North America Mini And Midi Horizontal Directional Drilling Market Size, Share & Trends Analysis Report By Machine Type (Pile Driver), By Application, By Machine Size, By Parts Type, By Tooling, By End-use, By Region, And Segment Forecast, 2023 - 2030

Report Overview

The North America mini and midi horizontal directional drilling market size was estimated at USD 3.50 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030. The North America region is projected to gain more than 500 offshore projects to install pipelines for petrochemical and refinery purposes. These projects will rely on horizontal directional drilling (HDD) techniques for installations. Therefore, the demand for mini and midi HDD machines is expected to rise in the North America market. The ongoing projects and future developments in the region will serve as key drivers, creating a huge requirement for HDD machines.

The U.S. mini and midi horizontal directional drilling market is expected to grow significantly due to the increased number of horizontally drilled oil & gas (O&G) wells in the country. According to the U.S. Energy Information Administration (EIA), in 2021, 81% of the O&G wells in the country were drilled horizontally.

According to EIA, as of 2021, 15.2% of crude oil was produced by offshore wells located in the Gulf of Mexico operated by the federal administration. Horizontal directional oil & gas wells are longer than vertically drilled wells, which allows them to reach geologic formulations containing natural gas and crude oil, unlike vertically drilled wells.

According to American Oil & Gas Reporter, in 2023, the rig count for the U.S. increased by 14.33% and reached 758 compared to 663 in 2022. Increasing deployment of rigs and oil & gas wells in the country is expected to fuel the demand for HDD in the country over the forecast period.

Machine Type Insights

Based on machine type, the North America mini and midi horizontal directional drilling market has been segmented into utility vibratory plow, utility tractor, pile driver, foundation machine, boring machine, and others. In 2022, the utility vibratory plow segment held the largest revenue share of 26.40%. This machine drills underground to install flexible conduits at an appropriate depth, creating a path to pull pipeline or fiber cable through. These machines are used in the telecommunication industry for fiber cable installation and in the O&G industry for pipeline installation. The growth of the sectors, as mentioned earlier, is expected to drive the demand for utility vibrator plow HDD machines of mid and mini-types in North America.

The pile driver held the second-largest revenue share in 2022 owing to the demand in the telecommunication and O&G industries for pipeline and cable installations. Companies such as STARKE and others are involved in the manufacturing of pile drivers offering strong power, automatic anchoring, and other advantages.

Machine Size Insights

The market for mini and midi HDD machines has been divided based on machine size. Among these segments, the midi segment held the largest revenue share of 78.50% in 2022. This dominance can be attributed to the widespread adoption of midi HDD machines in the telecommunications industry, specifically for underground fiber cable installation projects.

In recent years, there has been a surge in infrastructure development in North America, resulting in improved availability of broadband services to households. This has led to an increased demand for fiber cable installation projects in the region. The midi HDD machines have played a crucial role in meeting this demand, thereby solidifying their market position.

Furthermore, significant companies are involved in manufacturing mini-HDD machines specifically designed for smaller conduits and pipeline installations. For instance, on May 16, 2023, AT&T Intellectual Property collaborated with BlackRock, Inc. to install fiber optic internet cables in Florida metro areas. This project necessitated the use of mini HDD machines and aimed to expand their 5G wireless networks across the United States.

Parts Type Insights

Based on parts type, the North America mini & midi HDD market has been segmented into rigs, pipes, bits, and reamers. The rigs segment held the largest revenue share of 32.40% in 2022 owing to the application of underground utility installation, which includes installation of pipelines, cables, and conduits without disturbing the surface in industries such as construction and telecommunication for infrastructural development.

Reamers held the second largest revenue share in 2022 due to the large-scale adoption of reamers in HDD. Reamers are widely used in HDD operations in the oil and gas industry. Reamers are used to enlarge the pilot hole and create a suitable bore path for oil and gas pipeline installation. As the demand for energy resources grows, so does the need for reamers in HDD for oil and gas infrastructure.

Tooling Insights

Based on tooling, the mini and mid-sized HDD market has been segmented into transition rods, HDD drill pipes, HDD drive collars, chucks and subs, HDD paddle bits, HDD rotary and pulling equipment, and others. The transition rod segment held the largest revenue share of 27.13% in 2022 due to its ability to effectively manage the lateral and torsional stresses generated during deep-hole RC drilling. Transition bars are used under the stress of HDD projects for stress redistribution. Stress redistribution increases drill string life, reducing the risk of failure during drilling operations.

Drill pipes held the second largest share in 2022 due to their physical quality; HDD drill pipes are the strongest and most flexible tools as they possess the driving force of the drill unit to the bit and travel long distances underground.

End-use Insights

In terms of end-use, the mini & midi HDD market has been segmented into oil & gas extraction, utility, telecommunication, and others. The oil & gas extraction segment held the largest revenue share of 33.86% in 2022. This growth is attributed to the application of HDD in oil and gas exploration and production from onshore fields for various exploration and production activities carried out in the region. The presence of extensive unconventional resources in North America has boosted the demand for HDD in the oil & gas extraction process.

In January 2023, the Mexican Treasury announced an investment of USD 20 billion in oil exploration and production through its state-owned oil production company, Pemex. Substantial government investment in oil & gas exploration and production over the forecast period is expected to result in a surge in drilling activity in Mexico over the coming years.

Telecommunication held the second-largest revenue share in 2022. Increasing adoption of work-from-home culture and remote learning post-COVID-19 have prompted the installation of optical fiber projects in North America. These factors have attracted several investors in the telecommunication industry in the region.

In November 2022, Canadian Towers and Fiber Optics Inc. announced to expand fiber to the home (FTTH) wireless internet services in rural areas across Canada. This expansion initiative has resulted in a significant increase in underground fiber cable installations throughout the region. As a result, the demand for HDD machines has experienced a notable surge in North America.

Application Insights

The offshore segment held the largest revenue share of 67.90% in 2022, owing to the increasing exploration and production of oil and gas from offshore fields. For sustainable development in the future, it is expected to drive the need for horizontal directional drilling. For instance, on May 1, 2023, QatarEnergy announced an expansion in its offshore oil exploration activities, which necessitated the demand for HDD machines in Canada in collaboration with Exxon Mobil Corporation.

Application of HDD machines for oil and gas exploration & production in onshore fields held the second largest share, as many E&P activities are being carried out in the onshore fields compared to that in offshore. The presence of extensive unconventional resources in onshore fields in North America is expected to boost the demand for HDD in the onshore segment.

Regional Insights

In 2022, the U.S. dominated the North America mini & midi HDD market in 2022 with a revenue share of 60.83%. The region is expected to witness more than 500 offshore projects dedicated to petrochemical and refinery pipeline installations by 2027. These projects will necessitate the use of HDD techniques. Therefore, the demand for mini and midi HDD machines in North America is expected to experience significant growth. The increased activity and developments in the region will serve as driving factors for the market, creating opportunities for the HDD industry in North America.

The U.S. is North America's most significant seamless oil and tubular product consumer. The growth of offshore HDD machines and their ability to drill in increasing water depths has boosted the demand for mini & midi HDD machines.

Furthermore, in 2023, the Mexican treasury announced an investment of USD 20 billion in oil exploration and production through its state-owned oil production company, Pemex. The increased developments and investments in the country are expected to propel the demand for HDD in the region over the forecast period.

Key Companies & Market Share Insights

The North America mini & midi HDD market is competitive due to players carrying out business expansion through collaborations and partnerships across the value chain. For instance, in May 2023, EnviroBore Directional Drilling, a drilling company, announced the acquisition of Full Bore Contracting Ltd. to expand its footprint in Northeast British Columbia, Canada. This acquisition is expected to help the former meet the growing demand for HDD in the Canadian province. Some prominent players in the North America mini and midi horizontal directional drilling market include:

• Barbco, Inc.

• Vermeer Corporation

• Direct Horizontal Drilling, Inc.

• The Charles Machines Works, Inc. (Ditch Witch)

• The Toro Company

• Horizontal Technology, Inc.

• Vision Directional Drilling

• Kondex Corporation U.S.A.

• Vmt Gmbh Gesellschaft Für Vermessungstechnik

North America Mini And Midi Horizontal Directional Drilling Market Report Scope

North America Mini And Midi Horizontal Directional Drilling Market Report Segmentation

This report forecasts revenue growth at 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 North America mini and midi horizontal directional drilling market report based on machine type, application, machine size, part type, tooling, end-use, and region:

• Machine Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Utility Vibratory Plow

  • Utility Tractor

  • Pile Driver

  • Foundation Machines

  • Boring Machine

  • Others

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

  • Onshore

  • Offshore

• Machine Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Mini

  • Midi

• Parts Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Rigs

  • Pipes

  • Bits

  • Reamers

• Tooling Outlook (Revenue, USD Million, 2018 - 2030)

  • Transition Rods

  • HDD Drill Rods

  • HDD Paddle Bits

  • HDD Drive Collars, Chucks, and Subs

  • HDD Swivels & Pulling Equipment

  • Others

• End-use Outlook (Revenue, USD Million; 2018 - 2030)

  • Oil & Gas Extraction

  • Utility

  • Telecommunication

  • Others

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

  • U.S.

  • Canada

  • Mexico