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The pipelay vessel operator market size is estimated to grow at a CAGR of 3.85% between 2023 and 2027. The market size is forecast to increase by USD 57.18 million. The growth of the market depends on several factors, such as the growth in demand for oil and gas globally, an increase in the number of deepwater and ultra-deepwater drilling projects, and new exploration policies. Besides analyzing the current market scenario, our report examines historic data from 2017 to 2021.
This report extensively covers market segmentation by application (oil and gas, power, and others), type (J-lay barges, S-lay barges, and reel barges), and geography (APAC, 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 2017 to 2021.
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Driver
Growth demand for oil and gas globally is the key driver for the growth of the market. According to the forecast, liquid fuel consumption in India is expected to increase by 0.3 million barrels per day between 2023 and 2024. Hence, the demand is high for petroleum products, especially in developing countries such as China, India, and Indonesia and the increasing use of natural gas for electricity generation and urban gas distribution around the world are the main factors driving the demand for fossil fuels. As a result, investment in the pipe laying vessel operator market is on the rise.
Moreover, oil producers, especially OPEC nations and the US, have raised their production output or ventured to drill new wells to meet growing fuel demand. In addition, the use of natural gas as fuel is growing. The number of unconnected wells has increased due to the shale gas boom in the US and major gas discoveries in the Krishna-Godavari Basin in India. Thus, this will drive the growth of the global pipelay vessel operator market during the forecast period.
Trend
Technological innovations boosting productivity in the oilfield services market are the primary trend. Pipelay operators are increasingly looking for new technological innovations and technical breakthroughs to boost productivity and profitability as the oilfield services industry faces pricing pressure from oil fields and exploration and production companies. They increase productivity by automating piping processes and equipment, investing in powerful tools and systems, and using a data-driven approach to optimize pipelaying operations.
For example, Heeremas Aegir can contain a stacking tower for J and roll laying. In addition to multi-layer methods, companies are also investing in high-speed precision drilling capabilities such as laser drilling and automatic drilling. These systems are used to clean the seabed for laying pipelines. Therefore, the use of advanced technology in pipeline installation activities will boost the growth of the market during the forecast period.
Challenge
The high cost associated with the maintenance of pipeline and transportation infrastructure is the challenge that affects the growth of the market. While the long-term benefits of proper maintenance outweigh the costs, end users are reluctant to deploy preventive maintenance solutions due to their high costs. Some of the automation processes also require significant time, causing activities to be on halt, thus resulting in a lack of interest in end-consumers. Because the oil and gas industry is capital-intensive, companies often prefer to deploy new solutions only in the event of a major breakdown, which can lead to significant downtime.
Although maintenance of oil and gas pipelines and transportation poses a challenge due to cost and interoperability issues, market growth is also hampered by a lack of effective skillsets needed to handle new and upgraded technologies. These factors reduce the business opportunities for pipelay operators, which impedes the growth of the market during the forecast period.
Key Pipelay Vessel Operator Market Customer Landscape
The 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 Pipelay Vessel Operator Market Customer Landscape
Vendors 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.
Allseas Group SA: The company offers to pipelay vessel operators such as Alegria, Felicity, and Fortress.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the oil and gas segment will be significant during the forecast period. Pipelay vessel operators play an important role in the offshore oil and gas industry, where they are responsible for the installation of underwater pipelines to transport extracted hydrocarbons from offshore production facilities to onshore processing machines on land or transport hubs.
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The oil and gas segment shows a gradual increase in the market share of USD 153.93 million in 2017 and continue to grow by 2021. These pipelines serve as the lifeline of the energy industry, facilitating the efficient and safe transport of crude oil and natural gas from the seabed to onshore facilities for refining, processing, and distribution. In addition to the installation of new pipelines, these operators are also involved in maintenance and repair operations, inspection, and repair of existing pipelines to ensure continuous and reliable power transmission. As a result, increasing activity in the oil and gas industries globally will drive the growth of the oil and gas segment of the global pipelay vessel operator market during the forecast period.
Based on type, the market has been segmented into J-lay barges, S-lay barges, and reel barges. The j-lay barges?segment will account for the largest share of this segment.? The J-lay barges are becoming more popular as the J-lay method is best suited for the deep water laid by the system, wherein the pipe leaves the system in an almost vertical position, and the pipeline is bent only once during the installation at the seabed. This reduced amount of strain can be beneficial for the installation of fatigue-sensitive pipelines. In addition, the J-lay pipe can withstand more water flow and movement than the other method. Demand for the J-lay method is high owing to its advantages of the J-lay method. it compared with other pipe-laying methods. Many vessel manufacturers and operators are focusing on upgrading their fleets to provide better and improved service to their customers, which is a key factor driving the growth of the J-lay barge segment in the global pipelay vessel operator market during the forecast period.
APAC is estimated to contribute 51% 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.
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The market growth in this region is driven by the increase in offshore capital spending and the increase in the number of oil rigs and new oil rig installation projects. Major offshore basins in the region include the South China Sea, India's Krishna Godavari basin, and offshore Myanmar. Increasing energy demand will drive the APAC market as it will lead to raised exploration and production (E&P) activities of oil and gas companies in this region. While the crude oil sector dominates the market in terms of demand, the liquefied natural gas (LNG) sector will witness a higher growth rate.
Furthermore, emerging LNG buyers such as Bangladesh and Pakistan, while Indonesia, Thailand, Malaysia, and the Philippines are experiencing an increase in LNG trade. Growing demand for oil and gas has led APAC countries to focus on operational efficiency rather than relying on imports. This will drive the oil and gas industry in this region to maximize capacity utilization and improve upstream, midstream, and downstream distribution through improved pipelines. Thus, these factors will drive the growth of the market.
In 2020, due to lockdowns imposed in several countries in the region to contain the spread of COVID-19 the demand for oil and gas was adversely affected. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to a gradual increase in regional economic activities. As a result, the demand for oil and gas has increased since the beginning of 2021, which has helped the regional market to recover to some extent. Hence, the growing demand for oil and gas in the region in the future will drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Pipelay Vessel Operator Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.85% |
Market growth 2023-2027 |
USD 57.18 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.25 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
US, Saudi Arabia, China, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allseas Group SA, Boskalis, BOURBON Maritime, CIMIC Group Ltd., Hanwha Corp., Havila Shipping ASA, Helix Energy Solutions Group Inc., John Swire and Sons Ltd., McDermott International Ltd., New DOF ASA, Royal IHC, Saipem S.p.A., Siem Offshore Inc., Subsea 7 SA, TechnipFMC plc, Tidewater Holdings Inc., Uppetrom 1 Mai Manufacturing SRL, Van Oord nv, and Hyundai Heavy Industries Group |
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. |
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