The offshore drilling industry is entering a period of vigorous growth as operators worldwide accelerate exploration and production to meet rising energy demand, according to The Business Research Company.
Valued at US$33.53bn in 2024, the sector is projected to climb to US$36.28bn in 2025. This reflects a compound annual growth rate of 8.2%.
The expansion follows a decade shaped by strategic discoveries of deepwater reserves, improvements in offshore infrastructure, and increasing global energy consumption. The depletion of easily accessible onshore resources and the availability of specialised offshore expertise have further reinforced activity across major basins.
Looking ahead, the offshore drilling market is forecast to reach US$49.67bn by 2029, maintaining the same growth trajectory of 8.2%.
This forward momentum is driven by renewed investment aimed at strengthening energy security, securing supply chains, and expanding access to capital. Governments and operators alike are also responding to evolving climate regulations and rising expectations around safety, prompting upgrades to equipment and operational standards.
Technological transformation is set to become a defining feature of the forecast period. Operators are expected to increase the use of digital tools, integrate drilling operations into hybrid renewable energy systems, and push further into ultra deepwater territories. Advances in seismic imaging and the adoption of digital twin technology will play a central role in improving accuracy, reducing risk, and optimising asset performance.
Demand growth anchored in oil and gas consumption
A primary force behind the market’s expansion is the steady rise in global consumption of oil and natural gas. These fuels remain vital to heating, power generation, and transport, making them central to energy systems around the world. Economic growth, increasing populations, and the continued shift toward cleaner burning fuels in power and transport sectors are amplifying demand.
Offshore drilling offers the ability to tap large reserves beneath the seabed, thereby ensuring continued supply. Data from the United States Energy Information Administration illustrates this trend. By the end of 2022, proven US crude oil and lease condensate reserves rose by 9% to reach 48.3 billion barrels. Natural gas reserves increased by 10%, climbing to 691 trillion cubic feet. Such figures highlight the sustained appetite for exploration and the vital role offshore assets will continue to play.
Europe: a region embracing digital and autonomous innovation
Across Europe, leading operators are pursuing competitive advantage through robotics and artificial intelligence. A notable example emerged in 2024 when Schlumberger and Equinor achieved a milestone in autonomous drilling on the Peregrino C platform. Using cloud based applications and AI driven planning tools, the partners succeeded in autonomously drilling 99 per cent of a 2.6 km section. The project demonstrated not only improved efficiency and lower operational costs but also meaningful reductions in carbon emissions.
Asia Pacific remained the world’s largest offshore drilling region in 2024, followed by Western and Eastern Europe, North America, South America, the Middle East, and Africa.
