Drilling Rig Market Analysis

Application Segment Analysis

The oil and gas segment, part of the application, is projected to garner the highest share of 86.7% in the drilling rig market by the end of 2035. The segment’s upliftment is highly attributed to its importance for extracting energy resources by drilling deep. In addition, there lies the utilization of drilling fluids for cleaning, stabilizing, and cooling the wellbore, which is crucial for efficient drilling, preventing blowouts, and ensuring safety. According to an article published by Energy Institute Organization in 2025, an estimated 33% of methane emissions is caused by human activity are attributed to fossil fuels. Meanwhile, 34% of the overall energy demand as of 2024 has been met by oil, approximately 120 million tons of methane emissions in 2024 derived from fossil fuel production, and 50 million tons of carbon dioxide is presently captured yearly from carbon capture infrastructure globally.

Power Source Segment Analysis

Based on the power source, the diesel-electric segment in the drilling rig market is projected to account for the second-highest share during the forecast timeline. The segment’s growth is highly driven by its popularity stemming from the balance they provide between efficiency, reliability, and adaptability across both onshore and offshore environments. Unlike purely mechanical rigs, diesel-electric systems use diesel engines to generate electricity, which then powers rig components such as drawworks, rotary tables, and mud pumps. This configuration allows for smoother operations, better load management, and reduced mechanical wear. A key driver of growth is the integration of emissions-reduction technologies, as governments and regulators enforce stricter environmental standards. Diesel-electric rigs can be retrofitted with hybrid systems, battery storage, and advanced monitoring tools to minimize carbon output.

Deployment Segment Analysis

The onshore sub-segment, which is part of the deployment segment, is expected to hold the third-highest share in the market by the end of the stipulated period. The sub-segment’s development is highly fueled by lower operational costs, established infrastructure, and widespread availability across mature basins. Onshore drilling is particularly critical in regions such as North America, India, and China, where shale redevelopment and conventional oil fields underpin energy security. Compared to offshore rigs, onshore units require less capital expenditure, shorter mobilization times, and offer greater flexibility in redeployment, making them attractive for operators managing volatile oil price cycles. Technological advancements, including directional and horizontal drilling, have significantly enhanced productivity, allowing operators to maximize recovery from mature reservoirs.

Our in-depth analysis of the market includes the following segments: