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Water Well Drilling Services in the US Industry Data and Analysis
Water well drilling contractors are navigating a period where structural demand is strong but operating conditions are increasingly complex. Federal spending under the Infrastructure Investment and Jobs Act has pumped billions into water systems, boosting work tied to new wells, replacements and contamination‑focused upgrades. At the same time, persistent drought in key agricultural regions and surging material costs have reshaped how contractors price jobs, manage projects and pursue growth, forcing the industry to balance opportunity against rising risk and volatility. Overall, industry-wide revenue has been growing at a CAGR of 1.7% over the past five years and is expected to total $9.9 billion in 2026, when revenue will rise by an estimated 1.9%.
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What's included in this industry analysis
IBISWorld's research coverage on the Water Well Drilling Services industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released June 2026.
About this industry
What's this industry report about?
The Water Well Drilling Services industry in the United States operates under the NAICS industry code OD6130. This industry comprises operators primarily engaged in the construction of water wells. The work performed may include new work, reconstruction, rehabilitation and repairs. Specialty trade contractors are included in this group if they are engaged in activities primarily related to water well drilling. Related terms covered in the Water Well Drilling Services industry in the United States include subcontractor, tender and design-build.
What's included in this industry?
Products and services covered in Water Well Drilling Services industry in the United States include Building construction, Water mains and related facilities construction and Other nonbuilding construction.
What companies are included in this industry?
The Water Well Drilling Services industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Water Well Drilling Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Water Well Drilling Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Water Well Drilling Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Water Well Drilling Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Water Well Drilling Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Water Well Drilling Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Water Well Drilling Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Water Well Drilling Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Water Well Drilling Services industry in the United States in 2026?
The market size of the Water Well Drilling Services industry in the United States is $9.9bn in 2026.
How many businesses are there in the Water Well Drilling Services industry in the United States in 2026?
There are 7,622 businesses in the Water Well Drilling Services industry in the United States, which has grown at a CAGR of 3.9 % between 2021 and 2026.
How may import tariffs affect the Water Well Drilling Services industry in the United States?
The Water Well Drilling Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Water Well Drilling Services industry in the United States?
The Water Well Drilling Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Water Well Drilling Services industry in the United States grown or declined over the past 5 years?
The market size of the Water Well Drilling Services industry in the United States has been growing at a CAGR of 1.7 % between 2021 and 2026.
What is the forecast growth of the Water Well Drilling Services industry in the United States over the next 5 years?
Over the next five years, the Water Well Drilling Services industry in the United States is expected to grow.
What does the Water Well Drilling Services industry in the United States include?
Drilling water wells (except water intake wells in oil and gas fields) and Water well drilling, digging, boring or sinking (except water intake wells in oil and gas fields) are part of the Water Well Drilling Services industry in the United States.
How competitive is the Water Well Drilling Services industry in the United States?
The level of competition is moderate and steady in the Water Well Drilling Services industry in the United States.
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