverage in the Directional Drilling Service Industry Report

• Directional Drilling Services Market Dynamics
• Adjacent Study on Global Directional Drilling Services Market
• Horizontal Drilling Services Market Report
• Growth Analysis of Directional Drilling Services
• Directional Boring Services Market Outlook
• Geotechnical Opportunity Analysis of Directional Drilling Services

Key Segments

By Type:

• Conventional
• Rotary Steerable Systems (RSS)

By Location:

• Onshore
• Offshore

By Application:

• Measurement While Drilling (MWD)
• Logging While Drilling (LWD)
• Rotary Steerable System
• Mud Motors
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Directional Drilling Service Market?

The market is estimated to be USD 10.3 billion in 2024.

What are the Key Companies in the Directional Drilling Service Market?

Schlumberger, Baker Hughes, Halliburton, and Weatherford are some of the key companies in the market.

What Will the Market Worth of Directional Drilling Services be by 2034?

The directional drilling service market is expected to reach a valuation of USD 19.0 billion in 2034.

Which is the Predominant Type of Directional Drilling Service?

Conventional type drilling dominates the market, forecasted to progress at a CAGR of 6.0% from 2024 to 2034.

What are the Key Trends in the Directional Drilling Service Market?

An increase in the number of oilfields and an acceleration of deepwater drilling are two of the trends in the directional drilling services market.

What is the Sales Outlook for Directional Drilling Services?

The directional drilling service market is expected to progress at an encouraging CAGR of 6.3% from 2024 to 2034.