Drilling Equipment - Global Stategic Business Report

The global market for Drilling Equipment was estimated at US$8.7 Billion in 2024 and is projected to reach US$11.0 Billion by 2030, growing at a CAGR of 3.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Drilling Equipment market.

Global Drilling Equipment Market - Key Trends & Drivers Summarized

What's Fueling the Evolution of Drilling Equipment in Today's Resource-Hungry World?

Drilling equipment forms the mechanical backbone of resource extraction industries, enabling the exploration and production of oil, gas, minerals, geothermal energy, and water. The global market for drilling equipment is undergoing significant transformation, fueled by the growing need for energy security, expansion of unconventional resource development, and adoption of technologically advanced drilling systems. The industry is shifting toward precision-driven, automated, and multi-functional rigs that enhance drilling efficiency, reduce environmental footprint, and improve worker safety. As resource depletion forces deeper, harsher, and more remote drilling operations, equipment performance and resilience have become top priorities.

Key trends in the market include the proliferation of top drive systems, rotary steerable systems (RSS), measurement-while-drilling (MWD) tools, and high-performance drill bits designed for hard-rock and HPHT conditions. Additionally, digital drilling platforms are being introduced, enabling real-time analytics, remote rig control, and performance optimization. Equipment for horizontal and directional drilling is gaining significant market share, especially in shale oil and gas basins, while geothermal drilling tools are experiencing increasing investment due to the global push for sustainable energy. Compact, modular drilling units and mobile rigs are also rising in demand to support smaller operators and remote-site exploration.

How Are Energy Transition and Unconventional Resources Shaping Equipment Demand?

The demand for advanced drilling equipment is being strongly influenced by the energy transition and the global push toward decarbonization. While oil and gas remain central to global energy portfolios, the growth in renewable and low-carbon energy sectors is reshaping how drilling technologies are applied. In geothermal energy, for instance, drilling is essential for tapping heat reservoirs at increasing depths and temperatures. This requires highly specialized equipment with robust materials, thermal resistance, and enhanced fluid handling capabilities. Similarly, the lithium and rare earth mining sectors which underpin battery manufacturing are relying on exploration rigs capable of operating in challenging geological formations.

Unconventional hydrocarbon development, especially in shale plays, has been a major catalyst for directional and horizontal drilling technologies. The growing use of pad drilling, which allows multiple wells to be drilled from a single surface location, is increasing demand for fast-moving, multi-well capable drilling rigs. These rigs need integrated automation, higher hook loads, and faster pipe handling systems. Additionally, offshore exploration particularly in ultra-deepwater zones is driving innovations in blowout preventers (BOPs), riser systems, and subsea control equipment. In mining, demand is growing for diamond core drills, percussion rigs, and rotary blasthole drills optimized for high-efficiency ore extraction in hard and abrasive rock types.

What Technological Innovations Are Redefining Performance in Drilling Equipment?

Drilling equipment is evolving rapidly with the integration of digital, automated, and remote-control technologies. Automation is being embedded in pipe handling systems, mud pumps, and well-control equipment to reduce human exposure and minimize operational errors. Real-time data acquisition tools like MWD and logging-while-drilling (LWD) technologies are enabling more precise well trajectories, better reservoir characterization, and optimized drilling performance. AI and machine learning are also being applied to predict equipment failures, optimize bit performance, and improve rate of penetration (ROP).

Materials science is playing a critical role in enhancing equipment durability. Drill pipes, bits, and casings are now being made with high-strength, corrosion-resistant alloys to withstand HPHT conditions and sour gas environments. Modular rig designs are gaining traction for their ability to be transported and assembled quickly, especially in remote or environmentally sensitive locations. Battery-powered and hybrid electric rigs are being piloted to reduce emissions, particularly for land-based drilling operations. Manufacturers are also investing in smart BOP systems and automated wellhead equipment that offer enhanced pressure control, reduced rig downtime, and higher safety compliance especially important in deepwater and arctic environments.

Why Is the Drilling Equipment Market Expected to Maintain Strong Global Momentum?

The growth in the drilling equipment market is driven by several factors related to increased resource exploration, technological complexity, and operational efficiency demands. One of the foremost drivers is the resurgence of upstream oil and gas investment, particularly in North America, the Middle East, and West Africa, which is fueling new rig deployments and equipment upgrades. At the same time, the need to access deeper reservoirs, tighter formations, and remote offshore fields is creating sustained demand for high-specification drilling equipment with enhanced automation, higher torque, and advanced control systems.

The increasing deployment of digital drilling technologies and the integration of IoT and cloud analytics into rig systems are further accelerating market growth. Equipment that supports directional, multilateral, and extended-reach drilling is in high demand as operators aim to maximize reservoir contact and improve recovery rates. Moreover, government-backed exploration campaigns, particularly in Latin America, Sub-Saharan Africa, and Southeast Asia, are creating new opportunities for land-based and offshore drilling contractors. Environmental, safety, and regulatory pressures are also driving investment in cleaner, safer, and smarter drilling solutions, reinforcing the need for innovation. As mining, geothermal, and water exploration activities expand globally, the versatility and adaptability of next-generation drilling equipment will ensure continued growth and diversification across industries.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Drawworks segment, which is expected to reach US$3.0 Billion by 2030 with a CAGR of a 5.0%. The Other Types segment is also set to grow at 2.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $2.4 Billion in 2024, and China, forecasted to grow at an impressive 7.3% CAGR to reach $2.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Drilling Equipment Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Drilling Equipment Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Drilling Equipment Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Baker Hughes, Boart Longyear, Epiroc AB, Halliburton Company, and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 34 companies featured in this Drilling Equipment market report include:

• Baker Hughes
• Boart Longyear
• Epiroc AB
• Halliburton Company
• Helmerich & Payne, Inc.
• Kays Engineering, Inc.
• Major Drilling Group Intl.
• Nabors Industries Ltd.
• National Oilwell Varco (NOV)
• Noble Corporation
• Patterson-UTI Energy, Inc.
• Precision Drilling Corporation
• Reed Manufacturing Co.
• Saipem S.p.A.
• Schlumberger Limited (SLB)
• Seadrill Limited
• Simco Drilling Equipment
• Transocean Ltd.
• Weatherford International plc
• XCMG Group

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.