According to a recent report published by Allied Market Research, titled, “Robotic drilling equipment market by Application, Installation, and End-user Industry: Opportunity Analysis and Industry Forecast, 2020–2027,” the robotic drilling equipment market was valued at $0.8 billion in 2019, and is expected to reach $1 billion by 2027, registering a CAGR of 8.4% from 2020 to 2027. In 2019, the onshore segment dominated the robotic drilling equipment market. Robotic drilling equipment, also known as automated drilling equipment, is an automation system that is specially developed for drilling operations in the oil & gas industry. There are mainly two types of robotic drills, onshore, which consists of robotic drilling machines on dry land; and offshore, which comprises robotic drilling on ocean floors or sea beds. These robotic drilling machines are used for building new rigs for extraction of oil & gas in onshore and offshore. They are also used for retrofit purpose on the old rigs during maintenance as well as while replacing the old parts of the system. Robotic drilling offers better solution for operations carried out in the oil & gas industry such as less drilling times, multi-sensor measurements, safer operations, and mass production. Robotic drilling companies manufacture robotic hardware as well as software to program and control the robots working on oil & gas rigs.
The robotic drilling equipment market is mainly driven by rise in adoption of automation in the oil & gas industry. Automation gives better data collection, precise & accurate operations, and worker safety. In addition, there is minimum human intervention, which minimizes the probability of human errors. It also increases the efficiency of the robotic drilling machines as well as the operations carried out on onshore and offshore. However, interoperability of the control system of robotic drilling machines compromises with the data privacy and cyber security risk of the data and operations of robotic drilling machines. In addition, the outbreak of COVID-19 has led to halt in construction and manufacturing activities across the globe. Halt in logistics services has led to interruption of supply chains, which, in turn, hinders the growth of the robotic drilling equipment market. However, industries are gradually getting back on track and vaccine discovery would lead to recovery of the robotic drilling equipment market by the beginning of 2022. On the contrary, efforts made to increase the safety of workers working on oil & gas rigs on onshore and offshore have anticipated to drive the growth of the robotic drilling equipment market. Additionally, increase in exploration activities in ultra-deepwater in the Arctic region for extraction of oil & gas is anticipated to drive the robotic drilling equipment market growth during the forecast period.
The robotic drilling equipment market is segmented into application, installation, end-user industry, and region. On the basis of application, the market is divided into onshore and offshore. Depending on installation, it is classified into new builds and retrofits. By end-user industry, it is bifurcated into oil and gas. By region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Russia, Norway, and the rest of Europe), Asia-Pacific (China, Malaysia, Australia, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Key Findings Of The Study
- By application, the land segment was the highest revenue contributor in 2019.
- By installation, the modernize segment generated the highest revenue in 2019.
- By end-user industry, the oil segment generated the highest revenue in 2019.
The major players profiled in the robotic drilling equipment market include Automated Rig Technologies Ltd., Drillform Technical Services Ltd., Drillmec Inc., Epiroc AB, Herrenknecht Group, Huisman Equipment B.V., KCA Deutag Alpha Limited, Loadmaster Universal Rigs, Inc., Nabors Industries Ltd., and National Oilwell Varco, Inc.