Offshore Support Vessel

Offshore Support Vessel

Offshore support vessels (OSVs) or Offshore Supply Vessels are specialized vessels for logistical support of different constructions in the offshore platforms and subsea installations. The offshore support vessels market is growing at a fast rate mainly driven by the rise in different offshore oil and gas exploration and offshore wind infrasturture projects. In addition to this, high exploration and development activities in hydrocarbons in ultra deepwater is also driving the demand for OFSV market. For instance, by March 2022, DEME’s specialized floating installation vessel Orion had helped with 62 foundation installations including monopile foundations, transition pieces, offshore substation, and scour protection at the 800 MW Vineyard Wind 1 offshore wind farm in the USA. Therefore, rise in different offshore energy exploration and installation projects is propelling the growth of the offshore support vessels market during the forecast period.

The Offshore Support Vessel Market is expected to grow at a strong CAGR of above 5% during the forecast period owing to increasing offshore wind infrastructure. For instance, in May 2022, countries like Germany, Belgium, the Netherlands and Denmark have planned to increase the offshore wind capacity in the North Sea by 150 GW by 2050. Again, Chevron in 2023 has planned to increase its increase oil and gas production by constructing a facility at Anchor Field that is expected to have a capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day.

• Based on type, the market has been segmented as anchor handling tug supply vessels, platform supply vessels, multipurpose support vessels, emergency response & rescue vessels, crew vessels and others. In 2021, anchor-handling tug supply vessels held a lucrative market share. This is mainly due to its extensive use like handling the anchor of an oil rig, tow it to the location and anchor it, and it is also used as an emergency response and rescue boat. Further, they have highly flexible decks for heavy duty equipment and a propulsion system designed with powerful bollard pull, these impressive vessels are known for their seakeeping capabilities in rough or icy waters. For instance, in June 2023, Kongsberg Maritime, launched new generation designs for platform supply vessels (PSVs) and anchor handling tugs (AHTs), equipped with ammonia-fuelled engines as well as plug-in hybrid option with the aim to reducing emissions and increasing onboard energy storage.
• By application, the market is segmented into oil and gas applications and offshore wind applications. Currently, oil and gas sector occupy a considerable market share. This is mainly owing to ongoing high exploration and production activities in offshore oil and gas fields. Starting from surveying to production from oil rig OSV’s play a critical role. Offshore support vessels act as a transportation solution for offshore oil and gas rigs by assisting operators in transporting rigs equipment at the time of rig installation. Moreover, with increasing activities in deepwater like Artic Ocean demand of OSV’s rising due to operations carried require OSV’s. Further, the rising scope for relishing the wind turbine projects in deepwater, where the high wind speed creates a much favorable environment for operation is likely to drive to market robustly. According to IEA, global offshore wind capacity is projected to increase fifteen-fold to 2040, becoming a $1 trillion industry with adoption of suitable policies scenario and decreasing technology cost
• Based on water depth, the market is bifurcated into shallow water and deepwater. Of both, currently deepwater hold the prominent market share due to major oilfields are present in deepwater. Over the years with increasing oil and gas demands hydrocarbons from shallow waters used up thereby giving boom to explorations and productions activates in deepwater. Moreover, with increasing demand for oil and gas, companies are heavily investing in exploration of hydrocarbons in ultra-deepwater to maintain the demand and supply in the market. In addition, wind turbines are located in deepwater which provides the most suitable environment to work at its full efficiency. According to a McKinsey Energy Insights’ Operations and Emissions Benchmarks report, deepwater basins are expected to contribute at least 7 MMbbl/d of the total 24 MMbbl/d global energy needs by 2040.
• For a better understanding of the market adoption of the offshore support vessels industry, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, Russia, France, Spain, Rest of Europe), Asia-Pacific (China, Japan, Vietnam, Australia, Rest of Asia-Pacific), Rest of World. Currently, North America holds lucrative market share due to large number of drilling, exploration and production activities in the region. As land and shallow water reserves are matured, most oil & gas activities have shifted to deepwater. Deepwater exploration and production activities have increased in countries like USA. OSVs’ count is also growing in the region due to an increase in the number of vessel manufacturers in the market. Moreover, presence of offshore support vessel service providers like DEME Offshore US that are operating in the region, thereby helping offshore wind operators like Avangrid Renewables in transport and installation of offshore wind turbines.
• Some of the major players operating in the market include A.P. Møller – Mærsk A/S; Bourbon Corporation SA; stensj Rederi AS; MMA Offshore Limited; Harvey Gulf International Marine, LLC; SEACOR Marine Holdings Inc.; Solstad Offshore ASA; Tidewater, Inc.; PACC Offshore Services Holdings Ltd.; Havila Shipping ASA.