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Horizontal Directional Drilling market was valued at $7.38 Billion in 2021 and is expected to reach $XX Billion by 2029, growing at a CAGR of around 5.83% during the forecast period. The global horizontal directional drilling market growth is mainly attributed to the factors such as growth in telecommunication, oil & gas sector, rising urbanization & industrialization, benefits of HDD, and wide-scale applications. HDD is increasingly popularized due to rising global concerns about environmental damage from rapid infrastructure development. The growing emphasis on minimizing the environmental impact of drilling and boring activities and the inconvenience caused to the public due to the improved open-cut utility installations drive the HDD market growth. Market growth is also driven by growing utility installations, increased investments in shale-gas development projects, and rising expenditures for various telecom developments to provide high-speed connectivity. Despite these drivers, volatile crude oil prices, rising focus on renewable energy, strict government regulations, high equipment cost, and risks associated with drilling activities are major restraints hampering the market growth during the forecast period. Moreover, increased investment in the offshore upstream sector and rising interest in recovering the untapped oil & gas sector offer ample opportunities for market growth during the forecast period.
Introduction:
Horizontal Directional Drilling (HDD) is a steerable trenchless method for installing underground pipelines, flexible cables, and conduits based on service type, soil type and severity, and pipeline diameter and depth. The stages of HDD include Geotechnical investigation, Drill path design, Pilot hole drilling, Boring operation, Preparation of pipe string, and Pipe pull-back. HDD construction is suitable for large river crossings, extreme congestion (e.g. crossing rail yards), or other unique site-specific situations because it minimizes impacts on the area above the drill. Although the land around the drill entry and exit locations is disturbed during HDD activities, it will be restored to its pre-drill state. In general, HDD is divided into three main categories: large-diameter HDD (24-60 inches), medium-diameter HDD (12-24 inches), and small-diameter HDD (2-12 inches).
In 2020, during the COVID-19 pandemic, the global HDD market had impacted severely due to a lack of workforce and practical difficulties in implementing social distancing at equipment production sites. The pandemic has triggered abnormal operating conditions for HDD contractors. The situation prompts manufacturers to create appropriate procedures to reduce workplace infection risks. Trades across countries were disrupted, causing a lack of raw materials and components required for providing drilling solutions and services to the oil & gas industry. The COVID-19 pandemic impact and the oil prices war are proving to be a two-pronged crisis for oil, gas, and chemicals companies. Oil prices
The global Horizontal Directional Drilling market is segregated on the basis of type, parts, application, end-user and geography. By type, the RSS segment is projected to witness the highest CAGR during the forecast period. RSS (Rotary Steerable Systems) are the latest directional drilling systems to enter the market. They build upon the advantages of conventional directional systems by offering improved directional response, better wellbore quality, and the capability to drill extended reach wells. An RSS is a tool designed for continuous rotation from the surface while drilling and eliminates the need to slide the steerable motor. The original development purpose of the RSS was to overcome the problem of low efficiency of the motor in the directional drilling process.
By parts, the rigs segment is projected to witness robust CAGR during the forecast period. HDD rigs install underground pipes, conduits and cables using a guided, surface-based rig to launch a drill and create a subsurface pathway. The HDD drilling rigs come in different shapes and sizes and can be static and mobile. The major drilling rig types include land rigs, platform rigs, jack-ups, semi-submersibles, and drill ships. In 2019, the compact drill rig market remained an incredibly busy and steadying segment of the HDD industry, with a bright outlook in the short and long term.
By application, the onshore segment is estimated to hold the largest market share during the forecast period. Onshore drilling involves drilling an oil well deep into the Earth’s subsurface from a land-based drilling platform. Onshore projects are less expensive than offshore horizontal directional drilling projects due to the lower infrastructure and maintenance cost. The onshore horizontal directional boring projects are highly affected by crude oil price variations.
By end-user, oil & gas extraction segment is anticipated to hold the largest market share during the forecast period. Oil-extraction companies use directional drilling to access
Based on geography, the market is categorized into North America, South America, Europe, Asia Pacific, and Middle East & Africa. Among these, North America region is estimated to hold the significant market share during the forecast period. Amongst North American countries, the U.S. holds a significant market share in the overall market during the forecast period due to innovations in products and technologies.
Along with these companies, there were many other companies considered/ cited in the report while analyzing the Horizontal Directional Drilling market. These companies hold substantial share-owning to the nature of the industry whereas rest of the market shares are marginal chunks to regional and local level manufacturers. other players have considerable presence owing to its robust brand image, geographical reach and strong customer base.
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