Robotic Drilling Market Size, Share & Trends Analysis Report By Application (Onshore, Offshore), By Installation (Retrofit, New Builds), By Component (Hardware, Software), By Region, And Segment Forecasts, 2024 - 2030

Robotic Drilling Market Size & Trends

The global robotic drilling market size was estimated at USD 932.2 million in 2023 and is projected to grow at a CAGR of 6.8% from 2024 to 2030. The market is expected to witness lucrative growth owing to the increasing demand for fossil fuels over the forecast period. Owing to the rising expenditure on automobiles, the demand for fossil fuels is significantly increasing. According to the Economist Intelligence Unit, demand for oil and gas is expected to increase in the decade to 2030, largely driven by India and Middle East & African countries. The International Energy Agency projected the global oil demand is expected to be around 8% higher in 2030 compared to the numbers in 2021.

These automated systems, often known as drillbots, bring several benefits over traditional manual drilling operations, including enhanced efficiency, safety, precision, and lower operational costs. Rising importance for energy efficiency and sustainability is expected to boost the adoption of robotic drilling over the forecast period.

Furthermore, robotic drilling systems minimize human involvement in high-risk drilling operations, significantly reducing the likelihood of accidents. Also, automation speeds up the drilling process, achieving consistency and precision that manual operations would struggle to replicate.

Drivers, Opportunities & Restraints

The ongoing development of technologies such as artificial intelligence (AI), machine learning, Internet of Things (IoT), and advanced materials are driving improvements in robotic drilling systems. These advancements enhance the functionality, autonomy, and reliability of robotic drilling, making it an increasingly attractive option for companies.

The global push towards renewable energy is rising, however the demand for oil and gas continuously propelling. The efficiency and safety benefits of robotic drilling make it a key technology for meeting these energy needs in a cost-effective and responsible manner.

The integration of robotic drilling with ongoing technological developments represents a transformative shift in the drilling industry, especially within sectors like oil and gas, mining, and geological exploration. This combination is spearheaded by the need for increased efficiency, safety, environmental sustainability, and operational cost reductions.

Application Insights

“The demand for onshore segment is expected to grow at a significant CAGR of 6.9% from 2024 to 2030 in terms of revenue”

The onshore application segment led the market, accounting for 75.0% of the global revenue share in 2023. Onshore robotic drilling represents a significant technological advancement in the drilling industry, primarily within the context of oil, gas, and mineral extraction from terrestrial onshore locations. This technology automates the drilling process, leveraging sophisticated machinery and control systems to drill wells for the extraction of underground resources.

The offshore segment is expected to grow at a CAGR of 6.6% over the forecast period. Offshore drilling for oil and gas production faces more extreme weather conditions compared to onshore drilling, which leads to more human exposure to dangerous environments. The increasing safety and precision offered by the robotic drilling at these locations is likely to facilitate the adoption of robotic drilling over the forecast period.

Installation Insight

“The demand for retrofit segment is expected to grow at a significant CAGR of 7.0% from 2024 to 2030 in terms of revenue”

The retrofit segment accounted for 73.3% of the global robotic drilling market revenue share in 2023. Retrofit robotic drilling offers a pathway for many companies to modernize their operations, improve competitiveness, and adapt to evolving regulatory and environmental standards. retrofitting could become a standard approach for extending the life and capabilities of drilling rigs, facilitating a broader adoption of robotic drilling technologies across the industry.

The new builds segment is anticipated to grow at a significant CAGR of 6.4% over the forecast period. Rapidly evolving regulations around safety, emissions, and technological standards can impact the planning and deployment of new builds, necessitating a flexible approach to design and operation.

Component Insights

“The demand for hardware segment is expected to grow at a significant CAGR of 7.1% from 2024 to 2030 in terms of revenue”

The hardware segment accounted for 71.6% of the global robotic drilling market revenue share in 2023. Hardware components are an integral part of the robotic drilling systems which includes drilling rigs, robotic arms, control systems, power supplies, and sensors, among other mechanical and electrical parts. Hardware is the foundation of robotic drilling, providing the structural and operational capabilities necessary for automated drilling processes. 

The software segment is anticipated to grow at a CAGR of 6.1% over the forecast period. Software includes the applications, algorithms, user interfaces, and data analytics platforms that control robotic drilling operations, perform data analysis, and enable decision-making processes.

Regional Insights

“North America robotic drilling market accounted for 32.2% revenue share in 2023”

The robotic drilling market in North America accounted for the largest revenue share of 32.2% in 2023. The market is experiencing robust growth in terms of revenue owing to the strong goal for the automation in the industrial sector to enhance the precision for various essential processes and reduce the downtime avoiding human error.

U.S. Robotic Drilling Market Trends

The robotic drilling market in the U.S. is estimated to grow at a significant CAGR of 6.3% over the forecast period. The U.S., with its significant oil and gas reserves, both onshore and offshore, is uniquely positioned to leverage robotic drilling technologies to optimize resource extraction. Rising government initiatives reflects a broader trend towards automation and digital transformation across the industry thereby driving the market growth.

Europe Robotic Drilling Market Trends

The robotic drilling market in Europe is expected to witness growth, driven by supportive regulatory frameworks, which expands the stage for use of robotic drilling. The broader trend towards digitalization and automation in the industrial and energy sectors bodes well for the adoption of robotic drilling.

Asia Pacific Robotic Drilling Market Trends

The robotic drilling market in Asia Pacific is anticipated to witness robust growth with a CAGR of 8.0% over the forecast period with ongoing technological advancements and significant industrializations. Government initiatives and financial support in China and India for drilling activities onshore and offshore is likely to drive the growth of the robotic drilling over the forecast period. For instance, in February 2024, Oil India Ltd. Announced plans to double its exploration acreage at offshore facilities in coming years.

Key Robotic Drilling Company Insights

Some of the key players operating in the market include Nabors Industries Ltd., Precision Drilling, and NOV Inc.

• Nabors Industries Ltd. is a global leader in the oil and gas drilling industry, providing innovative drilling equipment, services, and technology primarily for the exploration and production of oil and natural gas. Along with the automated drilling solutions, the company also offers aftermarket services.

• NOV Inc. is a leading global provider in the design, manufacture, and sale of equipment and components used in oil and gas drilling and production operations. The company offers drilling, mobile rigs, drilling automated solutions, control systems, and rig automation solutions.

Drillmec SpA, Ensign Energy Services, Automated Rig Technologies, are some of the emerging market participants.

• Drillmec SpA is company specializing in the design and manufacturing of drilling and workover equipment for the oil & gas, geothermal, and water well sectors with headquarter in Italy. The company operates on an international scale, with its services and products in numerous countries around the world.

• Ensign Energy Services engages in oilfield services which ranges from drilling to construction of wells. The company is headquartered in Alberta, Canada and has presence in North America, Latin America, Asia Pacific, and Middle East & Africa.

Recent Developments

• In February 2024, Siemens introduced new Tecnomatix 2402 version software. The new software offers advanced digital manufacturing software to empower businesses. The software includes robotic applications for various end uses including drilling.

• In December 2023, a consortium of companies TEGRAD d.o.o., PIRNAR & SAVŠEK d.o.o. and KOVINC d.o.o. announced plan to develop and launch digitized solutions for automated drilling over the period December 2023 - November 2025.

Robotic Drilling Market Report Scope

Global Robotic Drilling Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global robotic drilling market report based on application, installation, component, and region:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Onshore

  • Offshore

• Installation Outlook (Revenue, USD Million, 2018 - 2030)

  • Retrofit

  • New Builds

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE