Geothermal Drilling Rig Market: Introduction
The global geothermal drilling rig market was valued at US$ 122 Mn in 2019 and is anticipated to expand at a CAGR of 4.5% during the forecast period. In terms of drill bit, the roller cutting bit segment accounted for a major share of the global geothermal drilling rig market in 2019. Roller cutting bits offer several properties such as reduced bit trips, continuous drilling in high-temperature environments, and improved drilling economics with patented metal-face seals. This is expected to boost the roller cutting bit segment of the geothermal drilling rig market in the near future.
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In terms of horsepower, the above 900 HP segment held significant share of the global geothermal drilling rig market in 2019. Above 900 HP is used to drill wells with depth more than 1,000 meters. In terms of end use, power plants segment is anticipated to expand at a rapid pace due to the introduction of several geothermal power projects.
Major Drivers of Geothermal Drilling Rig Market
The consumption of electricity has been rising significantly across the globe since the last few years due to rapid urbanization, increase in investments in industrial infrastructure, and economic growth. The increase in demand for electricity and enactment of strict government regulations to limit carbon emissions from the power sector are compelling companies to introduce highly effective and pollution-free energy generation methods. Geothermal energy is a prominent alternative for fossil fuel. Electricity generation through the utilization of geothermal energy increased by 5% in 2018, more than the average growth in the previous five years. Thus, growth in the production of geothermal energy across the globe is expected to drive the global geothermal drilling rig market during the forecast period, as geothermal drilling rigs are used to drill boreholes to extract the Earth’s heat
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Prominent Developments in Geothermal Drilling Rig Market
In May 2020, SIMCO Drilling Equipment, Inc. introduced a new SIMCO PDQ drill pipe. This pipe is used in water well, geothermal, and geotechnical projects. SIMCO PDQ drill pipe carries several advantages. For instance, it makes connections faster by 60% and is easy to handle in the field, as it is 30% lighter than conventional pipes. In March 2020, SIMCO Drilling Equipment, Inc. launched truck-mounted rigs. The compact 3700 trailer can be employed in water well rig, geotechnical drill rig, and geothermal drilling. The trailer has features such as stable drill platform, extra ace for drill rod, as well as room for a proper sized mud pump system.
Europe Leads Geothermal Drilling Rig Market
Europe dominated the global geothermal drilling rig market in 2019. Turkey constituted major share of the geothermal drilling rig market in the region in 2019. The dominance of Turkey in geothermal drilling rig market in Europe can be ascribed to increase in adoption of green technologies such as geothermal in the country. Drilling of geothermal wells entails low cost in Turkey. This is a major factor attracting investment in development of geothermal resources across the country. In turn, this is estimated to propel the geothermal drilling rig market in Turkey in the near future. The geothermal drilling rig market in Asia Pacific is anticipated to expand during the forecast, period owing to the increase in investments in development of geothermal power plants, primarily in Indonesia and Australia, in order to meet the rising demand for electricity.
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