Rotary Steerable System Market: Global Industry Analysis and Forecast (2023-2029)

Rotary Steerable System Market was valued at US$ 3.80 Bn. in 2022. Global Rotary Steerable System Market size is expected to grow at a CAGR of 7 % through the forecast period.
Rotary Steerable System Market Overview:
Rotary steerable systems are used for directional drilling that rotates continuously from the surface because they use a dedicated downhaul device instead of tools such as mud motors. Rotary steerable systems are used when drilling horizontally, directional, or extended reach wells.

The main advantage of the rotary steerable system is that is they have minimal contact or interface with the borehole which helps to maintain the quality of the well. The power part of the engine is an integral part of the rotary steerable system. Recently, the main advantage of new opportunities in the introduction of Bicentric bits for rotary steerable systems. It is mainly preferred for deep-sea applications due to a large number of casing strings.To know about the Research Methodology :- Request Free Sample Report

2022 is considered as a base year to forecast the market from 2023 to 2029. 2022’s market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years' trends are considered while forecasting the market through 2029. 2022 is a year of exception and analysis, especially with the impact of lockdown by region.
Rotary Steerable System Market Dynamics:
Rotary Steerable System Market Drivers:

1) Increased Investment in the Offshore Drilling Sector: The main driver of growth in the Rotary Steerable System is increased investment in the offshore drilling sector. Conventional energy sources primarily contribute to World’s energy demand. However, as the demand for hydrocarbons grows, the offshore drilling sector has made several major investments in recent years to drive oil and gas production, which will strengthen the market. The offshore drilling market is expected to grow with a CAGR of 9.26%.

2) Increased energy demand: Energy demand has increased exponentially in recent years due to rapid urbanization and a rapidly growing population around the globe. Most of the energy produced in the world comes from fossil fuels, but the total energy supply based on fossil fuels accounts for 77% of the world's energy mix. In addition, according to the United Nations, the world's population is forecast to reach approximately US$ 8.5 billion by 2029. The increasing world population leads to increased energy demand and consumption. Therefore, increasing demand for electricity for power generation is expected to drive the growth of the rotary steerable system market around the world.

Rotary Steerable System Market Restraints:

1) Environmental Issues Related to the Hydraulic Fracturing Process: The environmental impact of the hydraulic fracturing process is one of the major concerns that hamper the growth of the rotary steerable system market. Hydraulic crushing processes include groundwater and surface water pollution, air pollution, methane emissions, the movement of harmful gases, the diffusion of radionuclides on the surface, and the deterioration of groundwater quality.

Therefore, the high environmental problems associated with the hydraulic fracturing process are expected to curb demand for rotary steering systems and, as a result, hinder the market growth during the forecast period. However, with proper practice and the adoption of developed technology, many impacts can be avoided or mitigated.

2) Increasing attention to renewable energy: China and the United States, the largest consumers of oil and gas, are increasing their investment in renewable energy each year, among other things, to reduce carbon dioxide emissions and reliance on fossil fuels. Investment in renewable energy has increased by 5%.

Rotary Steerable System Market Opportunities:

Opportunity Recent Advances and Technological: Growth Recent advances and technological growth in rotary steering systems bring opportunities to the Rotary Steerable System Market. However, recent developments, such as the adoption of bicentric bits in rotary steerable systems, are preferred primarily for deep-sea applications due to the large number of casing strings used.

In addition, technological growth, such as the integration of positive displacement engines with rotary steerable systems, will improve the penetration of these systems. With the introduction of such technology, the permeability is 6 times better than the method of the conventional rotary steering system integrated with the standard engine.
Market Segment Analysis:
Based on Type, Push bits are expected to hold a larger share of the market through the forecast period. The outer surface of the Push the bit tool has a pad that pushes the drill hole, eventually pushing the bit to the other side and changing the direction. Push the bit segment shows 60% market share. Point the Bit segment is expected to grow steadily through the forecast period.



Based on the Application, The onshore segment is estimated to be experiencing significant growth in the market due to simple drilling methods, low drilling costs, low operating costs, huge resource availability, and a variety of other factors.

In recent years, both conventional and unconventional reservoirs have been found in large numbers on the onshore location, which will increase market demand through the forecast period. The offshore segment is expected to grow significantly during the forecast period as more wells are invested from a single platform to increase production.

The offshore oilfield services sector is expected to become the fastest-growing segment during the forecast period due to increased investment in offshore oil and gas facilities. Various oilfield service providers are investing heavily in offshore assets to improve productivity, reservoir performance, and overall well life cycle.

Major upstream countries such as the United States, China, Russia, and Norway are primarily focused on identifying new deposits and improving recovery from existing wells, with oilfield services such as well completions and refurbishment services around the globe.

In North America, offshore drilling activity in the United States and Canada is expected to increase by 16.4% to 85 wells in 2022. The offshore drilling market is expected to grow at a CAGR of 4.6% through the forecast period.
Market Regional Insights:
North America region shows the highest growth in Rotary Steerable System Market. The North America region dominated the market with a 51 % share in 2022. The region is one of the most important oil and gas production markets. Increased investment in oil and gas, and the discovery of new oil and gas fields such as the North Sea drilling project, will drive the growth of regional markets. In addition, increasing regional energy demand due to regional population growth and per capita disposable income is expected to boost the market during the forecast period.

The oil and gas upstream equipment market of North America was valued at US$ 39.81 Bn in 2022 The oil and gas upstream equipment market size is expected to grow at a CAGR of 3.56 % through the forecast period. The application of lateral section drilling in the United States, Canada, and China plays an important role in the introduction of steerable rotation systems. Countries such as India, Thailand, Indonesia, and Nigeria will be the target areas for launching the rotary steerable system market during the forecast period.

In addition, the introduction of an automated rotary steerable system with superior directional control and a closed-loop communication system with real-time feedback will drive the rotary steerable system market during a forecast period.

An increase in the number of drilling projects associated with re-entry or refurbishment wells in the North Sea and the Gulf of Mexico will drive the deployment of rotary steerable systems. The directional drilling market is expected to grow at a CAGR of 5.70% through the forecast period

The objective of the report is to present a comprehensive analysis of the global Rotary Steerable System Market to the stakeholders in the industry. The past and current status of the industry with the forecast market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Rotary Steerable System Market dynamic, and structure by analyzing the market segments and projecting the market size. Clear representation of competitive analysis of key players by Product type, price, financial position, product portfolio, growth strategies, and regional presence in the market make the report investor’s guide.
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Global Rotary Steerable System Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 3.80 Bn.


Forecast Period 2023 to 2029 CAGR:
7%
Market Size in 2029:
US $ 6.10 Bn.


 Segments Covered:
by Type
Push the Bit
Point the Bit


by Application
Onshore
Offshore


by Drill Hole Size
Less than 5 inch
5 to 7 inch
7 to 10 inch
10 to 15 inch
Above 15 inch


by Well Type
New wells
Matured wells



Rotary Steerable System Market by Region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Rotary Steerable System Market Key Players
1. Halliburton
2. Schlumberger Limited
3. Weatherford
4. APS Technology, Inc.
5. Baker Hughes, a GE Company LLC
6. National Oilwell Varco
7. Double Barrel RSS
8. Nabors Industries, Ltd.
9. Gyrodata Incorporated
10. Leam Drilling Systems, LLC.
11. Target Energy Inc.
12. Gyrodata
13. D-Tech Rotary Steerable
14. Halliburton Co.
15. Huisman Well Technology BV

Frequently Asked Questions:

1] What segments are covered in the Global Rotary Steerable System Market report?
Ans. The segments covered in the Rotary Steerable System Market report are based on Product Type, Application, Drill Hole Size, Well Type, and Region.

2] Which region is expected to hold the highest share in the GlobalRotary Steerable System Market?
Ans. The North America region is expected to hold the highest share in the Rotary Steerable System Market.

3] What is the market size of the GlobalRotary Steerable System Market by 2029?
Ans. The market size of the Rotary Steerable System Market by 2029 is expected to reach US$ 6.10 Bn.

4] What is the forecast period for the Global Rotary Steerable System Market?
Ans. The forecast period for the Rotary Steerable System Market is 2023-2029.

5] What was the market size of the Global Rotary Steerable System Market in 2022?
Ans. The market size of the Rotary Steerable System Market in 2022 was valued at US$ 3.80  Bn.