Global Underbalanced Drilling Market Size, Share, and COVID-19 Impact Analysis, By Technology (Gas Injection, Foam Injection, Aerated Fluid Injection, and Mist Drilling), c(Onshore and Offshore), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035.

Global Underbalanced Drilling Market Insights Forecasts to 2035

• The Global Underbalanced Drilling Market Size Was Estimated at USD 4.82 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.46% from 2025 to 2035
• The Worldwide Underbalanced Drilling Market Size is Expected to Reach USD 9.6 Billion by 2035
• Asia Pacific is Expected to Grow the fastest during the forecast period.

According to a research report published by Spherical Insights & Consulting, the Global Underbalanced Drilling Market Size was worth around USD 4.82 Billion in 2024 and is predicted to Grow to around USD 9.6 Billion by 2035 with a compound Annual Growth Rate (CAGR) of 6.46% from 2025 and 2035. Underbalanced drilling (UBD) is a technique that minimises reservoir damage by using wellbore pressure that is typically lower than formation pressure. Particularly in low-pressure or depleted reservoirs, it is expected to improve hydrocarbon recovery. It is anticipated that the technique may lessen problems associated with drilling, such as differential sticking and lost circulation. UBD is anticipated to become more widely used as managed pressure drilling (MPD) technology advances.

Market Overview

The underbalanced drilling market focuses on approaches that keep wellbore pressure below formation pressure in order to improve drilling efficiency, prevent formation damage, and increase hydrocarbon recovery. The growing need for effective, economical extraction techniques in the oil and gas sector is propelling the underbalanced drilling (UBD) market's notable expansion on a global scale. Particularly in complicated reservoirs, UBD improves hydrocarbon recovery and minimises formation damage by keeping wellbore pressure below formation pressure. UBD safety, efficiency, and data-driven decision-making are all being enhanced by technological developments, such as automation and equipment advances. Due to increased exploratory activity and sophisticated drilling methods, the Asia Pacific has robust expansion, particularly in offshore projects in Southeast Asia. UBD is becoming more appealing because of its long-term advantages, which include better recovery and less waste, even with its high startup expenditures and operating complexity. Due to its significant usage of horizontal wells and advanced drilling techniques, North America dominates the UBD market. UBD's effectiveness in difficult situations has been demonstrated by successful underbalanced operations in fields like as SED-555 and SED-565. As a result of increased exploratory activity, the Asia Pacific region is rapidly growing. As sustainability becomes more of a global concern, UBD offers prospects for renewable energy initiatives. The market is moving towards smarter, more sustainable drilling operations as a result of increased emphasis on automation, data analytics, and remote monitoring. This presents a number of opportunities for flexible industry participants.

Report Coverage

This research report categorizes the underbalanced drilling market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the underbalanced drilling market. Recent market developments and competitive strategies such as expansion, type launch, 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 underbalanced drilling market. 

Driving Factors

Expansion of the global need for energy continues to drive demand for underbalanced drilling (UBD). This has stimulated exploration in both mature and depleted reservoirs. UBD, as evidenced in the United States, lessens formation damage while providing higher hydrocarbon recovery, particularly in horizontal shafts. Further, the safety and efficiency of UBD operations are enhanced by technological advancements associated with managed pressure drilling (MPD), including automated control systems and real-time pressure/temperature monitoring. As these developments make UBD more accessible and affordable, they promote increased use of UBD in complex geological areas, ultimately supporting overall market growth.

Restraining Factors

UBD provides multiple enhancements; however, the common use of UBD is restricted by the high direct cost and long-term costs of implementing the method. Smaller operators may also find it difficult to endorse the necessary UBD work actions because of their complexity, which involves tools that require specialization and skill. Changing prices of oil represent one economic aspect which will impact whether or not the costs of underbalanced drilling are consumable.

Market Segmentation

The underbalanced drilling market share is classified into technology and application.

• The gas injection segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the technology, the underbalanced drilling market is divided into gas injection, foam injection, aerated fluid injection, and mist drilling. Among these, the gas injection segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. In underbalanced drilling, gas injection lowers bottom-hole pressure below formation pressure by adding gases, such as natural gas or nitrogen, to the drilling fluid to decrease its density. By accelerating penetration and reducing formation damage, this method is expected to improve drilling efficiency. In some drilling operations, nitrogen injection has been successfully used to maintain underbalanced conditions.

• The onshore segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application, the underbalanced drilling market is divided into onshore and offshore. Among these, the onshore segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. Onshore operations are expected to make substantial use of underbalanced drilling (UBD), especially in tight gas and shale formations. By driving drilling fluids into the formation and obstructing hydrocarbon flow, conventional overbalanced drilling techniques can seriously harm the formation in these reservoirs. UBD protects natural fractures and microfractures by keeping wellbore pressure below formation pressure, which increases production flow. In onshore areas, this strategy should improve hydrocarbon recovery and drilling efficiency.

Regional Segment Analysis of the Underbalanced Drilling Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the underbalanced drilling market over the predicted timeframe.

North America is anticipated to hold the largest share of the underbalanced drilling market over the predicted timeframe. The market for underbalanced drilling (UBD) is anticipated to be dominated by North America because of its sophisticated drilling infrastructure, extensive use of directional and horizontal drilling, and robust exploration activity, especially in shale formations. UBD methods have been widely used in the United States to increase well productivity and lessen formation damage. The market's expansion is further supported by technological advancements like real-time monitoring systems and controlled pressure drilling. Furthermore, the presence of significant industry players and substantial investments in oil and gas projects strengthen North America's dominance in the UBD market.

Asia Pacific is expected to grow at a rapid CAGR in the underbalanced drilling market during the forecast period. The underbalanced drilling (UBD) market in the Asia Pacific is anticipated to grow rapidly over the course of the forecast year due to an increase in oil and gas exploration operations, particularly in Southeast Asia's offshore regions. The industry is expanding due to increased energy consumption, government assistance, and investments in cutting-edge drilling technologies. In complicated reservoirs, nations like China and India are concentrating on improving drilling efficiency and minimising formation damage. Furthermore, the region's adoption of UBD is being accelerated by technological developments and rising interest in economic extraction techniques. 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the underbalanced drilling market, along with a comparative evaluation primarily based on their type of 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 type 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

• Viking Services
• Reform Energy Services
• Halliburton
• International Snubbing Services
• Air Drilling Associates
• Strata Energy Services Inc.
• Blade Energy Partners, Ltd
• Menicon Co., Ltd.
• Weatherford
• Others

Key Target Audience

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

Recent Development

• In April 2025, the first completely automated surface and subsurface rotary and slide drilling operations in Oman were carried out by Halliburton and Nabors Industries, who used a closed-loop digital drilling technology to improve uniformity and real-time control.

Market Segment

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

Global Underbalanced Drilling Market, By Technology

• Gas Injection
• Foam Injection
• Aerated Fluid Injection
• Mist Drilling

Global Underbalanced Drilling Market, By Application

• Onshore
• Offshore

Global Underbalanced Drilling Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa