Offshore Support Vessel Market to Witness Outstanding Growth in Coming Years

 The global offshore support vessel market is estimated to grow from USD 20.1 billion in 2018 to USD 25.7 billion by 2023, at a CAGR of 5.04% from 2018 to 2023. The market in Asia Pacific is estimated to be the largest market for offshore support vessels, followed by Europe and North America. This trend is expected to continue until 2023. Also, the North American market is projected to be the fastest-growing market. The growth of the offshore support vessel market is driven by rising offshore investments in the US and the Gulf of Mexico, and a focus on the potential deepwater discoveries in the US.

The major factors that are expected to be driving the offshore support vessel market are deepwater production and exploration activities in Europe and Middle East would boost the growth of the offshore support vessel market. The growth in deployment of offshore wind farms in countries such as China and the US would drive the offshore support vessel, for installation, maintenance, and during the replacement of offshore wind turbines. Offshore support vessels perform various operations such as seismic survey, transporting necessary infrastructure and crew, and managing any emergencies.

The application of offshore support vessels in shallow water projects is estimated to lead the market, both in terms of market value and growth. The shallow water basins in Asia-Pacific, Europe, and North America will play a major role in driving the offshore support vessel market. Shallow water operations are typically less expensive compared with deepwater operations. Thus, recovering oil prices will lead to a faster increase in offshore activities in shallow water basins compared with deepwater ones.

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Asia Pacific is expected to be the largest market for offshore support vessel

The offshore support vessel market is segmented into five major regions, namely, Asia Pacific, Europe, North America, South America, Africa, and the Middle East. The Asia Pacific market is estimated to be the largest offshore support vessel market because of factors such as increasing CAPEX for Exploration & Production activities in the offshore oil & gas sector and rising number of offshore rigs to cater to the increasing energy demand in the region. Stabilizing oil prices have already led to oil & gas operators increasing exploration and production spending in the Chinese offshore market, with capital expenditures allocations estimated to resume steadily. The market for offshore support vessels in North America and the Middle East regions is also expected to grow during the forecast period due to the growing focus on developing offshore reserves to replace maturing onshore fields.

With the gradual maturity of shallow water fields, oil & gas operators are exploring for deep and ultra-deep water opportunities to meet the growing oil & gas demand. This has stimulated growth in investments in offshore and subsea activities. The shallow water covers majority of the market share, but the vessels used here are not capable of working in deepwater and ultra-deepwater due to harsh climatic conditions. This factor offers great opportunity for the manufacturers to manufacture technologically equipped vessels to face the challenging environmental condition.

The AHTS segment is expected to grow at the highest growth rate from 2018 to 2023.

Anchor-handling tug supply (AHTS) vessels constitute the largest segment of the offshore support vessel market. AHTS vessels are designed to provide anchor-handling and towage services and are also used for supplying deck cargo, water, fuel, dry bulk, and mud-to-oil rigs and platforms. These vessels can also be used for emergencies and are well equipped for firefighting, rescue, and oil recovery operations. The demand from Asia Pacific and Europe is projected to drive the market for AHTS vessels during the forecast period. Countries such as Vietnam, Malaysia, Thailand, and Australia increased their E&P activities in offshore areas in the recent past. Malaysia is the largest contributor to the short-term oil & gas production growth mainly due to the Kebabangan Gas Project.  Also, there is a strong support from Petroliam Nasional Berhad (PETRONAS), which provides approximately USD 15.6 billion a year toward capital expenditure in the oil & gas industry. Moreover, local laws have been implemented to protect the local OSV operators as PETRONAS will prioritize Malaysian-flagged vessels over foreign vessels.

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The major players in the Offshore Support Vessel Market include Bourbon (France), Seacor Marine LLC (US), Swire Group (Hong Kong), Tidewater (US), Gulfmark Offshore (US), Havila Shipping (Norway), Hornbeck Offshore Services (US), the Maersk Group (Denmark), and Siem Offshore (Norway).