Asia-Pacific Auv Market - Growth, Trends, and Forecasts (2023 - 2028)

Asia-Pacific Auv Market - Growth, Trends, and Forecasts (2023 - 2028)

The Asia-Pacific AUV market is projected to register a CAGR of 5.5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.

• Over the long term, factors such as the rising offshore oil and gas production activities and the growing offshore wind power industry are expected to drive the AUV market during the forecast period.
• On the other hand, various countries such as Vietnam and the Philippines are planning to increase their focus on climate change and ban offshore exploration activities in the future, which is expected to restrain the market growth.
• Nevertheless, the rising deepwater and ultra-deepwater discoveries are expected to open up new opportunities for the Asia-Pacific AUV market during the forecast period.
• China is expected to witness significant growth. With rising oil and gas investments, especially in the upstream sector, it is expected to dominate the market.

• The Asia-Pacific region is rich in oil and gas reserves. The dependence on oil and gas increases as major economies across the world still rely heavily on petroleum-based products. The oil and gas industry displays immense influence in international politics and economics.
• The oil production in Asia-Pacific decreased from 8,372 thousand barrels per day in 2015 to 7,335 thousand barrels per day in 2021. However, the demand has increased post-pandemic, particularly in the transportation and industrial sectors.
• Many of the potential global reserves of hydrocarbons lie beneath the sea. The hydrocarbon industry has developed techniques suited to conditions found in offshore sites to find oil and gas and produce it successfully.
• In August 2022, Indian oil explorer and producer Oil and Natural Gas Corp. signed a Heads of Agreement (HoA) with global petroleum giant ExxonMobil Corp for deepwater exploration on the country's East and West coasts. The two oil explorers would focus on the Krishna Godavari and Cauvery basins in the eastern offshore and the Kutch-Mumbai region in the western offshore. This may, in turn, culminate in using autonomous underwater vehicles (AUVs) for explorations.
• Furthermore, in March 2022, Petronas Chemicals Group Berhad announced that it had signed four production-sharing contracts for five offshore blocks in Malaysia. The development is expected to bolster offshore exploration activities and is expected to drive the demand for the AUV market in the region during the forecast period.
• Owing to the above points, the oil and gas segment is expected to dominate the market during the forecast period.

• China is the world's second-largest consumer of oil and gas and the sixth-largest producer of oil and gas across the world. The country's oil and upstream gas market is dominated by state-owned oil and gas companies by developing the country's domestic oil and gas exploration and production activities.
• China's natural gas production has witnessed significant growth with rising demand from numerous industries. Natural gas production increased to 207.58 billion cubic meters in 2021 from 176.1 billion cubic meters in 2019. This is expected to attract major investments to meet the demand.
• Moreover, in January 2022, China National Offshore Oil Corporation (CNOOC) announced its oil production target for the year 2022 at 10% above last year's goal. Also, the country expects its domestic crude oil output to hit a plateau by 2030 and domestic natural gas by 2035, in line with China's peak fuel demand. This, in turn, promotes the growth in the utilization of AUVs for detecting and mapping oil and gas reserves across the country.
• Furthermore, in September 2022, the country has planned to supply highly advanced stealth autonomous underwater vehicles (AUVs) manufactured by China Shipbuilding Power Engineering Institute Co. to the Saudi Arabian Kingdom. This showcases that the country is ahead in the AUV market.
• Owing to the above points, China is expected to dominate the Asia-Pacific AUV market during the forecast period.

The Asia-Pacific AUV market is moderately fragmented in nature. Some of the major players in the market (in no particular order) include DOF Subsea AS, Fugro NV, RTSYS, Saipem SpA, and Oceaneering International Inc.

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