Enjoy complimentary customisation on priority with our Enterprise License!
The Offshore Support Vessel Market size is forecast to increase by USD 629.3 million at a CAGR of 6.08% between 2023 and 2028. Market growth hinges on several factors, notably the escalating global demand for oil and gas storage and natural gas, driving investments in exploration and production (E&P) activities. With the rise in deep-water and ultra-deep-water E&P ventures, companies are tapping into previously untapped reserves, bolstering supply chains, and expanding production capabilities. Additionally, the boost in oil and gas exploration activities reflects the industry's efforts to meet growing energy needs while leveraging advanced technologies for resource extraction. These trends underscore the sector's resilience and adaptability, positioning it for sustained growth amidst fluctuating market dynamics. As the quest for energy security continues, the oil and gas market remains a key driver of global economic development, shaping the future of energy production and consumption worldwide.
In the market, drivers include the rise in deepwater activities and offshore oil and gas production processes. Trends indicate a shift towards renewables like offshore wind farms, impacting traditional oil and gas companies. Challenges include pricing pressures due to overcapacity and fluctuations in carbon emissions regulations. Companies like Hermitage Offshore Services face challenges in maintaining profitability amidst rising operating costs and decommissioning efforts. Adapting to logistical demands and equipping vessels for diverse tasks remain crucial amid evolving offshore platforms and wind turbine installations. In the realm of offshore support vessels, market segmentation is crucial to meet the diverse needs of the industry. With a focus on deepwater activities and offshore oil production processes, specialized (Offshore Support Vessel) OSVs play a pivotal role in supporting exploration and extraction operations. As decommissioning becomes increasingly important, companies require OSVs equipped for efficient and safe asset removal. With a growing emphasis on renewables and reducing carbon emissions, OSVs supporting offshore wind farms are in high demand. However, challenges like overcapacity and pricing pressures affect profitability for OSV operators serving oil and gas companies. Innovations in logistics and equipment are essential to adapt to evolving demands in offshore oil and gas platforms and offshore wind turbines, ensuring the efficiency and effectiveness of OSV operations in this dynamic market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market share growth by the AHTS segment will be significant during the forecast period. The AHTS segment was valued at USD 775.30 million in 2018. Offshore supply vessels, specifically Platform Supply Vessels (PSV) and Anchor Handling and Tug Supply (AHTS) vessels, play a crucial role in the offshore industry. These vessels provide essential services to offshore rigs, including the transportation of anchors for stability during Exploration and Production (E and P) activities and tugs for towing rigs between locations. Additionally, AHTS vessels are outfitted with winches to move heavy equipment and machinery on deck. The market for offshore supply vessels is projected to expand due to the rising demand for offshore oil and gas exploration, particularly in deep-water and ultra-deep-water locations.
Get a glance at the market share of various regions Download the PDF Sample
Regional Analysis
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 55% 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. North America dominated the focused regional market in 2023. It is expected to maintain its dominance during the forecast period. The region's shale revolution has caused oil prices to plummet, but a modest rise has led the region to resume deepwater and ultra-deepwater oil and gas projects in the Gulf of Mexico. This could encourage the chartering of offshore supply vessels in the region.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the rise in global demand for oil and natural gas. The global demand for oil and natural gas is increasing steadily owing to improvements in global economic growth. Though the costs involved in the production of oil and gas from offshore locations are higher than those of onshore locations, the proven reserves in offshore wells are far higher when compared to onshore wells. These vast reserves are expected to attract upstream companies to exploit and produce oil and gas. In addition, with the rise in fuel consumption and management from developing economies such as China and India, the demand for natural gas is expected to grow significantly during the forecast period.
Reduction in cost of offshore E&P activities is one of the key market trends that is expected to impact the industry positively. Though this increase is not yet significant enough to revive investments in global directional drilling projects to pre-2020 levels, it is sufficient to cause a moderate increase in the global count of active offshore rigs. The biggest factor that bodes well for offshore E&P activities and the demand for new technological and managerial initiatives taken by oil E&P companies that have decreased the cost of offshore exploration, drilling, and production.
Thus, offshore rig operators have started to operate wells that were previously not commercially viable. This is expected to lessen the impact of onshore fracturing activities on global offshore E&P activities. As a result, investments in offshore projects can be taken with more certainty. This trend is likely to positively impact the demand during the forecast period.
One of the key challenges to market growth is the environmental concerns associated with offshore E&P activities. Factors such as, owing to the pollution of air and water by the accidental release of toxic chemicals and global warming due to large emissions of greenhouse gases such as methane. In addition, in offshore drilling, produced water accounts for about one-fifth of the waste generated during the process. Offshore exploration activities also involve the firing of air guns, which send a strong shock across the seabed and can damage the hearing ability of marine animals.
Moreover, fracking also produces large amounts of wastewater that contains dissolved chemicals and contaminants. The global warming potential of methane is far higher than that of carbon dioxide. There is uncertainty about the amount of methane that is released into the atmosphere during the fracking process, and it cannot be captured. Such factors are expected to limit the growth of the market in the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AP Moller Maersk AS: The company has an offshore support vessel, vega, which includes carrying and transporting large quantities of cargo.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the dynamic Offshore Support Vessels (OSVs) market, a wide array of vessels cater to diverse needs within the oil and gas sector and offshore wind projects. From crew vessels facilitating personnel transport to standby and rescue vessels ensuring safety, each vessel type serves a specific function in supporting offshore operations. Seismic vessels conduct crucial surveys while diving support vessels enable underwater maintenance. Innovations like remotely operated vessels and subsea intervention systems enhance efficiency and safety. With the rise of renewable oil and gas sources, OSVs also support offshore structures for these projects. Major players like Swire Pacific Offshore drive advancements in subsea equipment and remotely operated vehicles, ensuring operational excellence in decommissioning work and offshore drilling rigs maintenance. As the industry expands with new contracts and expansions, OSVs remain indispensable for offshore operations worldwide.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
181 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 6.08% |
|
Market growth 2024-2028 |
USD 629.3 million |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
5.36 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 55% |
|
Key countries |
US, Germany, China, Canada, and UAE |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
AP Moller Maersk AS, BOURBON Maritime, China National Offshore Oil Corp., COSCO Shipping Ports Ltd, Damen Shipyards Group, DP World, Eastern Shipbuilding Group Inc., Edison Chouest Offshore Co., Fincantieri Spa, Harvey Gulf International Marine LLC, Hornbeck Offshore Services Inc., John Swire and Sons Ltd., Kawasaki Kisen Kaisha Ltd., Nam Cheong Ltd., Reliance Naval and Engineering Ltd., Siem Offshore Inc., Singapore Technologies Engineering Ltd., Solstad Offshore ASA, Tidewater Inc., and Zamil Offshore Services Co. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
