SAN FRANCISCO, October 26, 2015 /PRNewswire/ --
The global horizontal directional drilling market size is expected to reach USD 14.95 billion by 2022, growing at a CAGR of over 14% from 2015 to 2022, according to a new report by Grand View Research, Inc.
Horizontal Directional Drilling (HDD), which is a trenchless technique used for the installation of underground cables, pipes, and conduits along a pre-determined path by using a surface-launched drilling rig, has gained immense prominence on account of negligible damage caused to the topography of the surrounding area.
The growth prospects for this market are bullish due to high demand originating from the telecommunications sector. Telecom companies have started taking measures in order to make 4G and 5G services available to all, which has consequently increased the demand for installation of cellular towers. Demand from utilities (electricity distribution, natural gas distribution) is expected to remain steady throughout the forecast period, thereby ensuring uniform growth of the HDD market.
Browse full research report with TOC on "Horizontal Directional Drilling (HDD) Market Analysis By End-use (Utilities, Telecommunication), And Segment Forecasts To 2022" at: http://www.grandviewresearch.com/industry-analysis/horizontal-directional-drilling-hdd-market
Substantial HDD projects as a result of unqualified engineers and consultants without any prior HDD project design experience hired by owners and lack of contractor review for constructability prior to project inception are some of the challenges faced by the HDD industry.
Further key findings from the report suggest:
- Projected to grow at a CAGR of 15% from 2015 to 2022, telecommunications is expected to drive the horizontal directional drilling market over the forecast period. Fiber and telecommunication cable deployments have witnessed an upsurge over the last few years and are not expected to show any signs of weakening over the next seven years. The digitization trend has been gradually adopted by both, developed and developing countries worldwide and cable & broadband providers are striving hard to expand their networks to address the growing demand.
- Utilities contributed to over 55% of the overall revenue in 2014, and the sector is expected to continue being a key application area for HDD throughout the forecast period. This can be attributed to the growing need for electricity, water, and natural gas supply to cater to the needs of the expanding population.
- North America contributed to over 30% of the horizontal directional drilling market revenue and is expected to continue growing steadily over the next seven years, with telecommunication and energy garnering a major chunk of the revenue share. Asia Pacific is projected to grow at a CAGR of close to 15%, the high growth being attributed to increased demand for utility installations and growing broadband subscribers, particularly in China, India, Australia, and Japan.
- HDD equipment manufacturers including Vermeer, Ditch Witch, Midwest Underground, and Universal HDD provide drilling machines of varying thrusts and spindle torques depending on the application area. Some equipment manufacturers also forward integrate and provide contracting services to the end users, leveraging their expertise in the domain.
- Contractors such as UEA, Ferguson Michiana, Michels Corporation, and Nabors form a key element of the value chain. They are responsible for the execution of a complete project, from procuring equipment from the manufacturers, investigating the drilling site to determine feasibility, employ experienced drillers, monitor the HDD process and ensure that drilling standards are followed and ensure overall safety.
Grand View Research has segmented the global horizontal directional drilling market on the basis of end-use and region:
- HDD End-Use Outlook (Revenue, USD Billion, 2012 - 2022)
- HDD Regional Outlook (Revenue, USD Billion, 2012 - 2022)
- North America
- Asia Pacific
- Latin America
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About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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SOURCE Grand View Research, Inc.