by Offshore decommissioning involves plugging wells, dismantling rigs and pipelines and removing platforms once oil and gas fields cease production. It helps reduce environmental impact and risks associated with aging infrastructure.
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:
Rising offshore oil and gas exploration activities particularly in deepwater and ultradeepwater reserves have significantly increased the volume of offshore structures that will require decommissioning in the near future. With advancing age and depleting resources of existing offshore oil and gas fields, the need for proper decommissioning of related infrastructure is growing substantially. This growing inventory of assets slated for decommissioning is expected to drive significant growth of the offshore decommissioning market during the forecast period.
SWOT Analysis
Strength: The offshore decommissioning market has strong growth potential due to aging offshore oil and gas infrastructure that needs to be decommissioned.
Weakness: Decommissioning large offshore structures requires specialized vessels and equipment which involves high capital costs for companies.
Opportunity: Regulations around the world are pushing for improved decommissioning practices to reduce environmental impact which will drive market growth. New technologies for reusable and recyclable materials also present opportunities.
Threats: Economic slowdowns can reduce oil and gas exploration activities, decreasing the need for future decommissioning projects. Regulations around reusing and recycling materials vary globally.
Key Takeaways
Global Offshore Decommissioning Market Size is expected to witness high growth over the forecast period supported by aging offshore oil and gas infrastructure and growing decommissioning projects. 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.
Regional analysis Europe currently dominates the market due to early-mover advantage in developing capabilities for offshore decommissioning. Stringent environmental regulations in the region have further increased demand. The dominance of Europe region is followed by North America and Asia Pacific.
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., and Prokarium. The market is fragmented in nature with presence of several international and local vendors. Major players are focusing on partnerships, mergers, and acquisitions to expand their geographic footprint. New technological advancements for cost efficient and environmental-friendly decommissioning is another focus area for key players in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
