The offshore decommissioning market provides a wide range of services and solutions for the decommissioning of offshore oil and gas infrastructure at the end of their operational lives. These services include removal, transportation and disposal of offshore oil and gas platforms and pipelines. The offshore decommissioning process involves cleaning and removal of offshore structures, well plugging and abandonment, debris removal and site clearance.
As the offshore oil and gas fields reach maturity, a large number of offshore platforms are expected to be decommissioned in the upcoming years. Environmental regulations in various regions have further accelerated the pace of decommissioning activities. The offshore decommissioning market offers significant opportunities for service providers to replace outdated infrastructure and enable further development of oil and gas reserves. Growing expenditure on decommissioning of aging infrastructure is a key driver for market growth.
The Global offshore decommissioning market is estimated to be valued at US$ 639.8 Mn in 2024 and is expected to exhibit a CAGR of 32% over the forecast period from 2024 to 2030.
Key Takeaways
Key players operating in the offshore decommissioning market are Northrop Grumman Corporation, Sumitomo Heavy Industries Limited, Stirling Cryogenics BV, Sunpower Inc. (AMETEK Inc.), Superconductor Technologies Inc., RICOR, Advanced Research Systems Inc., Cobham PLC, Janis Research Company LLC, Cryomech Inc., and Chart Industries Inc.
The Offshore Decommissioning Market Demand is expected to witness significant growth due to growing demand for decommissioning of aging offshore infrastructure. Many offshore oil and gas fields are mature and have exceeded their design life, necessitatingdecommissioning of platforms and pipelines.
Major oil companies are increasingly outsourcing decommissioning projects to specialist service providers to benefit from their expertise and capabilities. Growing expenditure on decommissioning by international oil companies is expected to drive the global offshore decommissioning market during the forecast period.
Market Key Trends
Technological advances continue to remain a major trend in the offshore decommissioning market. Development of new technologies such as advanced remote operated vehicles (ROVs), modular construction methods, use of robotics are making decommissioning operations safer and more efficient. Automation is also expected to reduce man hours and risks associated with decommissioning activities. Adoption of new deepwater technologies will be crucial to tackle challenges of decommissioning of infrastructure in deeper waters. Growing technological capabilities are opening up new opportunities for market players in the offshore decommissioning industry.
Porter’s Analysis
Threat of new entrants: Low barriers of entry makes it easy for new players to enter the market and compete for existing customers. However, high capital requirement and presence of established players make it difficult for new players to penetrate the market.
Bargaining power of buyers: There exists a large number of medium and small sized buyers in the market which fragments the buyer power. However, few large buyers with significant purchase volume can negotiate on price and influence supplier’s offerings.
Bargaining power of suppliers: The market has few technology providers with differentiated offerings, giving them higher bargaining power against buyers. However, the threat of forward integration by customers mitigates supplier power.
Threat of new substitutes: Minimal threat as there exists no close substitute for offshore decommissioning services.
The North America region accounted for the major share in terms of value in the offshore decommissioning market owing to large number of aging oil and gas infrastructure in Gulf of Mexico and North Sea. Asia Pacific region is expected witness fastest growth during the forecast period attributed to growing offshore activities in countries like China, India and ASEAN. Japan is also expected to provide major growth opportunities with increasing number of aging oil rigs in the region.
Geographical Regions
The North America region accounted for the major share in terms of value in the offshore decommissioning market in 2024, owing to large number of aging oil and gas infrastructure primarily in Gulf of Mexico and North Sea in countries like US and Canada. The region is expected to continue its dominance during the forecast period as well.
Asia Pacific region is expected witness fastest growth during the forecast period from 2024 to 2030, attributed to growing offshore activities and exploration projects in countries like China, India and ASEAN countries. Countries like China, India and Malaysia are expected new hotspots for offshore decommissioning, attributed to increasing investments in offshore oil & gas developments. Japan is also expected to provide major growth opportunities in coming years with increasing number of aging oil rigs and infrastructure in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Source: www.newswirestats.com
- Energies Media Staffhttps://energiesmedia.com/author/oilmanwp/
- Energies Media Staffhttps://energiesmedia.com/author/oilmanwp/
- Energies Media Staffhttps://energiesmedia.com/author/oilmanwp/
- Energies Media Staffhttps://energiesmedia.com/author/oilmanwp/
- Energies Media Staffhttps://energiesmedia.com/author/oilmanwp/
- Energies Media Staffhttps://energiesmedia.com/author/oilmanwp/
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