Offshore decommissioning involves dismantling offshore oil and gas infrastructure and facilities once they reach the end of their productive lives. It aims to remove non-productive infrastructure in a safe, timely, and cost-effective manner. This process reduces environmental impact and ensures safety.
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 16% 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 the growing adoption of software as a service (SaaS). SaaS offerings provide remote access to applications and data storage over the internet. They facilitate activities like evaluating asset integrity, assessing well plugging and abandonment strategies, forecasting costs, scheduling project timelines, ensuring regulatory compliance, and managing HSE risk. SaaS eliminates upfront capital costs, provides seamless upgrades, and offers flexibility and scalability to users. This is fueling increased spending on SaaS solutions in the offshore decommissioning market.
Segment Analysis
The global offshore decommissioning market is segmented by service, structure, water depth, and region. Based on service, the market is classified into removal, containment, and others. Within this, the removal segment is expected to dominate with over 35% market share owing to the growing need for safely dismantling and disposing offshore structures at the end of their productive lives.
Key Takeaways
The Global Offshore Decommissioning Market Size is expected to witness high growth, exhibiting 16% CAGR over the forecast period, due to increasing depletion of offshore oil and gas assets driving decommissioning activities.
Regional analysis
North America is expected to dominate the global offshore decommissioning market, with over 30% share during the forecast period. This is attributed to rising decommissioning projects, supportive regulatory norms, and presence of major decommissioning service providers in the region.
Key players
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. Major players are focusing on developing innovative and cost-effective decommissioning solutions to gain a competitive edge in the market.
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