Drilling Services Market Report 2026

The drilling services market size has grown steadily in recent years. It will grow from $1.37 trillion in 2025 to $1.43 trillion in 2026 at a compound annual growth rate (CAGR) of 4.4%. The growth in the historic period can be attributed to conventional oil and gas exploration expansion, growth of offshore drilling activities, discovery of major hydrocarbon basins, increased global industrialization energy demand, development of basic rotary drilling technologies.

The drilling services market size is expected to see steady growth in the next few years. It will grow to $1.72 trillion by 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to rising demand for energy security and sustained hydrocarbon supply, expansion of deepwater and ultra-deepwater drilling projects, increasing regulatory pressure on emissions and environmental safety, growth in complex reservoir exploration (tight oil and shale), investment in next-generation drilling infrastructure and modernization. Major trends in the forecast period include advanced directional drilling efficiency and extended reach capabilities, deepwater and ultra-deepwater exploration expansion, high-precision geosteering and reservoir optimization techniques, cost optimization and rig utilization efficiency improvements, enhanced well integrity, safety and environmental compliance standards.

The increasing oil and gas exploration activities are anticipated to drive the expansion of the drilling services market in the coming years. Oil and gas exploration activities refer to the processes involved in locating and identifying underground or underwater deposits of crude oil and natural gas. The rise in oil and gas exploration activities is attributed to growing energy demand, which leads to higher investment in discovering and developing new reserves. Drilling services support oil and gas exploration activities by facilitating efficient access to subsurface reserves through well drilling and borehole development. They improve extraction efficiency and ensure safe, precise resource recovery operations. For example, in April 2025, according to the U.S. Energy Information Administration, a US-based government agency, US crude oil production increased to 13.2 million barrels per day in 2024, rising by 270,000 barrels per day compared to 2023. Therefore, the increasing oil and gas exploration activities are fueling the growth of the drilling services market.

Leading companies operating in the drilling services market are focusing on developing advanced products, such as intelligent, high-performance motorized systems, to expand drilling capabilities, optimize performance, and maximize asset value in complex formations. Intelligent, high-performance motorized rotary steerable systems refer to advanced downhole tools that integrate high-power mud motors with automated steering to deliver higher torque and rate of penetration while maintaining precise wellbore placement. For example, in October 2024, Halliburton, a US-based oilfield services company, introduced the iCruise Force intelligent rotary steerable system. It is a high-performance, motorized rotary steerable system that, when paired with Halliburton’s LOGIX automation and remote operations platform, is designed to extend drilling depths in harsh and complex formations. The system includes a high-performance mud motor and intelligent steering capabilities that enable faster penetration rates, lower drilling costs, and more precise wellbore placement without operator intervention. It also integrates with the LOGIX platform to enhance steering accuracy and operational control, helping operators mitigate non-productive time and streamline the well construction process.

In June 2024, Noble Corporation plc, a US-based offshore drilling contractor company, purchased Diamond Offshore Drilling Inc. for $1.6 billion. With this acquisition, Noble intended to reinforce its offshore drilling fleet, increase its footprint across deepwater and harsh-environment operations, widen customer reach across various rig types and regions, and incorporate backlog along with cost synergies to support improved cash flow generation. Diamond Offshore Drilling Inc. is a US-based provider of offshore contract drilling services concentrating on deepwater, harsh-environment, and midwater drilling solutions for complex offshore wells.

Major companies operating in the drilling services market are SLB, Baker Hughes Company, Halliburton Company, ADNOC Drilling Company PJSC, Weatherford International plc, China Oilfield Services Limited, Archer Limited, Transocean Ltd., Helmerich & Payne Inc., Seadrill Limited, Borr Drilling Limited, RPC Inc., Ensign Energy Services Inc., Boart Longyear Group Ltd., Gulf International Services Q.P.S.C., Nabors Industries Ltd., Precision Drilling Corporation, Major Drilling Group International Inc., Abraj Energy Services SAOG, KLX Energy Services Holdings Inc., Socar AQS LLC.

North America was the largest region in the drilling services market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the drilling services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the drilling services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The drilling services market includes revenues earned by entities through well cementing, well completion, wireline logging, mud logging, casing running, fishing, well intervention, hydraulic fracturing, pressure pumping, drilling fluid management, rig management, core drilling, casing drilling, and well testing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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