Robotic Drilling Equipment Market

Market Overview

The global robotic drilling equipment market size was valued at USD 650.7 million in 2021. It is expected to reach USD 1,344.7 million by 2030, growing at a CAGR of 8.4% during the forecast period (2022–2030). Robotic drilling equipment is an automation system developed specifically for drilling operations in the oil and gas industry. This equipment is also known as automated drilling equipment. There are primarily two categories of robotic drills: onshore, which refers to robotic drilling machines that operate on dry land, and offshore, which refers to robotic drilling that occurs on ocean floors or seabeds.

Both categories of robotic drills have their advantages and disadvantages. These automated drilling machines construct new rigs to extract oil and gas on land and sea. They are also used to retrofit older rigs as part of routine maintenance and when older system components need to be replaced.

Robotic drilling offers a better solution for the operations carried out in the oil and gas industry, including faster drilling times, multi-sensor measurements, safer operations, and mass production. Companies specializing in robotic drilling produce both physical components of robots and the software used to control and program them for use on oil and gas rigs.

Market Dynamics

Market Driving Factors

Rising Adoption in the Oil and Gas Industry to Foster Market Growth

The adoption of automation in the oil and gas industry has dramatically increased due to advancements in data collection, increased precision and accuracy in operations, and increased worker safety. In addition, oil and gas rigs in deep oceans, which are environments characterized by very variable climatic conditions, find that automation is optimal. The operating businesses of oil and gas rigs are increasingly implementing automation on their rigs due to its benefit. West Mira intends to implement the automation software the Norwegian company Sekai created on the recently constructed semi-submersible rig. These techniques are driving growth in the global market for robotic drilling equipment.

Enhanced Operational Effectiveness to Propel Growth

On oil and gas rigs worldwide, the implementation of automation has led to an increase in the work efficiency of these rigs, resulting in increased production. It leads to improvements in data collection, procedures, and calculations, which are made more accurate. In addition, there is very little to no human intervention in the drilling process, which lowers the probability that an error will be made due to a lack of attention to detail. Robotic drilling machines work more efficiently and produce higher-quality work when they make fewer mistakes, which boosts both their output and the efficiency of both lands- and water-based operations.

Market Restraining Factors

Interoperability Poses a Risk to Data Privacy and Cyber Security to Bolster Market Growth

The oil and gas rig computers that operate the automation systems, such as software, have numerous access sources through a network, allowing the computer to be operable through multiple systems. This presents a risk to data confidentiality and other cyber security problems. The information can be taken without permission and utilized in inappropriate and criminal ways. In addition, the operation of the systems can be altered, which can result in harm being caused to the rigs and the drilling operations. Due to these unfavorable repercussions, businesses have either shelved their intentions to automate the drills or abandoned the upgrading concept. As a result, the security element is a component that works as a limitation on the market for robotic drilling equipment.

Key Market Opportunities

Enhanced Exploration in Ultra-Deep Waters to Boost Market Opportunities

Increasing the amount of oil and gas extracted from the ground is essential to meet the ever-increasing demand for oil goods and the growing popularity of gas-powered automobiles in developing countries. Because of this, several oil and gas deposits that have not yet been mined are currently being investigated. This has resulted in expanding exploration efforts to include ultra-deepwater and certain areas of the Arctic region. Most new rigs are automatic due to the challenging nature of using them in this remote location and the requirement for productivity. Therefore, for the duration of the anticipated period, new, exploratory operations are likely to boost demand for robotic drilling equipment.

Regional Analysis

The global robotic drilling equipment market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant contributor to global robotic drilling equipment market revenue and is expected to grow at a CAGR of 8.1% during the forecast period. The market for robotic drilling equipment is increasing at a moderate rate. The North American region generates the most demand, specifically the United States and Canada. Increased use of drilling machine automation is the primary factor driving the growth of the robotic drilling equipment market. There are more than 420 oil and gas rigs in North America, from which several additional rigs are now being updated and switched to automation. These considerations bolster the demand for robotic drilling equipment.

LAMEA held a significant part of the market, while Africa is anticipated to witness quick expansion during the projected period. LAMEA comprises the Middle East, which is one of the largest oil and gas producers and has a large number of rigs. In addition, automation in the oil and gas business has resulted in the automation of drilling equipment on oil rigs due to the precision and efficiency of data. Asia-Pacific consists of nations with rapid economic expansion, such as India and China. These nations have a tremendous demand for oil and gas. Due to this, numerous automated oil and gas extraction projects are being developed and implemented in the region. This will increase the market for robotic drilling equipment throughout the forecast period.

Segmental Analysis

The global robotic drilling equipment market is segmented by application, installation, and end-user industry.

By Application

Based on application, the global robotic drilling equipment market is segmented into land and water.

Land robotic drilling equipment contributes most to the market and is expected to grow at a CAGR of 8.3% during the forecast period. Land robotic drilling equipment consists of machines used for drilling on oil and gas production sites located on dry land. Automation improves data collecting, operations precision and accuracy, and worker safety. Due to this, there has been an expansion in the oil and gas industry's embrace of automation, creating numerous new prospects for the robotic drilling equipment market. Water robotic drilling equipment includes machines used to drill oil and gas production locations on the ocean floor or sea bed. Extreme climatic conditions necessitate the deployment of automated water-drilling robots, making manual interventions problematic. More water automatic drilling equipment has been installed for increased effectiveness and operation. This rise in autonomous drilling on oil and gas rigs is expected to propel the market for robotic drilling equipment.

By Installation

Based on the installation, the global robotic drilling equipment market is divided into new installations and modernizations.

The modernized category contributed the most to the market and is expected to grow at a CAGR of 9.1% during the forecast period. Modernizing the current oil and gas rigs involves adding fresh parts and equipment. It is occasionally necessary to add new systems or components to existing robotic drilling machines for them to work. This sector consists of freshly constructed oil and gas drilling rigs with robotic drilling technology installed for the first time. Several new oil and gas drilling platforms are being installed in the Arctic. These new installation rigs necessitate cutting-edge robotic drilling technology. During the forecast period, these tactics are anticipated to expand the company's product portfolio and enhance the market for robotic drilling equipment for new installations.

By End-User

Based on end-user, the global robotic drilling equipment market is divided into oil and gas.

The oil category contributed the most to the market and is expected to grow at a CAGR of 8.3% during the forecast period. This category includes revenue from selling robotic drilling equipment to extract oil from land and water. The rate of equipment automation on oil rigs is accelerating. Many oil rigs are being modernized and rendered entirely automatic as a result. This category includes revenue from selling robotic drilling equipment to extract gas from land and water. Increased usage of CNG and LPG in automobiles led to increased demand for natural gas.

Recent Developments

• April 2022, Drillmec and Exalo Drilling S.A. signed a cooperation agreement to use Exalo Mechanical Workshops in Poland as a preferable partner and service hub supporting Drillmec activities in Central and Central-Eastern Europe.
• March 2022, Huisman Geo and Ed. Züblin AG awarded geothermal drilling contract for Deutsche ErdWärme.
• June 2022, Epiroc launched the versatile surface core drill rig Boyles C6/C6C for the European and North American markets.
• May 2022, Epiroc launched Powerbit X - a new drill bit protected by diamonds.