Surface Drilling Rig Market: Global Opportunity Analysis and Industry Forecast, 2022-2029 Market

Surface Drilling Rig Market Outlook - 2027

Surface drilling rig is an equipment used to drill holes in the earth’s surface to extract oil and make water wells. It is commonly used in surface mining, quarrying, and construction industries. It plays a crucial role in extracting hydrocarbons from wells. Surface drilling rigs are designed in such a way that they can be utilized in hazardous areas and withstand huge workload. They find applications in bore wells, foundations of high buildings, construction sites, rock cutting, and blasting in the quarrying industry. Moreover, they use two drilling methods, top-hammer method and down-the-hole. The top hammer method is expected to witness growth over the forecast period due to its reliability and high penetration rate in tough conditions. The down-the-hole method is similar to a small jack hammer that can drill up to 500 feet per day. The rise in demand for oil & gas with technological advancement is expected to propel the global surface drilling rig market over the forecast period.

COVID-19 scenario analysis

One important impact of the coronavirus outbreak on mining industry is that the price of crude oil has fallen significantly in a short time. The government ban on international travel has reduced the demand for various fuels. Moreover, rig infections are increasing, thereby forcing the companies to shut down the rig, further creating financial problems for companies. Moreover, supply chain disruptions create difficulties in delivering equipment to the rigs.

Market scenario analysis

The increase in demand for energy and developments in the infrastructure are the main factors that are expected to increase the growth of the surface drilling rig market over the forecast period. The introduction of oil & gas reserves in remote areas and increase in technological advancements in this sector gave rise to cost-effective drilling activities. High-tech rigs and bigger horse-power rigs are being favored my many companies for drilling activities. Major companies have upgraded by adding high horsepower and powerful rigs with technological advancements, which offer automated pipe handling and mobility from one site to another. Moreover, the demand for surface drilling rigs rises as oil prices improve. Additionally, digital sensors are installed in drilling rigs for recording of data that can be later compared with field information to make better decisions in the future. The advanced rigs use AC power system, which increases drilling efficiency, consumes less fuel, and reduces wear & tear. However, the cost of operating the surface drilling rigs is high, which is expected to restrain the growth of the market during the forecast period.

Market drivers and restraints

Increase in investments in construction and mining activities is one of the key drivers that contribute to the growth of the surface drilling rigs market. The development of surface drilling rigs with new technological advancement also drives the market over the forecast period. However, high operation cost of surface drilling rigs compared to the rotary drilling rigs is expected to hamper the market growth over the forecast period.

Market trends

Surface drilling rigs with low operating cost and increased fuel efficiency is expected to witness significant growth in the future. Moreover, the adoption of high-tech rigs in the mining sector to meet the rapid demand for energy is a recent trend observed.

Furthermore, surface drilling rigs with improved safety measures and comfort is also a key trend in the market. 

Regional insights

By region, the global surface drilling rigs market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific is the market leader of the surface drilling rigs market, owing to developing economies such as India and China. The Middle East is also expected to witness rapid growth attributed to rise in investments and infrastructural developments in industrial and commercial sectors. Europe and North America surface drilling rigs markets are also expected to grow due to their increased growth in the construction sector and development in mining activities.

Key benefits of the report:

• This study presents the analytical depiction of the surface drilling rig market along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the surface drilling rig market share.
• The current market is quantitatively analyzed from 2020 to 2027 to highlight the surface drilling rig market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed analysis based on competitive intensity and how the competition will take shape in coming years. 

 Surface Drilling Rig Market: Global Opportunity Analysis and Industry Forecast, 2020-2027 Report Highlights