Oil and Gas Drilling Automation Market Trends

Oil and Gas Drilling Automation Market Overview

The Oil and Gas Drilling Automation Market size was valued at USD 1344.11 million in 2024 and is expected to reach USD 1800.26 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The oil and gas drilling automation market is undergoing a rapid technological transformation, driven by a significant surge in global drilling activity and demand for safer, faster, and more efficient extraction techniques. As of 2024, more than 1,640 active offshore drilling rigs were operational globally, up from 1,430 in 2021, marking a notable increase of 14.6% in just three years. Automation in drilling operations has shown to reduce non-productive time (NPT) by up to 35% while enhancing rig efficiency by approximately 22%, especially in complex environments like deepwater and ultra-deepwater wells. In the U.S., 82% of new drilling rigs deployed in 2023 integrated at least one form of automation, including robotic pipe handling and real-time sensor monitoring. The application of drilling automation systems has led to a reduction in well delivery time by up to 18 days per well, especially in the Permian Basin. Global upstream operators are increasingly investing in automated control systems, with over 120 companies implementing cloud-based predictive maintenance software in 2024 alone.

Key Findings

Driver: Automation reduces non-productive time (NPT) by up to 35% in drilling operations.

Top Country/Region: The United States accounted for 43% of global automated rig deployments in 2023.

Top Segment: Automated Drilling Systems held over 61% of technology integration in newly deployed rigs worldwide in 2024.

Oil and Gas Drilling Automation Market Trends

The oil and gas drilling automation market is being shaped by a wave of technological innovation and digitalization aimed at improving safety, speed, and precision in drilling activities. As of 2024, approximately 68% of new offshore rigs commissioned globally featured some level of automation, a significant rise from 47% in 2021. The push toward automation is fueled by the demand for increased drilling efficiency and reduced operational costs. Automated drilling systems are now capable of executing repetitive tasks such as tripping, reaming, and bit guidance with 92% accuracy compared to human-operated systems.

One of the key trends is the widespread adoption of edge computing in drilling rigs. More than 2,000 rigs globally integrated edge computing modules in 2023 to enable real-time decision-making without relying on external cloud systems. This technology enables sub-second response times for drilling adjustments, improving safety in high-risk environments such as high-pressure formations. In addition, 5G-enabled remote operations have been introduced in over 580 offshore platforms, primarily in the North Sea and Gulf of Mexico, enabling engineers to monitor and control drilling from onshore control rooms. Another major trend is the deployment of AI and machine learning algorithms to predict equipment failure and optimize drill paths. Predictive maintenance powered by AI has reduced unplanned downtime by up to 29% on average, with some operators reporting up to 40% cost savings on maintenance. As of early 2024, around 740 rigs had AI-based drilling optimization software installed, up from just 390 in 2022, reflecting a growth of nearly 89.7% in two years.

Oil and Gas Drilling Automation Market Dynamics

DRIVER

Increasing need for safer and more efficient drilling operations

The rising emphasis on operational safety and efficiency is the primary driver fueling automation adoption in oil and gas drilling. In 2023, the global oil and gas sector reported 389 incidents linked to human error in drilling activities, according to IOGP safety data. To address this, companies are deploying automation technologies that significantly reduce human intervention. Automated pipe-handling systems, for example, have reduced manual tasks by up to 72%, minimizing injuries and improving overall rig performance.

RESTRAINT

High initial capital expenditure on automation technologies

Despite its benefits, the widespread adoption of drilling automation is hindered by substantial initial investment requirements. On average, upgrading a single land rig to fully automated systems costs between USD 2.5 million and USD 6 million, depending on the level of integration. In 2024, over 46% of small- and medium-sized drilling contractors delayed automation upgrades due to budget limitations. Furthermore, ongoing costs related to system integration, software licensing, and technician training add to the financial burden. The installation of AI-based predictive systems alone can cost upwards of USD 800,000 per rig.

OPPORTUNITY

Expansion of digital oilfield initiatives across emerging markets

The ongoing development of digital oilfields presents a major growth opportunity for the oil and gas drilling automation market. In 2023, over 310 new digital oilfield projects were launched worldwide, with nearly 40% based in Asia-Pacific and Latin America. These projects incorporate real-time data visualization, remote drilling management, and sensor-based monitoring, all of which are reliant on automation technologies. For instance, India's ONGC deployed automated rig monitoring systems in 62 new wells in 2023, reducing drilling time by 21% compared to manual operations.

CHALLENGE

Technical complexity and shortage of skilled automation workforce

The complexity of implementing and maintaining advanced automation systems remains a persistent challenge for the industry. As of 2024, 59% of drilling companies reported delays in automation deployment due to a lack of skilled personnel capable of managing and troubleshooting high-tech systems. Many offshore operations require specialists trained in robotics, real-time data processing, and AI software platforms. However, global demand far exceeds supply; an estimated shortfall of over 18,000 automation engineers exists in the energy sector as of mid-2024.

Oil and Gas Drilling Automation Market Segmentation

The oil and gas drilling automation market is segmented by type and application, reflecting the varied demands of upstream activities across geographies and operational complexities. By type, automated drilling systems have seen dominant uptake due to their impact on drilling speed and safety, while automated underwater vehicles (AUVs) are rapidly emerging in offshore exploration. By application, the oil industry remains the primary adopter of drilling automation, followed by the natural gas industry, which is investing in automation to improve shale gas extraction efficiency.

By Type

Automated Drilling: systems have become the core technology in the market, with over 1,820 rigs globally utilizing automated drill floor control systems in 2024—up from 1,370 rigs in 2022. These systems reduce human error by 45% and have improved rig uptime by 28%, making them highly efficient for land and offshore drilling. Key technologies include auto-drillers, robotic roughnecks, and remote directional drilling controls.
Automated Underwater Vehicle (AUV): play a crucial role in offshore exploration and seabed inspection for drilling site selection. By mid-2024, over 420 AUVs were deployed globally for subsea drilling support, with 38% operating in deepwater fields such as the Gulf of Mexico and West Africa. These vehicles can operate at depths exceeding 3,000 meters and perform tasks like bathymetric surveys, pipe inspection, and fault detection.
Other: automation types include pipe handling robots, mud logging systems, and automated mud pumps. As of 2024, over 960 rigs had installed automated mud pump controllers, helping reduce fuel consumption by 17% and pressure-related failures by 29%. Robotic systems for casing and tubing operations are increasingly used in Arctic and deepwater regions where human safety is a concern.

By Application

Oil Industry: accounted for over 71% of all automation deployments in 2023. Fields such as Bakken, Eagle Ford, and Ghawar have implemented fully automated drilling systems that cut operational cycle time by 27%. In 2024, over 1,950 automated rigs were operational in oil-focused exploration, an increase of 14.9% from 2022. Operators like Chevron, BP, and Aramco have invested in cloud-based drilling optimization platforms for oil recovery.
Natural Gas Industry: operations have increasingly turned to automation for unconventional resource development, especially in shale formations. In 2024, more than 690 automated rigs were active in gas extraction—up 19% from 2022. In the Marcellus and Haynesville basins, operators have reported a 33% improvement in horizontal drilling accuracy using automated systems. AI-based predictive models for gas well planning have improved EUR (estimated ultimate recovery) forecasting by 21%.
Other: applications include geothermal drilling, carbon capture and storage (CCS), and exploratory drilling in frontier regions. By 2024, 120 automated rigs were deployed for geothermal and CCS projects, primarily in Iceland, the U.S., and New Zealand. These systems offer precision drilling for high-temperature environments, improving system reliability by 37%.

Oil and Gas Drilling Automation Market Regional Outlook

The oil and gas drilling automation market exhibits varied growth patterns across regions due to differences in resource availability, technological readiness, and infrastructure investment. North America leads in terms of technology adoption and rig automation density, accounting for over 44% of global automated rig operations in 2024. Europe focuses on offshore and environmentally regulated automation deployments, while Asia-Pacific shows strong momentum in digitizing mature and unconventional oilfields.

North America

remains the most mature and active region for oil and gas drilling automation, with over 2,120 automated rigs operational as of 2024. The U.S. alone accounted for approximately 1,750 of these, mainly concentrated in the Permian, Bakken, and Eagle Ford formations. Canada also registered 370 active automated rigs, a 16% increase from 2022. The region benefits from advanced digital infrastructure and strong presence of tech-enabled oilfield service providers.

Europe

oil and gas drilling automation landscape is heavily shaped by environmental regulations and a shift toward offshore development. As of 2024, approximately 820 automated offshore rigs were active across the North Sea, Barents Sea, and the Norwegian Continental Shelf. Norway and the UK account for over 78% of the region’s automated offshore assets. Drilling automation in Europe focuses on minimizing emissions and human exposure, with robotic systems achieving a 36% reduction in crew headcount on certain offshore platforms.

Asia-Pacific

is rapidly scaling up its adoption of oil and gas drilling automation, particularly in China, India, and Australia. In 2024, over 1,060 automated rigs were operational in the region, representing a 22% increase from 2022. China’s CNOOC integrated AI-based well planning tools in more than 280 rigs, reducing drilling cycle time by 19%. In India, ONGC deployed over 140 automated land rigs equipped with cloud telemetry systems across Rajasthan and Assam basins.

Middle East & Africa

region is emerging as a major growth hub for drilling automation due to large-scale upstream projects and national oil company (NOC) investments. In 2024, more than 1,300 automated rigs were deployed across Saudi Arabia, UAE, Qatar, and Oman. Saudi Aramco led the region with 580 automated rigs, followed by ADNOC with 260. These rigs employ machine learning platforms that have decreased non-productive time by up to 38% in horizontal drilling operations.

List of Top Oil and Gas Drilling Automation Companies

ABB
Kongsberg Group
Nabors Industries
National Oilwell Varco
Pason Systems
Rockwell Automation

Nabors Industries: is currently recognized as the global leader in oil and gas drilling automation, with over 650 automated drilling systems deployed across North America, the Middle East, and Latin America. The company’s SmartRig™ automation platform is installed in more than 490 rigs as of 2024, accounting for nearly 22% of the global automated rig fleet.

National Oilwell Varco (NOV): holds a strong position in the global drilling automation landscape, with over 540 rigs globally outfitted with its NOVOS™ Process Automation Platform. NOV's systems are operational in both land and offshore rigs across 60+ countries. The company’s automated pipe handling and motion control systems are integrated into 380 offshore rigs as of 2024, delivering an average 28% improvement in tripping speed and reducing rig floor personnel by 40%.

Investment Analysis and Opportunities

The oil and gas drilling automation market is witnessing robust investment activity driven by global energy security concerns, the transition toward digital oilfields, and the need to optimize upstream operations. In 2023 alone, capital expenditures in drilling automation technologies exceeded USD 7.4 billion globally, with North America accounting for over 46% of the total spend. Investment focus has shifted toward high-spec rigs with full-stack automation capabilities, including AI-based optimization software, autonomous pipe-handling equipment, and real-time well analytics. Large oilfield service companies such as Schlumberger and Halliburton expanded their automation portfolios through joint ventures and direct asset acquisition.

Digital twins and cloud integration remain attractive investment avenues. As of mid-2024, over 680 rigs globally had digital twin platforms operational, reflecting a 39% increase over 2022. These platforms allow operators to simulate, test, and optimize drilling operations in real time, reducing planning errors by up to 33%. Companies like Pason Systems and Kongsberg Group are actively investing in R&D to improve twin-based drilling control models, and Pason's platform was adopted across 240 new rigs in 2023 alone. Emerging markets are also contributing to the investment surge. India's ONGC announced an investment of over USD 1.2 billion between 2023 and 2027 to upgrade its land rig fleet with automation tools. Petrobras in Brazil is investing USD 600 million into offshore automation technologies, including autonomous drilling units (ADUs) and automated subsea vehicles. In Southeast Asia, Petronas allocated USD 110 million in 2023 to deploy advanced drilling robotics in Malaysian waters, aiming to automate 75% of deepwater operations by 2026. Private equity and venture capital are increasingly entering the space, funding startups that specialize in modular drilling automation components, such as robotic tripping systems and AI-enhanced downhole sensors.

New Product Development

New product development in the oil and gas drilling automation market is accelerating, driven by advancements in AI, robotics, real-time analytics, and smart connectivity. Manufacturers are innovating to meet the rising demand for high-efficiency, low-risk, and cost-effective drilling operations. As of 2024, more than 120 new drilling automation technologies have been launched globally, including AI-driven rotary steerable systems, autonomous pipe handling robots, and digital control consoles with edge-computing integration. In Q1 2024, Nabors Industries introduced its Rigtelligent™ V3 platform—an advanced AI-powered rig control software that integrates machine learning algorithms for real-time drilling decisions. Deployed on over 160 rigs within three months, the platform delivered a 21% improvement in drilling efficiency and reduced tool failure rates by 19%. The system also features predictive maintenance modules that extend equipment life by up to 18%.

Rockwell Automation launched a next-generation autonomous rig control panel in late 2023 featuring multi-sensor input capabilities, 5G support, and cloud-based telemetry. These systems are now being used in more than 90 offshore rigs in the Gulf of Mexico and the North Sea. Operators report a 37% reduction in human interaction per drilling cycle and enhanced downhole communication performance by 24%, especially in high-pressure, high-temperature wells. National Oilwell Varco released an upgraded version of its NOVOS™ Process Automation Platform with intelligent pipe tripping features and enhanced data visualization. By mid-2024, over 210 rigs globally had integrated the upgraded platform, achieving a 26% reduction in average tripping time and improved formation integrity analysis using AI-assisted mud logging. NOV also unveiled a robotic racker arm that can operate continuously for 22 hours without manual reset. In the underwater domain, Kongsberg Maritime introduced a new generation of autonomous underwater inspection and drilling support vehicles capable of operating at depths of 3,600 meters. These AUVs were deployed across 24 new projects in West Africa and Southeast Asia in 2024 and are equipped with real-time fault mapping and 3D seabed imaging technologies.

Five Recent Developments

Nabors Industries Expanded Rigtelligent™ System Globally (2024): Industries deployed its Rigtelligent™ V3 platform across 160 additional land and offshore rigs in the U.S., Middle East, and Argentina. This expansion increased the total number of active systems to over 500 worldwide. The platform helped reduce well delivery time by an average of 19% and improved torque and drag predictions using machine learning algorithms.
Saudi Aramco Automated 180 Land Rigs in 2023: completed a large-scale deployment of automation systems on 180 land-based drilling rigs across the Eastern Province. These rigs were outfitted with AI-enhanced rotary steerable tools and digital mud monitoring systems. The initiative led to a 33% drop in NPT and increased drilling precision by 22% across horizontal wells in the region.
Kongsberg Group Launched AI-Powered Subsea Vehicles (2023): introduced the HUGIN Endurance AUVs capable of 15-day autonomous missions for subsea drilling support. Used in West Africa and the Gulf of Thailand, these vehicles enhanced deep-sea navigation accuracy by 35% and improved fault detection on subsea equipment by 41%, significantly reducing intervention times.
Rockwell Automation Delivered 5G-Controlled Rig Panels (2024): completed delivery of its new 5G-compatible autonomous rig control panels to 92 offshore rigs in the North Sea and the Gulf of Mexico. Operators reported a 29% increase in data transmission speed and 18% more accurate control feedback. These panels support edge computing for real-time surface-to-downhole coordination.
Petrobras Rolled Out Remote Drilling Command Centers (2023): established four new remote command centers in Brazil to manage offshore drilling activities from onshore locations. Connected to over 85 rigs via high-speed satellite and fiber networks, the initiative enabled round-the-clock monitoring and reduced offshore crew requirements by 40%. It also improved drilling optimization decisions using real-time AI analytics tools.

Report Coverage of Oil and Gas Drilling Automation Market

The Oil and Gas Drilling Automation Market report offers comprehensive coverage of the industry’s transformation through technological innovation, regional investment dynamics, segmentation, and key players’ competitive strategies. The report spans detailed insights into over 35 countries, covering upstream oil and gas automation deployment trends in both offshore and onshore environments. As of 2024, more than 5,400 automated rigs are operational globally, representing nearly 39% of the total global rig fleet, a sharp rise from 3,280 in 2021. The report analyzes three major automation types—Automated Drilling Systems, Automated Underwater Vehicles (AUVs), and Auxiliary Technologies—tracking their usage across land-based conventional fields, deepwater offshore installations, and unconventional resource development such as shale and tight gas. In 2023, automated drilling systems were integrated into 61% of newly constructed rigs worldwide. The report highlights how these systems have reduced tripping time by 25%, improved directional drilling precision by 18%, and cut manual labor involvement by 45%. In terms of applications, the report distinguishes automation trends across the oil industry, natural gas sector, and emerging segments like geothermal drilling and carbon capture wells. By 2024, the oil industry accounted for over 71% of global automation installations. The natural gas sector followed closely, particularly in regions like North America and China, where shale gas extraction benefits from AI-optimized rig control systems. Geographically, the report provides an in-depth review of North America, Europe, Asia-Pacific, and the Middle East & Africa. North America led automation adoption, with over 2,120 active automated rigs in 2024. In Europe, automation has been tailored for offshore regulatory compliance, while Asia-Pacific’s rise is driven by new investments from state-owned operators. The Middle East & Africa are investing in autonomous rig fleets, with Saudi Arabia deploying 580 automated rigs by 2024.