Geosteering Technology Market Size, Trends and Growth Analysis by 2027

The geosteering technology sector was valued at approximately US$ 15.27 billion in 2019 and is anticipated to grow to US$ 27.91 billion by 2027, reflecting a compound annual growth rate (CAGR) of 11.8% throughout the forecast period.

Geosteering technology plays a crucial role in optimizing well placement during drilling operations, thereby improving the overall efficiency and performance of wells. This technology leverages the analysis of drilling cuttings, integrates real-time electronic logs, and utilizes data from various tools to provide insights into the geological formations being drilled. The increasing global population is significantly boosting the demand for oil and gas, which in turn is propelling the adoption of geosteering technology. For instance, the Organization of the Petroleum Exporting Countries (OPEC) reported that global oil demand reached 97.32 million barrels per day in 2017, while the supply was only 96.10 million barrels per day. This disparity has led to heightened investments in oil exploration activities. A notable example is ExxonMobil's announcement in August 2018 regarding the discovery of a substantial oilfield in Guyana, South America.

The surge in oil well drilling activities worldwide is a key factor driving the growth of the geosteering technology market. In 2017, the World Oil reported that there were 58,294 oil well drilling operations globally. In India alone, the number of drilling activities rose to 624 in 2017, up from 585 in 2016. Such trends are expected to significantly accelerate market growth in the upcoming years. Additionally, the rise in investments in offshore projects is likely to further stimulate the geosteering technology market. For example, since 2010, Saudi Aramco has initiated four major digital oilfield projects, including real-time geosteering and drilling, aimed at capitalizing on digital advancements in the upstream oil and gas sector.

The geosteering technology market can be categorized based on product type and application. In terms of product segmentation, the market includes categories such as logging while drilling (LWD), measurement while drilling (MWD), rotary steerable systems (RSS), drive systems, and others. When considering applications, the market is divided into segments like petroleum development, natural gas transportation, and additional applications. Geographically, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa (MEA), and South America (SAM).

Key players in the geosteering technology market include notable companies such as Cougar Drilling Solutions, Eerson Paradigm Holding LLC, Exlog, Geonaft, Geotech Logging Services LLC, Halliburton, HMG Software, OGII, Schlumberger Limited, and Terracosm Software, LLC.

The overall size of the geosteering technology market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the geosteering technology market. This approach also aimed to provide a comprehensive overview and forecast of the market across all segments. Furthermore, primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in geosteering technology.