Pipe Laying Vessel Market size was USD 2.7 billion in 2024 and is estimated to reach USD 8.9 billion by the end of 2037, expanding at a CAGR of 9.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of pipe laying vessel is assessed at USD 2.9 billion.
The rising global energy demands are significantly driving the consumption of natural oil and gas. The depletion of onshore reserves is propelling offshore exploration and production of oil and gases, which is directly fueling the demand for pipe laying vessel. The global capital expenditures on offshore exploration and production are set to be totaled at USD 293.0 billion in 2025. The importance of pipe laying vessel for the transportation and installation of pipelines for offshore oil and gas fields is substantially contributing to their sales growth. For instance, in June 2024, the National Oceanic and Atmospheric Administration (NOAA) revealed that globally around 26.1% of the seafloor had been mapped with modern technologies mounted to large vessel.
According to the Global Energy Monitor report, Guyana, Iran, Namibia, the U.S., China, and Indonesia are some of the top countries with high oil and gas discoveries. Furthermore, the U.S. Energy Information Administration (EIA) revealed that the oil and natural gas production in the Federal Offshore Gulf of Mexico amounted to around 15.0% of the total crude oil production in the U.S. in 2022. Thus, high offshore oil and gas exploration and production activities are generating lucrative opportunities for pipe laying vessel manufacturers.
Growth Drivers:
Challenges:
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.8% |
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Base Year Market Size (2024) |
USD 2.7 billion |
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Forecast Year Market Size (2037) |
USD 8.9 billion |
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Regional Scope |
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Positioning Systems (Anchor Systems, Dynamic Positioning Systems)
Anchor position system segment is expected to capture around 58.4% pipe laying vessel market share by the end of 2037. The prime factor fueling the sales of anchor system pipe laying vessel is their ability to offer reliable and stable positionings in harsh and deep-water conditions. Low maintenance and cost-effectiveness also contribute to the rising demand for ancho system pipe laying vessel. The long track record of offering safety and vessel handling drives end users to invest in anchor positioning systems. Continuous innovations are directly fueling the sales of innovative anchor systems. For instance, in April 2023, Viking Anchor announced the debut of Odin, a steel plow anchor. Integrated with advanced materials, Odin offers high performance, durability, and safety assurance.
Installation (J-lay Barges, S-lay Barges, Reel Barges)
The S-lay barges segment is estimated to hold a dominant pipe laying vessel market share throughout the forecast period. The rise in offshore oil and gas exploration are prime factor augmenting the sales of S-lay barges. The effectiveness of the S-lay method in deep water and challenging conditions uplifts its demand for the installation of subsea pipelines. Advancements in underwater pipeline constructions are also augmenting the demand for S-lay method compared to other counterparts such as the J-method. The growth in the subsea oil and gas projects is set to propel the demand for S-lay barges in the coming years.
Our in-depth analysis of the pipe laying vessel market includes the following segments:
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Installation |
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Positioning System |
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Depth |
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North America Market Forecast
North America pipe laying vessel market is predicted to capture revenue share of over 44.9% by 2037. The rising oil and gas projects, increasing investments in offshore activities, supportive regulatory policies, and integration of digital technologies are contributing to the overall pipe laying vessel market growth. The infrastructure upgrades and increasing energy demand are also driving the demand for advanced pipe laying vessel for oil and gas explorations.
In the U.S., the rising offshore oil and gas exploration activities especially in the Gulf of Mexico are driving the demand for pipe laying vessel for installation and maintenance of underwater pipelines. For instance, in October 2024, Chevron Corporation revealed its move to expand U.S. Gulf of Mexico production to 300,000 net barrels of oil equivalent (BOE) per day by 2026. In September 2024, the company began the water injection process at its St. Malo offshore field.
In Canada, similar to the U.S. the high offshore oil & gas exploration and production activities are augmenting the demand for advanced pipe laying vessel. The Canadian Association of Petroleum Producers reveals that over 300 exploration wells have been drilled in Atlantic Canada offshore. Furthermore, the pipeline infrastructure upgrade projects are creating lucrative opportunities for pipe laying vessel manufacturers.
Asia Pacific Market Statistics
The Asia Pacific pipe laying vessel market is estimated to increase at a swift CAGR during the projected period. The high energy demand, rising foreign direct investments in the oil and gas sector, technological innovations in vessel manufacturing, and the government’s investments in maritime construction are collectively fueling the pipe laying vessel market growth. China, India, Japan, and South Korea are high-earning marketplaces for pipe laying vessel manufacturers.
India’s expanding offshore oil and gas exploration and production activities are boasting the use of advanced pipe laying vessel to increase production efficiency. Oil and gas is the 8th core sector that contributes to the decision-making of the economy. The India Brand Equity Foundation (IBEF) study estimates that the country’s oil demand is anticipated to account for a 2x growth to reach 11 million bp/d by 2045. The government’s open policy for foreign direct investments in the refinery activities is further expected to push the sales of pipe laying vessel.
In China, the rapid offshore oil and gas exploration and development activities are primarily driving the pipe laying vessel market growth. Technological advancements are leading to the development of modern pipe laying vessel. For instance, in December 2023, Ulstein revealed that its heavy lift pipelay vessel JSD6000 manufactured at ZPMC shipyard successfully completed its trial and returned to the ZPMC Changxing Base.
The pipe laying vessel market is competitive owing to the strong presence of industry giants. Entry and survival in this market for new companies are often challenging due to high capital expenditures. The leading companies are collaborating with high-tech companies and other players to develop innovative pipe laying vessel. Advanced technologies are enhancing the capabilities of pipe laying vessel and driving the attention of end users to invest in them. Continuous product launches are significantly uplifting the revenue share of the key market players. Some producers are also concentrating on global expansion strategies to boost their pipe laying vessel market reach.
Some of the key players include:
Author Credits: Dhruv Bhatia
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