Offshore Oil & Gas Industry to Drive Offshore Support Vessel Demand at 6.2% CAGR

The global offshore support vessel service market is projected to reach a valuation of US$ 14.35 billion in 2024, with expectations to grow to US$ 29.03 billion by the end of 2034. This represents a strong compound annual growth rate (CAGR) of 7.3% over the forecast period from 2024 to 2034.

The Offshore Support Vessel (OSV) Service market plays a crucial role in the global maritime industry, supporting various activities in offshore oil and gas exploration, subsea construction, and maintenance operations. These vessels include platform supply vessels (PSVs), anchor handling tug supply (AHTS) vessels, and multipurpose support vessels, all of which are integral to offshore drilling, transportation, and logistics. The OSV service market has grown significantly over the past decade due to the increased focus on deep-water exploration, coupled with advancements in offshore drilling technologies. The demand for OSVs is heavily influenced by the activities in the offshore oil and gas industry, with exploration and production companies relying on these services to ensure smooth and efficient operations at sea.

Future Outlook

The future outlook for the offshore support vessel service market appears promising, with expected steady growth over the next decade. As the global energy demand continues to rise, the focus is shifting towards exploiting offshore resources to maintain a steady supply of hydrocarbons. This is expected to boost the demand for OSVs, particularly in regions like the Gulf of Mexico, the North Sea, and offshore Africa and Brazil, where deep-water exploration activities are on the rise. The market is also expected to benefit from the expansion of offshore wind farms, which require support vessels for construction, maintenance, and decommissioning activities. Companies are increasingly investing in technologically advanced vessels equipped with dynamic positioning systems and hybrid propulsion to cater to the evolving needs of the industry. Additionally, the growing emphasis on renewable energy sources, such as offshore wind and tidal energy, presents new opportunities for OSV operators to diversify their services beyond traditional oil and gas support.

List of Key Companies Profiled in The Report

• VroonOffshore Services Pte Ltd.
• P. Møller – Mærsk A/S
• Bumi Armada Berhad
• Swire Pacific Limited
• Bourbon Corporation
• Edison Chouest Offshore (Offshore Service Vessels L.L.C.)
• Falcon Energy Group
• Others

Notable Developments

The offshore support vessel service market has witnessed several notable developments in recent years, reflecting the evolving needs of the industry. One of the key trends is the shift towards multi-purpose support vessels (MPSVs), which are capable of performing a wide range of functions, including subsea construction, maintenance, and logistics support. This versatility allows operators to maximize the utilization of their fleets, thereby improving profitability. Another significant development is the adoption of hybrid propulsion systems, which combine traditional diesel engines with battery-powered electric motors. This technology not only reduces fuel consumption and emissions but also enhances the operational flexibility of OSVs, allowing them to operate efficiently in various offshore conditions. In addition, several OSV operators have begun exploring opportunities in the offshore wind sector, providing services such as turbine installation and maintenance. This shift has allowed companies to diversify their revenue streams and reduce their dependency on the volatile oil and gas market. The emergence of autonomous vessels is another promising development, with several companies conducting trials of unmanned support vessels that can operate with minimal human intervention, potentially reducing operational costs in the future.

Competitive Landscape

Offshore support vessel service providers are increasingly focusing on integrating advanced technologies to enhance their services and improve profitability in this challenging industry.

In February 2022, Vroon, a well-known player in the offshore support vessel service sector, partnered with Navarino to implement a new IT-as-a-service platform across its fleet of 120 offshore and deep-sea support vessels. This shift enabled Vroon to transition from a capital expenditure (CAPEX) model to an operating expenditure (OPEX) model for its technology support, hardware, and software needs.