Off-Shore Decommissioning

Global Off-Shore Decommissioning Market to Reach US$11.1 Billion by 2030

The global market for Off-Shore Decommissioning estimated at US$7.8 Billion in the year 2024, is expected to reach US$11.1 Billion by 2030, growing at a CAGR of 6.0% over the analysis period 2024-2030. Well Plugging & Abandonment, one of the segments analyzed in the report, is expected to record a 6.7% CAGR and reach US$5.5 Billion by the end of the analysis period. Growth in the Project Management, Engineering, & Planning segment is estimated at 6.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.2 Billion While China is Forecast to Grow at 5.6% CAGR

The Off-Shore Decommissioning market in the U.S. is estimated at US$2.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.7 Billion by the year 2030 trailing a CAGR of 5.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.8% and 4.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.8% CAGR.

Global Offshore Decommissioning Market - Key Trends & Drivers Summarized

What is Offshore Decommissioning and Why is it Necessary?

Offshore decommissioning refers to the process of safely retiring and dismantling aging offshore oil and gas platforms and other maritime infrastructure that have reached the end of their operational lifespan. This process involves the safe plugging and abandonment of wells, removing platforms, subsea structures, and pipelines, and restoring the marine environment. As many offshore oil fields approach depletion, decommissioning is a necessary step to mitigate environmental risks and comply with regulatory standards. The process is highly complex and costly, requiring specialized equipment, expertise, and strict adherence to safety and environmental protocols. In addition to oil and gas, decommissioning is also relevant to offshore wind farms and other marine infrastructure, especially as governments emphasize reducing environmental footprints in the marine sector.

What Trends are Shaping the Offshore Decommissioning Market?

The offshore decommissioning market is being shaped by several important trends. One of the major trends is the increasing number of aging offshore platforms, particularly in mature oil fields in regions like the North Sea, the Gulf of Mexico, and Southeast Asia. As these platforms near the end of their productive life, the demand for decommissioning services is rising. Another trend is the growing focus on environmental sustainability and marine ecosystem preservation. Governments and regulatory bodies are implementing stricter environmental regulations, requiring companies to responsibly remove old infrastructure and restore the seabed. Furthermore, the push towards offshore renewable energy is also affecting the decommissioning market, as older oil and gas platforms are being repurposed for renewable energy projects like wind farms. Technological advancements in decommissioning techniques, such as underwater robotics and remotely operated vehicles (ROVs), are further streamlining the process, making it safer and more cost-effective.

How is Technology Impacting the Offshore Decommissioning Industry?

Technology is playing a crucial role in the evolution of the offshore decommissioning industry. One of the most significant technological advancements is the use of remotely operated vehicles (ROVs) and autonomous underwater vehicles (AUVs) to inspect and dismantle subsea infrastructure. These technologies enhance safety by reducing the need for divers in dangerous underwater environments. Additionally, the use of advanced cutting and lifting techniques, such as diamond wire cutting and hydraulic shears, allows for more precise removal of structures, reducing damage to surrounding ecosystems. Digital twin technology, which creates virtual models of offshore installations, is being used to improve planning and execution of decommissioning projects, allowing for more accurate cost and time estimates. Moreover, there is increasing adoption of environmentally friendly decommissioning techniques, such as reusing parts of platforms for artificial reefs, which promote marine biodiversity.

What Factors are Driving the Growth of the Offshore Decommissioning Market?

The growth in the offshore decommissioning market is driven by several factors. The primary driver is the increasing number of aging offshore oil and gas platforms that require decommissioning, particularly in mature oil-producing regions. Regulatory pressure is also a key factor, as governments enforce stricter environmental standards and demand responsible decommissioning practices. The growing awareness of environmental sustainability is pushing companies to adopt eco-friendly decommissioning methods that minimize harm to marine ecosystems. Another factor driving growth is the rising cost of maintaining aging infrastructure, which makes decommissioning a more cost-effective option for many operators. Technological advancements that make the decommissioning process more efficient, safer, and less expensive are further accelerating market growth. Lastly, the repurposing of decommissioned platforms for renewable energy projects or as artificial reefs is contributing to the growing demand for decommissioning services.

SCOPE OF STUDY:

The report analyzes the Off-Shore Decommissioning market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service (Well Plugging & Abandonment, Project Management, Engineering, & Planning, Permitting & Regulatory Compliance, Platform Preparation, Conductor Removal, Mobilization & Demobilization of Derrick Barges, Platform Removal, Pipeline & Power Cable Decommissioning, Material Disposal, Site Clearance); Structure (Topsides, Substructure, Subsea Infrastructure); Depth (Shallow Water, Deepwater)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 13 Featured) -

• Able UK Ltd.
• Af Gruppen Asa
• Aker Solutions ASA
• Allseas Group S.A
• Amec Foster Wheeler PLC
• Claxton Engineering Services, Ltd.
• DeepOcean Group Holding BV.
• DNV GL Group
• Heerema Marine Contractors
• John Wood Group PLC
• Petrofac Limited (Jersey)
• Ramboll Group A/S
• Subsea Tech
• TechnipFMC PLC
• Tetra Technologies, Inc.

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