The global offshore support vessels market reached US$ 744.83 million in 2020, and it is expected to record growth at a CAGR of 4.9% to reach US$ YY million by 2028
Offshore support vessels are intended to accomplish various tasks, including transferring medium to large loads needed in offshore operations. The offshore support vessels are utilized to provide support and transportation in the oil exploration and construction work
Various companies are looking to shift on clean fuel or reduce the carbon emissions from the vessels, which is boosting the market growth. For instance, in 2021, Maersk's Supply Service is taking a vital role in decarbonizing the offshore support vessel sector to reduce its fleet's carbon intensity by 50% before the end of this decade. Wärtsilä will supply its energy storage system and HY Module to Maersk Supply Service
The type segment is segmented into, Platform Supply Vessels, Accommodation Ships, Anchor Handling Tug Vessel, Seismic Vessel, Well Intervention Vessel, Chase Vessel, and others. The Platform supply vessel has maintained growth momentum for the offshore support vessels market out of the mentioned types. These vessels are used to transport equipment, other goods, and rig crew to the offshore drilling and production platform
By region, the global offshore support vessels market is segmented into North America, Asia-Pacific, South America, Europe, Middle-East, and Africa. Among all regions, Asia Pacific is estimated to record significant growth during the forecasted period due to China, India, Indonesia, Malaysia, Vietnam, and Thailand as key economies in the Asia Pacific that are focusing on growing their offshore E&P CAPEX.
Market Dynamics
Drivers
- Increasing global energy demand coupled with growing investments in offshore wind farm construction
- Rising demand for dynamic positioning (DP) systems in marine vessels coupled with technological advancement in machine manufacturing
Restraints
- Raising fluctuations in oil price and high operational risks for OSVs
Opportunities
- Rising deepwater development activities
Rising deepwater development activities
In the past many years, operators are pushing the boundaries of ultra-deepwater exploration, particularly in the Arctic region, in quest of fresh oil and gas assets
According to a US geological analysis, the Arctic region harbors almost 30% of the world's undiscovered gas and 13% of its unknown oil reserves. These figures want to invest a lot of money in the Arctic
The US Geological Survey estimates that five provinces—Arctic Alaska, Amerasia Basin, East Greenland Rift Basins, East Barents Basins, and West Greenland–East Canada—hold more than 70% of undiscovered oil resources which has massively increased petroleum resource development of the region
The mentioned numbers present a lucrative opportunity for offshore drilling service providers, as offshore drilling services aid in the drilling process in areas where the terrain is less well-known
Apart from the arctic, A flurry of offshore activity in Asia-Pacific, particularly in India, leads to strong and long-term contracts for the offshore support vessel business
For instance, Reliance Industries Limited (RIL) and BP began producing from the R Cluster, an ultra-deepwater gas well in block KG D6 off India's east coast. By 2023, these gas sources are estimated to supply around 15% of India's gas needs. These projects could make use of the KG D6 block's existing hub infrastructure, including offshore vessels
Geographical Analysis
The market for Asia-Pacific offshore support vessels was valued at US$ 269.51 million in 2020, and it is expected to increase at a CAGR of 5.8 percent over the forecast period, reaching US$ yy million by 2028.
CAPEX for new offshore developments in Asia Pacific is likely to represent for over a quarter of global spending, according to Scottish Development International, making the region a prominent player in the offshore industry.
A lot of policymakers in the region are prioritising new offshore activities in the deep and ultra-deep oceans.
Among the most famous of these new offshore endeavours are the Briseis, Scarborough, and Laverda projects in Australia; the Rotan, Gumusut-Kakap, and Petai projects in Malaysia; the KG-D6 complex in India; and the Gehem project in Indonesia.
Furthermore, the number of offshore support vessels in the region is expanding as a result of an increase in the number of vessel manufacturers in the market, mainly from China and South Korea.
In Asia Pacific, increased deep and ultra-deep water hydrocarbon exploration activities, particularly in the South China Sea, are expected to raise regional product demand.
Technological improvements in product innovation and environmental performance are likely to promote the development of sustainable solutions in the carrier value chain.
Globalization and the rapid rise of Asian economies played a significant effect in the expansion of maritime trade. Both short and long term charter rates are expected to be influenced by the financial outlook, which includes bank interests and trade policies.
Despite the uncertainty surrounding China's economic outlook, a growing number of gas transport agreements in Asia Pacific are expected to fuel market growth in offshore support vessels over the forecast period.
The international coronavirus outbreak is wreaking havoc on a variety of energy companies throughout the world. Due to long-term geopolitical uncertainty and trade conflicts, it has a greater impact on the oil and gas industry than on other businesses.
Furthermore, the quick rise in the overall number of people infected with the novel virus has had a knock-on effect on cross-country seaborne trade and oil tanker movement.
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