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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.
This offshore supply vessel market report extensively covers market segmentation by type (AHTS, PSV, FSIV, MPSV, and others), end-user (offshore oil, gas, and offshore wind), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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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.
Rising demand for offshore supply vessels in E&P and well development is the key factor driving market growth. AHTS vessels and PSVs constitute almost 90% of the fleets of offshore supply vessels. As the global offshore supply vessel market is characterized by large overcapacity, the count of AHTS vessels and PSVs far exceeds the global demand for offshore supply vessels. Thus, an increase in global offshore production activities is unlikely to cause a commensurate rise in the demand for AHTS vessels and PSVs.
However, the demand for offshore supply vessels used during the initial phases of E&P, such as seismic surveys, well development or construction, and dive support, is expected to increase significantly. In addition, offshore research vessels, seismic research supply vessels, and construction supply vessels are examples of a few offshore supply vessels used in exploration and well development. Therefore, the rising demand for offshore supply vessels in E&P and well development is expected to drive the growth of the market during the forecast period.
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 offshore supply vessel 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 offshore supply vessel market during the forecast period.
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 Offshore Supply Vessel 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.
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 offshore supply vessel 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 offshore activities in APAC. The offshore supply vessel (OSV) 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 offshore supply vessel market in APAC during the forecast period.
In 2020, the COVID-19 pandemic had a negative impact on the offshore supply vessel market in the APAC region. However, in 2021, the initiation of large-scale vaccination drives?has lifted the lockdown restrictions. The region's offshore supply vessel market recovered from the negative impact of the pandemic as new offshore drilling projects had been launched. Hence, the deployment of offshore supply vessels for new projects fueled the growth of the regional offshore supply vessel market in 2022 and is expected to fuel the growth of the regional offshore supply vessel market during the forecast period.
The offshore supply vessel 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.
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Offshore Supply Vessel Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.42% |
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Market Growth 2024-2028 |
USD 6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.24 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 36% |
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Key countries |
US, Saudi Arabia, China, Russia, and Norway |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AP Moller Maersk AS, Bass Marine Pty Ltd., BOURBON Maritime, Damen Shipyards Group, DP World, Edison Chouest Offshore Co., 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 Offshore ASA, Tidewater Inc., Van Aalst Group, Vroon BV, Wartsila Corp., Qatar Navigation QPSC, and Siem Offshore Inc. |
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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. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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