The horizontal directional drilling market share is expected to increase by USD 3.28 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 7.96%.
This horizontal directional drilling market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers horizontal directional drilling market segmentation by application (onshore and offshore) and geography (North America, APAC, Europe, Middle East and Africa, and South America).
What will the Horizontal Directional Drilling Market Size be During the Forecast Period?
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"Increasing investments in offshore projects will drive directional drilling market growth in the forthcoming years."
The horizontal directional drilling market report also offers information on several market vendors, including APS Technology Inc., Baker Hughes Co., Barbco Inc., China Oilfield Services Ltd. Â, Cathedral Energy Services Ltd., Compass Directional Services Ltd., Halliburton Co., Helmerich and Payne Inc., Huisman Equipment BV, Koltek LLC, Millennium Directional Service Ltd., MS Directional, Nabors Industries Ltd., National Energy Services Reunited Corp., NOV Inc., PHX Energy Services Corp., Precision HDD LLC, Schlumberger Ltd., Scientific Drilling International, and Weatherford International Plc among others.
Horizontal Directional Drilling Market: Key Drivers, Trends, and Challenges
The rising unconventional drilling activities is notably driving the horizontal directional drilling market growth, although factors such as risks associated with drilling activities may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the horizontal directional drilling industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Horizontal Directional Drilling Market Driver
- One of the key factors driving growth in the horizontal directional drilling market is the rising unconventional drilling activities.
- A shale is a low-permeability sedimentary rock formation, which contains trapped oil and gas. The production process of shale gas involves the application of pressure using a combination of water, sand, chemicals, and other stimulation fluids to fracture the rock and allow the oil and gas to rise to the surface where it is collected for processing.
- The adoption of unconventional drilling technologies in regions with large shale deposits has widened opportunities for upstream oil and gas companies in countries like the US and Canada. Large oil and gas producers such as Chevron, Exxon Mobil, and ConocoPhillips have increased their investments in shale oil and gas. Thus, an increase in unconventional oil and gas drilling activities are likely to boost the market as horizontal directional drilling is the major techniques employed in the process.
- The rising unconventional drilling activities lead to an increase in drilling activities, thereby driving the market.
Key Horizontal Directional Drilling Market Trend
- The automation in horizontal directional drilling technique is another factor supporting the horizontal directional drilling market share growth.
- The drilling process in the oil and gas industry is highly dynamic as there are several variables that affect this process. However, enhancements of drilling process efficiencies and higher quality wellbores are expected to decrease the effect of the above-mentioned variables during drilling to optimize the process.
- The drilling processes are evolving with the declining human footprint and accelerated emphasis toward system automation to improve the productivity, efficiency, safety, and quality of the drilling equipment.
- Several new developments are being implemented in practice by the members of the oil and gas drilling value chain. This led to the removal of SMEs from the well site and boosted the performance by achieving well penetration of more than one mile per day.
- The automation of the horizontal direction drilling significantly improves the production efficiency, profitability, and consistency of the drilling process performance, thereby driving the market.
Key Horizontal Directional Drilling Market Challenge
- The risks associated with drilling activities will be a major challenge for the horizontal directional drilling market during the forecast period.
- Horizontal directional drilling is widely used in the hydraulic fracturing process in unconventional oil and gas drilling activities as horizontal directional drilling is mainly required in unconventional reservoirs.
- The US is one of the major adopters of hydraulic fracturing for oil and gas production as the technology is very effective in obtaining oil and gas from shale reserves. However, though hydraulic fracturing is the ideal option for increasing oil and gas production, it is prone to methane leaks and water pollution during fracking.
- The issues are considered as a potential threat to the entire process. Though initiatives are being taken to reduce the above environmental problems, concerns that continue to persist over drilling activities can hinder the growth of the oil and gas industry.
- Countries such as Ireland, Bulgaria, Germany, France, and the Netherlands have banned fracking, while in other countries such as the US, there is strong opposition from the public to this drilling method. Therefore, these factors will hinder the growth of the oil and gas industry, thereby affecting the growth of the market.
This horizontal directional drilling market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Parent Market Analysis
Technavio categorizes the global horizontal directional drilling market as a part of the global oil and gas drilling market within the oilfield equipment and services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the horizontal directional drilling market during the forecast period.
Who are the Major Horizontal Directional Drilling Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- APS Technology Inc.
- Baker Hughes Co.
- Barbco Inc.
- China Oilfield Services Ltd. Â
- Cathedral Energy Services Ltd.
- Compass Directional Services Ltd.
- Halliburton Co.
- Helmerich and Payne Inc.
- Huisman Equipment BV
- Koltek LLC
- Millennium Directional Service Ltd.
- MS Directional
- Nabors Industries Ltd.
- National Energy Services Reunited Corp.
- NOV Inc.
- PHX Energy Services Corp.
- Precision HDD LLC
- Schlumberger Ltd.
- Scientific Drilling International
- Weatherford International Plc
This statistical study of the horizontal directional drilling market encompasses successful business strategies deployed by the key vendors. The horizontal directional drilling market is fragmented and the vendors are deploying growth strategies such as rising the drilling activities in remote areas for both onshore and offshore applications to compete in the market.
Product Insights and News
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bakerhughes.com - The company offers AutoTrak Curve high-build-rate rotary steerable system that reduces time on well in one smooth, fast run.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The horizontal directional drilling market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Horizontal Directional Drilling Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the horizontal directional drilling market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
Which are the Key Regions for Horizontal Directional Drilling Market?
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53% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for horizontal directional drilling in North America. Market growth in this region will be faster than the growth of the market in the European, MEA and South American regions.
The increasing drilling activities will facilitate the horizontal directional drilling market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the COVID-19 outbreak negatively impacted the horizontal directional drilling market in North America. However, with the lifting of lockdown restrictions in 2021, major horizontal directional drilling operations were resumed. Hence, the market is expected to recover and grow during the forecast period, owing to the increasing number of offshore exploration projects in the region.
What are the Revenue-generating Application Segments in the Horizontal Directional Drilling Market?
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The horizontal directional drilling market share growth by the onshore segment will be significant during the forecast period. Onshore E&P activities have a lower cost of operation and require less advanced technologies to drill compared with offshore E&P activities. As a result, their adoption is high. The recent recovery of the global crude oil prices has resulted in increased investments by the US oil and gas producers in shale oil and gas. Most of the US oil and gas producing regions are onshore. The increase in E&P activities in the US will contribute to the growth of the onshore segment of the market.
This report provides an accurate prediction of the contribution of all the segments to the growth of the horizontal directional drilling market size and actionable market insights on post COVID-19 impact on each segment.
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Horizontal Directional Drilling Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.96% |
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Market growth 2022-2026 |
$ 3.28 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
6.64 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 53% |
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Key consumer countries |
US, Canada, China, India, and Russia |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
APS Technology Inc., Baker Hughes Co., Barbco Inc., China Oilfield Services Ltd.  , Cathedral Energy Services Ltd., Compass Directional Services Ltd., Halliburton Co., Helmerich and Payne Inc., Huisman Equipment BV, Koltek LLC, Millennium Directional Service Ltd., MS Directional, Nabors Industries Ltd., National Energy Services Reunited Corp., NOV Inc., PHX Energy Services Corp., Precision HDD LLC, Schlumberger Ltd., Scientific Drilling International, and Weatherford International Plc |
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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, Market condition analysis for the forecast period |
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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. |
What are the Key Data Covered in this Horizontal Directional Drilling Market Report?
- CAGR of the market during the forecast period 2022-2026
- Detailed information on factors that will drive horizontal directional drilling market growth during the next five years
- Precise estimation of the horizontal directional drilling market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the horizontal directional drilling industry across North America, APAC, Europe, Middle East and Africa, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of horizontal directional drilling market vendors
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