Market Size of Offshore Decommissioning Services Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.00 % |
| Fastest Growing Market | Europe |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Offshore Decommissioning Services Market Analysis
The market for Offshore Decommissioning market is expected to grow at a CAGR of over5% during the forecast period of 2020 - 2025. Factors such as aging offshore infrastructure in oil and gas industry, rising offshore oil and gas production activities, and increasing oil and gas demand are expected to be major drivers driving the market. However, the volatile nature of oil prices in recent years led to decreased capital expenditure in upstream oil & gas industry causing a slowdown for the market studied.
- Shallow water sector is expected to maintain an edge in the decommissioning services market in the forecast period, owing to the factors such as aging shallow water infrastructure.
- The main opportunity for the offshore decommissioning market is the declining production from the aging fields active over 2-3 decades. This is due to the fact that offshore projects are costly and have a long period of return. The regions currently leading decommissioning market are the ones who were at the forefront of offshore technology over 20 or 30 years ago.
- Europe is expected to dominate the market growth with majority of the demand coming from the countries such as the UK and Norway.
Offshore Decommissioning Services Industry Segmentation
The offshore decommissioning services market report include:
| Water Depth | |
| Shallow Water | |
| Deepwater and Ultra-Deepwater |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Offshore Decommissioning Services Market Size Summary
The offshore decommissioning services market is poised for significant growth, driven by factors such as the aging infrastructure in the oil and gas sector and the increasing demand for oil and gas. The market is expected to experience a steady expansion, with the shallow water segment maintaining its dominance due to the lower operational costs and the historical prevalence of shallow water projects. Europe is anticipated to lead the market growth, with the United Kingdom and Norway at the forefront, as these regions have a substantial number of aging offshore installations requiring decommissioning. The decline in production from aging fields presents a key opportunity for market expansion, despite the challenges posed by the volatile nature of oil prices, which have previously led to reduced capital expenditure in the upstream oil and gas industry.
The market landscape is moderately consolidated, with major players such as Aker Solutions ASA, AF Gruppen S.A., John Wood Group PLC, and Able UK actively participating. The average cost per well for decommissioning has decreased significantly over recent years, contributing to the market's growth trajectory. The United Kingdom is set to become a global hub for decommissioning services, supported by government initiatives and the maturity of its decommissioning market. As investments in offshore oil and gas projects rise, the demand for decommissioning services is expected to increase, driven by the need to address the decommissioning of numerous offshore installations, particularly in Europe, where a substantial volume of topsides and wells are slated for removal in the coming years.
Offshore Decommissioning Services Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast, in USD billion, till 2025
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1.3 Recent Trends and Developments
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1.4 Market Dynamics
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1.4.1 Drivers
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1.4.2 Restraints
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1.5 Supply Chain Analysis
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1.6 Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Suppliers
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1.6.2 Bargaining Power of Consumers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes Products and Services
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1.6.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Water Depth
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2.1.1 Shallow Water
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2.1.2 Deepwater and Ultra-Deepwater
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2.2 Geography
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2.2.1 North America
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2.2.2 Europe
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2.2.3 Asia-Pacific
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2.2.4 South America
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2.2.5 Middle-East and Africa
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Offshore Decommissioning Services Market Size FAQs
What is the current Offshore Decommissioning Services Market size?
The Offshore Decommissioning Services Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Offshore Decommissioning Services Market?
Aker Solutions ASA, AF Gruppen S.A. , John Wood Group PLC , Able UK and Allseas Group are the major companies operating in the Offshore Decommissioning Services Market.
