Directional Drilling Tools Market Outlook:
Directional Drilling Tools Market size was estimated at USD 7.85 billion in 2024 and is expected to surpass USD 17.29 billion by the end of 2037, rising at a CAGR of 6.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of directional drilling tools is estimated at USD 8.33 billion.
The growth of the market for directional drilling tools is largely due to increasing energy demands for oil and natural gas around the world, along with government initiatives to increase domestic recoveries. After a 10% growth in 2023, crude oil production in the U.S. was 12.8 million barrels per day, according to the U.S. Energy Information Administration (EIA), and largely due to greater efficiencies in drilling and expanding shale production. From 2013 to 2023, the U.S. Department of Energy (DOE) extended $8.1 billion to requirements directed toward unconventional oil and gas research, enabling the growth of directional drilling to improve recoveries in the reservoir.
Steel, tungsten, and synthetic diamonds make up the supply chain for directional drilling tools; 16% of tungsten imports into the United States come from China and Vietnam. The Bureau of Economic Analysis (BEA) reports that during the first quarter of 2023, the industrial equipment durable goods segment grew by 6.3%. The U.S. exported $3.3 billion of drilling tools and imported $1.9 billion worth of tooling. The major sources were Germany and China. The Producer Price Index increased by 4.6% in 2023, while the CPI made a modest increase of 3.2%. The R&D budget for the DOE is reported as $120 million for advanced drilling technologies.
