Horizontal Directional Drilling Industry Overview
The global horizontal directional drilling market size is estimated to reach USD 14.86 billion by 2028, expanding at an estimated CAGR of 6.7% from 2021 to 2028, according to a new report by Grand View Research, Inc. The rising emphasis on minimizing the environmental impact of drilling and boring activities, rapid urbanization, and the inconvenience caused to the public due to the increased open-cut utility installations are some of the key factors driving the Horizontal Directional Drilling (HDD) market growth.
Rising environmental concerns have contemplated regulatory bodies worldwide to create regulations that require organizations to minimize ecosystem exploitation. For instance, the U.S. Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA) require that unconventional oil and gas exploration companies abide by the specified safety standards to minimize environmental damages, avoid occupational hazards, and ensure the management of wastewater and other wastes.
Horizontal Directional Drilling Market Segmentation
Grand View Research has segmented the global horizontal directional drilling market report based on machine type, parts, rig types, rig sales, application, end use, and region:
Based on the Machine Type Insights, the market is segmented into Conventional, and Rotary Steerable System.
- The Rotary Steerable System (RSS) segment dominated the HDD machines market in 2020 with a revenue share of over 70.0%. The RSS machine type uses push- and point-the-bit methods for accurate directional control of drilling and forms real-time corrections.
- Conventional horizontal directional drilling is still preferred by SMEs due to its low operational cost compared to RSS. The conventional machine type involves immovable and skid-mounted rigs that require arrangements to regulate their position.
Based on the Machines Parts Insights, the market is segmented into Rigs, Pipes, Bits, Reamers, and Others.
- The deployment rate of mini rigs has increased with the rising need to satisfy the demand for clean energy and the subsequent rise in investments in the natural gas
- The rigs segment captured a revenue share of over 55.0% of the overall market in 2020. An increasing number of oil and gas and telecommunication industry projects are the main factors driving the demand for rigs.
- The pipes segment is expected to register the highest CAGR over the forecast period. Industry players are increasingly investing in the development of drilling pipes that can withstand high underground pressure.
- The midi rig segment accounted for around 40.0% of the revenue share in 2020. Midi rigs are utilized for medium-sized projects that require a pullback force of up to 40,000 pounds with a pipe diameter of up to 24-inches, length of up to 1000-feet, and depth of up to 75-feet.
- The aftermarket segment is expected to foresee the highest growth with a CAGR of around 4.5% during the forecast period. Previously used horizontal drilling rigs have emerged as the most prominent investments for end-users with limited funds.
- The constant rise in utility construction projects such as the installation of gas pipelines.
Based on the Services Application Insights, the market is segmented into Onshore, and Offshore.
- The offshore segment is projected to foresee the highest growth with a CAGR of around 10.0% over the forecast period. Due to the vast untapped oil & gas reservoirs, exploration and production activities are anticipated to be carried out at a larger scale across the globe in the near future.
- Onshore projects, on the contrary, are less expensive than offshore horizontal directional drilling projects due to the lower infrastructure and maintenance cost. The onshore horizontal directional boring projects are highly affected by the crude oil price variations.
Based on the End-use Insights, the market is segmented into Oil & Gas Extraction, Utility, Telecommunication, and Others.
- The oil and gas extraction segment dominated the market in 2020 with a revenue share of over 35.0%. According to a publication by Baker Hughes, the average worldwide oil and gas rig count till June 2021 was 1,325. The well-established infrastructure presents high demand for boring rigs and contributes to the high market share of the oil and gas extraction segment.
- The telecommunication segment is predicted to account for the highest CAGR over the forecast period. The increasing demand for faster broadband connectivity is compelling telecommunication providers to employ newer and more reliable drilling services such as horizontal directional drilling for expanding their network of optic fiber cables.
Horizontal Directional Drilling Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
HDD service providers play an essential role in delivering projects on a contractual basis. These industry participants are responsible for the installation, maintenance, and inspection of drilling activities. The companies emphasize long-term collaborations with their customers to develop an ongoing business model.
Some of the prominent players operating in the global horizontal directional drilling market are:
- Nabors Industries Ltd.
- The Toro Company
- The Charles Machine Works, Inc.
- Vermeer Corporation
- Herrenknecht AG
Order a free sample PDF of the Horizontal Directional Drilling Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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