Offshore Support Vessel Market Trends

Growth Drivers

• Growing Demand for Renewable Energy – The global renewable energy generation grows from around 29% in 2021 to more than 60% by 2030. Offshore wind farms are the primary sources of clean energy. OSVs are essential for various activities, including cable laying and maintenance.
• Replacement of Outdated Offshore Infrastructure – Many offshore installations in the North Sea have either reached or have beyond their original estimated design life of roughly 30 years. OCVs aid in the safe and efficient removal of platforms, pipelines, and other structures from the seabed.
• Increasing Exploration in Offshore Areas– OCVs are equipped with specialized seismic equipment. They give clear and detailed images of the subsurface geology, which helps in exploring potential hydrocarbon reservoirs. Offshore drilling activities increased by 10% each year in both 2021 and 2022. This boosted the number of offshore wells drilled in 2021 to approximately 2,500.

Challenges

• Huge Gap in the Supply-Demand – There is an abundance of offshore support vessels in the market, which has led to the supply-demand gap in the industry. The number of offshore supply vessels has surpassed the demand for OSV. It has put a lot of pressure on the manufacturers regarding prices and the competition has also increased, which has reduced the profit margins for many manufacturers.
• Strict Government Regulation Associated with the Energy Sector
• Need for High Capital Influx for its Deployment