Drilling Rig Market Regional Analysis

Why is Asia Pacific Leading Drilling Rig Market in 2024?

Asia-Pacific is dominating the world drilling rig market due to a combination of increasing energy demand, technological advancement, and offshore exploration investment strategies. India and China are among nations rapidly industrializing and urbanizing, this increasing energy demand. Advances in technology, such as high-tech rigs and subsea equipment, are enhancing safety and efficiency. Besides, strategic investments in offshore exploration and production are making the region a top player in the world energy scene. ​

Japan Drilling Rig Market

Japan's offshore drilling market is controlled by Japan Drilling Co. Ltd. (JDC), the sole offshore drilling contractor in the country. In March 2023, JDC was acquired by JX Nippon Oil & Gas Exploration Corporation to increase oil and gas operations. The takeover is estimated to add value to the capability of JX Nippon in offshore drilling and aid Japan in its carbon capture plan. JDC operates four offshore rigs: Hakuryu-10, Hakuryu-11, and Hakuryu-14 jack-ups, and Hakuryu-5 semisubmersible.

South Korea Drilling Rig Market

South Korea is building its offshore drilling capability, especially through the Korea National Oil Corporation (KNOC) alliance with Seadrill. KNOC hired Seadrill's drillship West Capella in June 2024 for 40 days of exploratory work off Pohang coast to explore the potential reserves estimated at 3.5 billion to 14 billion barrels of oil and gas. The action is aimed at assessing the viability of domestic energy resources to enhance energy security and reduce import dependence. The project will deliver results by mid-2025.

Why is Demand for Drilling Rig Fueling Growth in North America?

North America paces the global market for drilling rigs, recording some 37% of industry expansion. It has been supplemented mainly by America and Canada on account of intensive production of oil and gas courtesy of unconventional shale resources. Advanced technological innovation around hydraulic fracturing as well as horizontal drilling operations improves efficiency at operations. Continued encouragement by government from offshore-based developments, with its recent facilitation of Willow, an undertaking approved in Alaska, further cement its regional leading edge.​ ​

U.S. Drilling Rig Market

​The U.S. drilling rig industry is under stress in 2025 as a result of economic unpredictability and policy changes. In April, Halliburton said it experienced a sharp decline in first-quarter earnings, blaming a 12% year-over-year North American revenue decline on decreased shale activity and higher costs due to tariffs on steel and drilling equipment. This downturn is exacerbated by President Trump's proposed 10% tariffs on imports of Canadian crude oil, which have brought uncertainty and could have slowed down investment and rig demand.

Canada Drilling Rig Market

​Canada's market for drilling rigs is experiencing a boom, with 2025 activity levels to be the highest in a decade. Western Canada is forecasted by the Canadian Association of Energy Contractors (CAOEC) to drill 6,604 wells in 2025, an increase of 7.3% from 2024, underpinned by completion of the Trans Mountain pipeline expansion and anticipated start-up of LNG Canada. But in March 2025, U.S. President Donald Trump's threatened 10% tariffs on Canadian crude oil imports brought uncertainty, which could slow investment and rig demand.

How is Europe Maintaining its Dominance in Drilling Rig Industry?

Europe leads in the drilling rig market due to its heavy concentration in offshore oil and gas exploration, particularly in the North Sea. Norway, the UK, and the Netherlands focus heavily on the production of mature offshore fields and prospecting for new reserves. More technology used in drilling, such as subsea and deepwater drilling, has made it more efficient. The focus on the green energy transition and energy security in the region also promotes further investment in drilling infrastructure.

Germany Drilling Rig Market

The German drilling rig market will grow steadily until 2032 because of offshore and onshore application increases in oil, gas, and mining sectors. During the April 2025 international construction equipment exhibition Bauma, decarbonization of drill machinery was demonstrated. Liebherr, for instance, debuted its LB 30 Unplugged piling rig that points towards the future trend of going electric and hydrogen-based to achieve carbon footprint reductions in drilling.

Spain Drilling Rig Market

​The Spanish drilling rig market is experiencing a boom in 2025 due to increasing offshore drilling and energy transition initiatives. In February 2025, Prospex Energy stated that there has been progress in the permitting process for five new natural gas wells at the El Romeral concessions in Andalusia. The Environmental Impact Assessment (EIA) was released on February 19, 2025, which was a significant milestone in the effort to boost Spain's domestic energy production.