Horizontal Directional Drilling (HDD) Equipment Market Size & Share 2026-2035

Horizontal Directional Drilling (HDD) Equipment Market Size

The horizontal directional drilling equipment market was estimated at USD 2.9 billion in 2025. The market is expected to grow from USD 3.1 billion in 2026 to USD 5.3 billion in 2035, at a CAGR of 6.1%, according to the latest report published by Global Market Insights Inc.

The collection of horizontal directional drilling equipment refers to everything that is involved in the process of installing the underground utilities. This includes the new sets of HDD drilling rigs of various sizes: mini, midi, maxi, or mega-sized. It also covers the different types of drill pipes and rods, reamers and cutters, etc. As well as their steering, guiding systems, and mud recycling systems. HDD technology provides the capability to perform underground installation of pipes, cables, and conduits through a road, river, railway, or environmentally sensitive areas. This technology has made itself a standard method of installation of telecommunications fiber, energy cables, oil and gas pipelines, and water mains in cities and delicate rural areas.^{[1]Underground Infrastructure Magazine. "25th Annual HDD Survey." undergroundinfrastructure.com, 2023.} In 2022 and 2023, worldwide directional drill rig sales numbers reached 2,492 and 2,528 units respectively.^{[2]Underground Infrastructure Magazine. "26th Annual HDD Survey." undergroundinfrastructure.com, 2024.}

The structural growth in the market is supported by the multi-year ramp-up of the U.S. Broadband Equity, Access, and Deployment program representing a USD 42.45 billion federal allocation,^{[3]National Telecommunications and Information Administration (NTIA). "Broadband Equity, Access, and Deployment (BEAD) Program." ntia.gov.} global electricity grid investment reaching approximately USD 479 billion in 2025,^{[4]International Energy Agency (IEA). "World Energy Investment 2025." iea.org.} and sustained broadband deployment mandates across the European Union and Asia Pacific that collectively represent the most sustained multi-sector HDD demand cycle in market history.

Power cable installation is the fastest-growing application segment through 2035 as grid undergrounding mandates, offshore wind feeder cable requirements, and climate-resilience investments by utilities across North America and Europe accelerate underground cable infrastructure spending at rates exceeding overall market growth.

Horizontal Directional Drilling (HDD) Equipment Market Trends

The market is undergoing meaningful structural transformation across application mix, rig size composition, geographic demand distribution, and end-user base as infrastructure investment programs simultaneously accelerate across telecommunications, power, and water sectors worldwide. Here are 6 key trends shaping the market:

• Federal Infrastructure Programs Fueling a Boom in Demand for Broadband: The USD 42.45 billion BEAD federal program is active in twenty-two states and peak construction is projected for 2027-2028. Equipment lead times have increased to anywhere between 6 and 9 months, with contractors ordering drilling equipment in advance. It is anticipated that an additional 2,000 to 3,000 directional drilling machines will be in demand in the upcoming years due to the multiyear rural broadband deployment.
• Modernization of the Electric Grid Leading to Fastest Growing Application for Drilling Under Ground: The worldwide investment in electric grids reached USD 479 billion by 2025, and while underground wiring is getting a greater share of capital, state-level restrictions on underground activities in relation to wildfires and hurricanes are creating demand for larger equipment among utility companies for the next several years in North America and Europe.
• Telecommunication is Becoming a Major Segment for HDD Projects: The share of fiber optics and broadband in HDD projects has increased from 26% in the year 2020 to 31.7% in 2023, and it is finally expected to surpass oil and gas in terms of revenues around 2028-2029.
• Growing Acceptance of Larger and More Expensive Rig Sizes: Global makeup of heavy rigs above 120,000 pounds of pulling power has grown from 7% of overall sales of equipment in 2022 to 8% in 2023 and is expected to exceed 10% by 2025. The prices for maxi and mega rigs are between USD 1.5 million and USD 8 million per unit and are growing faster than those for mini and midi equipment segments, with the increase driven by pipeline crossing, offshore wind power projects, and construction of grid infrastructures.
• Increasing Use of Automation and Artificial Intelligence: The application of AI systems in rigs is growing in all rig size categories. The leading manufacturers claim that intelligent control systems differ from other equipment and command higher prices, enabling a more accurate boring process in complex geologic conditions.

Horizontal Directional Drilling (HDD) Equipment Market Analysis

Based on equipment type, the horizontal directional drilling (HDD) equipment market is segmented into HDD drilling rigs/machines, drill pipes & rods, reamers & cutters, steering & guidance systems, mud/fluid recycling systems, and accessories & others. In 2025, HDD drilling rigs/machines held the major market share, generating a revenue of USD 1.6 billion.

• The equipment market for HDD consists primarily of drilling rigs and machines due to their role as the most basic capital investment in a new HDD project. There can be no boring activity unless the rig is acquired or rented. It is a primary type of commercial business in the industry. The rig segment sees a shift in structure as mini rigs up to 20,000 pounds in pull force carried the entire market in volume from 2022 to 2024 due to the huge expansion of fiber and broadband services, while maxi and mega rigs above 100,000 pounds are experiencing a much quicker growth in revenue with prices starting from USD 800,000 for simple maxi models and exceeding USD 8 million for powerful mega rigs meant for large pipeline crossings and offshore wind cable landings.
• The drill pipes and rods market is characterized by the volumes and high repeatability of consumption. The growing fleet of installed rigs increases the pipe consumption numbers independent of the new rig sale cycles. Regardless of new sales, drill strings must be replaced due to fatigue and wear and continuous accumulation of bore footage. The share of drill pipe revenues in total equipment revenue is gradually increasing owing to a greater global fleet.
• Steering and guidance systems represent the fastest-growing equipment category, driven by the adoption of AI-assisted guidance algorithms, GPS-integrated real-time survey systems, and automated drill-head control mechanisms that are increasingly specified as standard on new rigs across all size classes. Leading manufacturers have identified intelligent control systems as a key product differentiator in their horizontal directional drilling ranges, reflecting an industry-wide shift toward higher-value guided equipment that commands premium pricing over conventional mechanical steering systems.
• Reamers and cutters are also classified as consumable tooling; In the case of reamers, they are replaced depending on amount of bore footage needed per rig per year, formation hardness, and the longevity of the reamer. This attribute of being consumable protects revenues of reamer manufacturers from fluctuations in new rig sales and allows them to forecast future aftermarket demand based on existing cap.
• Steering and guidance represents the fastest growing equipment category, as the industry is moving towards using AI-assisted guidance applications, GPS-based survey systems operating in real time, and automatic control of drill-heads. Major manufacturers identified smart control systems as a differentiator among their competitors in production of horizontal directional drilling equipment.
• Mud and fluid recycling equipment is also increasingly required by environmental requirements in Europe and Better America, especially with regard to bentonite slurry containment during environmentally sensitive crossing and urban projects.

• Oil and gas pipeline remain the largest single HDD application due to the high value per project; crossing a major river or sensitive terrain corridor for a large-diameter oil or gas pipeline requires maxi or mega-class rigs generating USD 500,000 to USD 8 million or more in equipment revenue per individual bore. Global upstream oil and gas investment continues to be near USD 570 billion, with midstream pipeline construction ongoing across North America, the Middle East, and Asia Pacific. However, the oil and gas share within the HDD equipment market is declining as the energy transition moderates new greenfield pipeline approvals in OECD markets, progressively shifting this application toward maintenance-driven crossings and liquefied natural gas terminal feeder lines.
• Telecommunications and fiber optic is the fastest-growing large application segment by CAGR, driven simultaneously by the U.S. BEAD program, the EU Gigabit Strategy targeting universal broadband by 2030, and national broadband programs in India, Southeast Asia, and Australia. The broadband deployment wave favors high-frequency mini and midi rig volumes, as rural fiber construction routes require numerous smaller bores per kilometer of cable route rather than single large crossings. This application segment is forecast to overtake oil and gas as the largest HDD application by revenue around 2028 to 2029 as major broadband programs reach peak construction phases.^{[5]IDC. "Worldwide Telecom Services Infrastructure Capex Tracker, FY2024." idc.com.}
• Power cable installation is growing at the fastest CAGR across all application segments through 2035, driven by grid undergrounding mandates, offshore wind feeder cable shore approach requirements, and transmission line burial programs in climate-vulnerable coastal and forested areas. This application predominantly utilizes midi and maxi class rigs, and the growing volume of grid projects is creating new customer demand from power utilities that have historically not been significant HDD equipment purchasers.
• Water and wastewater application is supported by dedicated federal funding components within the U.S. IIJA for water quality improvement and trenchless rehabilitation, providing multi-year demand visibility for mid-market rig manufacturers targeting municipal utility customers. Aging municipal water infrastructure replacement cycles in Europe and North America are providing a predictable baseline demand independent of discretionary infrastructure investment cycles.^{[6]World Bank. "Water Sector Infrastructure Capital Expenditure Data." worldbank.org.}
• District heating and cooling represents a stable application concentrated primarily in European urban markets, where geothermal and waste-heat thermal networks require HDD for heat pipe installation in dense city environments where surface excavation would cause unacceptable disruption to established urban infrastructure.

Based on distribution channel, the horizontal directional drilling equipment market is segmented into offline sales and online sales. In 2025, offline sales dominate the market with highest market share.

• Offline sales dominate the HDD market because capital equipment of this scale, from mini directional drills to mega-class rigs valued at USD 8 million and above requires dealer demonstration, technical evaluation, operator training, and on-site service support that cannot be replicated through digital channels. Established dealer networks operated by manufacturers such as Toro, Vermeer, and XCMG are strategic competitive assets, enabling contractors to access financing, rental arrangements, parts availability, and field technician support across geographically dispersed construction zones. The high per-transaction value and long purchase cycle characteristic of HDD capital equipment purchasing reinforce offline channel dominance through the forecast period.
• Online sales represent a growing distribution channel, concentrated primarily in consumable and ancillary product categories including drill pipes, reamers, cutters, guidance accessories, and replacement components where standardized specifications enable confident digital purchasing without physical inspection. OEM-operated e-commerce portals and third-party industrial procurement platforms are progressively expanding online availability of these recurring consumable items, capturing aftermarket revenue from contractors managing active fleets across multiple project sites simultaneously.

North America Horizontal Directional Drilling (HDD) Equipment Market

In 2025, the U.S. dominated the North America market, accounting for around 84.1% and generating around USD 890 million revenue in the same year.

• The United States is the world's most active HDD equipment procurement market, driven by the simultaneous ramp-up of the BEAD broadband program, IIJA-funded water and sewer infrastructure programs, and state-level grid undergrounding mandates that are collectively creating the most sustained multi-sector HDD demand cycle in the equipment market's history.
• The BEAD program has activated contractor ordering cycles well ahead of peak construction given extended equipment lead times of six to nine months for new directional drills, contractors are committing to equipment purchases in 2026 and 2027 to ensure rig availability during the projected peak 2027 to 2028 construction window across 22 participating states. This pre-construction equipment ordering surge is visible in manufacturer commentary and supply chain signals across the U.S. underground construction equipment sector.
• The Toro Company's FY2025 annual filing with the U.S. Securities and Exchange Commission cited strength in underground construction as a primary driver of its Professional segment results, confirming that demand from U.S. broadband and infrastructure contractors was performing ahead of management expectations for the fiscal year. FY2026 guidance published alongside the filing anticipated continued strong demand and stable supply for underground construction products, providing direct market-facing evidence of sustained HDD equipment ordering momentum heading into the peak BEAD construction years.
• U.S. power construction spending grew from USD 110 billion in 2022 to USD 147.6 billion in 2024, a 34% increase in two years propelled by the Inflation Reduction Act's clean energy incentives and state-level utility undergrounding mandates.^{[7]U.S. Census Bureau. "Construction Spending: Annual Data, 2024." census.gov.}
• California's requirements for converting overhead power lines to underground cables for wildfire risk reduction and Texas's response to hurricane-driven outage vulnerabilities are both creating sustained multi-year HDD equipment demand across suburban and rural utility corridors where tens of thousands of miles of overhead lines are candidates for undergrounding. Water supply construction spending expanded from USD 22.9 billion to USD 33 billion over the same two-year period, while sewage and waste construction grew from USD 31.9 billion to USD 45.8 billion, reflecting broad IIJA-funded municipal infrastructure renewal programs that rely heavily on trenchless HDD methods for pipe installation and replacement in established urban and suburban environments.
• The U.S. application mix within HDD has demonstrably shifted toward broadband-driven activity. Industry survey data documents telecommunications and fiber at 31.7% of active U.S. HDD projects in 2023, up from approximately 26% in 2020, while gas distribution represented 17.7% and water applications 21% of surveyed project activity, confirming the structural rebalancing driving the procurement of higher volumes of mini and midi directional drills relative to the larger rigs that historically characterized the U.S. oil and gas pipeline market.
• Canada contributes to North American demand primarily through western Canadian oil and gas pipeline crossings and Ontario and Quebec provincial broadband expansion programs. The Trans Mountain Pipeline expansion involved numerous HDD crossings using maxi and mega-class rigs for river and sensitive terrain crossings across British Columbia and Alberta, providing demand for large-rig manufacturers with specialized extended-reach capability.
• Canadian broadband programs in Ontario and Quebec are generating incremental mini and midi rig demand from regional contractors deploying fiber connectivity to rural communities under federal and provincial co-funding agreements.

Europe Horizontal Directional Drilling (HDD) Equipment Market

In the European market, Germany leads the market with a 23.3% share in 2025 and is expected to grow at 6.7% during the forecast period.

• Germany is executing the most HDD-intensive national fiber deployment program in Europe under the federal Gigabit Strategy, which targets universal gigabit connectivity by 2030 for all homes and businesses. The practical implementation of this program requires approximately 90% of rural fiber cable routes to utilize horizontal directional drilling due to German soil preservation regulations and agricultural land protection requirements that effectively prohibit surface trenching across farmland and protected landscapes. Deutsche Glasfaser has already realized 450,000 fiber connections in Lower Saxony alone, reflecting the advanced state of ongoing HDD deployment activity in German rural states and the scale of equipment demand flowing from this single national program.
• The EU Gigabit Infrastructure Act (Regulation EU 2024/1265) entered full operational effect in 2026, harmonizing trenchless deployment requirements across EU member states by mandating single-point permitting and reducing inter-operator coordination burdens, facilitating HDD adoption in France, Italy, the Netherlands, and the Nordic countries that previously favored open-cut trenching for fiber cable installation routes.^[8]
• The United Kingdom's Project Gigabit program has contracted 1,023,310 premises across rural communities for fiber installation, with only 32% of contracted premises completed as of June 2026, confirming that a substantial majority of the UK's rural fiber trenchless construction program remains ahead in the construction pipeline through at least 2030.^[9] 
• This disclosure confirms multi-year forward equipment demand for contractors executing Project Gigabit contracts using HDD as the primary cable installation method across rural and hard-to-reach terrain. Openreach, a BT Group subsidiary and primary UK fiber deployment vehicle, is piloting a MicroBORE robotic trenchless drilling system to accelerate fiber-to-the-premises rollout, reflecting the strategic priority assigned to trenchless technology in the UK broadband buildout and signaling potential technology evolution in compact HDD applications.
• North Sea offshore wind development is creating a distinct and growing category of nearshore HDD demand. Beach approach crossings require mega-class rigs capable of drilling from offshore cable landing points beneath beaches and sand dunes to onshore substations, often at extended angles through saturated coastal soils and below environmentally protected dune systems. European offshore wind capacity additions are projected to continue expanding rapidly through 2035 as member states pursue renewable energy targets under the EU Green Deal, sustaining specialized large-rig demand for this application category across the UK, Germany, the Netherlands, Denmark, and Belgium.
• Germany also leads European HDD activity in district heating infrastructure. Munich, Hamburg, and Dresden have active geothermal and waste-heat district heating expansion programs requiring HDD for urban heat pipe installation in established city environments where surface excavation would cause unacceptable disruption to traffic, businesses, and existing buried utilities. This application is relatively unique to the northern European market, providing Germany with simultaneous HDD demand across fiber, district heating, power cable undergrounding, and gas distribution application categories.
• Russia represents a notable structural exception within the European regional picture. Western original equipment manufacturer export restrictions implemented since 2022 have effectively curtailed HDD equipment imports from leading Western and many Asian manufacturers, causing Russian operators to rely on existing domestic fleets and non-Western sourcing alternatives. This has resulted in a progressive decline in the Russian segment's contribution to European regional revenue. However, strong growth across Germany, the UK, the Netherlands, Poland, and other Eastern European markets substantially offsets the Russian market contraction across the regional total through the forecast period.

Asia Pacific Horizontal Directional Drilling (HDD) Equipment Market

The Asia Pacific holds significant share in the HDD equipment industry. China holds a market share of around 66.5% in 2025 and is anticipated to grow with a CAGR of around 5.3% from 2026 to 2035.

• China is the world's largest single-country HDD equipment market, driven by the 15th Five-Year Plan infrastructure programs spanning 2026 to 2030, ongoing West-East Gas Pipeline III expansion, and extensive urban underground utility installation programs across tier-one and tier-two cities where open-cut excavation is increasingly restricted by municipal authorities. XCMG Group's 2025 annual report to the Shenzhen Stock Exchange confirms that its horizontal directional drilling products rank first globally in their category, with total group revenue reaching CNY 100.82 billion, representing 8.37% year-on-year growth, driven by accelerating domestic infrastructure demand and expanding export activity to Belt and Road Initiative partner countries across Africa, the Middle East, and Southeast Asia.^{[10]XCMG Group. "2025 Annual Report." cninfo.com.cn (SZ:000425).}
• XCMG's Foundation Machinery Business Unit produces horizontal directional drilling rigs across a broad thrust range, enabling participation in telecom, water, gas distribution, and pipeline crossing applications across diverse geographic markets at price points substantially below Western original equipment manufacturer equivalents.
• India represents the highest-growth opportunity in the Asia Pacific region. The Indian construction equipment market grew from USD 6.5 billion in FY2022 to USD 9.5 billion in FY2024, with HDD emerging as a critical installation technology for urban fiber broadband, municipal water pipelines, and piped natural gas distribution networks as India's urbanization and digital infrastructure expansion accelerates.^[11]
• India's BharatNet Phase II program is targeting connectivity for 250,000 village-level panchayats, requiring extensive HDD deployment in areas where overhead cable stringing is impractical due to monsoon storm damage risk and unacceptable in terrain where existing overhead infrastructure is being replaced. Apollo Techno Industries, India's sole domestic HDD rig manufacturer, reported revenue from operations growing from INR 689.77 million in FY2024 to INR 991.41 million in FY2025, reflecting the sharp acceleration in domestic HDD equipment demand. Chinese original equipment manufacturer imports nevertheless remain the dominant source of supply in the lower-thrust mini and midi rig segments where Apollo Techno's domestic production competes with competitively priced imported equipment.
• SUNWARD Intelligent Equipment Group reported FY2025 revenue of CNY 7.31 billion, with its underground engineering machinery segment contributing CNY 1.24 billion, representing 16.9% of total group revenue, underscoring the depth of underground infrastructure investment cycle demand across China and its regional export markets in Southeast and South Asia.^{[12]SUNWARD Intelligent Equipment Group. "Annual Report 2025 (SHE:002097)." cninfo.com.cn.} This commercial performance reflects broad demand for underground construction equipment across HDD, pipe jacking, and related trenchless applications in the Asia Pacific region's most active construction markets.
• Japan's HDD equipment market is shaped by the country's extremely limited land area and dense urban environment, which makes open-cut trenching impractical in most metropolitan contexts. HDD is the de facto installation standard for new utility infrastructure in major cities including Tokyo, Osaka, and Nagoya, where surface disruption costs and space constraints render trenchless methods the economically and logistically superior choice.
• Japan's electricity grid upgrade programs, focused on transitioning coastal and typhoon-exposed areas to underground cabling to reduce storm-related outage risk, are generating new HDD demand categories that are independent of fiber broadband rollout cycles and provide additional application diversity for equipment manufacturers serving the Japanese market.
• Southeast Asia, particularly Indonesia, Vietnam, Thailand, and the Philippines, is emerging as one of the fastest-growing sub-regions within the Asia Pacific. All four countries are executing national broadband programs and water infrastructure upgrade initiatives with increasing deployment of HDD technology as contractors gain familiarity and equipment availability improves through regional distribution networks.
• XCMG and Goodeng Machine have established regional distribution and after-sales service networks in Thailand and Vietnam, facilitating market access and technical support for local contractors adopting HDD technology for national infrastructure programs.

Horizontal Directional Drilling (HDD) Equipment Market Share

The Toro Company leads the market with a 15% market share. The Toro Company, Vermeer Corporation, XCMG Group, Herrenknecht AG, and Goodeng Machine collectively hold approximately 53.7%, with the remaining share distributed across a broad fragmented field of regional Chinese original equipment manufacturers, European specialty manufacturers, and emerging-market players.

• The Toro Company maintains market leadership through its portfolio of underground construction brands Ditch Witch, American Augers, HammerHead, Subsite, and Radius, collectively covering the full HDD equipment spectrum from compact mini rigs for telecom and fiber deployment to large American Augers maxi rigs for major pipeline crossings. In FY2025, Toro's annual filing with the U.S. Securities and Exchange Commission confirmed Professional segment net sales of USD 3.62 billion, with management commentary explicitly citing strength in underground construction as a primary driver of full-year results that exceeded prior expectations.
• FY2026 guidance articulated continued strong demand and stable supply for underground construction products, signaling sustained HDD equipment ordering momentum ahead of the peak BEAD broadband construction cycle in 2027 and 2028. Toro's HDD ecosystem extends beyond rig hardware to encompass a comprehensive aftermarket portfolio of drill pipe, reamers, swivels, rock tools, and guidance equipment, providing recurring revenue and customer retention that is structurally independent of new rig sales cycles.
• XCMG Group is China's largest and most internationally active HDD equipment manufacturer, competing primarily in the mini-to-maxi rig segments at price points substantially below Western original equipment manufacturer equivalents. XCMG's Foundation Machinery Business Unit produces horizontal directional drilling rigs across a broad thrust range, enabling participation in telecom, water, gas distribution, and pipeline crossing applications across diverse geographic and economic contexts.
• The company's cost-competitive positioning has supported growing export revenues to Belt and Road initiative markets, Southeast Asia, and the Middle East, contributing to a stable and expanding global market share position. XCMG's international expansion strategy encompasses both direct equipment exports and the establishment of regional service networks that provide local after-sales support to contractors in markets where Western manufacturer coverage is limited.
• Herrenknecht AG occupies an uncontested niche as the global leader in mega- and super-class HDD rigs above 500,000 pounds pull force, deployed for the world's largest infrastructure river crossings and offshore pipeline shore approaches where no effective Western or Chinese alternative exists at this scale. The company disclosed the financial structure of its Utility Tunneling division, which encompasses HDD alongside microtunnelling and horizontal auger boring in its annual accounts filed with the Bundestag Lobbyregister.
• Group revenue for 2025 was confirmed at EUR 1,202 million, reflecting the company's sustained position as the premier provider of custom-engineered mega-class trenchless equipment for projects where crossing complexity, diameter, distance, and geological conditions preclude the use of standard manufactured rigs. Herrenknecht's HDD rigs are deployed on the world's largest-diameter and longest-distance crossing projects, giving the company a defensible premium niche despite unit volumes that are modest relative to the high-frequency mini and midi segments.

Horizontal Directional Drilling (HDD) Equipment Market Companies

Major players operating in the horizontal directional drilling (HDD) equipment industry are:

• Vermeer Corporation
• The Toro Company
• Herrenknecht AG
• XCMG Group
• Prime Drilling GmbH
• Tracto-Technik GmbH & Co. KG
• Goodeng Machine Co., Ltd.
• Barbco Inc.
• TT Technologies Inc.
• Drillto Trenchless Co., Ltd.
• Terra AG
• Digital Control Incorporated (DCI)
• Hebei Huayuan Science & Industry Co., Ltd.
• SANY Group
• Universal HDD
• Power Dynamics Innovations (PDI)
• SUNWARD Intelligent Equipment Group
• BAUER Maschinen GmbH
• KLEMM Bohrtechnik GmbH
• Hunan ZLCONN Machinery Co., Ltd.
• Nanjing Steton Engineering Machinery Co., Ltd.

Vermeer Corporation is the second largest Western HDD original equipment manufacturer, headquartered in Pella, Iowa, and operating as a privately held family-owned enterprise. Vermeer's directional drill product range from the compact D10x15 S3 for residential and small utility applications through the large-bore D100x140 S3 for mid-range pipeline crossing and major utility work covers mini, midi, and maxi rig size classes with comprehensive product covering the utility installation and trenchless replacement market segments.

As the sponsor of the Vermeer Confidence Plus dealer support program, the company maintains one of the densest U.S. dealer networks in the underground construction equipment industry, a strategic competitive asset for the BEAD-era broadband contractor expansion. Single broadband operators have been documented running fleets of 60 and more Vermeer HDD rigs simultaneously on BEAD-funded rural broadband construction projects, demonstrating the scale of fleet-level demand that Vermeer's dealer infrastructure is positioned to support through repair, parts supply, and operator training services deployed across dispersed rural construction zones.

Goodeng Machine is a pure-play HDD specialist headquartered in Jiangsu, China, covering the full equipment size spectrum from compact mini rigs for urban utility work to super-class rigs with 12,000-tonne thrust capacity for the world's most demanding infrastructure crossings. Founded in 2002, Goodeng has developed two production facilities in China totaling 150,000 square meters of manufacturing space, complemented by an overseas manufacturing presence in Thailand that supports Southeast Asian market development and reduces logistics costs for regional customers.

The company's large HDD rigs have accumulated operational track record on China's most demanding national energy infrastructure crossings, including the China-Russia East Gas Pipeline, the West-East Gas Pipeline III, and the South-North Water Transfer Project, establishing commercial credentials in mega-scale crossing applications that differentiate Goodeng from the majority of Chinese manufacturers who specialize only in mini and midi segments. Goodeng's overseas expansion into Thailand and Vietnam positions it to capture growing HDD equipment demand from Southeast Asian contractors adopting trenchless technology for national broadband and water infrastructure programs.

Prime Drilling GmbH, based in Lüdenscheid, Germany, is a European specialist in large maxi-class HDD rigs targeting oil and gas pipeline crossings, hydrogen infrastructure installations, and geothermal project applications across the European and international markets. Prime Drilling occupies a strategic niche between Herrenknecht's mega-class rig portfolio and the general maxi segment produced by larger-volume manufacturers, with a product philosophy centered on modular rig design enabling rapid mobilization and field reconfiguration for varying bore diameters and ground conditions encountered across European project environments.

The company is increasingly engaged in European hydrogen pipeline infrastructure projects as Germany advances development of its planned H2 national backbone network, positioning Prime Drilling for potential demand growth in a nascent but strategically significant new application for large-bore HDD equipment as hydrogen infrastructure investment accelerates through the late 2020s. Prime Drilling's European manufacturing base and specialist engineering capability enable effective competition against North American and Chinese maxi-rig producers in the European market, particularly for projects requiring localized technical support and regulatory compliance with EU infrastructure standards.

Horizontal Directional Drilling (HDD) Equipment Industry News

• In July 2026, Building Digital UK confirmed that as of June 2026, 271,460 premises had been built under Project Gigabit contracts, representing just 32% of the program’s 839,340 contracted premises. The disclosure confirms that a substantial majority of the United Kingdom’s rural fiber trenchless construction program, which relies extensively on horizontal directional drilling for cable installation in rural and hard-to-reach terrain, remains ahead in the construction pipeline through at least 2029 and 2030.
• In April 2026, XCMG Group published its 2025 Annual Report to the Shenzhen Stock Exchange, disclosing full-year revenue of CNY 100.82 billion representing 8.37% year-on-year growth. The report confirms that XCMG’s horizontal directional drilling products rank first globally in their category and highlights accelerating export growth to international markets across Belt and Road initiative partner countries in Africa, the Middle East, and Southeast Asia.
• In January 2026, the European Commission’s Gigabit Infrastructure Act (Regulation EU 2024/1265) entered full operational effect across EU member states, streamlining permit requirements for trenchless fiber cable deployment by mandating single-point permitting and reducing inter-operator coordination requirements. The regulation specifically facilitates HDD deployment across European broadband programs in France, Italy, the Netherlands, and Eastern European member states where permitting complexity had previously delayed trenchless construction.
• In December 2025, The Toro Company filed its Annual Report on Form 10-K for Fiscal Year 2025 with the U.S. Securities and Exchange Commission, reporting Professional segment net sales of USD 3.62 billion. Management commentary confirmed results exceeded full-year expectations driven by strength in underground construction, and FY2026 guidance anticipated continued strong demand for underground construction products signaling sustained ordering momentum ahead of peak BEAD broadband construction across the United States.
• In June 2025, the International Energy Agency published World Energy Investment 2025, confirming global upstream oil and gas investment near USD 570 billion and global electricity grid investment approaching USD 479 billion. The report identifies electricity grid investment as the fastest-growing segment of energy capital expenditure, with underground cable infrastructure representing an increasing proportion of total grid spending and generating growing long-term demand for HDD equipment across North America, Europe, and Asia Pacific.

The Horizontal Directional Drilling (HDD) equipment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2022 to 2035, for the following segments:

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Market, by Equipment Type

• HDD drilling rigs/machines
  • Mini HDD rigs (up to 20,000 lbs thrust)
  • Midi HDD rigs (20,001–100,000 lbs thrust)
  • Maxi HDD rigs (100,001–500,000 lbs thrust)
  • Mega/super HDD rigs (>500,000 lbs thrust)
• Drill pipes & rods
• Reamers & cutters
• Steering & guidance systems
• Mud/fluid recycling systems
• Accessories & others

Market, by Drilling Environment

• Onshore
• Offshore/nearshore

Market, by Application

• Oil & Gas
• Water & Wastewater
• Telecommunications & Fiber Optic
• Power & Utilities
• District Heating & Cooling Networks
• Others

Market, by Distribution Channel

• Direct sales
• Indirect sales

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE