Directional Drilling Services Market Report 2025

The directional drilling services market size has grown strongly in recent years. It will grow from $15.76 billion in 2024 to $17.01 billion in 2025 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to oil and gas exploration boom, offshore exploration and production, complex reservoir geology, cost-efficiency and time savings, horizontal drilling adoption, environmental and regulatory considerations, deepwater exploration challenges.

The directional drilling services market size is expected to see strong growth in the next few years. It will grow to $23.2 billion in 2029 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to renewable energy infrastructure, growing demand for natural gas, geopolitical factors and energy security, economic viability of unconventional resources, focus on emissions reduction. Major trends in the forecast period include technological advancements in directional drilling, focus on wellbore positioning and surveying, automation and robotics, collaboration and partnerships, geosteering and reservoir navigation.

An increase in oil and gas production from unconventional reserves is anticipated to drive the growth of the directional drilling services market in the future. Oil and gas production encompasses the overall process of converting crude oil and natural gas extracted from wells into usable petroleum products for consumers. Directional drilling facilitates oil and gas production by enabling drilling not only vertically but also at various angles to optimize access and extraction of reserves. For example, in March 2024, the U.S. Energy Information Administration, a government agency in the U.S., reported that crude oil production in the United States, including condensate, averaged 12.9 million barrels per day (b/d) in 2023. In December 2023, U.S. crude oil production achieved a record high, surpassing 13.3 million b/d for that month. Additionally, Saudi Arabia's state-owned company, Saudi Aramco, has recently scrapped its plans to boost production capacity to 13 million b/d by 2027. Thus, the increase in oil and gas production is contributing to the growth of the directional drilling services market.

The directional drilling services market is poised for growth due to the increasing demand for the distribution of natural gas. With natural gas primarily consisting of methane and being distributed through complex reservoirs, directional drilling services are instrumental in accessing remote and intricate natural gas reservoirs. In September 2023, the Ministry of Petroleum and Natural Gas in India reported an 8.2% year-on-year growth in the distribution of petroleum products. This rising demand for natural gas distribution is a key factor propelling the growth of the directional drilling services market.

Major companies in the directional drilling services market are developing advanced products like the DeviDrill RSS (Rotary Steerable System) to enhance drilling precision, boost operational efficiency, and lower costs in complex wellbore navigation applications. The DeviDrill RSS is a sophisticated directional drilling technology that allows for steering the drill bit along a specific, pre-planned trajectory while continuously rotating. For example, in October 2022, Devico AS, a Norway-based company that specializes in directional core drilling services and borehole surveying solutions, announced the launch of its directional drilling technology, DeviDrill RSS. This rotary steerable system is engineered for improved directional drilling capabilities in hard rock formations, providing greater efficiency and accuracy for applications such as mineral exploration, geotechnical investigations, and deviation control. It also enables faster drilling with the precise steering essential for the directional drilling industry.

In June 2023, Nabors Industries Ltd., a UK-based company specializing in drilling oil and gas wells, entered into a partnership with Halliburton Company, a US-based oil service company. The collaboration aims to establish a dominant position in well construction automation solutions. Under this partnership, Halliburton and Nabors will integrate their technologies, incorporating Halliburton's Well Construction 4 digital surface and subsurface drilling technologies, the LOGIX Autonomous Drilling Platform, and Nabors' SmartROS universal rig controls and automation platform, along with the RigCLOUD high-performance digital infrastructure platform.

In September 2023, Legacy Directional Drilling, LLC, a US-based provider of directional drilling services, successfully acquired Renegade Oil Tools LLC for an undisclosed amount. With this acquisition, Renegade Oil Tools LLC will maintain its focus on producing high-performance drilling motors and drilling motor components. The acquisition positions Renegade as a key component in Legacy's next phase of growth. Renegade Oil Tools LLC is recognized for its expertise as a US-based manufacturer of high-performance drilling motors and related components. This strategic move aligns with Legacy Directional Drilling's growth strategy and reinforces its commitment to delivering top-quality directional drilling services in the industry.

Major companies operating in the directional drilling services market are Baker Hughes Incorporated, Cathedral Energy Services Limited, Crescent Directional Drilling LP, Halliburton Company, Jindal Drilling and Industries Limited, Leam Drilling Systems Inc., Nabors Industries Limited, National Energy Services Reunited Corporation, NewTech Services Holding Limited, NOV Inc., Phoenix Technology Services Corp., PHX Energy Services Corporation, Schlumberger Limited, Scientific Drilling International Inc., Weatherford International PLC, Boart Longyear Group Ltd., Ensign Energy Services Inc., Foraco International SA, Gyrodata Inc., Noble Corporation PLC, Patterson-UTI Energy Inc., AKITA Drilling Ltd., Archer Limited, Helmerich & Payne Inc., Independence Contract Drilling Inc., Odfjell Drilling Ltd., Parker Drilling Company, Precision Drilling Corporation, Western Energy Services Corp.

North America was the largest region in the directional drilling services market in 2024. Asia-Pacific was the second-largest region in the directional drilling services market report. The regions covered in the directional drilling services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the directional drilling services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Directional drilling services involve the management of a wellbore's direction and deviation to reach a predetermined subsurface target or location. These services are essential for precisely locating the most lucrative zone within a reservoir, regardless of the reservoir environment. The effective use of directional drilling services can reduce construction costs and enhance output in various ways.

The main types of directional drilling services include logging-while-drilling, rotary steerable systems, measurement while drilling and survey, drag analysis, wellbore positioning, and other related services. Logging-while-drilling (LWD) specifically involves incorporating wireline-quality formation parameters into the directional data. Wells can be of various types, such as horizontal, multilateral, and extended reach, and these services are applicable in both onshore and offshore drilling operations.

The directional drilling services market research report is one of a series of new reports that provides directional drilling services market statistics, including directional drilling services industry global market size, regional shares, competitors with a directional drilling services market share, detailed directional drilling services market segments, market trends and opportunities, and any further data you may need to thrive in the directional drilling services industry. This directional drilling services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The directional drilling services market includes revenues earned by entities by providing directional drilling, and geo steering services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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