by The offshore drilling rigs market involves ownership and operation of mobile offshore drilling units such as jack-up rigs, semisubmersibles, drill ships, and platform drilling rigs used primarily for oil and gas exploration activities in deep waters and ultra-deep waters. Offshore drilling rigs are used in various offshore exploration and production activities like exploration drilling, workover, and completion of existing wells. Additionally, offshore drilling rigs help in installation and removal of production platforms and subsea completions. Factors such as increase in oil and gas production from offshore areas, technological advancements in offshore drilling, and rise in deep water and ultra-deep water exploration activities are expected to drive the growth of the offshore drilling rigs market over the forecast period.
The global Offshore Drilling Rigs Market is estimated to be valued at Us$ 75.40 Bn in 2023 and is expected to exhibit a CAGR Of 6.8% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the offshore drilling rigs market is the growing deployment of ultra-deepwater drilling rigs. With rising focus on deepwater and ultra-deepwater exploration, demand for ultra-deepwater drilling rigs is expected to increase substantially during the forecast period. Ultra-deepwater drilling rigs are capable of operating in water depths of over 7,500 feet. They have advanced features like dynamic positioning systems for station keeping, enlarged deck areas, increased deck load capacity, and other equipment required for deepwater drilling operations. Growing preference for floating production units in ultra-deepwater fields is also propelling the demand for ultra-deepwater drilling rigs. Another major trend in the market is upgrading and refurbishment of existing rigs. To serve increasing demand from deepwater and ultra-deepwater projects, many rig owners are upgrading capabilities of existing rigs through refurbishment and modifications. This is helping to increase the supply of high-specification rigs and further driving the growth of the offshore drilling rigs market.
Porter’s Analysis
Threat of new entrants: Low capital requirements for new entrants to enter the offshore drilling rigs market. However, established players have significant competitive advantages in terms of rig operation experience and global presence.
Bargaining power of buyers: As offshore oil and gas projects require specialized rigs, the bargaining power of buyers is moderate. However, availability of substitutes like onshore rigs provides some bargaining power to buyers.
Bargaining power of suppliers: Major suppliers for offshore drilling rigs include equipment providers and rig design companies. Low differentiation between supplier offerings results in high bargaining power of suppliers.
Threat of new substitutes: Onshore drilling rigs act as substitutes for offshore drilling in some cases. However, offshore drilling provides access to untapped reserves, giving it an advantage over substitutes.
Competitive rivalry: Intense competition exists among major players operating globally. Players compete based on rig capabilities, technical expertise, price, and reliability.
Key Takeaways
The Global Offshore Drilling Rigs Market Demand is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand for oil and gas from offshore reserves. The market size for 2023 is estimated to be US$ 75.40 Bn.
Regional analysis:
North America currently dominates the market, mainly driven by increasing exploration and production activities in the Gulf of Mexico. Asia Pacific is expected to witness the fastest growth owing to rising focus on deepwater and ultra-deepwater exploration projects by countries like India and China.
Key players:
Equinor, Shell PLC, Schlumberger Limited, Saipem, KCA Deutag, Nobel Corporation, Pacific Drilling, Seadrill, Halliburton, Weatherford International Inc., Aban Offshore Limited, China Oilfield Services Ltd. Equinor has the largest offshore drilling rig fleet. Schlumberger provides integrated project management for offshore drilling projects.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
