Rig Control System Market
Rig Control System Market Analysis, By Rig Type (Onshore, Offshore), By Technology (Hardware, Software), By Application (Mining, Oil & Gas Well Drilling, Workover Operations) - Global Market Insights 2022 to 2032
Rig Control System Market Outlook (2022-2032)
Worldwide sales of rig control systems are estimated to reach US$ 800.5 Mn in 2022. Looking ahead, the global rig control system market is forecast to top US$ 1.1 Bn by the end of 2032, expanding at a CAGR of 3.2% during 2022-2032.
Rig Control System Market Size (2021A)
US$ 782.6 Mn
Estimated Market Value (2022E)
US$ 800.5 Mn
Forecasted Market Value (2032F)
US$ 1.1 Bn
Global Market Growth Rate (2022-2032)
North America Market Share (2021)
North America Growth Rate (2022-2032)
U.S. Growth Rate (2022-2032)
Top 5 Companies’ Market Share
Key Companies Profiled
As per latest industry analysis by Fact.MR, rig control system consumption accounted for 2%-3% share of the global oil & gas service market value in 2021, with this share likely to go up to 5%-6% by the end of 2032.
Market growth is due to growing number of deep wells, well construction, intervention, and rising safety regulations in oil & gas fields.
Rig Control System Demand Analysis (2017-2021) Vs. Market Outlook (2022-2032)
According to recent analysis by Fact.MR, a market research and competitive intelligence provider, the global rig control market generated a value of approximately US$ 782.6 Mn in 2021 from onshore and offshore platforms.
Utilization for rig control systems witnessed a growth rate of 0.3% over the past half-decade. This was due to fluctuating crude oil prices in early 2020 due to COVID-19 pandemic.
Offshore rigs accounted for the highest utilization of rig control systems with approximately 60% market share in 2020. In offshore rigs, drill ships dominated the market in 2021 and witnessed a growth rate of 0.3% over 2017-2021.
Due to the pandemic, a record drop in the global energy market was witnessed of around 25 billion cubic meters. The natural gas market experienced a significant decline in supply activities over Q2 & Q3 of 2020.
Accelerating demand for software-based rig control systems in oil & gas fields is anticipated to supplement market development over the decade, especially in North America and the Middle East & Africa. Growing deployment of rig control systems in drilling activities in these regions is projected to create an absolute $ opportunities of US$ 138.4 Mn and US$ 88.6 Mn, respectively, during the forecast period.
Application of rig control systems in drilling, mining and workover has generated considerable demand in 2020. Additionally, growing energy demand across the world is anticipated to generate ample opportunities for oil & gas service providers during the forecast period.
Emergence of automation in drilling and well completion, and surging safety regulations in oil & gas fields are expected to drive demand outlook. This is because they eliminate the risks associated with loading & unloading and ensure that the travelling block does not touch the crown block.
Moreover, rising CGD projects are projected to create plethora of opportunities for market development in the near future.
- For instance, the Adani Group has taken approval from the Petroleum and Natural Gas Regulatory Board to expand its CGD network in 13 new geographical areas in India.
Moreover, in deep to ultra-deep drilling scenarios, rig control systems work as a safety equipment by providing real-time rig load data. Due to this application, the market is likely to generate abundant opportunities for oil & gas service providers over the coming years.
Furthermore, surging use of rig control systems in oil and gas as a safety equipment for drilling, mining and workover applications is likely to supplement the growth of the market over the period of 2022-2032. Due to this, the market is set to expand at a CAGR of 3.2% over the forecast period.
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What are the Key Influencing Factor Driving Demand for Rig Control Systems?
“Operation Efficiency Offered to Drilling Rigs”
On-shore and offshore drilling activities remain the most critical, complex, and costly operation, though decreasing the gap between conventional technologies and emerging techniques.
- According to IEA (International Energy Agency), an offshore rig consumers approximately US$ 1 Million to US$ 3 Million of fuel annually, and IPIECA estimates that, a diesel generator consumes 20-30 meter cube of diesel per day, which is utilized in offshore drilling rigs.
Utilization of rig control systems ensures minimal use of power and provides optimum efficiency to the rig system.
CGD (city gas distribution) is considered to be a prominent factor driving demand for natural gas in residential, commercial, and industrial application. Growth in the CGD network is likely to drive demand for natural gas over the coming years, which will have a positive impact on oil & gas drilling.
Rig control systems are significantly deployed on rigs to get real-time data and eliminate the risk of injuries during operations. Increase in drilling activity will supplement the growth of overall market for rig control systems during the forecast period.
“Rising Investments in Oil & Gas Activities”
Leading producing countries are looking to increase their oil & gas export volumes. Growing demand for oil & gas has surged the activities associated with oil & gas exploration, drilling, and production. Moreover, major oil & gas consuming countries are continuously surging their investments to reduce import volumes by utilizing advanced machinery along with IOT services in oil & gas fields.
- For instance, in February 2021, the Indian government announced an investment of US$ 102.5 Bn in oil & gas infrastructure for the next 5 years.
This trend can also be observed in other countries such as China, the U.S., Russia, Iran, Iraq, and Saudi Arabia. This is expected to create abundant opportunities for oil & gas service providers to deploy rig control equipment over the coming years.
Which Factors are Retraining Market Development?
“Budget Restraints for Smaller Companies”
The oil & gas industry has been a vital part of the world economy. Though this sector is facing heavy scrutiny regarding various environmental factors such as air & water quality, offshore regulations, and chemical management.
- Based on the United States Environmental Protection Agency (EPA), the budget required for the clean air movement is around US$ 65 billion, as directed in the month of August 2021.
While implementing this technique, large MNCSs have the ability to measure the budget for the whole operation, but smaller companies may not able to budget for initial start-up costs. Around 60% of global oil & gas companies are very small in size with around 100-500 employees. This initiative may have a serve impact on the economic viability of these smaller companies.
“Push towards Renewable Energy”
In addition to this, increasing awareness about environment-friendly fuels has shifted consumer preference towards renewable sources. Carbon emissions from oil & gas industries are expected to grow 2.5% in 2022.
In this market scenario, regional government initiatives act as a catalyst to promote the usage of renewable energy. This will hinder the growth of oil & gas industries and restrict drilling activities in the near future.
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Why is the U.S. a Big Market for Rig Control System Consumption?
The U.S. is considered a leading installed base for rig control systems due to the emergence of automated technologies in oil & gas fields. The United States currently accounts for 635 active rigs, which is likely to surpass the mark of 700 by the end of 2022.
This scenario makes the United States a growth epicentre for rig control devices. The U.S. is estimated to capture 80% market share in the North American market and create an absolute $ opportunity of US$ 113 Mn over the assessment period.
Will Rig Control System Providers See Increased Profits from GCC Countries?
GCC countries have been one of the most lucrative markets driving the rig control system market in the Middle East region. The GCC rig control system market is estimated to reach US$ 215 Mn by 2032, expanding at a CAGR of around 3.5% over the decade.
This market is set to create an absolute $ opportunity of US$ 65 Mn during the forecast period. GCC countries are likely to hold approximately 2/3 market share in the Middle East by 2032. As such, the market in GCC countries will be highly profitable for rig control system suppliers.
Which Rig Control System Technology Accounts for Higher Sales?
Software technology for rig control systems accounted for a dominating share in the overall demand in 2021. This vertical generated a valuation of US$ 542 Mn in 2021.
The segment is estimated to surpass a valuation of US$ 740 Mn by the end of 2032, expanding at a CAGR of 3.1% over the assessment period.
Which Offshore Environment Rig Type is Attractive for Oil & Gas Service Providers?
Drill ships are likely to be the most attractive rig types in the offshore environment. This is due to their large size and high operational costs. This high operational cost generates demand for efficient tools to optimize operations and follow safety regulations in offshore environment.
The drill ships segment is expected to create an absolute $ opportunity of US$ 93.6 Mn by the end of the assessment period.
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Schlumberger, Baker Hughes a GE Company, Halliburton, Rockwell Automation, Epiroc, Petrofac, Weatherford International, Stena Drilling, Diamond Offshore Drilling, Saipem, China Oilfield Services Limited (COSL), Nabors Industries, Transocean Ltd., KCA Deutag Alpha Limited, Valaris Limited, Lanzhou Lanshi Group Co., Ltd., National Oilwell Varco Inc., Rowan Offshore, Seadrill Limited, Noble Corporation, and Dolphin Drilling are some of the prominent manufacturers of rig control systems.
Leading players are more focused on collaborating with national oil & gas companies, which provides several opportunities for continuous demand for rig control systems and their associated services. In addition, oil & gas service providers have the opportunity for capital expansion in South Asia & Oceania and East Asia due to continuous exploitation of unconventional reservoirs.
Fact.MR has provided detailed information about price points of top manufacturers of pipe handling system positioned across regions, in addition to providing sales growth information, production capacity, and speculative production expansion in the recently published report.
Key Segments of Rig Control System Industry Survey
Rig Control System Market by Rig Type:
- Onshore Rig Control Systems
- Drilling Rig
- Offshore Rig Control Systems
Rig Control System Market by Technology:
- Rig Control System Hardware
- Rig Control System Software
Rig Control System Market by Application:
- Rig Control Systems for Mining
- Rig Control Systems for Oil & Gas Well Drilling
- Rig Control Systems for Workover Operations
Rig Control System Market by Region:
- North America Rig Control System Market
- Latin America Rig Control System Market
- Europe Rig Control System Market
- East Asia Rig Control System Market
- South Asia & Oceania Rig Control System Market
- MEA Rig Control System Market
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