The horizontal directional drilling market was valued at US$ 2,802.69 million in 2022 and is anticipated to reach US$ 6,420.45 million by 2030; the market is expected to register a CAGR of 10.9% during 2022–2030.
Analyst Perspective:
The horizontal directional drilling market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The high presence of manufacturers and suppliers of horizontal directional drilling equipment in North America, such as American Augers, Ditch Witch (The Charles Machine Works, Inc), and Vermeer Corporation, is acting as a major driver for the horizontal directional drilling market growth in the region.
The growing number of exploration activities in the oil & gas sector and the rising number of new mineral exploration projects boost the growth of the horizontal directional drilling market globally. The increasing demand for broadband services in North America is anticipated to boost investments in the cable network. The next-generation broadband technologies such as high-speed internet packages (FTTx) and 5G are increasing the deployment of cables, which is propelling the need for horizontal directional drilling activities in the region. In 2023, AT&T aimed at expanding 5G and fiber networks to connect urban, rural, and tribal communities nationwide. The growing requirement of drilling activities for installing underground cables and conduits is boosting the demand for horizontal directional drilling equipment in different countries across Europe. In 2023, Prysmian Group initiated horizontal directional drilling activity that will grant the subsea cables to establish an energy transmission connection between Germany and the UK.
Market Overview:
Development of the drilling industry is driven by the growing application of various drilling techniques and equipment in oil & gas, telecommunication, utility, mining, and sewer & water facilities. In addition, the increasing number of offshore drilling activities to boost oil production, deep sea mining excavations, and offshore wind farms for power generation drives the growth of the horizontal directional drilling market.
Increasing substantial investments in the oil & gas and telecommunication industries contribute to the growing horizontal directional drilling market size. The growing proliferation of horizontal directional drilling techniques in utilities, mining, and natural gas pipelines also bolsters the growth of the horizontal directional drilling market globally.
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Horizontal Directional Drilling Market: Strategic Insights
Market Size Value in US$ 2,802.69 million in 2022 Market Size Value by US$ 6,420.45 million by 2030 Growth rate CAGR of 3.9% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Horizontal Directional Drilling Market: Strategic Insights
| Market Size Value in | US$ 2,802.69 million in 2022 |
| Market Size Value by | US$ 6,420.45 million by 2030 |
| Growth rate | CAGR of 3.9% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Market Driver:
Increasing Application of Horizontal Directional Drilling Equipment in Sewer & Water and Oil & Gas Sectors Fuels Horizontal Directional Drilling (HDD) Market Growth
The volume of sewage is rising with population growth. A majority of wastewater is generated by households and industries. Every year, ~380 billion m3 (cubic meters) of municipal wastewater is produced globally. As a result, the demand for proper infrastructure development in the sewer & water sector is increasing due to the growing population and rising urbanization. Governments of several countries are focusing on installing proper wastewater and sewage treatment facilities to protect the environment from pollution. For instance, in 2024, The Ranchi Municipal Corporation initiated a pipeline laying project under its sewage management system across nine wards. The project involves joining household septic tanks to the sewer lines. In addition, in 2023, Cambi signed an agreement focusing on the Woodman Point Water Resource Recovery Facility in Perth and Western Australia. In 2022, more than 16,000 public wastewater treatment facilities were in the US. Over 80% of the US population consumes drinking water from these facilities after proper treatment, and approximately 75% of the US population has sanitary sewerage treated in these treatment facilities. The growing emphasis on proper sewer and water infrastructure is boosting drilling activities, which is increasing the application of horizontal directional drilling equipment worldwide.
Moreover, there is a surge in energy demand due to the growing global population. For instance, India is the third largest energy-consuming country worldwide, owing to improved living standards; after China and the US, India's energy consumption has doubled since 2000. As per The US Energy Information Administration (EIA), US energy consumption is anticipated to grow through 2050 owing to economic and population growth. Natural gas has the potential application in electricity generation, which boosts its demand in various industries. Furthermore, due to the increasing energy uncertainties in Europe owing to the Russia-Ukraine war, governments of several countries are boosting the application of natural gas. As a result, oil & gas exploration activities are growing across the globe. For instance, in 2024, governments of France and Germany announced their plans to initiate the 100 km hydrogen pipeline project. GRTGaz, a prime gas supplier in France, is set to authorize the installation of a hydrogen pipeline linking France and Germany, marking a substantial step toward decarbonizing heavy industries in both countries. In addition, in 2023, governments of Germany and Italy joined forces to form a projected gas pipeline. The proposed pipeline is a 3,300 km project and is anticipated to incorporate four European transmission system operators, including Trans Austria Gasleitung, Snam, Bayernets, and Gas Connect Austria in Germany.
Furthermore, the growing offshore drilling activities for crude oil and gas exploration are boosting the demand for horizontal directional drilling equipment. For instance, in September 2023, Petrobras, a Brazilian oil & gas company, announced its plans to install 11 new offshore drilling platforms across the Brazilian offshore locations. In addition, in 2023, Petroleos Mexicanos and an association led by Talos Energy confirmed a field development plan for the Zama offshore oil field. Thus, an increase in offshore oil & gas exploration activities bolsters the expansion of gas pipeline infrastructure, which is propelling the application of horizontal directional drilling equipment. Thus, key factors bolstering the horizontal directional drilling market size include the rising infrastructure development in the sewer & water and oil & gas sectors.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Segmental Analysis:
The horizontal directional drilling market analysis is carried out on the basis of the following segments: end-use, rig size, and application. Based on end-use, the horizontal directional drilling market is segmented into telecommunications, oil & gas, sewer & water, environmental wells, and utility. Telecommunications and oil & gas are a few of the major end-use industries that use horizontal directional drilling equipment. Growing development in the telecom industry and increasing number of offshore oil & gas exploration sites are major driving factors for the horizontal directional drilling market. Based on end-use, the oil & gas segment is anticipated to hold a significant horizontal directional drilling market share by 2030.
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Regional Analysis:
The geographic scope of the horizontal directional drilling market report focuses covers North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South America (Brazil, Argentina, and Rest of South America). In terms of revenue, North America dominated the horizontal directional drilling market share in 2022. North America is one of the prime markets in terms of investments in the oil & gas industry. The US is a key natural gas and crude oil producer globally. In 2022, the country showcased the highest natural gas production capacity, followed by Canada and Mexico. Ixachi, Coulomb Phase 2, Quesqui, Nejo (IEPC), Leo, May, Koban, and Powerball are a few of the natural gas-producing fields in North America. The Ixachi plant is in Veracruz, Mexico, and it produced 618.09mmcfd (million cubic feet per day) in 2022. The Coulomb Phase 2 field, owned by Shell, is located in the Central Planning Area, US. There were 436 oil and gas rigs in the US in 2020, which increased to 580 in 2021 and 721 in 2022. Canada accounted for 91 oil and gas rigs in 2020, which increased to 149 in 2021 and 176 in 2022. Mexico had 41 oil and gas rigs in 2020, which increased to 45 in 2021 and 47 in 2022. Increasing gas exploration and oil production activities in the region and a mounting number of oil & gas rigs across different countries of North America fuels the horizontal directional drilling market growth.
Key Player Analysis:
American Augers, Inc.; Prime Drilling GmbH; Epiroc AB; Vermeer Corporation; The Charles Machine Works Inc.; Laney Directional Drilling; Nabors Industries Ltd; Herrenknecht AG; Tracto-Technik; and Drillto Trenchless Co., Ltd are among the key players profiled in the horizontal directional drilling market report. The report includes growth prospects in light of current horizontal directional drilling market trends and driving factors influencing the market growth.
Recent Developments:
A few recent developments by the horizontal directional drilling market players, as per their press releases, are listed below:
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January-2024 | American Augers introduced the DD600 maxi-rig directional drill, replacing its predecessor, the DD440T. The new model featured a 755 HP Stage V/T4F/T3 CAT C18 engine that does not require diesel exhaust fluid, enhancing uptime and reliability. The engine also meets emission standards for engines in Europe. The DD600 is designed for easy transportation, meeting standard requirements without special permits. It can be transported without removing wrenches, saving time in assembly and disassembly. The hydraulic catwalk expedites setup and teardown, allowing operators to work efficiently and versatilely on both small and large-scale projects. | North America |
January-2024 | Vermeer launched the LS3600TX low-speed shredder, designed for recycling, waste facilities, land clearing, compost, mulch, and biofuel production. It efficiently processes contaminated waste streams and safeguards critical machine components. | North America |
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
End-use, Rig Size, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
American Augers, Inc.; Prime Drilling GmbH; Epiroc AB; Vermeer Corporation; The Charles Machine Works Inc.; Laney Directional Drilling; Nabors Industries Ltd; Herrenknecht AG; Tracto-Technik; and Drillto Trenchless Co., Ltd are the key market players operating in the global horizontal directional drilling market.
Installing sewage pipelines, expansion of broadband services in remote or rural areas, and installing electricity transmission lines involve drilling activities, which require horizontal directional drilling equipment. Adequate water supply, proper sanitation, including waste management, assured electricity supply, and efficient urban mobility are a few of the necessities of the smart city. Developing new infrastructures such as universities, schools, housing, and IT data centers requires a high level of drilling activities for the installation of underground pipelines and cables, which is anticipated to boost the application of horizontal directional drilling equipment in the coming years.
North America is one of the prime markets in terms of investments in the oil & gas industry. The US is a key natural gas and crude oil producer globally. In 2022, the country showcased the highest natural gas production capacity, followed by Canada and Mexico. Ixachi, Coulomb Phase 2, Quesqui, Nejo (IEPC), Leo, May, Koban, and Powerball are a few of the natural gas-producing fields in North America. The Ixachi plant is in Veracruz, Mexico, and it produced 618.09mmcfd (million cubic feet per day) in 2022.
Mineral exploration activities are one of the major application areas of horizontal directional drilling equipment. The mineral exploration sites require a high level of drilling activities, which is boosting the demand for horizontal directional drilling equipment in various nations. Countries such as Australia, China, Russia, Brazil, Canada, and the US are widely involved in mineral exploration activities. These countries are also promoting the discovery of new mineral exploration sites and upgrading and maintenance of already existing sites.
The volume of sewage is rising with population growth. A majority of wastewater is generated by households and industries. Every year, ~380 billion m3 (cubic meters) of municipal wastewater is produced globally. As a result, the demand for proper infrastructure development in the sewer & water sector is increasing due to the growing population and rising urbanization. Governments of several countries are focusing on installing proper wastewater and sewage treatment facilities to protect the environment from pollution.
The List of Companies - Horizontal Directional Drilling Market
- American Augers, Inc.
- Prime Drilling GmbH
- Epiroc AB
- Vermeer Corporation
- The Charles Machine Works Inc.
- Laney Directional Drilling
- Nabors Industries Ltd
- Herrenknecht AG
- Tracto-Technik
- Drillto Trenchless Co., Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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