The managed pressure drilling market size is expected to reach US$ 7.22 billion by 2031 from US$ 4.85 billion in 2023. The market is estimated to record a CAGR of 5.1% during 2023–2031. The growing adoption of modern drilling equipment for high-pressure and high-temperature wells is likely to bring new trends to the market in the coming years.
The key stakeholders in the managed pressure drilling market ecosystem include raw material suppliers, managed pressure drilling equipment and machinery manufacturers, service providers, and end users. The raw material providers supply various types of materials, including steel and aluminum, to managed pressure drilling equipment and machinery manufacturers for manufacturing managed pressure drillings integrated with different technologies. Constant bottom hole pressure (CBHP), mud cap drilling (MCD), dual gradient drilling (DGD), and return flow control drilling (RFCD) are a few technologies for managed pressure drilling.
Service providers offer managed pressure drilling services to the end users, such as onshore and offshore oil extraction companies. Managed pressure drilling services are being adopted by many companies owing to rising drilling activities and significant investments in oil and gas projects. For instance, in 2024, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that Nigeria has been offered 12 oil blocks in a new licensing round. In 2023, the Nigerian Oil Ministry announced that the award of licenses for seven offshore blocks offered in a 2022 licensing round is likely to be commissioned entirely with the round held in 2024, reserving the combined licenses of 19 oil blocks for capable investors. Similarly, in April 2023, the Oil and Natural Gas Corporation (ONGC) collected US$ 7 billion in investments for the next 3–4 years to support oil and gas production. A few managed pressure drilling equipment and machinery manufacturers are Ensign Energy Services, ADS Services LLC, Archer, Blade Energy Partners, Nabors Industries Ltd, Air Drilling Associates Inc, Halliburton Co, SLB Weatherford International Plc, and NOV Inc.
The managed pressure drilling process is used to control the annular pressure levels precisely across the wellbore length by managing the downhole pressure environment. It is an essential technique for drilling wells with narrow pore-pressure and fracture-gradient windows. Ranging from automated to intelligent, the managed pressure drilling systems help enhance safety, lower well construction costs, reduce well control risks, and increase the production of oil and gas. The major application of managed pressure drilling systems is in deep offshore gas and oil wells. The oil and gas extraction process requires cautionary measures as these substances are highly volatile. With a rise in onshore and offshore drilling activities across the globe, the demand for managed pressure drilling equipment is also increasing. For instance, in April 2023, BP commenced oil production at its Argos platform located in the Gulf of Mexico. The Argos platform is a deepwater facility situated ~200 miles south of New Orleans, Louisiana.
The global managed pressure drilling market is segmented into North America, Europe, the Middle East and Africa, and South & Central America. North America is expected to dominate the managed pressure drilling market during the forecast period. This is owing to a rise in oil and gas drilling activities. U.S. Energy Development Corporation (U.S. Energy) aims to expand its operations in the prolific Permian basin, one of the most productive oil and gas areas in the US. Over the next 12 months in 2024, the corporation expects to deploy a capital of US$ 750 million, with the majority of this fund dedicated to projects in the Permian. Furthermore, U.S. Energy has invested, operated, and drilled ~4,000 wells in 13 US states and Canada. Such increasing investment in the oil and gas sector across the US, Canada, and Mexico drives the demand for managed pressure drilling products.
Many countries are increasingly drilling high-pressure, high-temperature (HPHT) wells. Loss of circulation, stuck pipe, twisting off, kick, or loss scenarios are a few issues associated with drilling activities. A managed pressure drilling system is usually used in the HPHT well drilling activities as the equipment helps resolve these issues by improving penetration rate, avoiding kick or loss, narrowing passage window drilling, managing mud programs, allowing early identification of wellbore ballooning, ensuring high efficiency, and reducing non-productive time. Thus, the growing use of managed pressure drilling techniques for high-pressure, high temperature (HPHT) well drilling is expected to provide significant growth opportunities for managed pressure drilling equipment providers during the forecast period.
Several major players are adopting strategies such as mergers, acquisitions, partnerships, and collaboration to develop advanced managed pressure drilling equipment, which is expected to create ample opportunities for the managed pressure drilling market growth during the forecast period. For instance, in September 2024, Seadrill, a Bermuda-based offshore drilling contractor, collaborated with Oil States International, an offshore drilling company headquartered in Texas. This collaboration aims to transform offshore drilling efficiency by adopting managed pressure drilling (MPD) into its mainstream operations. Similarly, in July 2024, Archer signed an agreement with Air Drilling Associates, Inc. to acquire their Managed Pressure Drilling subsidiary, ADA Argentina. The subsidiary offers MPD services to Archer’s customers in the Vaca Muerta basin in Argentina. Managed pressure drilling is an adaptive drilling process that helps control the annular pressure profile precisely throughout the drilled wellbore. Further, ADA owns and operates three MPD systems.
Key segments that contributed to the derivation of the managed pressure drilling market analysis are technology and application.
Based on application, the market is divided into onshore and offshore. The onshore segment dominated the market in 2023.
The managed pressure drilling market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Asia Pacific and the Middle East and Africa.
The managed pressure drilling market in the Middle East and Africa (MEA) market is projected to proliferate owing to increasing investments in the oil and gas sector. The oil & gas sector contributes a substantial share of the GDP of these countries. In 2024, Abu Dhabi National Oil Company (ADNOC) has planned to invest more than US$ 13 billion between 2024 and 2029 for the LNG gas exploration expansion. In 2023, Aramco’s, an oil and gas company in the Middle East, total capital investments totaled US$ 49.7 billion, an increase of 28% compared to 2022. In 2024, the company's capital investments are expected to reach between US$ 48 billion and US$ 58 billion. The boost in per capita income, recovering economic conditions, and government spending on infrastructure development are among the factors contributing to the demand for managed pressure drilling services. Oil and gas production is one of the prominent businesses in the region. Saudi Arabia, Libya, Iran, the UAE, and Qatar are a few countries that have witnessed growth in the oil business. Despite the slowdown in economic growth and substantial macroeconomic imbalances from lower oil prices in the last few years, oil and gas-producing countries in the MEA are focusing on achieving greater oil and gas production by partnering with foreign firms to scale up their activities at huge offshore and onshore oil and gas fields.
The regional trends and factors influencing the Managed Pressure Drilling Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Managed Pressure Drilling Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 4.85 Billion |
| Market Size by 2031 | US$ 7.22 Billion |
| Global CAGR (2023 - 2031) | 5.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Technology
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Managed Pressure Drilling Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Managed Pressure Drilling Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The managed pressure drilling market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the managed pressure drilling market are listed below:
(Source: Nabors Industries Ltd, Press Release, January 2024)
(Source: Halliburton, Press Release, November 2023)
The "Managed Pressure Drilling Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
Growing use of modern drilling equipment for high-pressure and high-temperature wells is expected to be the key opportunity in the market.
Ensign Energy Services; ADS Services, LLC; CATL; Archer; Blade Energy Partners; Nabors Industries Ltd; Air Drilling Associates, Inc; Halliburton Co; Ameresco Inc.; ESS, Inc.; SLB; Weatherford International Plc; NOV Inc. are the key market players operating in the Global Managed Pressure Drilling Market.
The rise in onshore and offshore drilling activities is contributing to the growth of the Global Managed Pressure Drilling Market.
Proliferation of Industry 4.0 to stimulate the Global Managed Pressure Drilling Market growth in the coming years.
Constant Bottom Hole Pressure is expected to dominate the market over the forecast period.