February 24, 2024
Offshore Decommissioning Market

Offshore Decommissioning Market Growth Driven by Growing Maturity of Offshore Oil and Gas Fields

As oil and gas reserves in aging offshore fields are being depleted, decommissioning of the obsolete infrastructure is gaining prominence. Offshore decommissioning includes removal and disposal of offshore oil and gas structures once production has ceased. It helps to restore the marine habitats and provide opportunity to explore new underwater resources. The structures include various topside and subsea facilities like platforms, pipelines, wells, manifolds and other equipment. The scale and complexity of offshore decommissioning poses major environmental and technical challenges. Proper planning along with use of specialized vessels and remote tools are crucial to carry out decommissioning in safe and cost effective manner while mitigating risks.

The global Offshore Decommissioning Market is estimated to be valued at US$ 7.07 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the offshore decommissioning market is growing focus on the reuse and recycling of decommissioned structures. Growing inclination towards sustainable decommissioning practices is driving numerous stakeholders to explore viable options for reuse of aging infrastructure. For instance, offshore platforms are reused in various sectors such as artificial reefs, breakwaters, offshore accommodation etc.after removing contaminated elements. Several components are recycled to recover materials like steel. This helps in diverting waste from landfills and promotes circular economy. Various field trials and pilot projects are underway to standardize and commercialize structure reuse practices. Regulatory push and industry collaboration would aid in maximizing resource recovery from decommissioning projects in the coming years.

Porter’s Analysis

Threat of new entrants: The offshore decommissioning market has high capital requirements and regulations which creates barriers for new companies.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several established players in the market.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute components and differentiation in services.

Threat of new substitutes: Limited threat of new substitutes as offshore decommissioning services have no close substitution.

Competitive rivalry: The offshore decommissioning market has high competition due to presence of global and regional players.

Key Takeaways

Global Offshore Decommissioning Market Size is estimated to be valued at US$ 7.07 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

The global offshore decommissioning market is expected to witness high growth. The Asia Pacific region is expected to grow at the fastest rate during the forecast period due to increasing offshore exploration activities in countries such as China, India, Indonesia, Thailand and Malaysia. The European region currently dominates the offshore decommissioning market owing to mature offshore oil & gas markets in North Sea countries such as Norway, UK and Netherlands. Stringent government regulations regarding offshore asset removal and waste disposal are also driving the European offshore decommissioning market.

Key players operating in the offshore decommissioning market are GlaxoSmithKline Plc., Sanofi SA, Bharat Biotech, Bio-Med Pvt. Ltd., PT Bio Farma, PaxVax, Inc. Shanghai Institute of Biological Products Co., Ltd. GlaxoSmithKline Plc. and Sanofi SA are the leading players owing to their diverse services portfolio and global presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it