Offshore Supply Vessels Market Analysis

Global Offshore Supply Vessels Market Overview

Offshore Supply Vessels Market Size was valued at USD 12,071.94 million in 2023. The Offshore Support Vessels Market industry is projected to grow from USD 12,788.62 million in 2024 to USD 20,286.00 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.94% during the forecast period (2024 - 2032).

The Global Offshore Supply Vessels (OSV) market has witnessed significant growth and transformation in recent years. OSVs play a crucial role in supporting offshore oil and gas exploration, development, and production activities, as well as other offshore operations such as offshore wind farms and subsea construction.  There is a growing focus on environmental sustainability and energy transition. OSV operators are increasingly adopting eco-friendly technologies and vessel designs to reduce carbon emissions and ensure compliance with stringent environmental regulations.

This includes the use of low-emission engines, energy-efficient propulsion systems, and investments in alternative fuels. Further, there is a rising demand for specialized vessels to support offshore wind installations. These vessels are equipped with advanced cranes and lifting capabilities to transport and install wind turbines and foundations. As the offshore wind industry grows, the need for larger and more specialized OSVs will continue to increase.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

June 2024: Siem Offshore has secured a contract extension for its platform supply vessel (PSV) Siem Hanne, with Equinor. The extension is for additional 12 months, reinforcing the vessel's role in offshore oil and gas operations in the North Sea.

Offshore Supply Vessels Market Trends

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  Increasing offshore exploration and production activities

  
  

Over the years, the offshore oil and gas industry has undergone a significant shift in its operations. Exploration and production activities have moved to deeper waters and more remote locations, presenting new challenges and opportunities. The traditional shallow-water reserves are being depleted, leading exploration and production companies to venture into deepwater and ultra-deepwater areas to tap into new oil and gas reserves. Deepwater and ultra-deepwater reservoirs offer vast untapped potential, but their exploitation requires advanced technologies, equipment, and support services. This is where offshore supply vessels come into play. These vessels serve as the backbone of offshore operations by providing crucial logistics support, transportation, and maintenance services to offshore installations.

One of the primary reasons behind the shift to deepwater exploration is the decline in easily accessible onshore and shallow-water reserves. As industry strives to meet the global energy demand, offshore reserves have become increasingly important. Deepwater exploration has opened up new opportunities for oil and gas production, and OSVs are vital for the successful extraction of these resources. Offshore supply vessels are designed to transport essential equipment, personnel, and supplies to offshore platforms, drilling rigs, and production facilities. They serve as a lifeline, ensuring a continuous flow of resources and maintaining the smooth operation of offshore operations. These vessels can transport drilling and production equipment, pipes, chemicals, and other materials required for exploration and production activities.

Focus on cost-effective logistics solutions

Offshore operations involve the transportation of equipment, materials, and personnel to remote offshore installations, which can be logistically challenging and costly. In this context, OSVs offer a cost-effective solution that optimizes logistics and reduces operational expenses. One of the key advantages of using OSVs is their ability to transport large volumes of cargo in a single trip. These vessels are designed with ample storage capacity and deck space to accommodate various types of cargo, including equipment, supplies, and consumables needed for offshore operations. By efficiently utilizing their capacity, OSVs minimize the need for multiple trips, thereby reducing transportation costs and optimizing the overall logistics process.

OSVs also provide flexibility in terms of cargo handling. They are equipped with onboard cranes, winches, and other loading/unloading systems that facilitate efficient cargo operations. This enables swift and safe transfer of heavy equipment and materials, reducing the time required for loading and unloading activities. The streamlined cargo handling process translates into cost savings and increased operational efficiency. Furthermore, OSVs are designed to operate in offshore environments with fuel efficiency in mind. They are equipped with advanced propulsion systems and hull designs that minimize fuel consumption and optimize speed. This fuel efficiency not only reduces operational costs but also helps mitigate the environmental impact associated with offshore operations.

Aging fleet replacement

The global fleet of offshore supply vessels is facing a significant challenge posed by aging vessels nearing the end of their operational lives. This situation presents a compelling opportunity for vessel owners, operators, and manufacturers to invest in new, technologically advanced vessels to replace the aging fleet. By doing so, they can meet the growing demands of offshore operations and address the increasing need for vessels with improved efficiency, higher capacity, and better environmental performance. One of the primary drivers behind the need for fleet replacement is the ever-growing demand for offshore exploration and production activities. As oil and gas reserves are being depleted on land, companies are turning to offshore locations in search of new energy resources. These offshore operations require reliable and efficient supply vessels to transport personnel, equipment, and supplies to remote platforms.

Many of the current offshore supply vessels have been in service for several decades, and their age poses various challenges. These older vessels can suffer from decreased efficiency, higher maintenance costs, and limited capabilities compared to newer, more technologically advanced counterparts. Additionally, stringent environmental regulations have been implemented globally to reduce the carbon footprint of the maritime industry. Older vessels often lack the environmental features and energy-efficient technologies required to meet these regulatory standards.

Offshore Supply Vessels Market Segment Insights

Offshore Supply Vessels by Type Insights

The Offshore Supply Vessels Market segmentation, based on type has been segmented as Anchor Handling Tug Supply Vessel, Platform Supply Vessel, Multipurpose Support Vessel, Standby & Rescue Vessel, Seismic Vessel, Others. Among these, the Above Anchor Handling Tug Supply Vessel segment is projected to dominate the Offshore Supply Vessels Market revenue through the projected period. Anchor handling tug supply vessels are specifically designed to assist in anchor handling operations, particularly in the oil and gas industry. These vessels possess powerful engines and winches, enabling them to tow or anchor large structures such as drilling rigs or production platforms. Also, AHTS vessels are equipped with high bollard pull capacity, allowing them to handle heavy anchors and mooring lines.

Offshore Supply Vessels by Application Insights

Based on Application, the Offshore Supply Vessels Market is segmented as Shallow Water, Deep Water. Out of which the Shallow Water segment dominated base year market and is also projected to dominate the Offshore Supply Vessels Market revenue through the projected period. Shallow water operations in the offshore supply vessels market involve activities conducted in relatively shallow depths, typically up to a few hundred meters. These operations take place nearshore and in coastal areas, as well as in shallow basins and continental shelves. Shallow water supply vessels are designed to navigate and operate efficiently in these environments.

Offshore Supply Vessels Regional Insights

Based on Region, the Offshore Supply Vessels market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The North America Offshore Supply Vessels market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. The market is being driven by the increasing demand for offshore oil and gas exploration and production activities in the region. The US and Canada are the two major markets for OSVs in North America, with the US accounting for a larger share of the market. The offshore industry in North America has witnessed a shift in focus from traditional oil and gas exploration to renewable energy sources, particularly offshore wind energy. The United States and Canada have ambitious goals to expand their offshore wind capacity, leading to increased demand for OSVs. The Biden administration's commitment to clean energy and the development of offshore wind projects along the Atlantic and Pacific coasts will be a major driver of growth in this sector.

Offshore Supply Vessels Key Market Players & Competitive Insights

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Offshore Supply Vessels Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The Offshore Supply Vessels market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Offshore Supply Vessels Market are A.P. Moller - Maersk AS, Siem Offshore AS, SEACOR Marine, Tidewater, Solstad Farstad, Bourbon Offshore, Havila Shipping, Vroon B. V., Edison Chouest Offshore, Abdon Callais Offshore LLC. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

A.P. Moller - Maersk AS: A.P. Moller - Maersk AS (APMM) is a provider of transportation and logistics services. It operates shipping containers and ports through subsidiaries and affiliates. The company transports dry cargo, refrigerated cargo, special cargo and conducts used container sales and supports intermodal transport. APMM’s major brands include Maersk Line, Damco, APM Terminals, Svitzer, Twill, Sealand, Hamburg Sud, Alianca, Maersk Container Industry, and Maersk Training. The company also manufactures dry containers and refrigerated containers. APMM serves energy, shipbuilding, retail, logistics and manufacturing industries. The company has a presence in North America, Europe, the Middle East and Africa, and Asia-Pacific.

Siem Offshore AS: Siem Offshore AS is a Norwegian offshore shipping company engaged in the provision of marine services to the offshore oil and gas industry. The company operates a diverse fleet of specialized vessels, including anchor handling tug supply (AHTS) vessels, platform supply vessels (PSVs), and offshore construction vessels (OCVs). Siem Offshore AS offers a wide range of services such as towing, rig moves, subsea construction, and maintenance support. With a strong focus on safety and quality, the company has established itself as a reliable and trusted partner in the offshore industry, serving clients worldwide.

Key Companies in the Offshore Supply Vessels Market includes.

• P. Moller - Maersk AS (Denmark)


• Siem Offshore AS (Norway)


• SEACOR Marine (US)


• Tidewater (US)


• Solstad Farstad (Norway)


• Bourbon Offshore (France)


• Havila Shipping (Norway)


• Vroon B. V. (Netherlands)


• Edison Chouest Offshore (US)


• Abdon Callais Offshore LLC (US)

Offshore Support Vessels Industry Developments

Edison Chouest Offshore has announced its acquisition of a well-established remotely operated vehicle (ROV) company, ROVOP, in May 2024. The inclusion of ROVOP into its various companies, including C-Innovation, a subsea service company owned by Chouest, which provides Caltex Oil Tools, Bram Offshore and vessel-based operations, will strengthen the position of the company as a leading industry player. Besides, having integrated it into Chouest’s ambit of services, this also enhances the reachability of more resources to ROVOP. This is expected to improve its customer base range since it will enable existing clients to get better services and attract new ones.

In May 2024 Deltamarin and ECOLOG have jointly developed a new design for an LCO2 carrier, aimed at tendering at shipyards globally. The design would focus on intra-EU with short range low pressure and shallow draft requirement specifications that can be fulfilled alongside LNG dual fuel propulsion system; shore power (AMP) system; vessels’ environmental burden together with wind assistance.

In February 2024, Deltamarin and BAR Technologies unveiled their new wind-optimized hull design, showcasing their commitment to decarbonization and innovative progressions. Designed specifically for Aframax/LR II tankers, Aquilo was developed to harness the benefits of WindWings technology combined with advanced hull designs, resulting in improved performance levels. Four WindWings positioned strategically, along with an aerodynamically superior deck house known as the AeroBridge, make up this design, which has been aerodynamically optimized. Their main dimensions and characteristics were adapted to maximize operations with a great deal of wind assistance, resulting in significantly improved fuel efficiency.

New support vessel contracts have been awarded to Island Offshore based in Norway worth NOK 500 million in March 2022. Platform supply vessels, anchor handling tug supply (AHTS) vessels, and light well intervention vessels are among the contracts.

In March 2022, Nexans Norway awarded Havila Shipping a contract for the offshore construction vessel Havila Phoenix. The ship will be in service during this period until the end of October 2022.

Offshore Supply Vessels Market Segmentation:

Offshore Supply Vessels Type Outlook

• Anchor Handling Tug Supply Vessel


• Platform Supply Vessel


• Multipurpose Support Vessel


• Standby & Rescue Vessel


• Seismic Vessel


• Others

Offshore Supply Vessels Application Outlook

• Shallow Water


• Deep Water

Offshore Supply Vessels Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa