The global offshore decommissioning market accounted for a value of USD 5.5 billion in 2019 and is projected to register growth at a CAGR of 4.1% during forecast period.
COVID-19 has impacted the offshore decommissioning market as the supply chain is disrupted due to travel restriction. There are many various projects which are delayed or postponed due to lockdown. All the activities related to offshore decommission is halted around the world due to spread of corona virus.
For more details, visit: Global Offshore Decommissioning Market By Service (Site Clearance, Material Disposal, Others), By Depth (Shallow Water and Deep Water), By Structure (Topside, Substructure, Others), By Region, Forecast & Opportunities to 2026
The aging offshore infrastructure in oil and gas industry is increasing around the world. The offshore oil and gas production activities are increasing around the world. The demand for oil and gas is increasing and the companies are looking for developing new rigs and this increases the decommissioning of aging rig and wells. This drives growth in offshore decommission market during forecast period.
On the basis of service, the offshore decommission market is segmented into site clearance, material disposal, pipeline & power cable decommissioning, platform removal, project management, engineering & planning, permitting & regulatory compliance, platform preparation, well plugging & abandonment, conductor removal and mobilization & demobilization of derrick barges. The well plugging & abandonment estimated to hold largest market share during forecast period. This segment ensures that well do not have any leakage after cessation of production. This is very important segment for wells and widely used by many companies. This drives growth in offshore decommissioning market during forecast period.
On the basis of depth, the offshore decommission market is segmented into shallow water and deepwater. The shallow water is estimated to be the fastest growing segment during forecast period. The shallow segment has lower operational costs and the demand for shallow water depth is higher than deepwater. The companies prefer this segment widely and this drives growth in shallow water depth segment during forecast period.
On the basis of structure, the offshore decommission market is segmented into topside, sub infrastructure and substructure. The topside segment is estimated to hold largest market share during forecast period. This segment is highly preferred due to its weight decommissioning of topsides and the related equipments required some specialized removal equipment and heavy lift vessel. This drives growth in topside segment during forecast period.
Europe region is estimated to hold largest market share during forecast period. This region lead the decommissioning market as the decommissioning activities are higher in this region in the world. There are many mature oil and gas field present in this region and the impending cessation of oil and gas fields is likely to be a major growth driving factor. The offshore decommissioning spending is higher in European region then others and this drives growth in Europe region during forecast period.
The key market players is offshore decommission industry are Halliburton, Petrofac, Weatherford, Schlumberger, Subsea 7, Technipfmc, John Wood Group, Ramboll, Oceaneering, Bhge, Royal Dutch Shell, Aker Solutions, Rever Offhore, DNV GL, Saipem, Heerema Marine Contractors and Claxton Engineering Services.
- What are the expected industry trends over the next three to five years?
- Which of the offshore decommissioning service is likely to lead by 2025?
- Which of the structure segments is expected to have the maximum potential to during the forecast period?
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- What are different organic and inorganic strategies implemented by companies to gain increased market share?