Offshore Oil & Gas Rig Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Type (Jackups, Semisubmersibles, Drill Ships, and Others), By Water Depth (Shallow Water, Deepwater and Ultra-Deepwater), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 51.13 Billion
CAGR (2026-2031)	6.32%
Fastest Growing Segment	Jackups
Largest Market	North America
Market Size (2031)	USD 73.85 Billion

Market Overview

The Global Offshore Oil & Gas Rig Market will grow from USD 51.13 Billion in 2025 to USD 73.85 Billion by 2031 at a 6.32% CAGR. Offshore oil and gas rigs are specialized marine structures designed to drill wells, extract hydrocarbons, and process resources from beneath the seabed for transport to shore. The market is primarily driven by increasing global energy demand and the depletion of accessible onshore reserves, a factor that necessitates exploration in deeper waters. Furthermore, the stabilization of crude oil prices has improved the economic viability of offshore projects and encouraged capital investment in exploration and production activities.

Despite these positive indicators, the sector encounters a significant challenge in the form of immense capital requirements and financial risks that can delay final investment decisions. 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%. While this data suggests a tightening market, the high costs associated with operational logistics and economic uncertainty continue to impede rapid market expansion.

Key Market Drivers

The Resurgence of Capital Expenditure on Offshore Exploration and Production stands as a primary catalyst for the Global Offshore Oil & Gas Rig Market. After years of underinvestment, operators are now prioritizing the replacement of reserves and the capitalization of favorable commodity prices, leading to a substantial increase in upstream spending. This financial commitment is visible in the earnings of major oilfield service providers that support offshore infrastructure. According to SLB, October 2024, in the 'Third-Quarter 2024 Results', revenue for the Production Systems division increased 31% year-on-year to $3.10 billion, a surge attributed largely to accelerated international offshore sales and subsea activity. This capital injection directly correlates with heightened contracting activity for drilling units required to execute these expanded exploration and development campaigns.

Technological Breakthroughs in Deepwater and Ultra-Deepwater Drilling are simultaneously expanding the market's operational boundaries. As shallow-water basins mature, the industry is leveraging advanced seventh-generation drillships equipped with managed pressure drilling and automated systems to access complex reservoirs in remote frontiers. This shift toward high-specification assets has driven significant backlog growth for rig contractors. According to Transocean, July 2024, in the 'Quarterly Fleet Status Report', the company added approximately $656 million in contract backlog, bringing its total order book to $8.8 billion, reflecting intense demand for ultra-deepwater floaters. The premium placed on these technically capable assets is further evidenced by rising pricing power; according to Valaris Limited, August 2024, in the 'Q2 2024 Earnings Call', average day rates for seventh-generation drillships increased to approximately $480,000 in the first half of 2024.

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Key Market Challenges

The immense capital requirements and financial risks associated with offshore projects significantly impede the growth of the global offshore oil and gas rig market. Deepwater exploration and drilling operations demand substantial upfront expenditures, often reaching billions of dollars, which exposes operators to severe financial exposure if commodity prices fluctuate. This economic pressure forces energy companies to prioritize capital discipline and delay Final Investment Decisions (FIDs), creating a ripple effect that discourages drilling contractors from investing in new rig construction or costly reactivations.

As a result, the market experiences a constriction in supply capacity even during periods of recovering demand. This reluctance to expand asset bases is reflected in recent fleet data. According to the International Association of Drilling Contractors, in 2025, the global mobile offshore drilling unit fleet decreased to 629 units, a contraction driven by higher attrition and a slowdown in new deliveries. This decline underscores how financial liabilities and the high cost of capital are directly curtailing the expansion of the rig fleet, limiting the market’s ability to scale operations.

Key Market Trends

Strategic consolidation among major drilling contractors is reshaping the competitive landscape as companies merge to optimize fleet utilization and enhance pricing power. This trend is driven by the need to streamline operations and secure larger market shares in key regions like the Middle East and the North Sea, where scale is essential for profitability. By combining assets, contractors can retire older, less efficient rigs and focus on high-specification units that command premium day rates. According to Offshore Engineer Magazine, November 2025, in the 'ADES Completes Acquisition of Shelf Drilling', the finalized merger created a global offshore powerhouse with a combined fleet of 83 offshore units, significantly expanding the entity's operational footprint across 19 countries.

The implementation of real-time data analytics for drilling optimization is simultaneously becoming a critical operational standard, allowing operators to fine-tune performance and reduce carbon footprints through precise engine monitoring. By leveraging high-frequency sensor data, companies can minimize fuel consumption and enhance operational efficiency, directly addressing the industry's dual mandate of cost reduction and sustainability. According to Valaris Limited, April 2025, in the '2024 Valaris Sustainability Report', the company achieved a 3.3% reduction in emissions intensity for its drillships in 2024 compared to the baseline, a result attributed to the deployment of predictive advisory tools and digitized engine monitoring systems.

Segmental Insights

The Jackups segment is currently recognized as the fastest-growing category within the global offshore oil and gas rig market. This trend is primarily driven by increased exploration and production activities in shallow-water regions, which offer a cost-efficient alternative to deepwater operations. National oil companies, particularly in the Middle East, are expanding their contracted fleets to maximize recovery from mature fields. Additionally, stringent compliance standards set by maritime safety regulators are accelerating the retirement of older vessels, thereby fueling the demand for modern Jackup units to ensure operational safety and efficiency.

Regional Insights

North America maintains a leading position in the global offshore oil and gas rig market, driven primarily by extensive deepwater exploration activities in the Gulf of Mexico. The region attracts significant capital expenditure from major energy companies focusing on maximizing production from both existing and new reserves. The Bureau of Ocean Energy Management supports this sector through structured offshore leasing programs that facilitate consistent development and resource access. Furthermore, the presence of a mature industrial infrastructure and established service providers ensures operational efficiency. These factors create a stable environment that sustains the high demand for drilling units throughout the region.

Recent Developments

• In February 2025, Noble Corporation plc announced that its semi-submersible rig, the Noble Developer, had been awarded a significant new contract for operations offshore Suriname. The agreement, established with Petronas, covered a firm scope of three wells with an estimated duration of 200 days, scheduled to commence in June 2025. The total contract value was reported to be approximately $84 million, a figure that included fees for mobilization, demobilization, and additional services. This development was part of a broader update detailing approximately $525 million in new contract awards the company had secured since late 2024.
• In December 2024, Shelf Drilling secured a new drilling assignment for its Main Pass IV jack-up rig to operate offshore Nigeria. The contract was expected to have a duration of approximately two years and was scheduled to begin immediately in December 2024. This award followed the rig's mobilization to West Africa after a previous engagement in Saudi Arabia. The Main Pass IV, a Friede & Goldman L-780-MOD II design, is capable of operating in water depths of up to 300 feet. This deal contributed to the company's backlog and highlighted continued demand for jack-up rig services in West African waters.
• In November 2024, Seatrium Limited delivered its fifth and final newbuild jack-up rig, named Var, to Borr Drilling nearly one year ahead of the scheduled completion date. The rig, built at the Pioneer Yard in Singapore, is a KFELS Super B Class jack-up designed to operate in water depths of up to 400 feet and drill to depths of 35,000 feet. This delivery marked the conclusion of a series of five rigs constructed for the client, all of which were capable of vertical and horizontal drilling. The early delivery demonstrated the company's proficiency in executing complex offshore marine engineering projects.
• In July 2024, Valaris Limited reported that it had secured approximately $715 million in new contracts and contract extensions for its offshore fleet. A major highlight of this announcement was a multi-year agreement with Equinor for the drillship Valaris DS-17 to operate offshore Brazil. This specific contract had an estimated total value of approximately $498 million and was expected to commence in the third quarter of 2025. The deal included a 672-day drilling program and additional standby periods, reinforcing the company's strong position in the ultra-deepwater floater market.

Key Market Players

• Odfjell Drilling Ltd.
• KCA Deutag Group
• Samsung Heavy Industries Co., Ltd
• Seadrill Limited
• Keppel Ltd.,
• Saipem S.p.A.
• Seatrium
• Transocean Ltd.
• Valaris Limited
• Shelf Drilling

By Type	By Water Depth	By Region
Jackups Semisubmersibles Drill Ships and Others	Shallow Water Deepwater and Ultra-Deepwater	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Offshore Oil & Gas Rig Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Offshore Oil & Gas Rig Market, By Type:

• Jackups
• Semisubmersibles
• Drill Ships
• and Others

• Offshore Oil & Gas Rig Market, By Water Depth:

• Shallow Water
• Deepwater and Ultra-Deepwater

• Offshore Oil & Gas Rig 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