Drilling Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Services (Directional Drilling (Measurement While Drilling, Logging While Drilling, Rotary Steerable System and Others) and Non-Directional Drilling), By Application (Onshore & Offshore (Shallow Water, Deepwater & Ultra Deepwater)), By End User (Oil & Gas, Mining, Water Exploration, Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 89.98 Billion
CAGR (2026-2031)	5.36%
Fastest Growing Segment	Logging While Drilling
Largest Market	North America
Market Size (2031)	USD 123.08 Billion

Market Overview

The Global Drilling Services Market will grow from USD 89.98 Billion in 2025 to USD 123.08 Billion by 2031 at a 5.36% CAGR. Drilling services encompass the specialized equipment, personnel, and technical operations required to construct boreholes for the exploration and extraction of oil, natural gas, and geothermal resources. The market’s growth is fundamentally supported by the escalating global demand for energy, which compels operators to explore frontier regions and maximize output from maturing fields to offset natural production declines. Additionally, the strategic necessity of energy security drives sustained capital flows into upstream projects. According to the International Association of Drilling Contractors, in 2024, the global available offshore rig fleet increased to 639 units, while fleet utilization rates climbed to 82%, underscoring the robust demand for these essential services.

A significant challenge impeding market expansion is the increasing stringency of environmental regulations and the global transition toward renewable energy, which create uncertainty for long-term fossil fuel projects. This regulatory landscape complicates project approval processes and capital allocation, potentially stalling new drilling initiatives despite immediate supply needs.

Key Market Drivers

Rising Capital Expenditure on Global Exploration and Production Initiatives is functioning as a primary catalyst for the drilling services market, as operators intensify spending to secure reserves and offset natural decline rates. This financial momentum is directing substantial funding toward both greenfield exploration and brownfield optimization, directly translating into increased service contracts. According to the International Energy Agency, June 2024, in the 'World Energy Investment 2024' report, global upstream oil and gas investment is expected to rise by 7% in 2024, reaching USD 570 billion. This elevated spending environment is generating tangible growth for service providers; according to SLB, October 2024, in the 'Third-Quarter 2024 Results', the company reported a 10% year-on-year increase in revenue, underscoring the robust conversion of operator budgets into drilling activities.

Resurgence of Deepwater and Ultra-Deepwater Offshore Drilling Projects is further accelerating market expansion, characterized by a renewed focus on complex reservoirs in basins such as Brazil, Guyana, and the Gulf of Mexico. The technical challenges of these environments necessitate high-specification floating rigs and integrated engineering solutions, tightening the supply of premium assets. Consequently, leading offshore drillers are securing longer contracts at improved rates. According to Transocean, October 2024, in the 'Quarterly Fleet Status Report', the company’s total contract backlog stood at approximately $9.3 billion, reflecting the sustained demand for deepwater capabilities. This segment's revival is critical, as it attracts long-term capital commitments that provide stability and visibility for the broader drilling services sector.

Download Free Sample Report

Key Market Challenges

The increasing stringency of environmental regulations and the global transition toward renewable energy significantly impede the growth of the Global Drilling Services Market. Regulatory bodies worldwide are enforcing rigorous emissions standards and complex permitting requirements, which elevate compliance costs and extend project timelines. This regulatory uncertainty discourages operators from committing to long-cycle exploration projects, causing them to defer capital-intensive drilling campaigns. Consequently, demand for drilling services in frontier regions weakens as companies prioritize regulatory adherence and operational efficiency over aggressive expansion to avoid potential penalties and stranded asset risks.

Moreover, the energy transition has fundamentally altered capital allocation strategies, diverting funds away from traditional fossil fuel developments. Investors are increasingly channeling capital into sustainable technologies to comply with environmental mandates, thereby restricting the financing available for upstream oil and gas initiatives. This redistribution of funds directly limits the financial resources necessary for new drilling contracts. According to the International Energy Agency, in 2024, global investment in clean energy technologies was projected to reach USD 2 trillion, significantly outpacing the USD 570 billion allocated to upstream oil and gas spending. This substantial disparity in investment flows highlights the financial constraints restricting the drilling sector's potential growth.

Key Market Trends

The Integration of Artificial Intelligence and Machine Learning for Drilling Optimization is fundamentally reshaping rig operations by automating decision-making processes and enhancing drilling parameters in real-time. Service providers are increasingly deploying autonomous platforms that synthesize downhole data to adjust weight-on-bit and rotary speed, significantly mitigating human error and reducing consistent reliance on manual oversight. This technological shift not only optimizes rate of penetration (ROP) but also ensures consistent wellbore quality, directly addressing operator demands for efficiency. According to Halliburton, September 2024, in the 'LOGIX: precision drilling through intelligent automation' press release, the company’s automated drilling platform has successfully drilled more than 12 million feet and achieved improved rates of penetration of up to 30%, validating the operational impact of these intelligent systems.

Rising Utilization of Managed Pressure Drilling (MPD) Techniques in Complex Formations is becoming a standard operational requirement rather than a niche solution, enabling operators to navigate narrow pore-pressure and fracture-gradient windows safely. This method allows for precise annular pressure control, which is critical for minimizing non-productive time associated with kicks or fluid losses in challenging geological environments. The application of MPD is also expanding beyond traditional hydrocarbons to support difficult alternative energy projects. According to Weatherford International, October 2024, in the 'Third Quarter 2024 Results' press release, the company successfully deployed its Victus Managed Pressure Drilling systems in the first two deep geothermal exploration wells drilled for a major operator in the Middle East, demonstrating the technology's critical role in drilling high-temperature, complex reservoirs.

Segmental Insights

The Logging While Drilling segment is identified as the fastest-growing area within the Global Drilling Services Market. This growth is largely attributed to the increasing necessity for real-time data acquisition, which improves operational efficiency by eliminating the need to halt drilling for measurement. Operators prefer this method as it significantly lowers non-productive time and overall project costs while enabling precise well placement through geosteering. The rise in horizontal and directional drilling activities further reinforces the demand for these services to ensure accurate navigation through difficult geological formations.

Regional Insights

North America leads the Global Drilling Services Market, driven by extensive exploration of unconventional resources, particularly shale gas and tight oil. The region utilizes mature infrastructure and efficient technologies like horizontal drilling to maximize resource recovery. Information from the U.S. Energy Information Administration regarding sustained domestic crude oil production levels validates the continued high demand for these services. Additionally, continuous offshore projects in the Gulf of Mexico further strengthen this market position. These elements, combined with a strong industrial framework, ensure North America remains the primary hub for drilling activities worldwide.

Recent Developments

• In October 2024, Halliburton introduced the iCruise Force, an intelligent, high-performance motorized rotary steerable system designed to advance drilling capabilities. When coupled with the company's LOGIX automation and remote operations platform, the new technology aims to optimize performance and maximize asset value for operators. Powered by high-performance mud motors, the system enhances efficiency by enabling expanded rig capabilities and extended drilling depths in complex formations. The launch addresses the need for faster penetration rates, lower drilling costs, and more precise wellbore placement in harsh environments, expanding the company's intelligent drilling portfolio.
• In June 2024, Noble Corporation entered into a definitive merger agreement to acquire Diamond Offshore Drilling in a stock-and-cash transaction. The acquisition serves to strengthen the company's position in the offshore drilling market by adding four seventh-generation drillships and one high-specification harsh environment semisubmersible rig to its fleet. The transaction also includes Diamond's backlog of approximately $2.1 billion. The Chairman and CEO of Noble Corporation stated that the acquisition would enable the company to deliver superior innovation and value to a broad range of offshore operators globally, further consolidating the offshore drilling sector.
• In February 2024, Baker Hughes secured a significant multi-year contract from Petrobras for integrated well construction services in the Buzios field, located offshore Brazil. The integrated services project, scheduled to commence in the first half of 2025, encompasses a comprehensive suite of solutions including drilling services, drill bits, wireline, cementing, wellbore cleanup, fishing, remedial tools, fluids, and geosciences. Under this agreement, the company will provide these services across three rigs. This award highlights the company's broad capabilities in well construction and its continued role in supporting the development of critical offshore fields in the region.
• In January 2024, SLB and Nabors Industries announced a strategic collaboration to scale the adoption of automated drilling solutions for oil and gas operators and drilling contractors. The agreement enables customers to seamlessly integrate the companies' respective drilling automation applications and rig operating systems. This integration allows for greater flexibility and interoperability between SLB's PRECISE and Nabors' SmartROS platforms. The partnership aims to resolve system integration bottlenecks, which have historically been a barrier to the global adoption of drilling automation, thereby delivering improved well construction performance and efficiency across drilling operations.

Key Market Players

• SLB N.V
• Stockholm Precision Tools AB
• Icefield Tools Corporation
• Devico AS
• Halliburton Company
• Weatherford International plc
• Baker Hughes Company
• Axis Mining Technology Pvt Ltd
• Scientific Drilling International, Inc.
• Inertial Sensing One AB
• Nabors Industries Ltd
• China Oilfield Services Limited

By Services	By Application	By End User	By Region
Directional Drilling (Measurement While Drilling, Logging While Drilling, Rotary Steerable System and Others) and Non-Directional Drilling	Onshore & Offshore (Shallow Water, Deepwater & Ultra Deepwater)	Oil & Gas Mining Water Exploration Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Drilling Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Drilling Services Market, By Services:

• Directional Drilling (Measurement While Drilling, Logging While Drilling, Rotary Steerable System and Others) and Non-Directional Drilling

• Drilling Services Market, By Application:

• Onshore & Offshore (Shallow Water, Deepwater & Ultra Deepwater)

• Drilling Services Market, By End User:

• Oil & Gas
• Mining
• Water Exploration
• Others

• Drilling Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE