Directional Drilling Services Market Report 2026

The directional drilling services market size has grown strongly in recent years. It will grow from $16.93 billion in 2025 to $18.3 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to growth in oil and gas exploration, rising need for improved well access, increasing drilling innovation, expanding unconventional resource development, rising focus on production efficiency.

The directional drilling services market size is expected to see strong growth in the next few years. It will grow to $24.64 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to increasing complex well development, rising offshore and deep drilling projects, growing investment in well optimization, expanding directional drilling adoption, rising need for accurate reservoir targeting. Major trends in the forecast period include increasing use of precision drilling technologies, growing adoption of real time drilling analytics, rising implementation of advanced steering systems, expanding application in complex reservoir development, increasing focus on optimized well placement efficiency.

An increase in the production of oil and gas from unconventional reserves is expected to propel the growth of the directional drilling services market going forward. Oil and gas production refers to the process of extracting crude oil and natural gas from wells and converting them into usable petroleum products. Directional drilling supports oil and gas production by enabling wells to be drilled not only vertically but also at controlled angles, allowing operators to access hard-to-reach reserves more efficiently and maximize recovery. For instance, in March 2024, according to the U.S. Energy Information Administration (EIA), a US-based government agency, crude oil production in the United States, including condensate, averaged 12.9 million barrels per day (b/d) in 2023. In December 2023, US crude oil production reached a record high, exceeding 13.3 million b/d for the month. Meanwhile, Saudi Aramco, Saudi Arabia’s state-owned oil company, announced that it had abandoned plans to increase its production capacity to 13 million b/d by 2027. Therefore, the increase in global oil and gas production is driving the growth of the directional drilling services market.

Major companies operating in the directional drilling services market are focusing on developing innovative solutions, such as advanced trenchless horizontal drills, to meet rising demand for faster, more efficient, and minimally disruptive underground drilling operations. Advanced trenchless horizontal drills are compact systems designed to create precise underground pathways without extensive surface excavation, reducing environmental and urban disruption compared to traditional open-cut methods. For instance, in January 2025, Ditch Witch, a US-based construction equipment manufacturing company, launched the JT21 horizontal directional drill. The JT21 is designed to reduce job times and improve operational efficiency through its lightweight yet durable construction, powerful drilling motor, and intuitive controls. These features enable precise drilling in challenging soil conditions, faster setup, reduced labor requirements, and improved maneuverability, making the system suitable for installing water, gas, and telecommunications infrastructure.

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 report 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, Gyrodata Inc., Ensign Energy Services 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 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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