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The offshore supply vessel (OSV) market size is estimated to grow at a CAGR of 4.42% between 2024 and 2028. The market size is forecast to increase by USD 6 billion. The market's growth depends on several factors such as the rise in global demand for oil and natural gas, the rising demand for offshore supply vessels in E&P and well development, and the technical developments in OSVs.
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In the energy sector, offshore wind projects are gaining traction as sustainable alternatives to traditional oil gas and petroleum extraction methods. The implementation of advanced technologies like artificial lifts enhances efficiency in offshore operations, contributing to increased production and cost-effectiveness. However, challenges such as cabotage laws can impact the development and deployment of assets. Projects like the Dogger Bank wind farm highlight the potential for offshore wind to meet growing energy demands while reducing reliance on fossil fuels.
The offshore sector is witnessing notable market trends with a focus on enhancing offshore infrastructure and optimizing offshore fleet operations. As companies explore new opportunities in the industry, there is a growing emphasis on conducting comprehensive market research and growth analyses to identify emerging market dynamics and anticipate future trends. This proactive approach enables stakeholders to make informed decisions and develop effective strategies for sustainable market growth and forecasting.
In recent years, advancements in technology and increasing demand for energy resources have spurred investments in exploration and production activities. As a result, the demand for supply vessels has surged, particularly in exploration and production (E&P) and well development projects. Market forecasting indicates a steady increase in supply vessel utilization across various segments, including seismic surveys, construction support, and dive operations.
Moreover, the expansion of offshore infrastructure plays a vital role in supporting operations and facilitating the transportation of personnel, equipment, and supplies to offshore installations. The development of offshore terminals, drilling platforms, and production facilities contributes to the overall efficiency and safety of offshore activities.
In conclusion, the sector is poised for significant growth, driven by evolving market trends, increasing investments in infrastructure, and the expanding offshore fleet. By leveraging insights from comprehensive market growth analysis and proactive market research, industry stakeholders can capitalize on emerging opportunities and navigate challenges effectively in the dynamic market landscape.
Increasing demand for high-capacity and liquefied natural gas (LNG)-fueled OSVs is the primary trend shaping market growth. One of the recent trends gaining momentum in the market is the growing demand for high-capacity vessels. With the expected increase in remote deepwater activities across the globe as oil prices recover, the demand for high-capacity vessels is expected to increase. Furthermore, the market is also witnessing the trend of using liquefied natural gas (LNG)-fueled OSVs instead of diesel-fueled OSVs, as LNG is more cost-effective and eco-friendlier than diesel.
Moreover, LNG is more attractive when compared with low-sulfur gas oil as fuel in offshore vessels. Due to the benefits of using LNG as an OSV fuel, the major shipping manufacturers have launched LNG-fueled OSVs, while the rest are also preparing for the same. Hence, the increasing demand for high-capacity and liquefied natural gas (LNG)-fueled OSVs is expected to drive the growth of the market during the forecast period.
The rise in operational costs of OSVs is a challenge that affects market growth. The maintenance of OSVs is capital intensive because of various high-cost components such as the maintenance of engines and tugs, crew expenses, and regular maintenance, repair, and operations (MRO) expenses. In addition, growing investment in the global market comes from outside funding, which can lead to debts. Besides, many operational risks are associated with OSVs, such as technical failure, mechanical failure, harsh weather conditions, attacks by pirates, and collisions with other vessels.
In addition, the operational efficiency of OSVs reduces with time. Huge amounts of investment are required to maintain and repair OSVs. Furthermore, the increasing depreciation in OSV values will result in a decrease in the profit margins for OSV operators. Hence, the rise in operational costs is expected to hamper the growth of the global market during the forecast period.
The market plays a crucial role in the marine industry and the oil and gas sector, supporting various offshore operations worldwide. These operations include deepwater exploration, offshore construction, and drilling support activities. Offshore supply vessels come in different types, such as platform supply vessels, anchor handling tug supply (AHTS) vessels, and subsea support vessels, catering to the diverse needs of offshore projects. From crew transfer vessels to rig support vessels, these vessels provide essential offshore logistics and offshore transportation services. As the demand for offshore services continues to grow, vessel chartering and marine technology advancements are shaping the future of the market and marine logistics.
The market research 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 growth strategies.
Global Market 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 offshore industry, support vessels play a crucial role in facilitating offshore activities, particularly in the transportation of personnel and equipment to and from gas fields. However, challenges arise with aging offshore infrastructure, requiring investments in maintenance and upgrades to ensure operational efficiency and safety. Additionally, cabotage laws can impact the use of foreign vessels in domestic waters, influencing logistics and costs for offshore projects.
The AHTS segment is estimated to witness significant growth during the forecast period. AHTS vessels are naval vessels used for tugging/towing (oil rigs, ships) and handling the anchors for oil rigs. AHTS vessels are built to withstand harsh weather conditions and are specifically used to help install oil rigs in the deep water. In addition to towing and tugging oil rigs, AHTS vessels can be used as anchor-handling vessels that assist rescue vessels.
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The AHTS segment was the largest segment and was valued at USD 9.14 billion in 2018. As AHTS vessels are larger than other OSVs, they have larger docks for holding cranes, along with a higher capability for withstanding harsh weather conditions. These factors contribute to the preference for AHTS vessels over other OSVs. The increase in global oil prices and the growing preference for AHTS will drive the growth of the AHTS segment, thereby driving the growth of the global market during the forecast period.
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APAC is estimated to contribute 36% 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. The growth is driven by the increase in activities in APAC. The market in APAC is growing, mainly due to the increase in the number of oil rigs and the increase in capital expenditure (CAPEX) in the oil and gas industry.
Furthermore, in the region, there is an increase in energy requirements due to motorization and infrastructure developments in developing economies such as China and India. Thus, the production of oil and gas is expected to increase in the economies in the region, which will drive the growth of the market in APAC during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Offshore Supply Vessel Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.42% |
Market Growth 2024-2028 |
USD 6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.24 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, Saudi Arabia, China, Russia, and Norway |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AP Moller Maersk AS, Bass Marine Pty Ltd., BOURBON Maritime, Damen Shipyards Group, DP World, Edison Chouest OffshoreCo., Harren Shipping Services GmbH and Co. KG, Harvey Gulf International Marine LLC, Havila Shipping ASA, Hornbeck Offshore-Services Inc., Island Offshore-Management AS, Nam Cheong Ltd., SEACOR Marine Holdings Inc., Solstad OffshoreASA, Tidewater Inc., Van Aalst Group, Vroon BV, Wartsila Corp., Qatar Navigation QPSC, and Siem OffshoreInc. |
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, and market condition analysis for the 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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