Offshore Decommissioning Market Outlook 2031
The global offshore decommissioning market size was USD 5.58 Billion in 2022 and is expected to reach USD 10.61 Billion by 2031 expand at a CAGR of 7.4% during the forecast period, 2023 – 2031. The growth of the market is attributed to aging offshore infrastructure in the oil & gas industry.
Ships and vessels become defunct beyond repair after a point in time, and it becomes necessary to replace them with new vessels. Hence, the domain of offshore decommissioning has emerged as a key area of growth within the marine industry. Furthermore, the growing focus of port operators to decommission defunct ships is driving the market growth.
Ships and vessels that start consuming high amount of fuels require to be reconsidered for sailing. Hence, the need for offshore decommissioning has become an important component in the decision-making process in the marine industry. Several experts have given their opinions on the ratio of decommissioning that should ideally be followed by vessel operators.
Offshore Decommissioning Market Drivers, Restraints, Trends, and Opportunities
- Rising offshore oil and gas production activities and increasing oil and gas demand are expected to fuel the market growth.
- The advancements in the marine industry is anticipated to fuel the growth of the market.
- The use of offshore decommissioning to maintain sustained and manageable marine traffic has stimulated the market growth.
- Volatile nature of oil prices in recent years has decreased the expenditure in upstream oil & gas industry, restraining the growth of the market
- Environmental concerns related to the use of excessive number of vessels can create challenges for the market growth.
- The presence of the abandoned wells in matured offshore oil fields across the world can lucrative opportunities for the offshore decommissioning market.
Scope of The Offshore Decommissioning Market Report
The report on the global offshore decommissioning Market includes an assessment of the market, trends, segments and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Offshore Decommissioning Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Water Depth (Shallow Water, and Deepwater, and Ultra-deepwater)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Aker Solutions ASA, AF Gruppen S.A.,
John Wood Group PLC, Able UK, Allseas Group
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Offshore Decommissioning Market Segment Insights
Shallow water segment to account significant market share
In terms of water depth, the market is segmented into shallow water, deep-water, and ultra-deepwater. The shallow water segment is expected to account for a significant market share during the forecast period. The segment growth is attributed to factors such as low operational cost and recovering oil prices in the oil & gas industry.
Many of the offshore projects that are decommissioned in shallow water, as early offshore products were primarily shallow water, while deepwater projects have commenced in recent years. Since the past few years, the average cost per well for decommissioning have gone down significantly, resulting in the growth of the market.
Hence, with many new offshore oil & gas projects, coupled with the rising investments in offshore oil & gas sector, the demand for decommissioning is expected to grow significantly during the forecast period.
Europe to account a considerable market share.
Based on geography, the market is divided into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. Europe is projected to account for a considerable market share during the forecast period. The growth of the market in the region is attributed to the region being one of the first markets to use offshore oil & gas infrastructure.
In Europe, over 950,000 ton of topsides are planned for removal across the North Sea. Out of these, more than 605,000 tons are from UKCS. The UK is expected to spend approximately EUR 15.3 Billion (approx. USD 18.1 Billion) on decommissioning in the tenure of 10 years. An estimated 2,400 wells are expected to be decommissioned across the whole North Sea and West of Shetland region, by 2027. About 914 of these wells are positioned in the Norway, Denmark, and Netherlands.
Segments
The global offshore decommissioning market has been segmented on the basis of
Water Depth
- shallow Water
- Deepwater
- Ultra-deepwater
Geography
- North America
- Europe
- Asia-Pacific
- South America
- Middle-East and Africa
Key players
Competitive Landscape
The offshore decommissioning services market is moderately consolidated. Some of the major companies operating in the market being studied are Aker Solutions ASA, AF Gruppen S.A., John Wood Group PLC, Able UK, Allseas Group.
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