The offshore decommissioning market is estimated to be valued at US$ 7.07 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
The offshore decommissioning market involves removing offshore oil and gas structures and various related components at the end of their useful lives. This includes pipelines, platforms, wellheads, and other substructures. Decommissioning of offshore oil and gas assets requires heavy-lift vessels and specialized equipment to carry out removal and transportation of large and heavy structures and components to shore for disposal.
Increasing number of aging offshore oil & gas assets drives the market growth. Many offshore oil & gas assets across regions such as North Sea and Gulf of Mexico have completed over 25-30 years of production and are nearing the end of their operational lives. Considering the capital intensive and highly regulated nature of offshore decommissioning projects, oil & gas operators are making necessary preparations well in advance. Strict environmental regulations also propel the offshore decommissioning market. Government authorities have implemented stringent guidelines regarding the safe and environment-friendly removal of offshore infrastructure to prevent environmental pollution. Non-compliance can lead to heavy financial penalties for operators. This has made decommissioning an essential part of overall offshore oil & gas project planning.
The Offshore Decommissioning market is primarily segmented into three categories: Topsides decommissioning, substructure decommissioning, and infrastructure/subsea equipment decommissioning. Topsides decommissioning is the leading segment for Offshore Decommissioning market currently owing to the increasing number of maturing offshore oil and gas fields. In the topsides decommissioning process, topsides modules/equipment including production platforms, rigs and drilling modules equipment are removed.
Political: Stringent government regulations regarding decommissioning of aging offshore infrastructure is driving the offshore decommissioning market growth. Economic: Increasing number of aging oil and gas fields requiring decommissioning to avoid environmental risks and manage life cycle costs is boosting market revenue. Social: Growing environmental and safety concerns related to removal of obsolete offshore infrastructure is positively impacting the market demand. Technological: Advancements in robotic technologies, remotely operated vehicles and seismic technologies helps reduce the cost, risks associated with decommissioning activities.
The global Offshore Decommissioning Market Share is expected to witness high growth, exhibiting 16% CAGR over the forecast period, due to increasing number of aging offshore oil & gas infrastructure reaching end of their production life. Regionally, Europe dominates the offshore decommissioning market currently holding around 40% share owing to large number of aging offshore oil & gas fields in North Sea requiring decommissioning activities. Key players operating in the Offshore Decommissioning market are Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation. The North America region is also expected to grow at a considerable rate during the forecast period.
1. Source: Coherent Market Insights, Public sources, Desk research
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