PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1235890
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1235890
According to Stratistics MRC, the Global Offshore Support Vessel Market is accounted for $23.32 billion in 2022 and is expected to reach $33.07 billion by 2028 growing at a CAGR of 6% during the forecast period. A ship known as an offshore support vessel was created specifically to supply oil and gas drilling rigs. Offshore support vessels are utilised for a variety of duties, including the transportation of supplies, personnel, tools, and equipment from and to offshore oil platforms as well as other offshore buildings. They are 50 to 100 metres long.
According to the Oil & Gas UK, an offshore oil & gas industry association in the UK, decommissioning of this infrastructure would cost up to USD 80 billion. Globally, there are approximately 7,000 offshore structures that are eligible for decommissioning. According to Scottish Development International, the CAPEX for new offshore developments in Asia Pacific is set to be about 25% of the global spending, making the region an important part of the offshore industry.
One of the main factors propelling expansion of the worldwide offshore support vessel market is the rise in deep water oil and gas exploration and production (E&P) operations on a global scale. Other factors anticipated to contribute to the development of the global offshore support vessel market are increasing demand for fuel and energy around the world, improvements in offshore support vessels such as their ability to operate in hash environments and the adoption of better tracking equipment.
The requirement for OSVS is greatly influenced by the price of oil. The high cost of offshore installations has an impact on the financial performance of oil and gas operators. The very day rate of offshore support vessels is influenced by the erratic price of oil and gas, and ordering or launching new vessels requires a significant outlay of capital. The fluctuating demand for petroleum as well as increased production from OPEC and non-OPEC nations is both responsible for the cyclical nature of oil and gas prices. In addition, a supply excess has been created as a result of competition in the oil and gas markets between the United States and OPEC countries and the shale gas revolution. The price of goods has decreased by more than half especially compared to crude oil. As a result, oil companies were forced to cut costs and agreements with OSV suppliers were postponed or cancelled, which decreased the utilisation of these vessels.
The need for additional energy generation to maintain a high standard of living is being fueled by the exponential global population growth. Consumers can now afford to buy consumer electronics, cars, and other items that use energy as a power source thanks to their increasing spending power. The need for oil and gas reserves is being boosted by the thriving automobile industry, increased car sales as a result of consumers' shifting preferences towards private vehicle ownership, and rising disposable income. Thermal, nuclear, oil & gas, geothermal, and other conventional and unconventional sources must be used to meet the rising energy demands.
High operational hazards are associated with the offshore industry. Bulk liquid that is toxic or dangerous is transported by support vessels. Notwithstanding industry norms, the backloading and transportation of hazardous oil-contaminated cargo, often described as slops, wet bulk waste, could result in fatalities. They can also pose threats to the environment, thus those that compete in the offshore support vessel market are required to adhere to particular SOLAS and anti-ship pollution regulations (MARPOL). The time of year and the season are the key factors that influence the dangers of operating offshore. In addition, the location of the ship and the state of the sea might put the crew in dangerous positions. Throughout the framework of marine and offshore risk assessment, the challenges relating to the human factor, the availability and dependability of data, the risk criteria, and the safety culture play key roles.
The inter-country travel and quarantine limitations have pushed crew members to overstay their hitches for lengthy periods, and vessel firms with global reach have also had to find ways to get over these regulations. Due to varying quarantine requirements, businesses have encountered delays when changing crews in various regions of the world. They have occasionally been forced to pay for two crews as the other crews are under quarantine. Also, the pandemic has drastically reduced demand for 4,000-5,000 dwt platform supply vessels (PSV), while the collapse of jack up drilling has severely reduced demand for smaller shallow water boats (1,500-3,000 dwt). Construction and scheduled maintenance are experiencing harsh days and, in some cases, withdrawal. As a result, COVID-19 has prevented the offshore vessel market from expanding.
The Anchor Handling Tug Supply Vessels segment is estimated to have a lucrative growth. The majority of AHTS vessels have anchor and towing winches. There are hydraulic winches and electric winches, depending on the source of the winch's power. AHTS vessels serve as rescue vessels in emergency situations. Besides from handling anchors, AHTS also provides supply services and ROV services (between the mainland and offshore rig site). A high power AHTS is typically used to boost bollard pull. Bollard pull is the term for a vessel's capacity for drawing force that is equivalent to the power of traditional engines.
The Oil & Gas segment is anticipated to witness the fastest CAGR growth during the forecast period, due to growing demand for offshore infrastructure, the oil and gas sector is expected to hold a significant portion of the market. Providing support services to such pumping rings or oil-producing facilities is a vital task performed by offshore support vessels. They are utilised for pipe laying, platform delivery, subsea production storage, unloading units, and offshore rig decommissioning.
Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing offshore exploration and production operations (E&P) in emerging economies like China and India. The key drivers driving offshore exploration and production operations are the growth in the number of oil and gas refineries due to the rising demand for energy and electricity generation. The need for energy and power has increased in both the developing and developed nations in APAC, as a result of population expansion, industrialization, and urbanisation.
North America is projected to have the highest CAGR over the forecast period, owing to the fact that many countries in the region are currently engaged in significant deep sea drilling projects and increasing offshore developments in the US and the Gulf of Mexico, as well as attention to prospective deepwater US finds.
Some of the key players profiled in the Offshore Support Vessel Market include: Seacor Marine, Offshore Service Vessels L.L.C., M3 Marine Group Pte. Ltd, Tidewater, Delta marine Industries Inc, Seacor Holdings Inc., Gulfmark Offshore, Island Offshore Management, Bourbon Corporation SA, Siem Offshore Inc, Eidesvik Offshore ASA and MMA Offshore Ltd.
In November 2021, MMA Offshore Ltd. entered into a JV with a Taiwanese company, Global Aqua Survey Ltd (GAS), to form a new JV, the MMA Global Aqua JV, which intends to target the growing offshore wind sector in Taiwan. This venture is set to provide cabotage and local ownership to MMA, crucial in the Taiwanese market. While MMA gets exposure in Taiwan, GAS gets access to MMA's global asset base.
In October 2021, Eidesvik Offshore ASA and the technology group Wartsila entered an agreement to convert an offshore supply vessel to operate with ammonia fuelled combustion engine with the required fuel supply and safety system. The "Apollo" project is touted to be the first of its kind and has a provisional completion target of mid-2024.
In July 2020, Seacor Marine, a US-based international ship manufacturing company, acquired Seacosco for a deal amount of US $28.15 million. This acquisition will expand Seacor's existing portfolio of support vehicles and solutions and boost the company's capabilities. The acquisition helps Seacor's Marine strategy to transform their operations by advancing the technological capabilities and giving their customers the best possible solutions with high efficiency. Seacosco is a US-based offshore support vessel company.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.