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The mobile offshore drilling unit (MODU) market share is expected to increase by USD 9.37 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.97%. This mobile offshore drilling unit (MODU) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The mobile offshore drilling unit (MODU) market report also offers information on several market vendors, including Aban Offshore Ltd., Borr Drilling Ltd., China International Marine Containers Group Ltd., China Oilfield Services Ltd., Diamond Offshore Drilling Inc., Fincantieri Spa, Hyundai Heavy Industries Group, Keppel Corporation Ltd., Lloyd Alman, Nabors Industries Ltd., Nestle Marine Drilling Ltd., Noble Corp. Plc, Northern Drilling Ltd., Odfjell Drilling Ltd., Parker Wellbore, Seadrill Ltd., Stena AB, The Drilling Co.of 1972 AS, Transocean Ltd., and Valaris Plc among others. Furthermore, this report extensively covers mobile offshore drilling unit (MODU) market segmentation by type (drillship, jack-up, and semi-submersible) and geography (North America, Middle East and Africa, APAC, South America, and Europe).
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The increase in oil and gas demand is notably driving the mobile offshore drilling unit (MODU) market growth, although factors such as environmental concerns associated with oil and gas E and P activities may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the mobile offshore drilling unit (MODU) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Mobile Offshore Drilling Unit (MODU) Market Driver
One of the key factors driving the global mobile offshore drilling unit (MODU) market growth is the increase in oil and gas demand due to rising industrialization and urbanization in developing countries such as India and China. According to The World Bank Group, the global annual percentage growth in value addition in the industrial sector, including the construction sector, increased from 2.19% in 2012 to 2.6% in 2020. The global urban population grew from 51.65% (of the total population) in 2010 to 61.4% in 2020, as per the World Bank Group. In addition, the global consumption of liquid fuel is expected to reach 103.04 mbpd by 2021. such factors will drive the growth of the MODU market during the forecast period.
Key Mobile Offshore Drilling Unit (MODU) Market Trend
Rise in deep water and ultra-deepwater E and P activities is one of the key mobile offshore drilling unit market trends that is expected to impact the industry positively in the forecast period. In offshore E and P, oil and gas companies have shifted their focus from shallow waters to deepwater and ultra-deepwater resources due to the presence of large untapped reserves. As of 2018, the average crude oil price must be above USD 60/barrel for deepwater and ultra-deepwater projects to remain profitable. Therefore, deepwater and ultra-deepwater projects are becoming more financially viable because of the increase in global crude oil prices. In addition, as per the US EIA, global offshore deepwater oil production will increase by 2.7 mbpd between 2017 and 2040. Such factors will stimulate the adoption of MODUs for offshore oil and gas E and P activities during the forecast period, thus contributing to the growth of the market.
Key Mobile Offshore Drilling Unit (MODU) Market Challenge
One of the key challenges to the global MODU industry growth is the environmental concerns associated with oil and gas E and P activities. Oil and gas drilling activities cause serious damage to the environment, including oil spills, air and water pollution due to toxic chemical emissions, and climate change because of methane emissions. Fracking also produces large amounts of wastewater containing dissolved chemicals and contaminants such as methane. The violation of laws or international mandates due to the spillage of oil or any oil-related products into the environment entails sizeable penalties, which may vary significantly, both at the regional and the international levels. Hydrocarbon agencies such as Colombia Agencia Nacional de Hidrocarburos and India Directorate General of Hydrocarbons and other safety organizations, such as the International Association of Oil & Gas Producers, play a crucial role in developing norms to provide greater consistency in safe practices in the oil and gas E and P sector. Such factors will limit the market growth in the forecast years.
This mobile offshore drilling unit (MODU) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global mobile offshore drilling unit(MODU) market as a part of the global oilfield equipment and services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the mobile offshore drilling unit (MODU) market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the mobile offshore drilling unit (MODU) market encompasses successful business strategies deployed by the key vendors. The mobile offshore drilling unit (MODU) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The mobile offshore drilling unit (MODU) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the mobile offshore drilling unit (MODU) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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38% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for mobile offshore drilling units (MODU) in North America. Market growth in this region will be faster than the growth of the market in Europe and APAC.
The significant increase in oil and gas activities offshore and initiatives by governments to increase offshore E and P activities will facilitate the mobile offshore drilling unit (MODU) market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 had a negative impact on the MODU market in North America. Due to the imposition of lockdowns and restrictions in the mass movement, the demand for crude oil reduced drastically in the first half of 2020. Moreover, the oil and gas prices decreased, which impacted oil companies in the region. However, post lifting of lockdowns, manufacturing operations of semisubmersible drilling rigs resumed, and oil and gas prices also recovered since 2021. This will help E and P companies to recover and increase investment in oil and gas projects. These factors are expected to recover the market in focus and lead to increased growth during the forecast period.
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The mobile offshore drilling unit (MODU) market share growth by the drillship segment will be significant during the forecast period. Drillships are increasingly being used in offshore oil and gas E and P operations due to their capability to drill up to around 8,200 feet or deeper. Newly developed drillships can also drill down to 12,000 feet or deeper. Such factors will support the segment growth in the coming years.
This report provides an accurate prediction of the contribution of all the segments to the growth of the mobile offshore drilling unit (MODU) market size and actionable market insights on post COVID-19 impact on each segment.
Mobile Offshore Drilling Unit (MODU) Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.97% |
Market growth 2022-2026 |
$ 9.37 billion |
Market structure |
Fragmented |
YoY growth (%) |
10.57 |
Regional analysis |
North America, Middle East and Africa, APAC, South America, and Europe |
Performing market contribution |
North America at 38% |
Key consumer countries |
US, Canada, Saudi Arabia, Russia, and China |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Aban Offshore Ltd., Borr Drilling Ltd., China International Marine Containers Group Ltd., China Oilfield Services Ltd., Diamond Offshore Drilling Inc., Fincantieri Spa, Hyundai Heavy Industries Group, Keppel Corporation Ltd., Lloyd Alman, Nabors Industries Ltd., Nestle Marine Drilling Ltd., Noble Corp. Plc, Northern Drilling Ltd., Odfjell Drilling Ltd., Parker Wellbore, Seadrill Ltd., Stena AB, The Drilling Co.of 1972 AS, Transocean Ltd., and Valaris Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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 report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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