Global Land Drilling Rig Market Projected Growth from 2025 to 2029
Global land drilling rig demand is projected to increase by 18% in the next five years compared to the period from 2020-2024. The Westwood World Land Drilling Rig Market Forecast highlights a favorable outlook for the land rig market, with significant activity expected in key regions such as Asia, the Middle East, and North America.
According to the forecast, there will be an average demand for 4,704 rigs between 2025 and 2029, marking an 18% rise from the previous period. The dominant global demand for land drilling rigs is expected to be spearheaded by the Asia Pacific region, accounting for 36%. China remains a pivotal country for rig demand, as seen in the previous period. Eastern Europe, with a focus on Russia, follows closely at 27%, while North America ranks third with 17% of the global demand share.
Although North America boasts the largest rig fleet, it faces considerable underutilization, given numerous rigs that have remained idle for extended periods. This underutilization trend is primarily observed in the Lower-48 region, where market dynamics have shifted due to factors such as operator consolidation and stringent capital management strategies. As a result, the utilization rate is predicted to average only 33%, markedly lower than Asia Pacific (76%) and Eastern Europe & FSU (63%). Consequently, rig contractors are anticipated to relocate a portion of their fleets to other markets, reflecting a recent trend in response to low utilization rates.
The forecast indicates that a substantial portion of the projected rig demand, around 72%, will come from just four countries: Canada, China, Russia, and the US. However, these countries may not offer significant growth opportunities for rig contractors. For example, China has well-established domestic land rig contractors like CNPC and Sinopec, limiting growth prospects for international contractors in the region. Similarly, Russia faces sanctions that restrict the operation of foreign contractors.
Therefore, the report by Westwood outlines promising growth opportunities in countries beyond the major four markets. Countries like Argentina and Australia, focusing on unconventional developments, offer significant potential for rig contractors to deploy idled super-spec rigs from the USA. Additionally, the MENA region is identified as a region with substantial growth prospects, forecasting an average demand for 680 rigs over the period, reflecting a 31% increase from the previous period.
Amidst increased conventional oil drilling activities in regions like Algeria, Kuwait, and Turkey, the MENA region is witnessing emerging opportunities in unconventional developments, particularly in Saudi Arabia and the United Arab Emirates. This indicates a changing landscape in the global land drilling rig market, with potential growth markets emerging beyond the traditional territories.
The Westwood report addresses key questions surrounding the global land drilling rig market, focusing on macro fundamentals driving demand, regional rig utilization rates, growth markets, key factors within specific countries, competitive market landscapes, and dayrates for rig fleets in different regions. By highlighting growth opportunities in emerging markets and shifts in traditional demand centers, the report provides valuable insights into the evolving landscape of the global land drilling rig market from 2025 to 2029.
