Report : South & Central America Horizontal Directional Drilling Market Forecast to 2030 - Regional Analysis - by End Use (Telecommunications, Oil & Gas, Sewer & Water, Environmental Wells, and Utility), Rig Size [Small (Less than 40,000 lbs.), Medium (40,000-100,000 lbs), and Large (More than 100,000 lbs.)], and Application (Onshore and Offshore)
At 9.4% CAGR, South & Central America Horizontal Directional Drilling Market is Speculated to be Worth US$ 403.85 Million by 2030, says Business Market Insights
According to Business Market Insights' research, the South & Central America horizontal directional drilling market was valued at US$ 196.29 million in 2022 and is expected to reach US$ 403.85 million by 2030, registering a CAGR of 9.4% from 2022 to 2030. Increasing application of horizontal directional drilling equipment in sewer & water and oil & gas sectors and rising infrastructure development in telecommunications and mineral exploration sectors are among the critical factors attributed to drive the South & Central America horizontal directional drilling market growth.
The volume of sewage is rising with population growth. A majority of wastewater is generated by households and industries. Every year, ~380 billion m3 (cubic meters) of municipal wastewater is produced globally. As a result, the demand for proper infrastructure development in the sewer & water sector is increasing due to the growing population and rising urbanization. Governments of several countries are focusing on installing proper wastewater and sewage treatment facilities to protect the environment from pollution. For instance, in 2023, the Argentine Minister of Economy, the Minister of Public Works, the Minister of Infrastructure and Public Services, and the General Secretary of SGBATOS announced the expansion of the third module of the "North Treatment Plant," which will allow 300,000 additional residents to utilize the plant's sanitation services, as well as the "Energy Cogeneration" project, which will allow the establishment to contribute to a circular economy model. The growing emphasis on proper sewer and water infrastructure is boosting drilling activities, which is increasing the application of horizontal directional drilling equipment worldwide.
Moreover, there is a surge in energy demand due to the growing global population. According to Exxon Mobil Corporation's report, the global energy demand is expected to reach 660 quadrillion Btu in 2050, up around 15% from 2021 due to population growth and increased affluence. Natural gas has the potential application in electricity generation, which boosts its demand in various industries. For instance, Brazil is anticipating spending over US$ 4.3 billion on exploratory efforts between 2023 and 2027, according to ANP (The Brazilian National Agency for Petroleum, Natural Gas, and Biofuels). This investment includes plans for 91 new wells, 63 onshore and 28 offshore.
Furthermore, the growing offshore drilling activities for crude oil and gas exploration are boosting the demand for horizontal directional drilling equipment. For instance, in September 2023, Petrobras, a Brazilian oil & gas company, announced its plans to install 11 new offshore drilling platforms across the Brazilian offshore locations. In addition, in 2023, Petroleos Mexicanos and an association led by Talos Energy confirmed a field development plan for the Zama offshore oil field. Thus, an increase in offshore oil & gas exploration activities bolsters the expansion of gas pipeline infrastructure, which is propelling the application of horizontal directional drilling equipment. Thus, the rising infrastructure development in the sewer & water and oil & gas sectors drives the horizontal directional drilling market.
On the contrary, the declining oil & gas exploration activities hampers the growth of South & Central America horizontal directional drilling market.
Based on end use, the South & Central America horizontal directional drilling market is segmented telecommunications, oil & gas, sewer & water, environmental wells, and utility. The oil & gas segment held 36.2% market share in 2022, amassing US$ 71.00 million. It is projected to garner US$ 142.82 million by 2030 to register 9.1% CAGR during 2022-2030.
By rig size, the South & Central America horizontal directional drilling market is segmented into small (below 40,000 Lbs), medium (40,000 - 100,000 Lbs), and large (above 100,000 Lbs). The large (above 100,000 Lbs) segment held 46.4% share of South & Central America horizontal directional drilling market in 2022, amassing US$ 91.06 million. It is anticipated to garner US$ 178.23 million by 2030 to expand at 8.8% CAGR during 2022-2030.
Based on application, the South & Central America horizontal directional drilling market is bifurcated into onshore and offshore. The onshore segment held 75.3% share of South & Central America horizontal directional drilling market in 2022, amassing US$ 147.82 million. It is projected to garner US$ 296.63 million by 2030 to expand at 9.1% CAGR from 2022 to 2030.
By country, the South & Central America horizontal directional drilling market is segmented into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that the Rest of South & Central America captured 39.4% share of South & Central America horizontal directional drilling market in 2022. It was assessed at US$ 77.39 million in 2022 and is likely to hit US$ 153.06 million by 2030, registering a CAGR of 8.9% during 2022-2030.
Key players operating in the South & Central America horizontal directional drilling market are American Augers Inc, Drillto Trenchless Co Ltd, Epiroc AB, Herrenknecht AG, Laney Directional Drilling Co, Nabors Industries Ltd, Prime Drilling GmbH, Tracto-Technik GmbH & Co KG, and Vermeer Corp, among others.
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