Offshore Support Vessel (OSV) Market by Technology (AHTS, PSV, MPSV, Standby & Rescue Vessels, Crew Vessels, Chase Vessels, Seismic Vessels), Application (Shallow water, Deepwater), End-user Industry, Material, Fuel Type and Region - Global Forecast to 2028
Offshore Support Vessel (OSV) Market Size, Share, Growth Report & Forecast
[292 Pages Report] The global offshore support vessel market size in terms of revenue was estimated to be worth $22.6 billion in 2023 and is poised to reach $31.4 billion by 2028, growing at a CAGR of 6.7% from 2023 to 2028. Recently regions has witnessed a rapid growth in offshore support vessel demand in recent years due to the increased exploration and production activities in offshore areas. The OSV market size is projected to benefit greatly from rising deepwater activities and the decommissioning of outdated offshore infrastructure.
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Offshore Support Vessel Market Growth Dynamics
Driver: Increasing investments in offshore wind and oil & gas projects
The global energy demand is significantly influenced by the growth of the human population. According to the UN World Population Prospects, the world population is projected to reach 8.5 billion by 2030, driving the need for diverse energy sources including oil & gas, renewables, thermal, and nuclear power. The presence of substantial unexplored oil reserves, estimated at 1,729.7 billion barrels as per the BP Statistical Review of 2019, creates demand for drilling and production activities. This demand, in turn, supports the offshore support vessel market growth. According to the BP Outlook 2023, the share of renewables in global primary energy increased from around 10% in 2019 to 35–65% by 2050. The main objective is to reduce carbon emissions by 36% by 2040 compared to 2017. The International Energy Agency (IEA) predicts that the global renewable generation capacity will grow by 75% or 2,400 GW between 2022 and 2027. Upon completion, a 1,400 MW offshore wind farm in Sofia, developed in the shallow central area of the North Sea known as Dogger Bank, would be the world’s largest offshore wind farm. Offshore wind farms are an integral part of renewables-based power generation. The growing investments in building offshore wind farms will positively impact the OSV market growth.
Restraint: Supply-demand gap in offshore support vessels
The rise in the supply of offshore support vessels has resulted in a supply-demand gap in the market. There are more OSVs available than the users demand. This is leading to intense competition among OSV companies, pricing pressures, and reduced profitability for many players in the market. The offshore support vessel market market is highly dependent on the oil and gas industry, which has experienced significant fluctuations in demand and supply over the years. During high oil prices, there was a surge in demand for OSVs, leading to an increase in the number of new builds entering the market. However, with the sharp decline in oil prices in 2014, the demand for OSVs also fell sharply, leaving many companies with excess capacity. The overcapacity problem has led to intense competition among OSV companies, with many players undercutting each other to secure contracts. This has put pressure on pricing, which has impacted profitability and financial stability in the industry. To address the overcapacity problem, some OSV companies have taken steps to reduce their fleet sizes by scrapping or selling vessels or delaying the delivery of newbuilds. Tidewater, Hermitage Offshore Services, BOURBON, Seacor Marine, and POSH Terasea sold their 22, 12, 11, 8, and 8 OSVs, respectively, in 2020, with a combined worth of USD 180 million. All these factors have resulted in the oversupply of offshore support vessels, which will hinder the OSV market growth.
Opportunities: Decommissioning and replacement of aging offshore infrastructure
With oil and gas companies cutting down on their capital expenditure and operating costs due to the pandemic, decommissioning work is likely to see increased spending. The aging offshore infrastructure in the North Sea is expected to provide new growth opportunities for the offshore support vessel market. Clyde and Co. Oil & Gas UK, in its 2019 Decommissioning Insight report, estimated about 12 platforms to be removed per year in the UK North Sea and 150 wells to be abandoned annually over the next decade. Approximately twice as many wells are now being abandoned each year, and this ratio is likely to increase following the decreased demand and surplus in supply post-2020, which will lead to an inevitable decrease in capital expenditure. In the next 30 years, the North Sea region’s 475 platforms, 10,000 km of pipeline, and 5,000 wells are expected to be decommissioned. This is mainly due to the maturing of oil fields in the region; the decommissioning is anticipated to cost USD 41 billion. There are approximately 7,000 offshore structures along the Gulf of Mexico and the North Sea—the largest regions for offshore decommissioning. Each oil & gas field has a life cycle of 30–40 years, which can be divided into primary and secondary phases. The primary phase involves the extraction of hydrocarbon reserves using natural processes. The secondary phase includes modern technologies such as enhanced oil recovery (EOR), artificial lifts, and injecting water to improve the reservoir output. Operating companies use these technologies over time to increase production, though production volumes are higher in the primary phase. An oil & gas field is considered mature when production declines significantly following primary recovery methods. Maturing oil & gas fields are expected to provide new revenue-making opportunities for the offshore support vessel market market players.
Challenges: Stringent regulations for offshore activities
Government regulations related to oil & gas field developments are becoming more stringent day by day. The OSV market is fragmented and dominated by local players. Cabotage is a law regulating shipping and offshore activities in a country’s waters. It recognizes that a country is authorized to limit the activities of foreign vessels operating within its waters. Every country has its own cabotage law to encourage more local players' participation. The cabotage legislation in the Bahamas focuses on generating employment opportunities for the local population. Brazil has implemented several cabotage laws to support the local industry. Although the local regulations are in place, the offshore industry in Brazil is struggling to meet Petrobras’ E&P plans. According to the Petroleum Development Act and Petroleum Regulations in Malaysia, all offshore support vessel service providers should have a valid license issued by Petronas Malaysia. Since 2016, Indonesia has been planning to restrict foreign vessels and the transportation of domestic products in Indonesian waters to encourage the growth of domestic players. Such requirements sometimes force companies to purchase equipment from local players even if it is being sold at a lesser cost by an international player.
Offshore Support Vessel Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of Offshore support vessel systems and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include DOF ASA (Norway), Solstad Offshore ASA (Norway), Tidewater Inc. (US), A.P. Moller – Maersk (Denmark), Siem Offshore (Norway), BOURBON (France), and Vroon (Netherlands).
The standby & rescue vessels segment, by feedstock, is expected to be the second-fastest growing market during the forecast period.
This report segments the offshore support vessel market based on type into different types: AHTS, PSVs, MPSVs, crew vessels; standby & rescue vessels; chase vessels; seismic vessels; and other vessels (diving support vessels, remotely operated vessels, cable- and pipe-laying vessels, well-stimulation vessels, and well-intervention vessels). The standby & rescue vessels segment is expected to be the second fastest growing market during the forecast period. The emergency preparation of an offshore installation includes a standby vessel, which is situated there and picks up people in an emergency. They have a helipad, firefighting gear, oil recovery gear, and tanker assistance. These ships can carry many passengers and are designed and outfitted to temporarily house everyone from the offshore facility or drilling ship, remove personnel from the water, and give first aid.
By application, the shallow water segment is expected to be the fastest growing during the forecast period
This report segments the offshore support vessel market based on application into two segments: shallow water and deepwater. The shallow segment is expected to be the fastest growing segment during the forecast period. Shallow water operations are less expensive than deepwater operations. Thus, recovering oil prices will lead to a faster increase in offshore activities in shallow-water basins than the deepwater ones. Further, investments in offshore wind farming have been concentrated in the shallow water regions. All such investments will drive the offshore support vessel market growth for shallow water applications.
“North America”: The fastest in the offshore support vessel market”
North America is expected to fastest growing region in the offshore support vessel market between 2023–2028, followed by the Asia Pacific, Europe, and Middle East. The North American region witnessed an increase in oil production by 2.5% on a y-o-y basis in 2022. However, there has been an increase in offshore activities in the US Gulf of Mexico, with new offshore projects under progress. Such factors are likely to boost the demand for offshore support vessels in the region.
Key Market Players
The market is dominated by a few major players that have a wide regional presence. The major players in the offshore support vessel market include DOF ASA (Norway), Solstad Offshore ASA (Norway), Tidewater Inc. (US), A.P. Moller – Maersk (Denmark), Siem Offshore (Norway), BOURBON (France), and Vroon (Netherlands). Between 2018 and 2022, Strategies such as contracts, agreements, partnership, merger, acquisitions, and expansions are followed by these companies to capture a larger share of the market.
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Report Metric |
Details |
Market Size Available for Years |
2017–2028 |
Base Year |
2022 |
Forecast Period |
2023–2028 |
Units |
Value (USD Billion) |
Segments Covered |
Technology, Application, Material, Fuel Type, End-User Industry, and Region |
Geographic Regions Covered |
Asia Pacific, North America, Europe, South America, Middle East and Africa. |
Companies Covered |
DOF ASA (Norway), Solstad Offshore ASA (Norway), Tidewater Inc. (US), A.P. Moller – Maersk (Denmark), Siem Offshore (Norway), BOURBON (France), Vroon (Netherlands), SEACOR Marine (US), Havila Shipping ASA (Norway), Kawasaki Kisen Kaisha, Ltd. (Japan), Østensjø Rederi (Norway), Nam Cheong Limited (Malaysia), MMA Offshore (Australia), Grupo CBO (Brazil), PACC Offshore Services Holdings (POSH) (Singapore), Harvey Gulf International Marine (US), Royal IHC (Netherlands), Edison Chouest Offshore (US), GC Rieber (Norway), Falcon Energy Group (Singapore). |
This research report categorizes the market by material, fuel type, type, application, end-user industry and region.
On the basis of by material, the offshore support vessel market has been segmented as follows:
-
Offshore Support Vessel Materials
- Steel
- Aluminum
- Fiberglass
- Composite Materials
- Wood
-
Cladding Materials
- Stainless Steel
- Aluminum
- Copper-Nickel Alloys
- Titanium
- Inconel
On the basis of fuel type, the market has been segmented as follows:
- Fuel Oil
- LNG
On the basis of type, the market has been segmented as follows:
- Anchor-handling Tug Supply Vessels
- Platform Support Vessels
- Multipurpose Support Vessels
- Standby and Rescue Vessels
- Crew Vessels
- Seismic Vessels
- Chase Vessels
- Other Vessels
On the basis of application, the market has been segmented as follows:
- Deepwater
- Shallow Water
On the basis of end-user industry, the market has been segmented as follows:
- Offshore Oil & Gas
- Offshore Wind
On the basis of region, the market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In April 2023, Bourbon Marine & Logistics announced its partnership with the Guyanese company— Tethys Marine & Logistics, which will become a 51% shareholder of the Bourbon Guyana Joint Venture. With 75% Guyanese Directors, Bourbon Guyana will become the first indigenous offshore support vessel operator, fully compliant with the most recent local content regulations.
- In March 2023, Maersk entered into a three-year contract with Petrobras, a state-owned Brazilian multinational corporation in the petroleum industry, to use three L-class anchor handlers to carry out a range of anchor handling activities and rig movements. This move is part of Maersk’s efforts to strengthen its position in the Brazilian market for supply chain services and become a respected integrated solutions provider in the region. Maersk Supply Services has already secured several contracts, including a series of solutions contracts for the FPSO Fluminense on behalf of Shell and the Mero 2 contract for.
- In March 2023, Tidewater Inc. announced a definitive agreement to purchase 37 of Solstad Offshore ASA’s (SOFF) platform supply vessels (PSVs).
- In January 2023, Maersk entered into an assignment agreement with TechnipFMC for the comprehensive towing and mooring campaign of Petrobras's Búzios 6 Project, the seventh module of Búzios, offshore Brazil. The scope of work includes the pre-installation of the mooring system and hook-up of the FPSO P-78, which will be the seventh FPSO in the Búzios field, located in the Santos Basin, Brazil. The project is expected to take nearly two years to complete, with onshore work already underway, including engineering, procurement, and project management.
Frequently Asked Questions (FAQ):
What is the current size of the offshore support vessel market?
The current market size of the offshore support vessel market is USD 21.8 billion in 2022.
What are the major drivers for the offshore support vessel market?
Increasing investments in offshore wind farm construction will be major drivers for the offshore support vessel market.
Which is the largest region during the forecasted period in the offshore support vessel market?
Asia Pacific is expected to dominate the offshore support vessel market between 2023–2028, followed by Europe and North America. Increase in exploration and production activities in offshore areas in recent years are driving the market for this region.
Which is the largest segment, by type during the forecasted period in the offshore support vessel market?
The AHTS segment is expected to be the largest market during the forecast period. AHTS vessels are specialized ships designed for various offshore operations in the oil and gas industry, for example, anchor handling, towing and positioning, supply operations, dynamic positioning, firefighting and safety, construction support, and crew accommodation.
Which is the fastest segment, by end-user during the forecasted period in the offshore support vessel market?
The offshore wind segment is expected to be the fastest market during the forecast period. The increasing deployment of offshore wind farms would drive the demand for offshore support vessels used during the installation, maintenance, and dismantling of offshore wind farms.
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The study involved major activities in estimating the current offshore support vessel market size. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market offshore support vessel market size of the segments and subsegments.
Secondary Research
This research study on the OSV market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, IRENA, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The global offshore support vessel market comprises several stakeholders such as offshore support vessel manufacturers, manufacturing technology providers, and technical support providers in the supply chain. The demand side of this market is characterized by the rising demand for offshore support vessel in, generation, transmission, and distribution application. The supply side is characterized by rising demand for contracts from the industrial sector, and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Offshore Support Vessel Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the OSV market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the offshore support vessel market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their offshore support vessel market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Offshore Support Vessel Market Size: Tow-Down Approach
Data Triangulation
After arriving at the overall offshore support vessel market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Defenition
An offshore support vessel (OSV) is specially designed to support offshore exploration, drilling, production, and construction activities in the oil & gas industry. These vessels provide a range of services, such as transportation of personnel, equipment and supplies, maintenance and repair, and oil spill response. These vessels are equipped with dynamic positioning systems to maintain their position in rough seas and are built to withstand harsh offshore conditions. Different types of offshore support vessels are used in offshore oil & gas and offshore wind applications. OSVs play a crucial role in offshore oil & gas platforms and offshore wind farms by enabling safe and efficient operations
The offshore support vessel market growth during the forecast period can be attributed to the robust investments in offshore oil & gas and renewable technologies across major countries in North America, South America, Europe, Asia Pacific, Middle East and Africa.
Key Stakeholders
- Offshore support vessel manufacturers and suppliers
- Offshore support vessel operators
- Offshore wind turbine manufacturers
- Oil and gas companies
- Wind farm owners, operators, and developers
- Offshore support vessel consulting companies
- Offshore logistics and ship authorities
- Offshore platform operators
- Associations and industry associations
- Government and research organizations
- Investment banks
Objectives of the Study
- To describe, segment, and forecast the offshore support vessel market size based on type, application, end-user industry, and region, in terms of value
- To describe and forecast the market for five key regions: North America, Europe, Asia Pacific, South America, Middle East, and Africa, along with their country-level market sizes, in terms of value
- To provide information on different types of fuels used in offshore support vessels and materials used to construct offshore support vessels
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To provide the supply chain analysis, trends/disruptions impacting customer business, market map, pricing analysis, and regulatory analysis of the OSV market
- To analyze opportunities for stakeholders in the OSV market and draw a competitive landscape of the market
- To strategically analyze the ecosystem, tariff and regulatory landscape, patent analysis, trade analysis, Porter’s five forces analysis, and case studies pertaining to the market under study
- To benchmark market players using the company evaluation quadrant, which analyzes market players on broad categories of business and product strategies adopted by them
- To compare key market players with respect to product specifications and applications
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments such as contracts and agreements, investments and expansions, mergers and acquisitions, partnerships, joint ventures, and collaborations in the OSV market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Offshore Support Vessel (OSV) Market