Horizontal Directional Drilling Market Growth & Trends
The global horizontal directional drilling market size is estimated to reach USD 18.70 billion by 2030, expanding at an estimated CAGR of 13.0% from 2023 to 2030, according to a new report by Grand View Research, Inc. The rising emphasis on minimizing the environmental impact of drilling and boring activities, rapid urbanization, and the inconvenience caused to the public due to the increased open-cut utility installations are some of the key factors driving the horizontal directional drilling (HDD) market growth.
Rising environmental concerns have contemplated regulatory bodies worldwide to create regulations that require organizations to minimize ecosystem exploitation. For instance, the U.S. Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA) require that unconventional oil and gas exploration companies abide by the specified safety standards to minimize environmental damages, avoid occupational hazards, and ensure the management of wastewater and other wastes. Furthermore, increasing government investments in underground installations in utility and telecommunication sectors have increased the deployment of horizontal directional boring services. Subsequently, the complex data requirements, combined with the need for collaborative work operations at offshore and onshore sites, necessitate the high reliance of operators on robust telecommunications services. The rising need to offer better broadband connectivity and the demand for cloud-based services is compelling telecom operators to up their investments in modernized infrastructure, thereby contributing to the market growth.
The COVID-19 pandemic severely impacted the horizontal directional drilling machines industry due to workforce shortages and practical difficulties in implementing social distancing at equipment production sites. The consumption of diesel and petroleum products also reduced significantly in 2020 due to stringent movement restrictions, reducing the demand for upstream oil & gas activities. However, government bailouts are expected to help revive the oil and gas industry, which is one of the leading contributors to the global economy. This is expected to create a sluggish recovery trajectory of the pandemic-fed depression on the market over the years to come.
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Horizontal Directional Drilling Market Report Highlights
In terms of application, the off-shore dominated the segment in 2022 with a market share of more than 44%. Owing to the massive oil and gas resources, exploration and production activities are expected to create opportunities for the off-shore application over the forecast period
In terms of end use, the oil and gas extraction segment dominated in 2022 with a revenue share of above 35% of the overall horizontal directional drilling services market. The prevalence of clean energy in an attempt to reduce the Green House Gas (GHG) emissions from fossil fuel consumption is likely to help in retaining the dominance of this segment over the forecast timeframe
North America dominated the global market in 2022 owing to increasing number of infrastructure and utility projects
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