Global Horizontal Directional Drilling Market by Parts (Bits, Pipes, Rigs, Reamers) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global horizontal directional drilling market was valued at USD 8.16 Billion in 2020. It is expected to grow at a 6.7% compound annual growth rate (CAGR), between 2021 and 2028. Horizontal Directional Drilling is a method that accurately drills and back-reams the pipe. This allows drilling operations to be performed without causing collateral damage to subsurface ecosystems. Horizontal directional drilling is being increasingly popularized due to rising concerns about environmental damage from rapid infrastructure development around the world. Market growth is also being driven by growing utility installations, increased investments in shale-gas development projects, as well as rising expenditures for various telecom developments to provide high-speed connectivity.

The horizontal directional drilling method has become one of the most preferred trenchless drilling techniques over the last few years. The horizontal boring technique requires less drilling and maintenance. The industry's growth prospects are dependent on large investments because the equipment required for trenchless boring is more expensive than traditional open-cut methods. Customers often rent the entire set-up from contractors because they are more expensive. Many mid-sized businesses also employ service providers to handle end-to-end projects. Both horizontal directional drilling machine makers and service providers have a strong market position.

The horizontal trenchless technique gained significant popularity since its inception. It can be deployed from one location in very rough sub-surface, and it can hit multiple targets zones. With the advent of disruptive digital technologies such as 3D visualization, 3D Earth Models, and Automation, implementation has been faster, easier, less noisy, and more accessible underground. These technologies allow engineers, geoscientists, as well as other related personnel, to visualize the bore path more precisely and optimize its Rate of Permeation (ROP). The horizontal trenchless technique has been able to achieve a prominent place in drilling applications in oilfields and offshore.

Horizontal directional drilling can be used for a variety of applications, including the installation and maintenance of utility transmission lines and supply lines as well as communication conduits and cables. These directional boring workers as well as the general public are at risk from the cross bore technique, which allows for the intersection of multiple pipelines below the surface. This could be due to the inability to see the tracks of drilling activities at sub-surface locations. Explosions can occur when utilities intersect in cross-bore. This can lead to injuries or even death. OSHA (Occupational Safety and Health Administration) requires directional boring operators inspect for structures that indicate subversive utility installations before drilling the entry and exit holes at the desired locations. The market is subject to other environmental regulations that aim to reduce the ecological impact of underground construction activities.

Due to strict government lockdown regulations, the COVID-19 pandemic caused a temporary halt to horizontal directional drilling activities at a number of sites across a variety of industries. Oilfields were faced with major operational issues as companies stopped upstream and downstream activities. This resulted in a sharp drop in oil and gas production. Oil prices fell due to a substantial drop in transportation frequency worldwide, following a price war between the U.S. and Saudi Arabia. The result was a decline in demand for horizontal directional services by the incumbents and the machine industry. The recovery of horizontal directional drilling markets is possible due to the ongoing efforts of world governments to mitigate the effects of the pandemic oil and gas exploration companies.

Machine Type Insights

With a revenue share exceeding 70.0%, the Rotary Steerable Systems (RSS) segment was the dominant player in HDD machines' market in 2020. RSS machines use push-and-point-the-bit techniques for precise directional control of drilling. They also make real-time corrections. RSS is expected to gain popularity due to its ability to improve the ROP, reduce drag and torque, as well as smoother borehole production. Service providers also invest in RSS machine upgrades to ensure that they can offer reliable drilling services even in harsh underground conditions.

SMEs still prefer conventional horizontal directional drilling to RSS, but it is more cost-effective than RSS. Conventional machine types are immovable, skid-mounted rigs which require adjustments to their position. Horizontal directional drilling can bore to depths of up to 30,000 feet. It is used for geothermal energy distribution and soil mapping.

Parts Insights

In 2020, the rigs segment accounted for 55.0% of overall market revenue. The main drivers of rig demand are increasing oil and gas production and the telecommunications industry. Numerous technological advances in rig infrastructure have allowed the end-users to perform operations at an extremely high optimization rate. An automated system integrated into the control system of the rigs guides the equipment to place pipelines for distant entry points and exit points. Rigs can be expensive and need to be maintained for a longer operational life.

Over the forecast period, the pipes segment will record the highest CAGR. High-pressure drilling pipes are a growing industry sector. Because of their high impermeability, High-Density Polyethylene pipes (HDPE) are preferred over concrete or steel pipelines. The HDPE pipes have zero water leakage and are more efficient than HTML3_ Polyvinylchloride HTML3_ (PVC), which can leak from 10% to 20%. Their resistance to corrosion, low weight and durability are reasons why HDPE pipes are more popular.

Rig Type Insights

In 2020, the midi rigs segment was responsible for 40.0% of revenue share. The midi rig is used for medium-sized projects with pullback forces of upto 40,000 pounds. It has a pipe diameter up to 24 inches, a length up to 1000 feet, and a depth of 75 feet. With the increasing demand for clean energy, the rise in investments in natural gas and the increase in utility construction projects like the installation of gas pipes, the deployment rate of mini-rigs has increased. The rise in demand for mini rigs can also be attributed attribuably to the increase in telecommunication projects such as 4G or 5G network expansion.

Maxi rigs can be used for directional drilling up to 6,000 feet and torque up to 20,000 pounds. When installing large diameter pipes, the torque required increases. Horizontal boring operations on difficult ground conditions such as tar, sand and shale rocks require a higher pullback force. Maxi rigs are better suited for heavy pipeline installation in deep water projects like offshore oil and gas pipeline deployment.

Rig Sales Insights

With a CAGR of 4.5% over the forecast period, the aftermarket segment will see the most growth. End-users who have limited resources are most likely to invest in horizontal drilling rigs that they previously owned. For new operators who have specific requirements, it is a good idea to buy rigs from the past with similar functions and often at a lower cost. For rigs intended to be used in harsh conditions, aftermarket configurations can also be advantageous. But, rigs that have worn out components will incur higher maintenance costs, lead to lower productivity and breach of contractual obligations regarding rig uptime and downtime. End-customers should perform a quality inspection to correct electrical harnesses and sprockets as well as hydraulic components and bearings.

Multinational companies and large contractors own new rigs to perform immense downstream and upstream activities in the oil-and gas sector. New rigs are safer than aftermarket rigs. They can be used with worn drill pipes and old drilling equipment. All new directional drilling machines undergo thorough inspections and are usually covered by a warranty. Companies must ensure that they use the most up-to-date horizontal directional drilling equipment to comply with the ever-changing environmental regulations.

Application Insights

With a CAGR of approximately 10.0%, the offshore segment is expected to see the most growth. Exploration and production activities will be more extensive due to the large untapped oil & natural gas reserves. Additionally, offshore oil production is cheaper due to a decline in the average breakeven cost for all non-permitted projects.

Due to their lower infrastructure and maintenance costs, offshore horizontal directional drilling projects are more expensive than onshore projects. Oil price fluctuations are a major factor in the cost of onshore horizontal boring projects. Both the onshore and offshore areas that have heavy fiber optic cables laid by the telecommunications sector to provide 4G/5G networking services are contributing to both segments' growth prospects.

End-use Insights

With a revenue share exceeding 35.0%, the oil and gas extraction segment was the dominant market segment in 2020. Baker Hughes published a report that showed the world's average oil and gas rig count was 1,325. The high market share in the oil and natural gas extraction segment is due to the demand for boring drilling rigs because of the well-established infrastructure. The segment's dominance is likely to be due to rising oil exploration costs and production activities in unexplored areas.

For the forecast period, the CAGR for the telecommunications segment will be the greatest. To expand their network of optical fiber cables, telecommunication providers are compelled to use newer and more reliable drilling methods such as horizontal direction drilling. HDD allows conduits and pipe installations to be installed through holes up to 4 feet in diameter and up to 6500 feet long for telecom applications offshore. The forecasted growth in the telecommunications segment will be driven by the increasing demand for 4G/5G networks.

Regional Insights

Over the forecast period, the Asia Pacific region will record the highest CAGR at around 10.0%. China's national energy infrastructure is shifting towards renewable energy sources to ensure safe, sufficient and clean energy growth. This has resulted in a rise in large-scale infrastructure projects across the country. This has prompted the adoption of advanced drilling equipment. Horizontal drilling is also possible using directional boring machines made by Chinese companies. The region is also seeing an increase in investments in its telecommunications sector to deploy 4G/5G networks.

Due to oil and gas exploration in the region, North America had the largest revenue share in 2020. According to the U.S. Energy Information Administration, liquid fuel consumption in 2020 was 20.54 Million barrels per daily, compared with 18.12 million barrels produced in 2019. The increasing number of infrastructure projects and utility projects in North America is also driving demand for horizontal directional drilling equipment. The MEA region was the second-highest provider of boring services for oil & gas excavation activities.

Market Share Insights and Key Companies

The key players in the horizontal directional drilling machine market are Nabors Industries Ltd., The Toro Company, The Charles Machine Works, Inc., Vermeer Corporation, Herrenknecht AG, and XCMG. To help their customers optimize their boring operations, prominent industry players invest in R&D. They are working hard to develop state-of the-art equipment in order to maintain their market dominance. The Charles Machine Works Inc. Company, for instance, announced in November 2019 the launch of the ride on trencher, RT80 with a tier-4 diesel engine that produces 74.5 horsepower. This trencher is designed for urban utility jobs.

HDD service providers are crucial in the delivery of projects on a contract basis. These service providers are responsible for drilling operations, including the inspection, maintenance, and installation. To build a sustainable business model, the companies value long-term partnerships with customers. Telstra Corporation Limited, an Australian-based Telecommunications Company, appointed UEA to install directional bore telecommunications works on the Indigo West cable system between Singapore, Perth, and Singapore in April 2018. This alliance was created to improve communication traffic in Asia's growing markets. These are some of the major players in the global horizontal drilling market:

• Nabors Industries Ltd.

• The Toro Company

• The Charles Machine Works, Inc.

• Vermeer Corporation

• Herrenknecht AG

• XCMG

Up Market Research published a new report titled “Horizontal Directional Drilling Market research report which is segmented by Parts (Bits, Pipes, Rigs, Reamers), By Players/Companies The Charles Machine Works Inc, The Toro Company, Herrenknecht AG, Vermeer Corporation, Nabors Industries Ltd, XCMG”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Horizontal Directional Drilling Market Report Segments:

The market is segmented by Parts (Bits, Pipes, Rigs, Reamers).

Horizontal Directional Drilling Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Horizontal Directional Drilling Market

Overview of the regional outlook of the Horizontal Directional Drilling Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Horizontal Directional Drilling Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Horizontal Directional Drilling Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Bits

                2. Pipes

                3. Rigs

                4. Reamers

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Horizontal Directional Drilling Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Horizontal Directional Drilling Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.