Drilling Rig Market Size

Global Drilling Rig market size was valued at USD 12.60 Billion in 2023 and is poised to grow from USD 13.34 Billion in 2024 to USD 21.11 Billion by 2032, growing at a CAGR of 5.9% in the forecast period (2025-2032).

Internationally, escalating global energy demands are driving up demand for oil and gas that is driving escalating exploration and production activity. Economic growth and the acceleration of industrial processes are utilizing more energy, driving investment into drilling activity to meet the world's ongoing need for fossil fuels to produce electricity, for fuel, and to produce goods.

Offshore development, particularly ultra-deepwater and deepwater areas such as the Gulf of Mexico, West Africa, and Brazil, is significantly increasing the need for sophisticated offshore rigs for drilling. These conditions require high-spec equipment to thrive under chaotic situations, thereby compelling operators to make investments in advanced equipment in an attempt to drill safely and efficiently from under the seabed.

Conversely, huge amounts of capital have to be sunk in buying and owning drilling rigs, which may hinder market growth, especially among smaller firms. Such up-front massive expenditure, in addition to maintenance charges, may discourage investment and restriction of the ability of small operators to compete, especially in uncertainty oil price economies and uncertainty.

Furthermore, unstable crude oil prices create uncertainty with drilling companies to forecast revenues. This uncertainty would normally lead to cautious investment strategies since the firms can avoid risking the commitment towards acquiring new rigs or expanding businesses. Hence, volatile oil prices can obstruct long-term stability and growth in the drilling rig business.

How are AI and IoT transforming efficiency and sustainability in the drilling rig market?

Artificial Intelligence (AI) and Internet of Things (IoT) are transforming the drilling rig industry by increasing operational efficiency, safety, and sustainability. AI algorithms analyze massive amounts of data from IoT sensors to optimize drilling parameters, anticipate equipment failures, and automate real-time decision-making. The convergence of IT and operational technologies gives rise to reduced downtime, improved well quality, and reduced operating costs. For instance, companies like Chevron and BP use AI to manage drill bits, monitor emissions, and analyze seismic data, which allows for faster and more accurate drilling.

An example of one such case is the one presented by Schlumberger and Equinor on May 6, 2024. This collaboration is directed towards combining AI capabilities via Schlumberger's Delfi digital platform for improved operational performance in oil and gas operations, carbon capture and storage (CCS), and new acquisitions. This move is a significant step towards sustainable low-carbon energy solutions, especially in the North Sea region.