Rotary Steerable System Market Analysis

Global Rotary Steerable System Market Overview:

Rotary Steerable System Market Size was valued at USD 8.0 Billion in 2023. The Rotary Steerable System market industry is projected to grow from USD 8.45 Billion in 2024 to USD 12.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.01% during the forecast period (2024 - 2032). The expansion of directional drilling investments, the growth of offshore drilling investments, and the increase in energy demand, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Rotary Steerable System Market Trends

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  The increasing investments in the offshore drilling sector is driving the market growth

  
  

Due to rising investments in the offshore drilling industry, it is predicted that the market for rotary steerable systems would expand significantly over the forecast period. Additionally, it is anticipated that during the forecast period, the growing need for energy across the globe will aid in the expansion of the market. However, during the projected period, environmental issues related to the hydraulic fracturing method are anticipated to hinder market growth. Despite this, it is anticipated that expanding shale gas production projects would offer profitable prospects for suppliers in the rotary steerable system market.

One of the major factors boosting the market growth for rotary steerable systems is the increase in investments in directional drilling. As the drill bit travels along a planned course underground, directional drilling aids in controlling the direction of the wellbore being drilled. Since directional drilling supports oil and gas production from several underlying wells from a single vertical well and eliminates the need for drilling numerous wells, it is mostly used for offshore and unconventional oil and gas production. For the production of oil and gas from unconventional reservoirs, directional drilling is a common unconventional drilling technique. Additionally, it facilitates a horizontal path to the shale reservoir to ensure maximum contact with the reservoir. The IEA predicts that worldwide spending on upstream oil and gas will rise by about 5% in 2018 compared to 2017. However, depending on the upstream oil and gas firms, the growth in upstream investments differs. In turn, this will fuel market expansion over the course of the projection year. One of the significant market trends for rotary steerable systems fueling market expansion is a rise in the adoption of integrated rotary steerable systems.

For wells drilled during multistage hydraulic fracturing to be more stable, an integrated rotary steerable system must be used. By combining the rotary steerable system with measurement-while-drilling equipment, which provides the various types of data necessary for effective steering through the underground reservoir, an integrated drilling system creates a customised, high-performance, and high-velocity drilling motor that can be remotely navigated through the reservoir. Integrated directional drilling equipment is increasingly being used for unconventional oil and gas drilling operations, which will result in more effective and dependable equipment for oil and gas production. As a result, during the forecast period, this aspect is anticipated to contribute to market growth. Thus, driving the Rotary Steerable System market revenue.

Rotary Steerable System Market Segment Insights:

Rotary Steerable System Type Insights

The Rotary Steerable System market segmentation, based on type, includes push the bit and point the bit. Push the bit segment accounted for the largest revenue share in 2022. Push-the-bit tools have pads on the outside of the tool that press against the wellbore and eventually cause the bit to press on the other side, changing the bit's direction. In the push-the-bit steering system, the drill bit makes a three-point contact with the lower, middle, and upper centralizers. Under the command of the control platform, the ribs extend and interact with the formation, and the reaction force of the formation performs the bias steering function of the bit direction.

Rotary Steerable System Application Insights

The Rotary Steerable System market segmentation, based on application, includes onshore and offshore. Onshore segment dominated the rotary steerable system market in 2022. In North America and the Middle East & Africa, where there are the most onshore wells, manufacturers, and suppliers for rotary steerable systems, onshore application is commonly used. Improved oil and gas investment and new well finds are two additional variables influencing the growth of onshore applications, and they are anticipated to support the segment's expansion in the market throughout the projection period.

Figure 1: Rotary Steerable System Market, by Application, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Rotary Steerable System Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Rotary Steerable System Market dominated this market in 2022 (45.80%). The area is one of the most significant markets for the production of oil and gas. Regional markets will expand as a result of increased oil and gas investment and the discovery of new oil and gas reserves, such as the North Sea drilling project. Additionally, the market is anticipated to develop during the projected period due to an increase in regional energy consumption brought on by regional population growth and per capita disposable income. Further, the U.S. Rotary Steerable System market held the largest market share, and the Canada Rotary Steerable System market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Rotary Steerable System Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Rotary Steerable System market accounted for the healthy market share in 2022. For the firms involved in the European and markets, the presence of significant shale gas reserves and the availability of natural gas reserves in the North Sea, Black Sea, Caspian Sea, Mediterranean, Norwegian Sea, and Barents Sea present profitable opportunities. Demand is also high in other countries like the Netherlands and the United Kingdom. Further, the German Rotary Steerable System market held the largest market share, and the U.K Rotary Steerable System market was the fastest growing market in the European region

The Asia Pacific Rotary Steerable System market is expected to register significant growth from 2023 to 2032. The Asia Pacific rotary steerable system market would be driven during the forecast period by the adoption of automated rotary steerable systems with superior directional control and closed loop communication systems with real-time feedback. Moreover, China’s Rotary Steerable System market held the largest market share, and the Indian Rotary Steerable System market was the fastest growing market in the Asia-Pacific region.

Rotary Steerable System Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Rotary Steerable System market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Rotary Steerable System industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Rotary Steerable System industry to benefit clients and increase the market sector. In recent years, the Rotary Steerable System industry has offered some of the most significant advantages to medicine. Major players in the Rotary Steerable System market, including Baker Hughes, a GE Company LLC, Halliburton, National Oilwell Varco, Schlumberger Limited, Weatherford International Plc, APS Technology, Inc., Double Barrel RSS, Nabors Industries, Ltd., Gyrodata Incorporated, Leam Drilling Systems, LLC, Target Energy Solutions, Huisman Equipment B.V., and D-Tech Rotary Steerable, are attempting to increase market demand by investing in research and development operations.

The oil and gas sector receives technologies from Schlumberger Ltd (Schlumberger) for reservoir characterization, production, drilling, and processing. From exploration to production and integrated pipeline systems for hydrocarbon recovery, the company also offers goods and services to the sector. Open hole and cased-hole wireline logging, drilling services, well completion services like well testing and artificial lift, well services like cementing, coiled tubing, stimulations, and sand control, interpretation and consulting services, and integrated project management are just a few of Schlumberger's available goods and services. In addition to Asia and the Middle East, the corporation also operates in North America, Latin America, Europe, and Africa. Houston, Texas, in the United States, serves as the company's headquarters. Schlumberger introduced autonomous directional drilling in August 2021. This product launch is anticipated to boost the rotary steerable portfolio segment and assist clients in achieving new levels of well construction consistency, efficiency, and sustainability.

Oilfield service provider Halliburton Co. is referred to as Halliburton. The business assists the upstream oil and gas sector all through the reservoir's lifespan, from hydrocarbon detection to geological data management, drilling, formation evaluation, well building and completion, and production optimisation. For the oil and gas upstream companies, Halliburton provides cementing, stimulation, intervention, artificial lift, well-bore placement solutions, and completion services. Production facilities for the corporation are located in the UK, Singapore, Malaysia, and the US. The business is present throughout North America, Europe, Africa, Latin America, Asia, and the Middle East on a scale. Houston, Texas, in the United States, serves as the company's headquarters. The Halliburton Company unveiled the iCruise Intelligent Rotary Steerable System (RSS) in September 2018. This technology is said to enable faster drilling, precise steering, and longer laterals.

Key Companies in the Rotary Steerable System market include

• Baker Hughes, a GE Company LLC


• Halliburton


• National Oilwell Varco


• Schlumberger Limited


• Weatherford International Plc


• APS Technology, Inc.


• Double Barrel RSS


• Nabors Industries, Ltd.


• Gyrodata Incorporated


• Leam Drilling Systems, LLC


• Target Energy Solutions


• Huisman Equipment B.V.


• D-Tech Rotary Steerable

Rotary Steerable System Industry Developments

November 2020: The Invictus rotary steerable tool (RST) was introduced by D-Tech. With the release of this product, directional firms will be able to employ the RST with their preferred measurement while drilling (MWD) sensors for real-time downhole communication, improving user awareness of downhole conditions while minimising costs. The launch expanded its rotary steerable offering category as well.  

Rotary Steerable System Market Segmentation

Rotary Steerable System Type Outlook

• Push the Bit


• Point the Bit

Rotary Steerable System Application Outlook

• Onshore


• Offshore

Rotary Steerable System Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America