Offshore Drilling Rigs Market Outlook 2031
The global offshore drilling rigs market size was USD 70.60 Billion in 2022 and is projected to reach USD 127.63 Billion by 2031 expand at a substantial CAGR 6.8% during the forecast period, 2023–2031. The growth of the market is attributed to the reduction in crude oil prices and increasing exploration activities in offshore regions.
The offshore drilling is a mechanical process wherein the wellbore is drilled below the seabed. Offshore drilling rigs are used for drilling and exploration activities in the offshore area. The drilling is typically carried out to extract petroleum that lies in rock formations beneath the seabed. The offshore drilling has witnessed to the environmental challenges owing to the produced hydrocarbons and harmful materials used during the drilling operation.
The offshore drilling operations are carried out in multiple ways including bottom founded drilling rigs, combined drilling, and deepwater mobile offshore drilling units. The offshore drilling rigs are capable of operating in water depths up to 9,800 feet. In case of shallow water drilling, the mobile units are anchored to the seabed.
However, during deep & ultra-deepwater drilling that are typically greater than 4,900 feet, the semi-submersibles and drill ships are used in drilling location using dynamic positioning.
The COVID-19 pandemic had a dramatic impact on the dynamics of various industries. The nationwide lockdowns and stringent regulations resulted into the halting of industrial manufacturing and production. The outbreak of coronavirus caused disruption in supply-chain, production, at global level.
The pandemic situation resulted into the decline in oil prices and delays in oil & gas upstream projects in offshore areas, which had negatively impacted the growth of the offshore drilling rigs market.
Offshore Drilling Rigs Market Trends, Drivers, Restraints, and Opportunities
- Increasing shallow and deepwater explorations are the major factors anticipated to fuel the growth of the market in the coming years.
- High demand for crude oil and maturing of onshore oil & gas wells are expected to propel the market growth during the forecast period.
- Growing initiatives for ultra-deepwater projects and improved viability of deepwater are some of the factors spurring the market expansion.
- Rising concern regarding water pollution, disruption in aquatic ecosystems due to exploration activities, and volatility of crude oil is anticipated to hamper the market growth in the coming years.
- Ongoing research & developments and increasing number of investments from operators to undertake multiple projects are expected to offer immense opportunities for the market players in the long run.
Scope of The Offshore Drilling Rigs Market Report
The report on the global offshore drilling rigs market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Offshore Drilling Rigs Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Drill Ships, Jackups, Semisubmersibles, and Others) and Water Depth (Deep & Ultra-deepwater and Shallow Water)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Seadrill Ltd; Samsung Heavy Industries Co. Ltd; Transocean Ltd.; Sembcorp Marine Ltd; and Keppel Corporation Limited
Offshore Drilling Rigs Market Segment Insights
Jackups segment is anticipated to register at a substantial CAGR
Based on types, the market is segmented into drill ships, jackups, semisubmersibles, and others. The jackups segment is anticipated to register at a substantial CAGR during the projected period owing to the high demand for jackups rigs due to its operational compatibility at water depths ranging from 350 to 450 feet.
However, the drill ships segment is expected to register at a rapid pace during the forecast period due to its greater load capacity and high demand for remote offshore drilling. Moreover, the increasing demand for during deep & ultra-deepwater drilling activities is projected to expand the market segment during the forecast period.
Deep & Ultra-deepwater segment is expected to constitute a major market share
On the basis of water depth, the market is segregated into deep & ultra-deepwater and shallow water. The deep & ultra-deepwater segment is expected to constitute a major market share during the forecast period due to large-scale investments and upcoming projects in deep & ultra-deepwater.
Moreover, significant reduction in costs, critical technological breakthroughs, and expansion of oil & gas exploration activities are expected to propel the growth of the market segment during the projected timeline. On the other hand, the shallow water segment is projected to account for a key market share owing its easy access for inspection and provision for remote controlled system during emergency.
Middle East & Africa market is anticipated to dominate the market
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Middle East & Africa is anticipated to dominate the market during the forecast period owing to the increasing expenditure on exploration & production activities and the rising demand for energy.
Moreover, the availability of large-scale offshore reserves and recent discoveries of oil & gas reserves in the eastern Mediterranean sea of the region are expected to boost the market expansion during the projected timeline. On the other hand, the market in North America is expected to grow at a significant rate during the forecast period due to increasing technological advancements in terms of equipment in the region.
Furthermore, the provision for feasible & cost-effective operation is anticipated to expand the growth of the market in the coming years.
The global offshore drilling rigs market has been segmented on the basis of
- Drill Ships
- Deep & Ultra-deepwater
- Shallow Water
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global offshore drilling rigs market are Seadrill Ltd; Samsung Heavy Industries Co. Ltd; Transocean Ltd.; Sembcorp Marine Ltd; and Keppel Corporation Limited. Companies are focusing on business strategies and collaborations with other industry players for undertaking new projects in emerging economies to improve their competitive position in the market.