New York, April 13, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "OFFSHORE AUV & ROV MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)" - https://www.reportlinker.com/p06267778/?utm_source=GNW
However, high operational risk, excessive operational costs, and lack of technical expertise are expected to restrain the market growth.
- The oil and gas sector is expected to hold the largest share in the offshore AUV & ROV market, owing to the demand for AUV & ROV systems across all phases of the offshore oil and gas life cycle.
- The rising deepwater and ultra-deepwater discoveries are expected to open up new avenues for the offshre AUV & ROV market during the forecast period.
- North America is expected to dominate the market, with the majority of the demand coming from countries, such as the United States and Mexico.
Scope of the Report
The offshore AUV & ROV market report includes:
Vehicle Type
ROV
AUV
Vehicle Class
Work-class Vehicle
Light Work-class Vehicle
Medium Work-class Vehicle
Heavy Work-class Vehicle
Observatory-class Vehicles
End-User Application
Oil and Gas
Defense
Research
Other End-User Applications
Activity
Drilling and Development
Construction
Inspection, Repair, and Maintenance
Decommissioning
Other Activities
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
Key Market Trends
Oil and Gas Segment to Dominate the Market
- The oil and gas segment is expected to maintain its dominance in the market over the forecast period. AUVs & ROVs are widely used across all phases of the offshore oil and gas life cycle. They are also used for offshore drilling support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair.
- However, the AUV market in the oil and gas industry is experiencing demand due to increase in advanced technological capabilities for mapping out the seafloor prior to constructing subsea infrastructure. AUVs are constantly being developed in the oil and gas industry. This is expected drive the market during the forecast period.
- The majority of deepwater or ultra-deepwater production has taken place in four countries: Brazil, the United States, Angola, and Norway. Brazil is a world leader in the development of deepwater and ultra-deepwater projects. This positive growth trend in crude oil production, from deepwater and ultra-deepwater resources in these regions, is expected to drive ROVs' demand in the coming years.
- In 2020, Brazil and the United States together accounted for more than 90% of ultra-deepwater production globally. The presence of the most experienced international oil companies in the deepwater development and largest deepwater reserves makes the United States and Brazil the most attractive countries for upstream deepwater investment.
- Global oil production has recorded at 4165.1 million tonnes in 2020. Middle-East and Africa is the leading oil producer and accounts for about 1297.3 million tonnes, followed by North America with 1060.0 million tonnes. This is expected to drive the offshore AUV & ROV market during the forecast period.
- Moreover, production from the deepwater fields or under development is expected to reach 7.6 million barrel per day by 2025 and 9 million barrel per day by 2040, thus boosting the market growth studied during the forecast period.
- On the other hand, over 950,000 ton of topsides are slated for removal across the North Sea, of which more than 605,000 ton will be from UKCS. The United Kingdom is expected to spend around EUR 15.3 billion on decommissioning over the next eight years. Approximately 2,400 wells are expected to be decommissioned across the whole North Sea and West of Shetland region, by 2027. Around 914 of these wells are located across the Norwegian, Danish, and Dutch sectors.
- Therefore, with several offshore oil and gas projects, including decommissioning of offshore oil and gas assets set to start in the coming years, along with the rising investments in offshore oil and gas sector, the demand for offshore AUV & ROVs is expected to grow significantly during the forecast period.
North America Expected to Dominate the Market
- The offshore oil and gas projects in North America are becoming more competitive, owing to improved efficiencies and tightening of the supply chain, leading to declining offshore drilling costs. For example, before 2014, a deepwater well in the Gulf of Mexico used to cost about USD 200 million to drill. As of 2020, drilling a deepwater well in the same region costs between USD 10 – 50 million.
- As a result of higher oil prices and declining drilling cost, the offshore rig count and the offshore oil production in the United States have increased significantly, indicating growth not only in offshore drilling but also in production activity. This, in turn, is expected to be the major driver for the AUV & ROV market.
- In terms of policy support, 2017 witnessed some positive developments. The tax overhaul plan drastically increased the fiscal competitiveness of the offshore projects in the Gulf of Mexico, relative to other offshore basins. Additionally, the Trump administration announced to uplift the ban on offshore drilling off the coasts of Florida and California. The administration is considering more than 40 sites for the leasing of natural gas and oil production.
- Adding to this, the wind power sector in the United States is receiving huge support from the government on account of its policy known as ‘America First,’ aimed to boost domestic energy production. The offshore wind power sector is seen as the major area of development, as the large coastal area is available for leasing, where wind power plants can be built. As a result, the increasing offshore wind activities in the country is likely to increase the need for construction, operation, maintenance, and other events, which, in turn, is expected to increase the use of offshore AUV & ROVs in the United States in the next few years.
- Canada’s offshore oil industry is expected to attract rising investment interests in the coming years, on account of an aggressive push by Newfoundland and Labrador, as prices plummet in oil-rich Alberta.
- Therefore, factors such as rising offshore oil and gas investments and the governments' efforts to improve the offshore wind sector are expected to drive the demand for offshore AUV & ROV market in the coming years.
Competitive Landscape
The offshore AUV & ROV market is moderately consolidated. The key players in the market include DOF Subsea AS, Fugro N.V, Subsea 7 SA, Saipem SpA, Oceaneering International, Inc. among others.
Major Players
DOF Subsea AS
Oceaneering International, Inc.
Fugro N.V
Saipem SpA
Subsea7 SA
Recent Development
- In January 2021, Oceaneering International reported that its Subsea Robotics segment won multiple contracts during 4Q 2020, with anticipated aggregate revenue in excess of USD 225 million. The work scopes are primarily for remotely operated vehicle (ROV) services delivered from floating drilling rigs and multi-service, subsea intervention, and construction vessels.
- In August 2021, Oceaneering International has been awarded a contract from Esso Exploration and Production Guyana Limited (EEPGL) to provide two surveys offshore Guyana. The contract award covers a towed and autonomous underwater vehicle (AUV) geophysical survey and a shallow geotechnical survey off the coast of Guyana.
- In October 2021, Floor Geophysics (OFG) and DOF Subsea of Norway (DOF) have entered into a strategic alliance to provide autonomous underwater vehicle (AUV) services to the global offshore industry.
Read the full report: https://www.reportlinker.com/p06267778/?utm_source=GNW
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