San Francisco, 30 January 2024: The Report Horizontal Directional Drilling Market Size, Share & Trends Analysis Report By Application (Onshore and Offshore); By Technology, By End-use, By Machine Type, By Machine Parts, By Rig Type, By Tooling, By Region, And Segment Forecasts, 2024 - 2030

The global horizontal directional drilling market size was estimated at USD 18.70 billion in 2030 and is expected to grow at a compound annual growth rate (CAGR) of 13.8% from 2024 to 2030. The rising emphasis on minimizing the environmental impact of drilling and boring activities, rapid urbanization, and the inconvenience caused to the public due to the increased open-cut utility installations are some of the key factors driving the horizontal directional drilling (HDD) market growth.

Rising environmental concerns have contemplated regulatory bodies worldwide to create regulations that require organizations to minimize ecosystem exploitation. For instance, the U.S. Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA) require that unconventional oil and gas exploration companies abide by the specified safety standards to minimize environmental damages, avoid occupational hazards, and ensure the management of wastewater and other wastes. Furthermore, increasing government investments in underground installations in utility and telecommunication sectors have increased the deployment of horizontal directional boring services. Subsequently, the complex data requirements, combined with the need for collaborative work operations at offshore and onshore sites, necessitate the high reliance of operators on robust telecommunications services. The rising need to offer better broadband connectivity and the demand for cloud-based services is compelling telecom operators to up their investments in modernized infrastructure, thereby contributing to the market growth.

The COVID-19 pandemic severely impacted the horizontal directional drilling machines industry due to workforce shortages and practical difficulties in implementing social distancing at equipment production sites. The consumption of diesel and petroleum products also reduced significantly in 2020 due to stringent movement restrictions, reducing the demand for upstream oil & gas activities. However, government bailouts are expected to help revive the oil and gas industry, which is one of the leading contributors to the global economy. This is expected to create a sluggish recovery trajectory of the pandemic-fed depression on the market over the years to come.

The Horizontal Directional Drilling (HDD) technique is utilized to precisely carry out drilling operations and reverse ream the appropriate pipe, avoiding numerous obstructions on the path while causing minimal collateral harm to subterranean ecosystems. Other factors contributing to market expansion include growing increasing investments and utility installations in shale gas development projects, as well as rising expenditures directed at various developments throughout the telecom industry to provide high-speed connectivity.

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Market in the U.S. is expected to witness significant growth over the forecast period. The horizontal directional drilling technique has evolved as one of the most popular trenchless drilling technologies. The industry growth prospects are dependent on substantial investments by the US government, as the equipment required for trenchless boring is much more expensive than standard open-cut methods. Customers prefer to rent the whole setup from contractors because the setups are expensive. Furthermore, many mid-sized businesses use service providers for full-service projects. As a result, both producers of horizontal directional drilling machines and service providers have a strong market position.

Horizontal Directional Drilling Market Report Highlights

• In terms of application, the off-shore dominated the segment in 2022 with a market share of more than 44%. Owing to the massive oil and gas resources, exploration and production activities are expected to create opportunities for the off-shore application over the forecast period
• In terms of end use, the oil and gas extraction segment dominated in 2022 with a revenue share of above 35% of the overall horizontal directional drilling services market. The prevalence of clean energy in an attempt to reduce the Green House Gas (GHG) emissions from fossil fuel consumption is likely to help in retaining the dominance of this segment over the forecast timeframe
• North America dominated the global market in 2022 owing to increasing number of infrastructure and utility projects

Furthermore, the growing demand for distribution of natural gas and electricity from middle and upper pipeline lines is likely to boost the horizontal directional drilling market over the forecast period. The advantages of employing horizontal directional drilling fasteners in the utility, communications industries, and oil and gas, include increased stability, better device management, and treatment and monitoring outcomes.

Horizontal directional drilling has applications ranging from utility work to the fiber optic & telecommunications market. The market dynamics are favorable for various application segments. However, the telecommunication sector is expected to outpace other applications over the forecast period, primarily due to the increasing demand for a faster and more secure means of voice and data transmission. The growing demand for broadband services in North America is expected to drive investment in the optical fiber cable network. The next-generation broadband technologies, such as FTTx and LTE, are expected to increase the deployment of optical fiber cables in the region. In addition to this, the optical fiber demand from other sectors such as railways and power generation is also anticipated to cater to the growth of trenchless technology services across countries to set up the necessary infrastructure.

Horizontal Directional Drilling Market Report Scope

Key companies are adopting several organic and inorganic growth strategies, such as capacity expansion, mergers & acquisitions, and joint ventures, to maintain and expand their market share.

• In May 2023, EnviroBore Directional Drilling, a drilling company, announced the acquisition of Full Bore Contracting Ltd., to expand its footprint in Northeast British Columbia, Canada.
• In March 2023, Elvaan Equipment Solutions, a contractor of Horizontal Directional Drilling (HDD), announced its expansion in North America by supplying and distributing its machines and tools in Greater Toronto, Canada.

List of Key Players in Horizontal Directional Drilling Market

• The Charles Machines Works, Inc. (Ditch Witch)
• Barbco, Inc.
• The Toro Company
• Vermeer Corporation
• Vmt Gmbh Gesellschaft Für Vermessungstechnik
• Laney Directional Drilling Co.
• Inrock Drilling Systems, Incorporated
• Ellingson Companies
• Laney Directional Drilling Co.
• Mclaughlin Group, Inc.