June 2026 Vol. 81 No. 6
Editor's Log
Why the HDD industry needs higher professional standards
By Robert Carpenter, Editor-in-Chief
(UI) — Recently, I read an interesting – if not surprising – study from a research firm regarding the global horizontal directional drilling industry. It claims that the overall HDD market was valued at $8.18 billion in 2024 and is projected to nearly double to $16.08 billion by 2030. The study further states that Asia-Pacific is expected to be the fastest-growing regional market through 2030, while Europe continues to see steady demand tied to environmental regulations and urban utility upgrades.
I've seen other studies that, while not as lofty as this one, agree that HDD is a multi-billion-dollar market that will continue its incredible growth vector over the next decade. Based upon projections from our own proprietary HDD market survey, industry participants are extremely excited about business opportunities over the next several years. See Underground Infrastructure's full 28th Annual Horizontal Directional Drilling Survey 2026 in this issue.
Our estimate places North American as the largest global HDD market – by far – accounting for roughly 38 percent of the industry. As explained in the survey report, four major market drivers are whipping up an already strong market into overtime in 2026 with Broadband Equity, Access and Deployment (BEAD) money being released, electric hardening efforts reaching full speed, data center construction pressing forward and pipeline work experiencing a rebound.
Due to a variety of obstacles, one of the last major markets to start utilizing HDD for underground installation is power transmission lines due to historically high costs. However, that is being overcome at a fast pace. HDD for power lines has been used for many years when it comes to electric distribution lines as an acceptable and practical solution. The shielded lines are installed typically at a shallow level so small rig HDD units are perfect for installation.
Transmission lines are another story as the large cables generate low-grade heat and confining them inside a conduit eventually leads to overheating and line damage. There are optimal temperature depths, called thermal zones, to mitigate heat dissipation that power transmission lines try to parallel when possible, using HDD. It requires precision drilling, but veteran operators have proven adept in maintaining a bore path through these zones.
Also, a variety of highly effective thermal grouts are now available that aid transmission conduit in dissipating heat into the surrounding soils. There is even conduit available that allows heat to dissipate, as well. The point is that using mid-to-large HDD rigs to install electrical transmission cables can now be accomplished underground or under bodies of water precisely, effectively and increasingly economically.
However, despite strong momentum, the HDD industry faces many challenges and potential hiccups on the path to what should prove to be another record year. Labor is still a major issue and, depending upon the work, high upfront equipment costs can be an inhibitor.
Damage prevention issues continue to plague directional drilling, particularly for smaller rigs installing fiber lines. Underground Infrastructure regularly follows nationwide reports of cities banning HDD due to complaints and problems with fiber contractors punching through water and sewer pipes like Swiss cheese. It is not unusual for HDD to be banned within city limits, effectively creating "dead zones" for future HDD work in the area.
"Perhaps the most potentially damaging and risky problems are crossbores, so-called when operators drill unwittingly through pipes."
When a fiber line "crosses" through water or sewer pipes, it can cause eventual pipe failures. But the most destructive issue is when a fiber line is drilled through a gas line leading to dangerous, destructive and sometimes fatal explosions. The industry has mitigation techniques to check for crossbores immediately after installation but unfortunately, these safety procedures are rarely required until after the fact.
Other HDD problems persist as well, creating inhibitors to growth and success for the market in general. We learned this during the fiber long-haul boom of the late 1990s-2001 when rookie drillers were everywhere, taking on projects without much business acumen. It makes one wonder if history is beginning to repeat itself.
Today, we run across far too many inexperienced contractors causing too many problems, including (but not limited to): unsafe operations, sloppy job performance, crossbores, inefficient job execution, damage to adjacent utilities and poor business culture in general. Rarely are these problems intentional, but most could be avoided by proper preparation to enter or grow in the market.
"It's time for industry to take control of itself and initiate important, critical steps to minimizing risks and improving the overall quality – and reputation – of HDD."
Leading a proactive charge to better professionalize the market is the Horizontal Directional Drilling Association (HDDA). It is nearing completion of a program called HDD Direct. The goal is to provide critical and essential training for both established contractors, along with newcomers to the industry, via a series of online training modules. Successfully completing the modules will earn HDD Direct certification.
HDD Direct will tentatively be unveiled late in the year after an aggressive beta testing period. A proactive industry with a solid plan is something the market should fully embrace. There is already strong support for such a program in the contractor community and increasingly, utilities are also expressing an interest in the benefits it could bring to their projects and communities.
"Operating safely, in a more professional manner, understanding risks and avoiding accidents is the recipe to fuel a healthy, safe and ultimately, more profitable environment for all."
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