Horizontal Directional Drilling Market Size, Share & Trends Analysis Report, By Application (Onshore, Offshore), By End-use (Oil & Gas Extraction, Utility, Telecommunication, Others), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global horizontal directional drilling market size was estimated at 7.53 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% from 2023 to 2030. The horizontal directional drilling (HDD) technique is utilized to precisely carry out drilling operations and reverse ream the appropriate pipe, avoiding numerous obstructions on the path while causing minimal collateral harm to subterranean ecosystems. Other factors contributing to market expansion include growing increasing investments and utility installations in shale gas development projects, as well as rising expenditures directed at various developments throughout the telecom industry to provide high-speed connectivity.

The market in the U.S. is expected to witness significant growth over the forecast period. The horizontal directional drilling technique has evolved as one of the most popular trenchless drilling technologies. The industry growth prospects are dependent on substantial investments by the US government, as the equipment required for trenchless boring is much more expensive than standard open-cut methods.

Customers prefer to rent the whole setup from contractors because the setups are expensive. Furthermore, many mid-sized businesses use service providers for full-service projects. As a result, both producers of horizontal directional drilling machines and service providers have a strong market position.

Furthermore, the growing demand for distribution of natural gas and electricity from middle and upper pipeline lines is likely to boost the market over the forecast period. The advantages of employing horizontal directional drilling fasteners in the utility, communications industries, and oil and gas, include increased stability, better device management, and treatment and monitoring outcomes.

End-Use Insights

The end-use segment consists of oil & gas excavation, utility, telecommunication, and others. The oil and gas extraction segment led the market and accounted for over 35.0% of the global volume share in 2022. The well-established infrastructure creates a high demand for boring rigs, contributing to the oil and gas extraction segment's large market share. Furthermore, the requirement to address the escalating prices of oil exploration and production activities on unexplored areas is likely to contribute to the segment's dominance.

The telecommunication segment is anticipated to grow at a significant CAGR during the forecast period. The growing need for faster broadband access is driving telecommunications operators to use newer and more dependable drilling services, such as horizontal directional drilling, to expand their network of optic fiber cables. HDD allows for the deployment of conduits and pipe installations via holes nearly 4 feet in diameter and 6500 feet in length for communications applications at offshore locations. Furthermore, the increasing demand for 4G and 5G networks is likely to boost the segment growth over the forecast period.

Application Insights

The offshore segment is projected to foresee the highest growth with a CAGR with the market share of more than 55.0% over the forecast period. Owing to the massive unknown oil and gas resources, exploration and production activities are projected to be carried out on a larger scale around the globe in the near future. Furthermore, the decrease in the average breakeven price for all non-permitted projects is resulting in cheaper offshore oil production.

Moreover, due to fewer maintenance requirements and infrastructure, onshore projects are more cost-effective than offshore horizontal directional drilling projects. The volatility of crude oil prices has a substantial impact on the market projects. The major deployment of fiber optic cables in both offshore and onshore spots by the telecommunications sector to supply 4G and 5G networking services is expanding the growth potential of both segments.

Regional Insights

North America dominated the global market in 2022 and accounted for the largest volume share of over 36%. In 2022, The U.S. Energy Information Administration reported that liquid fuel consumption was reportedly 8.8 billion barrels per day. Additionally, the increasing number of infrastructure and utility projects in North America is driving demand for horizontal directional drilling equipment and services. The MEA region emerged as the second-largest employer of boring services for oil and gas excavation activities.

Asia-Pacific is predicted to grow rapidly. To encourage the development of a secure, sufficient, and clean energy sector, China's national energy infrastructure is tailored toward the utilization of renewable energy sources. As a result, the country currently has several big infrastructure projects underway, which encourages the usage of cutting-edge drilling equipment. Furthermore, Chinese companies provide far less expensive horizontal drilling directional boring machines. As a result of increased expenditures in the region's telecommunications sector for the implementation of 4G and 5G networks, the regional market is expanding.

The national energy infrastructure in China is focusing on the use of renewable energy sources in order to achieve safe, sufficient, and clean energy growth. The growth in the number of large infrastructure projects in the country, which has prompted the use of modern drilling equipment. Chinese companies offer significantly lower-cost directional boring devices for horizontal drilling. Furthermore, increased investment in the region's telecommunications sector to develop 4G and 5G networks is propelling the regional market forward.

Key Companies & Market Share Insights

The global horizontal directional drilling market is a highly competitive market owed to the presence of major industries across the region as these companies are fairly concentrated and highly competitive. Some of the prominent players operating in the global horizontal directional drilling market includes:

• Nabors Industries Ltd.

• The Toro Company

• The Charles Machine Works, Inc.

• Vermeer Corporation

• Herrenknecht AG

• XCMG

Horizontal Directional Drilling Market Report Scope

Global Horizontal Directional Drilling Market Report Segmentation

This report forecasts volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global horizontal directional drilling market report based on application, end-use, and region.

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Onshore

  • Offshore

• End-Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Oil & Gas Extraction

  • Utility

  • Telecommunication

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

    • Mexico

  • Middle East and Africa

    • KSA

    • UAE

    • Kuwait