Mining Drilling Services Market Size, Share, Growth Report 2030

Industry Prospective:

The global mining drilling services market size was worth around USD 2.41 Billion in 2022 and is predicted to grow to around USD 4.41 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.71% between 2023 and 2030. The report analyzes the global mining drilling services market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the mining drilling services market.

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Mining Drilling Services Market: Overview

The mining drilling services industry is a segment of the larger ministry sector that deals with services related to drilling activities with the intention to extract ores and minerals from the earth. It includes services like production drilling, exploration drilling, environmental drilling, directional drilling, and geotechnical drilling. These activities are essential for the successful operation of the mining sector since it provides assistance in identifying mineral resources along with their extraction process. The industry is highly competitive with a wide range of businesses operating at different junctions of the mining process. Each business sub-segment has different roles to play and services to offer required to meet the dynamic demands of the mining industry. Several factors are expected to drive industry growth during the forecast period but it may also face certain intense restrictions and limitations.

Key Insights: 

• As per the analysis shared by our research analyst, the global mining drilling services market is estimated to grow annually at a CAGR of around 6.72% over the forecast period (2023-2030)
• In terms of revenue, the global mining drilling services market size was valued at around USD 2.41 billion in 2022 and is projected to reach USD 4.41 billion, by 2030.
• The market is projected to grow at a significant rate due to the growing demand for minerals
• Based on application segmentation, minerals was predicted to show maximum market share in the year 2022
• Based on type segmentation, surface mining was the leading type in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Mining Drilling Services Market: Growth Drivers

Growing demand for minerals to act as a primary growth factor

One of the main reasons for the immense growth in the global mining drilling services market is expected to be the exponentially rising requirement and need for minerals that are extracted from the earth’s core. The modern world is built on minerals like iron and copper including residential and commercial segments. With rampant industrialization along with higher demand from end-user verticals, the mining industry is registering surging demand which in turn translates to more requirements for associated services.

These minerals play a significant role across sectors. For instance, in the construction and infrastructure industry, minerals like limestone, sand, cement, and gravel are essential for the construction of bridges, buildings, and other units. On the other hand, oil, coal, and natural gas are crucial in energy production processes along with being applied in transportation and heating activities. Industrial growth may further benefit due to the growing investments in the mining sector in terms of exploration and technological growth.

Mining Drilling Services Market: Restraints

Growing environmental concerns to restrict the market growth

Mining activities are considered a danger to the survival of the earth in the long term. This is especially applicable to irresponsible mining activities or to profit-oriented businesses that only target the final revenue without considering the irreversible damage to the ecosystem due to such activities. Mining drilling services can cause severe environmental damage like soil erosion along with water and air pollution. This is why the mining drilling services industry is being heavily regulated across the globe and world leaders are working toward restoring or restricting the harmful impact of business operations on the globe.

Mining Drilling Services Market: Opportunities

Rising demand for renewable energy to provide higher growth opportunities

One of the key segments that are expected to work immensely in the favor of the global mining drilling services market is the rising demand for renewable energy as countries deploy measures to reduce dependency on non-renewable resources of energy. Businesses working with lithium, silver, and copper are expected to register the highest growth during the forecast period as investments towards harnessing wind power and solar power are on the rise. Furthermore, the growing interest in unexplored segments of unconventional resources like tight oil and shale gas may create more growth opportunities for mining drilling services.

Mining Drilling Services Market: Challenges

Geopolitical risks to challenge market growth

The service providers in the mining drilling services industry are often vulnerable or exposed to intense geopolitical turmoil like terrorism, war, and political instability. In the coming years, there are growing speculations surrounding the effect of the rising political tension between the western and the eastern territories. The prime example is the ongoing Russia-Ukraine war. Such factors greatly impact the revenue in the industry which also deals with the lack of skilled labor.

Mining Drilling Services Market: Segmentation

The global mining drilling services market is segmented based on application, type, and region.

Based on application, the global market segments are minerals, coal, metal, and quarry. In 2022, the industry witnessed the highest growth in the minerals segment and it is expected to continue its dominance followed by metal and coal. Services used in this segment require the use of specialized techniques and equipment since minerals are extracted from the earth’s core. Most of the drilling processes include the creation of wells or boreholes in the ground from where the minerals are extracted. The type of drilling technique used depends on the mineral being targeted and the geographical condition of the area surrounding it. In 2020, Saudi Arabia generated more than 5.8 metric tons of gold.

Based on type, the global market segments are underground mining and surface mining. The industry witnessed the highest CAGR in the surface mining segment in 2022. As observed by the US Geological Survey, around 74% of the mining activities conducted worldwide are surface-based whereas 26% are underground mining activities. Surface mining deals with the removal of surface soil and vegetation allowing access to the minerals stored beneath. This type of mining is conducted to extract gold deposits, copper, iron ore, and coal.

Recent Developments:

• In February 2023, NRW Holdings, a construction and mining contractor giant based out of Australia, announced bagging an AUD 300 million contract for drilling and blast services
• In March 2023, NRW Holdings announced that 2 of its subsidiaries were awarded an AUD 30 million contract from DIAB Engineering. The funds will be used over the course of the next three years and will be directed toward maintaining crushing and supporting infrastructure of the new Iron Bridge magnetite mine
• In November 2022, Action Drill & Blast Pty Ltd (Action), a wholly owned subsidiary of NRW Holdings Limited was awarded by Talison Lithium Australia Pty Ltd (Talison Lithium) for its services in the Drill and Blast activities in Greenbushes Mine

Mining Drilling Services Market: Report Scope

Mining Drilling Services Market: Regional Analysis

Asia-Pacific to dominate the market growth

The global mining drilling services market is anticipated to witness the highest growth in Asia-Pacific mainly owing to the exhaustive mining activities conducted in several parts of the region. Australia is home to one of the largest service providers in the industry. NRW Holdings has a world reputation for being honored with several multi-billion dollar assignments across blasting and drilling segments. In addition to this, the mining exports of the country currently account for 75% of the global market share and are an essential segment of Australia’s economic growth.

North America is also registering a significant CAGR in the last few years due to immense exploration activities conducted by the US and Canadian governments for natural gas and different types of minerals. Increasing investment in the segment is a crucial growth propeller.

Mining Drilling Services Market: Competitive Analysis

The global mining drilling services market is led by players like:

• Helmerich & Payne
• Boart Longyear
• NRW Holdings
• Schlumberger
• Epiroc
• Caterpillar
• Ausdrill
• Sandvik
• HMR Drilling Services
• Foraco
• Atlas Copco
• Orica Mining Services
• Major Drilling
• Layne Christensen Company
• DDH1 Drilling
• Orbit Garant Drilling
• JS Redpath Corporation
• Dando Drilling International
• Boodee Drilling.

The global mining drilling services market is segmented as follows:

By Application

• Minerals
• Coal
• Metal
• Quarry

By Type

• Underground Mining
• Surface Mining

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa