Middle East & Africa Drilling Machine Market Outlook, 2029

Market Dynamic

Major Drivers Energy security and oil exploration: Energy security is a top priority for many countries in the Middle East, given their reliance on oil and gas revenues. As such, the exploration and extraction of hydrocarbons remain significant drivers of the drilling machine market in the region. The Middle East holds some of the world's largest oil reserves, and countries like Saudi Arabia, the UAE, and Iraq have invested heavily in oil exploration and production infrastructure. Drilling machines, including rotary rigs, directional drills, and well servicing equipment, are essential for accessing and extracting oil and gas resources from both onshore and offshore fields. The region's ongoing commitment to maintaining energy security and maximizing hydrocarbon production drives continuous investment in drilling machinery, providing a steady demand for equipment and services in the market. Water scarcity and desalination projects: In many parts of the Middle East and Africa, water shortages are an urgent problem brought on by urbanization, population growth, and climate change. To guarantee that there is availability of clean water for drinking, agriculture, and industry, there is an increasing need for water research, management, and desalination projects. For water supply projects, drilling equipment is essential for borehole building, well drilling, and groundwater exploration. Furthermore, drilling equipment is needed for injection wells, brine disposal wells, and intake and outfall structures in desalination facilities, which turn saltwater into freshwater. With nations like Saudi Arabia, the United Arab Emirates, and Kuwait setting the standard for desalination capacity, the Middle East in particular has emerged as a global center for desalination technology. The growing emphasis on sustainability and water security drives demand for drilling machines in the water sector, presenting opportunities for manufacturers and suppliers in the market. Major Challenges Infrastructure limitations and remote locations: The deployment of drilling apparatus and the completion of projects can be hampered in many parts of the region, especially in Africa, by poor logistical infrastructure, limited access to utilities, and inadequate transportation networks. Furthermore, exploration and drilling activities are frequently conducted in isolated and inaccessible areas, including offshore sites, deserts, and rainforests, where logistical obstacles are greater and infrastructure is lacking. These elements may cause drilling operations to become more expensive, take longer to complete, and provide logistical obstacles. In order to successfully address these issues, businesses may need to make investments in specialized machinery, innovative transportation methods, and enhanced logistical skills. Extensive health and safety regulations and risk mitigation measures are necessary to ensure operational integrity and the well-being of personnel when operating in remote places, as these sites pose safety concerns to both personnel and equipment.

Key Development

• In December 2022, Komatsu Limited, a prominent Japanese manufacturing company, disclosed its agreement to acquire GHH Group GmbH (GHH), a German-based manufacturer specializing in underground mining, tunnelling, and special civil engineering equipment, with its headquarters in Gelsenkirchen. This strategic acquisition is seen as a significant opportunity for Komatsu to broaden its portfolio in the field of underground mining equipment. The collaboration with GHH is expected to expedite new product development, leveraging synergies with Komatsu's existing team and product offerings. • In November 2022, Nidec Corporation, another Japanese manufacturing and distribution giant, successfully acquired PAMA, an Italian company renowned for its machine tools. The deal, valued at approximately 15 billion yen (USD 108 million), as reported by Nikkei Asia, includes PAMA's nine affiliate companies. PAMA, with production bases in Italy and China, achieved sales exceeding USD 124 million (118.3 million euros) in 2021. This strategic move enhances Nidec's global presence and technological capabilities, positioning the company for further growth in the competitive manufacturing landscape. • February 2022: CHETO Corporation SA, an expert in CNC deep drilling & milling machines introduced a technical assistance service management application to reduce response time and enhance service quality. The application is designed to enable technicians, and engineers to streamline the process of remote assistance with the help of augmented reality (AR).