The global offshore drilling market size was valued at $40.04 billion in 2024 & is projected to be worth $43.78 billion in 2025 and reach $69.34 billion by 2032

The Offshore Drilling Market Report is Segmented by Type (Jackups, Semisubmersible, Drill Ships, and Platform/Barge and Others), Depth (Shallow and Deepwater and Ultra-Deepwater), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

The global offshore drilling market size is projected to grow from USD 123.33 billion in 2025 to USD 158.67 billion by 2033, exhibiting a CAGR of 3.2%.
Report Scope:

The Offshore Drilling Rigs Market is segmented by Type (Jackups, Semisubmersibles, Drill Ships, and Other Types), Water Depth (Shallow Water and Deepwater and Ultra-Deepwater), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts in revenue (USD) for all the above segments.

The global offshore drilling market was valued at USD 37.95 Billion in 2024. The industry is expected to grow at a CAGR of 7.20% during the forecast period of 2025-2034. Global oil prices have undergone a significant upturn and triggered growing investments in offshore drilling, with deepwater exploration, and extraction becoming more economically viable for the energy companies. In turn, all these factors have resulted in the market attaining a valuation of USD 76.06 Billion by 2034.

Global Offshore Drilling Market was valued at USD 35.7 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 5.4% through 2029

The Offshore Drilling market was valued at USD 39,865 Million in 2024 and is projected to grow to USD 48,731 Million by 2030, with a compound annual growth rate (CAGR) of 3.3% from 2025 to 2030

Offshore Oil and Gas Drilling Market Outlook

The global offshore oil and gas drilling market size was valued at approximately USD 50 billion in 2023 and is projected to reach USD 75 billion by 2032, growing at a CAGR of around 4.5% during the forecast period. This growth can be attributed to several factors, including increasing energy demand, technological advancements, and rising investments in offshore exploration activities.

One of the primary growth factors driving the offshore oil and gas drilling market is the increasing global demand for energy. With the world population continuing to grow and industrialization on the rise in developing countries, the need for energy is ever-increasing. Offshore drilling plays a crucial role in meeting this demand by providing access to vast reserves of oil and gas that are otherwise inaccessible. Additionally, offshore reserves are relatively untapped compared to onshore reserves, offering a significant opportunity for exploration and production companies.

Technological advancements in drilling techniques and equipment are also propelling the market. Innovations such as enhanced drilling rigs, improved safety measures, and advanced subsea technologies are making offshore drilling more efficient and cost-effective. These advancements are reducing the risks and challenges associated with offshore drilling, thereby attracting more investments from oil and gas companies. Technologies like remote monitoring and automation are further enhancing the operational efficiency, making offshore drilling a more viable option for energy extraction.

Investment in offshore exploration activities is another significant growth driver. Governments and private companies are increasingly investing in offshore projects to tap into new reserves and boost their production capacities. Regions like the Gulf of Mexico, the North Sea, and offshore Brazil have seen substantial investments in recent years. These investments are not only aimed at drilling new wells but also at upgrading existing infrastructure to enhance production efficiency and safety.

Oil Platform technology has been pivotal in advancing offshore drilling capabilities. These platforms serve as the operational base for drilling, housing equipment, crew, and providing a stable structure for various drilling operations. The design and construction of oil platforms have evolved significantly over the years, incorporating advanced materials and engineering techniques to withstand harsh marine environments. This evolution has enabled the industry to explore and produce oil and gas from increasingly challenging offshore locations. The integration of digital technologies and automation has further enhanced the efficiency and safety of operations on these platforms, making them indispensable assets in the offshore oil and gas industry.

From a regional perspective, North America holds a substantial share of the offshore drilling market, primarily due to the significant oil and gas reserves in the Gulf of Mexico. Similarly, regions such as the Middle East and Africa, with their vast reserves and favorable government policies, are also witnessing considerable growth. The Asia Pacific region is expected to see robust growth due to increasing energy demands from countries like China and India, coupled with ongoing exploration activities in offshore areas. Europe, particularly the North Sea, continues to be a significant player, although regulatory challenges may impact growth to some extent.

Type Analysis

The offshore oil and gas drilling market can be segmented by type into jackups, semisubmersibles, drillships, and others. Jackups are portable, self-elevating drilling platforms equipped with legs that can be lowered to the seabed. They are predominantly used for shallow water drilling and are favored for their cost-effectiveness and operational efficiency. The demand for jackups is expected to remain strong, driven by the increasing number of shallow water projects in regions like the Middle East and Southeast Asia. These platforms are relatively simple to operate and maintain, making them a popular choice among drilling contractors.

Semisubmersibles are floating drilling rigs that can operate in deeper waters compared to jackups. They are highly versatile and can be used in a variety of water depths, making them suitable for both shallow and deepwater drilling. The demand for semisubmersibles is anticipated to grow, particularly in regi

The global offshore drilling market is projected to reach a valuation of approximately USD 100 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.2% from 2025 to 2033.

Offshore Drilling Market Outlook

The global offshore drilling market size was valued at approximately USD 86 billion in 2023, and it is projected to reach around USD 122 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.0%. The growth of the offshore drilling market is primarily driven by increasing energy demand and technological advancements in drilling techniques. Governments and private sectors worldwide are investing heavily in offshore projects to tap into untapped hydrocarbon reserves, which is a significant growth factor for this market.

One of the primary growth drivers in the offshore drilling market is the surging demand for energy across the globe. As countries continue to develop and urbanize, the need for energy resources increases correspondingly. Offshore drilling provides access to substantial oil and gas reserves that are not available onshore, making it a vital component of the global energy supply chain. The growing energy consumption in emerging economies such as China and India is particularly propelling the demand for offshore drilling services. Additionally, the depletion of onshore reserves is pushing exploration and production (E&P) companies to venture into deeper and more challenging offshore environments.

Technological advancements have also played a crucial role in the expansion of the offshore drilling market. Innovations in drilling technologies, such as enhanced drilling rigs, advanced well control systems, and real-time data monitoring, have significantly improved the safety, efficiency, and cost-effectiveness of offshore drilling operations. The development of floating production storage and offloading (FPSO) units and subsea processing systems has further facilitated the exploration and production of hydrocarbons in deep and ultra-deepwater regions. These technological advancements mitigate the risks associated with offshore drilling and boost investor confidence, thereby driving market growth.

The increasing investments by major oil and gas companies in offshore drilling projects are another critical factor contributing to the market's growth. Companies such as ExxonMobil, BP, and Shell are investing heavily in offshore exploration and production to discover new reserves and maintain their production levels. The rising oil prices, coupled with the need to replenish depleting reserves, are encouraging these companies to explore offshore regions. Additionally, favorable governmental policies and incentives for offshore exploration, such as tax benefits and subsidies, are further propelling the market's growth trajectory.

Regionally, the offshore drilling market exhibits significant variations in growth rates and opportunities. The Asia Pacific region is expected to witness substantial growth due to increasing energy demand and ongoing exploration activities in countries such as China, India, and Australia. North America, particularly the Gulf of Mexico, remains a key region for offshore drilling, driven by technological advancements and significant investments in deepwater and ultra-deepwater projects. Europe also presents attractive growth opportunities, especially in the North Sea and the Mediterranean, where extensive exploration activities are being carried out. The Middle East & Africa region is expected to experience moderate growth, supported by the availability of vast hydrocarbon reserves and ongoing investments in offshore projects.

Type Analysis

In the offshore drilling market, the type segment includes jackups, semisubmersibles, drillships, and others. Jackups, also known as jackup rigs, are among the most commonly used types of offshore drilling rigs, especially in shallow water. These rigs are mobile and can be moved from one location to another, making them highly versatile and cost-effective for shallow water drilling operations. Jackups typically rest on the seabed with their legs, providing a stable platform for drilling activities. The demand for jackups is driven by their suitability for shallow water drilling and the relatively lower costs compared to other types of rigs.

Semisubmersibles are another important type of offshore drilling rig, used primarily for deepwater and ultra-deepwater drilling. These rigs are designed to float on the water surface while being anchored to the seabed, providing stability in rough sea conditions. Semisubmersibles are known for their ability to operate in harsh environments and deep waters, making them ideal for exploration in challenging offshore regions. The demand for semisubmersibles is expected to grow as exploration activities conti

Offshore Drilling market has been steadily increasing over recent years, and forecasts suggest a substantial growth trajectory in the upcoming period.

Offshore Drilling Market Outlook

According to our latest research, the global offshore drilling market size reached USD 33.8 billion in 2024, with a robust growth trajectory driven by rising energy demand and technology advancements. The market is expected to maintain a compound annual growth rate (CAGR) of 6.1% from 2025 to 2033, projecting a value of approximately USD 57.2 billion by 2033. This impressive expansion is primarily fueled by increasing investments in offshore exploration, the revival of mature oil fields, and the need to secure energy supplies amid volatile geopolitical scenarios.

One of the primary growth factors propelling the offshore drilling market is the continuous surge in global energy consumption. As nations strive to meet escalating energy needs, particularly in rapidly developing economies across Asia Pacific and Latin America, the demand for oil and gas exploration in offshore reserves has intensified. Offshore drilling offers access to vast untapped hydrocarbon resources, which is critical as onshore reserves become increasingly depleted. Additionally, the transition towards cleaner fuels such as natural gas, which is often sourced from offshore fields, further bolsters the marketÂ’s expansion. The increasing adoption of advanced drilling technologies, such as measurement while drilling (MWD) and logging while drilling (LWD), enhances operational efficiency and safety, making offshore exploration more economically viable and attractive for investors.

Another significant growth driver is the technological evolution within the offshore drilling sector. Innovations in rig design, automation, and remote monitoring have drastically improved the safety, efficiency, and environmental sustainability of offshore operations. Enhanced rig mobility and the deployment of semi-submersibles and drillships capable of operating in ultra-deepwater environments have unlocked new exploration frontiers. Moreover, the integration of digital solutions, including real-time data analytics and predictive maintenance, has reduced downtime and operational costs. These technological advancements are pivotal in enabling operators to venture into deeper and more challenging waters, thereby expanding the addressable market for offshore drilling services.

Furthermore, the market is witnessing renewed interest from major oil and gas companies, driven by favorable crude oil prices and the strategic imperative to diversify supply sources. Geopolitical uncertainties and supply chain disruptions highlight the importance of securing stable energy supplies, prompting governments and private players to invest in offshore projects. The development of large-scale offshore oil and gas fields, particularly in regions like the North Sea, Gulf of Mexico, and offshore Brazil, is expected to sustain robust demand for offshore drilling services. Additionally, supportive regulatory frameworks and government incentives in several countries are encouraging exploration activities, further contributing to market growth.

Deepwater Exploration is becoming increasingly significant as the offshore drilling industry seeks to tap into new resources to meet global energy demands. This type of exploration involves drilling in water depths typically ranging from 1,000 to 5,000 feet, which presents unique technical and operational challenges. Advances in technology have made deepwater projects more feasible, allowing companies to explore previously inaccessible areas. The Gulf of Mexico, offshore Brazil, and West Africa are key regions where deepwater exploration is gaining momentum. These areas are known for their rich hydrocarbon potential, making them attractive targets for oil and gas companies looking to diversify their portfolios and secure long-term supply sources. As the industry continues to innovate and adapt, deepwater exploration is expected to play a crucial role in the future of offshore drilling.

From a regional perspective, the offshore drilling market is dominated by established hubs such as North America and the Middle East, but emerging markets in Asia Pacific and Latin America are rapidly gaining prominence. North America, led by the Gulf of Mexico, continues to attract substantial investments due to its mature infrastructure and favorable regulatory environment. Meanwhile, Asia Pacific is experiencing accelerated gr

Discover the booming offshore drilling market projected to reach $124.88 billion by 2033, growing at a CAGR of 6.78%. This in-depth analysis reveals key drivers, trends, and challenges impacting major players like Transocean and Hyundai Heavy Industries. Explore regional market shares and future projections. Key drivers for this market are: 4., Increasing Global Energy Demand4.; Exploration of Untapped Offshore Reserves. Potential restraints include: 4., Environmental Concerns and Regulations. Notable trends are: Deepwater and Ultra-deepwater Segment to Witness Significant Growth.

The offshore drilling services market is booming, projected to reach $218.26 billion by 2033 with a CAGR of 11.1%. This comprehensive analysis explores market drivers, trends, restraints, and key players like Schlumberger and Halliburton, covering regions including North America, Europe, and Asia-Pacific. Discover insights into jackup and semi-submersible segments.

The offshore oil and gas drilling market, valued at $890.5 million in 2025, is projected to experience steady growth, driven by increasing global energy demand and the exploration of new offshore reserves. A Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033 indicates a substantial market expansion. This growth is fueled by technological advancements in deepwater and ultra-deepwater drilling technologies, enabling exploration in previously inaccessible areas. The rising adoption of environmentally friendly drilling techniques and a focus on improving operational safety are further positive catalysts. However, fluctuating oil prices, stringent environmental regulations, and the increasing focus on renewable energy sources pose significant challenges to market growth. The market is segmented by application (shallow water, deepwater, ultra-deepwater) and rig type (drill ship, semi-submersible, jack-up), with deepwater and ultra-deepwater segments expected to show higher growth rates due to their potential for large-scale discoveries. Geographically, North America and the Asia-Pacific region are expected to dominate the market share, although growth opportunities exist across all regions, especially in areas with significant untapped reserves. The competitive landscape includes major players like Transocean, Seadrill, Noble Corporation, and others, constantly vying for market share through technological innovation and strategic partnerships. The competitive intensity within the offshore oil and gas drilling sector is likely to intensify. Companies are focusing on enhancing operational efficiency and reducing costs to maintain profitability amidst fluctuating oil prices. The transition towards more sustainable drilling practices will require significant investment in new technologies and operational changes. Companies that successfully adapt to these evolving market dynamics and effectively mitigate environmental and regulatory risks will be best positioned for long-term success. The increasing integration of digital technologies, such as data analytics and automation, will also play a pivotal role in optimizing operations and improving decision-making processes. Strategic acquisitions and mergers are also expected to reshape the market landscape, leading to consolidation among key players.

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Offshore Drilling Market Size 2024-2028

The offshore drilling market size is forecast to increase by USD 8.18 billion at a CAGR of 4.42% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing demand for oil and natural gas. Mechanical processes on the sea bed for oil and gas extraction continue to evolve, enabling exploration in deeper waters and harsher environments. However, the environmental implications of offshore E and P activities remain a challenge, with concerns over fuel consumption and greenhouse gas emissions. The market is experiencing growth, driven by the increasing use of mobile offshore drilling units and the rising demand for shale gas exploration and production. The ocean floor's fragile ecosystems and potential impacts on marine life require careful consideration. The offshore oil supply chain faces complex logistical challenges, including transportation and infrastructure development. As the industry adapts to these trends and challenges, innovation and technological advancements will play a crucial role in minimizing environmental impact and maximizing efficiency.

What will be the Size of the Offshore Drilling Market During the Forecast Period?

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The market is driven by the increasing energy demand and the need for oil production from hydrocarbon resources located in deep and shallow waters. Energy consumption is a significant factor, in the transportation sector, particularly the growing adoption of electric vehicles, shifting towards renewable energy sources. However, the transition to green energy is not expected to impact the market significantly In the short term. Drillships technology plays a crucial role in deepwater resource development, enabling exploration in areas with complex geological conditions. Automation and robotics are being increasingly adopted to enhance drilling efficiency and reduce operational costs. Petrobras and other energy companies continue to secure exploration contracts for both Deepwater And Ultra-Deepwater Drilling.
Environmental implications are a concern for offshore drilling, with seismic blasting and oil spills posing risks to marine ecosystems. Environmental agencies are implementing stricter regulations to mitigate these risks. Controlled pressure drilling and the use of advanced technologies, such as the sea bed drilling system, are helping to minimize environmental impact. The market is expected to continue its growth, driven by energy security concerns and the need to meet global hydrocarbon demand.

How is this Offshore Drilling Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Shallow water
  Deepwater
  Ultra deepwater


Type

  Jack up rigs
  Semisubmersibles
  Drill ships
  Others


Geography

  North America

    US


  Middle East and Africa



  Europe



  APAC

    China


  South America

By Application Insights

The shallow water segment is estimated to witness significant growth during the forecast period.

The shallow water segment of the market is experiencing significant growth due to several factors. Shallow water drilling, which refers to depths of up to 500 feet, has been a long-standing practice since the mid-20th century. Compared to deepwater and ultra-deepwater drilling, shallow water drilling is considered safer as oil spills are rare and less complex, leading to improved safety and economic viability. With the increasing natural gas demand and the global energy sector's shift towards reducing carbon emissions, the role of offshore drilling in meeting energy requirements is more crucial than ever.

In shallow water, drillships and submersibles are commonly used due to the requirement for their structures to rest on the seabed. These factors are expected to drive the expansion of exploration activities in shallow water during the forecast period.

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The Shallow water segment was valued at USD 17.70 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 40% to the growth of the global market during the forecast period.

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the market, North America holds significant importance, with Mexico and the United States being the primary contributors in 2023. The region's market growth is anticipated to accelerate over the for

Offshore Drilling Rigs Market - Global Industry Insights, Size, Share, Trends, Outlook, and Opportunity Analysis

Offshore Contract Drilling Market size was valued at USD 112.28 Billion in 2023 and is projected to reach USD 147.90 Billion by 2031, growing at a CAGR of 3.2 % during the forecast period 2024-2031.

Global Offshore Contract Drilling Market Drivers

The market drivers for the Offshore Contract Drilling Market can be influenced by various factors. These may include:

Demand for Oil and Gas: The main factor influencing exploration and production efforts is the need for oil and gas. The demand for contract drilling services is increased when oil and gas prices are high and stable because oil corporations are more likely to invest in offshore drilling projects.

Oil and Gas Prices: The profitability of offshore drilling projects is greatly impacted by fluctuations in the price of oil and gas. An increase in the cost of oil and gas makes offshore production and exploration more appealing, which raises the need for contract drilling rigs.

Technological developments: Drilling technology advancements increase productivity, security, and the capacity to reach previously unreachable reserves. The breadth of offshore drilling projects has increased because to advanced drilling techniques like horizontal and deepwater drilling, which has increased demand for specialist drilling rigs and services.

Regulatory Environment: The market is influenced by government laws and policies, especially those that deal with environmental preservation and the safety of offshore drilling. While liberal restrictions might promote investment in offshore drilling activities, strict regulations may result in increased operating costs and project timeframes.

Global Energy Trends: Changes in the way the world consumes energy, such as the growing need for clean energy sources and the move toward renewable energy, have an effect on the choices made by investors in the oil and gas industry. Nonetheless, offshore drilling is still necessary to supply the world's energy needs, particularly in areas with sizable offshore reserves.

Geopolitical Factors: Supply networks can be disrupted and oil prices can be affected by political instability, conflicts, and sanctions in major oil-producing nations. These factors can then have an impact on offshore drilling activity. Geopolitical concerns can also affect project timetables and investment decisions in offshore production and exploration.

Capital Expenditure by Oil Firms: The degree of activity in the offshore contract drilling industry is mostly determined by the financial standing and investment priorities of oil and gas firms. The demand for contract drilling services is influenced by company strategies, capital expenditure budgets, and finance availability.

Global Economic Conditions: The general investment climate for oil and gas projects is influenced by macroeconomic factors like economic growth, inflation rates, and currency volatility. Robust economic expansion usually results in elevated energy usage and heightened need for offshore drilling assistance.

Natural Disasters and Weather Patterns: Unfavorable weather patterns and natural disasters like hurricanes, storms, and tsunamis can affect offshore drilling operations. These occurrences may impede drilling operations, harm machinery, and result in delays, all of which may affect the dynamics of supply and demand in the market.

Environmental Concerns and Social License: Increasing public knowledge and concern about environmental protection, climate change, and the effects of offshore drilling on ecosystems have an impact on business plans and regulatory decisions. Pressure to implement sustainable practices and reduce environmental risks related to offshore drilling operations is mounting on oil and gas businesses.

The Report Covers the Offshore Drilling Equipment Market Size & Share, and It is Segmented by Type (Drilling Rig, Drilling Platforms, Drill Bits, Shale Shakers, Blowout Preventers, Others), and Geography (North America, Europe, Asia Pacific, South America, Middle East and Africa). The Report Offers the Market Size and Forecasts in Revenue (USD) for all the Above Segments.

Offshore Drilling Rig Market Outlook

As per our latest research, the global offshore drilling rig market size in 2024 stands at USD 32.5 billion, reflecting the robust nature of the industry. The sector is projected to grow at a CAGR of 5.1% from 2025 to 2033, reaching a forecasted market value of USD 50.7 billion by the end of the period. This growth is largely attributed to the increasing demand for energy, ongoing technological advancements, and the resurgence of exploration activities in untapped offshore reserves. As the world continues to transition towards a balanced energy mix, offshore drilling rigs remain a cornerstone for meeting global hydrocarbon needs.

The primary growth factor driving the offshore drilling rig market is the sustained global demand for oil and natural gas. Despite the accelerating pace of renewable energy adoption, hydrocarbons remain a critical component of the global energy portfolio, particularly for industrial and transportation sectors. The depletion of onshore reserves and the discovery of significant deepwater and ultra-deepwater fields have shifted the focus of major oil and gas players towards offshore exploration. These developments, coupled with the rising energy consumption in emerging economies, are compelling oil companies to invest heavily in offshore drilling activities, thus fueling market expansion.

Technological innovation is another significant catalyst underpinning the growth of the offshore drilling rig market. Modern rigs are increasingly equipped with advanced automation, digital monitoring systems, and enhanced safety features, which not only improve operational efficiency but also minimize environmental risks. The introduction of next-generation drillships and semi-submersible rigs has enabled operators to access deeper and more challenging reservoirs. Moreover, the integration of real-time data analytics and remote operations has revolutionized maintenance and troubleshooting processes, reducing downtime and operational costs. These technological advancements are making offshore drilling more economically viable, even in volatile market conditions.

A third major growth driver is the strategic investments and policy support from national governments and international bodies. Many countries with significant offshore potential, particularly in regions like the Middle East, West Africa, and Southeast Asia, are implementing favorable regulatory frameworks and offering incentives to attract foreign direct investment in offshore exploration. These initiatives are complemented by the entry of independent oil companies and private equity firms, which are bringing in fresh capital and innovative business models. The combined effect of supportive policies and diversified investment is accelerating project approvals and rig deployments, thereby enhancing the overall growth trajectory of the offshore drilling rig market.

Drilling Rig Subs play a crucial role in the offshore drilling industry, providing essential components that connect various parts of the drilling assembly. These subs are integral for adapting different sizes of drill pipes and tools, ensuring seamless operations in complex drilling environments. As the offshore drilling industry continues to evolve, the demand for high-quality and durable drilling rig subs is on the rise. Innovations in material science and engineering are leading to the development of subs that can withstand extreme pressures and temperatures, thereby enhancing the safety and efficiency of drilling operations. The growing focus on deepwater and ultra-deepwater exploration further underscores the importance of robust drilling rig subs, as they are critical for maintaining the integrity of the drilling assembly in challenging conditions.

From a regional perspective, the offshore drilling rig market is witnessing dynamic shifts, with Asia Pacific and the Middle East & Africa emerging as key growth engines. Asia Pacific, driven by countries like China, India, and Indonesia, is investing aggressively in offshore exploration to meet its burgeoning energy needs. The Middle East & Africa region, home to some of the worldÂ’s largest offshore reserves, is also ramping up drilling activities, buoyed by rising oil prices and strategic diversification initiatives. Meanwhile, North America and Europe continue to maintain a signif