Market Trends of ROV Industry
The Oil & Gas Application Segment is Expected to Dominate the Market
- The dependence on oil and gas increases as major economies globally still rely heavily on petroleum-based products. The oil and gas industry displays immense influence in international politics and economics.
- According to the Statistical Review of World Energy Data, global oil production in 2022 was 99,877 thousand barrels per day, an increase of 11.1% over the previous year. The increase in global population reflected an increase in primary energy consumption, which stood at 604.04 exajoules in 2022, up from 520.90 exajoules in 2011.
- According to the Organization of the Petroleum Exporting Countries (OPEC), in 2023, the global demand for crude oil (including biofuels) amounted to 102.21 million barrels per day. The source expects economic activity and related oil demand to pick up by the end of the year, with the projections suggesting an increase of more than 104 million barrels per day.
- Many potential global reserves of hydrocarbons lie beneath the sea, and the hydrocarbon industry has developed techniques suited to the conditions found in offshore sites to find and produce oil and gas successfully. Oil and gas drilling rigs may operate in up to two miles of water depth. Many deepwater wells and pipeline systems rely on unmanned underwater vehicles to help perform installations, inspections, repairs, and maintenance.
- Over the past few years, remotely operated vehicles (ROV) have evolved from emerging technology with niche uses to extensive applications in the oil and gas sector.
- Capital expenditure in the offshore industry is also increasing significantly worldwide, thus boosting the demand for various advanced technologies, tools, and equipment to perform certain activities. These tools include the ROVs, as they ease the maintenance and inspection work in the offshore sector. Several oil and gas companies are investing in ROVs to support subsea surveys.
- For instance, in August 2023, Energean awarded a five-year ROV support contract to Aberdeen-based ROVOP, a global supplier of remotely operated vehicles (ROVs) and services. The company will deploy its ROVs onboard Energean’s field support vessel, Energean Star, a converted platform supply vessel.
- Technological advancements in ROVs make their operations easier and more efficient, thus boosting their demand in the oil and gas industry.
- Overall, the demand for ROVs is expected to increase during the forecast period due to the rapidly growing offshore oil, gas, and energy operations. There have been several improvements in the technologies associated with remote-operated offshore vehicles.
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North America is Expected to Dominate the Market
- The region has one of the most well-developed offshore oil and gas industries globally, with the primary areas of focus being the vast reserves in the Gulf of Mexico and the offshore Alaska region. With the drilling depths increasing over the years, the volume of technically recoverable reserves has also increased significantly, thus attracting more investments.
- As the United States invested heavily in expanding its oil and gas production capacity, the Gulf of Mexico has become a global hotspot for ROV demand. According to the US Energy Information Administration, in 2022, oil and natural gas production in the Federal Offshore Gulf of Mexico accounted for about 15% of total US crude oil production. The region has one of the highest global densities of offshore rig deployment. It comprises other oil and gas infrastructure, such as production and drilling platforms, marine vessels, and pipeline networks.
- The United States spends the most globally on its defense budget and has pioneered R&D on ROV vessels. In May 2023, the US Navy announced its plans to invest up to USD 5.1 billion in high-tech vessels that would patrol the deepest reaches of the ocean and deploy mini-subs and drones. Such types of investments are expected to drive the ROV market in North America.
- As ROV technology has become increasingly affordable, oil and gas producers in the United States are investing in ROV services to obtain data and perform routine maintenance work on subsea assets and surfaces. Despite the higher upfront cost compared to diving crews, ROVs need less time to complete the same amount of work, which reduces overall project OPEX.
- In May 2024, Edison Chouest, a US offshore services company, acquired Aberdeen-based remotely operated vehicle provider ROVOP. The deal will likely boost the company’s fleet to over 100 ROVs and six autonomous underwater vehicles. Such activities in the industry are expected to reduce costs and increase ROV reliability.
- Thus, the ROV industry in North America is highly developed. As demand increases for marine construction and oil and gas services, the industry is expected to keep growing fast during the forecast period, thereby driving the demand for ROVs in the region.
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