Japan Horizontal Directional Drilling Market Size, Share, and COVID-19 Impact Analysis, By Technique (Conventional and Rotary Steerable System), By Parts (Rigs, Pipes, Bits, and Reamers), By End User (Oil and Gas Excavation, Utility, and Telecommunication), and Japan Horizontal Directional Drilling Market Insights, Industry Trend, Forecasts to 2035

Japan Horizontal Directional Drilling Market Insights Forecasts to 2035

• The Japan Horizontal Directional Drilling Market Size Was Estimated at USD 226.5 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 13.4% from 2025 to 2035
• The Japan Horizontal Directional Drilling Market Size is Expected to Reach USD 903.4 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Japan Horizontal Directional Drilling Market Size is anticipated to reach USD 903.4 Million by 2035, growing at a CAGR of 13.4% from 2025 to 2035. The Japan horizontal directional drilling market expands, fueled by infrastructure construction, technology innovations, and a sustainability focus. Increasing energy needs, growing telecommunications, and firm government assistance for infrastructure development further fuel market growth and horizontal directional drilling technology adoption.

Market Overview

The Japan horizontal directional drilling (HDD) market refers to trenchless technology used for installing underground infrastructure with minimal surface disruption. It is primarily applied in the installation of pipelines, fiber-optic cables, sewer systems, and water lines.  HDD advantages are its eco-friendliness, minimal disturbance, accuracy, and adaptability to urban areas. Its opportunities include applications offshore, renewable energy schemes involving buried power cabling, rural broadband rollouts, and utility upgrades for smart infrastructure. Major drivers are Japan increasing marine and offshore pipeline projects, smart city infrastructure initiatives involving underground utilities in urban locations, and telecommunications and utility network expansion. government policies related to smart city development, metro and water treatment network construction, and sustainable energy growth are driving HDD adoption through policy support and infrastructure spending.

Report Coverage

This research report categorizes the market for the Japan horizontal directional drilling market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan horizontal directional drilling market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan horizontal directional drilling market.

Driving Factors

The Japan horizontal directional drilling (HDD) market is propelled by increasing demand for trenchless technology in city infrastructure, expanding telecommunications and utility redevelopment, and more offshore and marine pipeline installations. Increasing smart city development and broadband coverage also drive adoption. HDD's low environmental footprint and ability to work in crowded spaces also drive growth. Government spending on environmentally friendly infrastructure, metro systems, and water management schemes is the principal driver, consistent with Japan focus on new, minimal disruption methods of utility installation.

Restraining Factors

The Japan HDD market is constrained by expensive upfront equipment costs, technical difficulties in difficult soil conditions, and the lack of skilled operators. Regulatory obstacles and long approval periods also have the potential to slow projects down, preventing quicker coverage of horizontal direction drilling technology.

Market Segmentation

The Japan horizontal directional drilling market share is classified into technique, parts, and end user.

• The rotary steerable system segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan horizontal directional drilling market is segmented by technique into conventional and rotary steerable system. Among these, the rotary steerable system segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to they offer fine control of the drilling direction and improve the efficiency of operations. It will constantly turn the drill string with a steerable bit for improved hole quality, accuracy, and speed. RSS technology's downtime is less likely to trip the drill string, and hence reduce its downtime and increase productivity.

• The rigs segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan horizontal directional drilling market is segmented by parts into rigs, pipes, bits, and reamers. Among these, the rigs segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is owing to they are critical to the HDD process, supplying the mechanical energy to power the drill string and execute the drilling operation. There is growing demand for higher horsepower and automated rigs, and this creates an upward trend in efficiency, accuracy, and capability to undertake intricate projects.

• The oil and gas excavation segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan horizontal directional drilling market is segmented by end user into oil and gas excavation, utility, and telecommunication. Among these, the oil and gas excavation segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is attributed to the requirement of the industry for cost-effective, efficient, and eco-friendly ways of placing pipelines and performing drilling operations. HDD allows the pipeline, conduit, and cable installation to be performed as non-disruptive as possible to the surface, which in most areas is sensitive or highly populated.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan horizontal directional drilling market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hitachi
• XCMG
• Vermeer
• Herrenknecht AG
• Melco
• KOKEN
• Prime Drilling
• Fujitsu
• Nidec
• Laney Directional Drilling Co.,
• Charles Machine Works
• Sandvik AB.
• Others

Recent Developments:

• In November 2024, Vermeer launched the D24 horizontal directional drill, a 24,000 lb class machine designed for urban utility installations. Replacing the D23x30 S3, it features a 100 hp engine, 3,080 ft lb torque, and advanced technology, enabling efficient fiber, power, and water infrastructure installation in densely populated areas.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan horizontal directional drilling market based on the below mentioned segments:

Japan Horizontal Directional Drilling Market, By Technique

• Conventional
• Rotary Steerable System

Japan Horizontal Directional Drilling Market, By Parts

• Rigs
• Pipes
• Bits
• Reamers

Japan Horizontal Directional Drilling Market, By End User

• Oil and Gas Excavation
• Utility
• Telecommunication