Oil Drilling Automation Market Size, Share, Opportunities, And Trends By Application (Offshore, Onshore), By Offering (Hardware, Software), And By Geography - Forecasts From 2025 To 2030

Oil Drilling Automation Market Size:

The oil drilling automation market is evaluated at US$3.206 billion in 2025, growing at a CAGR of 8.67%, reaching a market size of US$4.895 billion by 2030.

Oil drilling automation refers to the automation of operational sub-processes as well as downhole activities that are necessary for the drilling of oil. In other words, it refers to integrating surface and downhole measurements with the help of modernized machinery and systems and predictive models to improve operational efficiency cost-effectively. There are growing requirements for safety as well as efficiency during the drilling process. Therefore, these tools and equipment further offer enhanced safety and efficiency with the help of predictive tools and models. Drill automation is increasingly being adopted because it also helps optimize surface activities. For this, a combined system with a comprehensive understanding of the subsurface and its interactions with the drilling systems operating under surface drilling is required.

The market for oil drilling automation is primarily driven by the significant rise in exploration activities owing to the increased demand, which is anticipated to be one of the prime factors expected to supplement the need for automation solutions in oil fields.

Furthermore, the increasing focus on the development of new oil fields with reduced risks and enhanced safety and efficiency is a major factor that is playing a significant role in shaping the market growth throughout the next five years. Additionally, the upgradation of the existing infrastructure in the oil fields and the growing penetration of automation processes across several industry verticals are bolstering the oil drilling automation market growth throughout the forecast period.

However, the market may be restrained by the fact that the initial upfront costs of these solutions are further leading to a reluctance in adopting these solutions. The risk of security coupled with the volatile nature of the oil industry is one of the additional factors projected to inhibit market growth.

Factors restraining the oil drilling automation market:

• High upfront costs

The initial requirements and the time consumed for installing hardware and software solutions are comparatively high. This makes the firm reluctant to adopt these solutions since they have been operating without them for many years. Maintenance and running costs are added up to keep them working constantly. Moreover, costs associated with the software used also add to the cost burden of the end-user who uses them, thus restraining the market expansion. Though these solutions often offer operational efficiency, they also add to the operating costs as workers with special skill sets are also required to read and analyze the generated predictive models and data.

Furthermore, any breakdown or downtime in the system or machinery may further increase the company's overall cost burden. The systems used for these solutions are quite complex, requiring sophisticated instrumentation to ensure adequate service is delivered. Thus, a highly complex process coupled with heavy initial capital requirements for the automation of the oil drilling process has led to a limited number of industry players venturing into the market, leading to restricted product options and limited market growth during the given period.

Segment analysis of the oil drilling automation market:

• Onshore will account for a sizable share by application

The oil drilling automation market has been segmented as onshore and offshore. The onshore segment is projected to hold a considerable market share because onshore oil production dominates offshore drilling and accounts for a larger share of oil production at the global level. Additionally, the increased spending on onshore oil exploration is a key factor supporting the onshore oil drilling automation market growth in the coming five years. 

• Software segment to show healthy growth

By offering, the market has been classified into hardware and software. The hardware segment is expected to hold a decent market share throughout the forecast period, primarily due to the high costs. The growing investments in automation technology will further support this segment’s expansion during the next five years. The software segment is projected to witness significant market growth during the forecast period due to the demand for automation solutions and their cost-effectiveness and safety. The software consists of systems that convert the collected information into meaningful data. Rising investments by major players in adopting advanced automation solutions further show the potential for the market to grow in the coming years.

Oil drilling automation market geographical outlook:

• North America is expected to have a substantial share

Geographically, the market has been distributed in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American region is expected to hold a considerable market share because it boasts of being the early adopter of technology and a world-class infrastructure across the oil and gas industry.

The Asia-Pacific region is also expected to witness promising growth during the forecast period. The presence of the world’s fastest-growing economies, such as India and China, among others, coupled with the increasing expenditure in the oil exploration sectors in these countries, further supports the oil drilling market growth in the APAC region throughout the forecast period.

Key developments in the oil drilling automation market:

• In April 2024, TAQA launched a groundbreaking development, Threlix TM, to reduce downtime and the cost of operations in drilling. The patented technology will help deal with some common issues with oil and gas operators, including vibration, torsional oscillations, and inconsistent bit engagement, leading to inefficiency and equipment failure.
• In January 2024, SLB announced the most significant milestone in its history of operating offshore drilling with its digital technologies. By combining surface automation, autonomous on-bottom drilling, and directional drilling, SLB made it possible to take a considerable step forward in fully autonomous drilling at Equinor's Brazilian Peregrino C platform. A successful 2.6-kilometer section has been drilled 99% autonomously; thus, it is changing the industry's efficiency and contributing to achieving sustainability goals.

Oil drilling automation market scope:

Report Metric	Details
Oil Drilling Automation Market Size in 2025	US$3.206 billion
Oil Drilling Automation Market Size in 2030	US$4.895 billion
Growth Rate	CAGR of 8.67%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Application Offering Geography
Geographical Segmentation	Americas, Europe, the Middle East, and Africa, Asia Pacific
List of Major Companies in Oil Drilling Automation Market	Huisman Equipment B.V. Sekal AS HMH NOV Inc. Rigarm Inc.
Customization Scope	Free report customization with purchase

 

The oil drilling automation market analyzed into the following segments:

• By Application
  • Offshore
  • Onshore
• By Offering
  • Hardware
  • Software
• By Geography
  • Americas
    • USA
    • Canada
    • Others
  • Europe, the Middle East, and Africa
    • Russia
    • Saudi Arabia
    • Norway
    • Others
  • Asia Pacific
    • China
    • Others

Our Best-Performing Industry Reports:

• Power And Control Cable Market
• Electrically Conductive Adhesives Market
• Electromechanical Relay Market

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits for the Stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

2.3. Data Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. OIL DRILLING AUTOMATION MARKET BY APPLICATION

5.1. Introduction

5.2. Offshore

5.3. Onshore

6. OIL DRILLING AUTOMATION MARKET BY OFFERING

6.1. Introduction

6.2. Hardware

6.3. Software

7. OIL DRILLING AUTOMATION MARKET BY GEOGRAPHY

7.1. Introduction

7.2. Americas

7.2.1. USA

7.2.2. Canada

7.2.3. Others

7.3. Europe, the Middle East, and Africa

7.3.1. Russia

7.3.2. Saudi Arabia

7.3.3. Norway

7.3.4. Others

7.4. Asia Pacific

7.4.1. China

7.4.2. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES 

9.1. Huisman Equipment B.V.

9.2. Sekal AS

9.3. HMH

9.4. NOV Inc.

9.5. Rigarm Inc.

9.6. Automated Rig Technologies Ltd.

9.7. Nabors Industries Ltd.

9.8. ABB

9.9. Emerson Electric Co.

9.10. Honeywell International Inc.

Huisman Equipment B.V.

Sekal AS

HMH

NOV Inc.

Rigarm Inc.

Automated Rig Technologies Ltd.

Nabors Industries Ltd.

ABB

Emerson Electric Co.

Honeywell International Inc.