Surface Drilling Rig Market Expected to Reach $3.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Surface Drilling Rig Market," The surface drilling rig market size was valued at $2.2 billion in 2022, and is estimated to reach $3.6 billion by 2032, growing at a CAGR of 4.8% from 2023 to 2032. Based on volume, the market was 2,872 units in 2022, and is projected to reach 4,870 units by 2032, registering a CAGR of 4.3% from 2023 to 2032.A surface drilling rig is used for drilling blastholes in mining and tunneling industry. In addition, it creates holes for geological inspection by scientists & researchers, or civil engineers. The surface drilling rig market is segmented on the basis of type, application, commodity, sales type and region.

There are mainly two types of surface drilling rigs analyzed in the report, including rotary drills, and boom drills. Out of these, the rotary drill segment dominated the surface drilling rig market, in terms of revenue in 2022, and the boom drills segment is expected to dominate the surface drilling rig market forecast by growing with a higher CAGR during the forecast period. Furthermore, the market is also classified on the basis of applications, which includes mining, quarrying, construction, and others segments.

The quarrying segment accounted for a higher surface drilling rig market share in 2022, and the construction segment is anticipated to grow with a higher CAGR during the forecast period. Gravel, aggregate, sand, and other similar minerals that are acquired via quarrying activity are witnessing increased demand due to the rapid growth of the construction sector mainly driven by urbanization and population growth. Furthermore, on the basis of commodity, the surface drilling rig market is divided into gold, copper, coal, iron ore, bauxite, limestone, granite, and others. The others segment accounted for a higher market share in 2022; however, the infrastructure segment is expected to witness a higher CAGR throughout the forecast period.

Factors such as high operation costs, and strict government regulations related to carbon emissions and pollution are anticipated to restrain the market growth. Contrarily, the development of technologically advanced surface drilling rigs is a surface drilling rig market opportunity for growth.

The surface drilling rig market is a highly competitive market, and major players innovate and launch advanced products to cater to a wider range of customers. For instance, in May 2020, Sandvik AB, a Sweden based manufacturer of advanced surface drill rigs upgraded its existing offering ‘Dino DC400Ri’. A few key upgrades include a new electrical system, improved mechanics, and improved remote handling capabilities. Similarly, other players such as Epiroc, Caterpillar Inc, Komatsu, and others innovate and offer advanced products.

Moreover, major companies are involved in offering new products such as a complete drilling rig with all the necessary components and parts, and also offer aftermarket services such as repair & maintenance, and other services. Thus the market is also analyzed across these two segments; new sales, and aftermarket. Out of these the aftermarket segment accounted for a higher market share in 2022; and the same segment is expected to witness a higher CAGR throughout the forecast period.

Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). In 2022, Asia-Pacific dominated the global surface drilling rig market, in terms of revenue, and is anticipated to grow with the highest CAGR, owing to increased investments in infrastructure development and mining activities in countries such as India, and China. Moreover, infrastructure development and mining in Brazil, Colombia, and countries in Africa and the Middle East is also positively affecting the market growth.

However, various businesses in the surface drilling rig market had to stop their businesses in countries such as India, China, Australia, Brazil, Peru, and the U.S. during the pandemic. This break directly impacted the surface drilling rig industry including a short term halt in the sales of mining equipment. In addition, the lack of manpower and increased cost of raw materials constricted the supply of materials used for making various surface drilling rigs, which negatively influenced the growth of the surface drilling rig market.

However, owing to the introduction of vaccination, the severity of the pandemic has significantly reduced and key players in the market are recovering rapidly. Moreover, the quantitative easing of the economy done during COVID-19 by many countries across the world led to inflation, which is having a very negative impact on the growth of all industrial sectors including the construction sector. Most of the construction materials have become expensive, eventually declining the surface drilling rig market growth. In addition, inflation has also been boosted by the Ukraine-Russia war, which led to an increase in oil & gas prices.

Key Findings of the Study

• The report provides an extensive analysis of the current and emerging surface drilling rig market trends and dynamics. 
• Depending on the type, the rotary drills segment dominated the surface drilling rig market, in terms of revenue in 2022.
• By application, the quarrying segment accounted for the highest revenue share in 2022.
• Depending on commodity, the others segment dominated the surface drilling rig market, in terms of revenue in 2022.
• By sales type, the aftermarket segment is anticipated to grow with a higher CAGR during the forecast period.
• Asia-Pacific dominated the market in 2022 and is projected to register the highest growth rate in the coming years.
• The key players within the surface drilling rig market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the surface drilling rig industry.
• The report provides an extensive analysis of the current trends and emerging opportunities in the market. 
• In-depth surface drilling rig market analysis is conducted by constructing estimations for the key segments between 2023 and 2032.