The Offshore Supply Vessels (OSV) market is valued at USD 22.0 billion in 2021 and is poised to grow at a significant CAGR of 4.1% over 2022–2028. Major offshore operators in the golden triangle are expected to play a leading role in market growth. Subsea drilling and transport activities are expected to increase as deepwater discoveries grow. Advances in seismic and drilling technologies are also likely to help offshore operations run more smoothly. The focus on safe vessel operation will increase when international water and equipment safety laws are revised. This necessitates efficient fleet utilization and fleet day rate optimization to improve the profitability of offshore operations. This opens up new opportunities for the drilling industry and research and development institutes to collaborate on innovative product development based on business needs. Also, environmental rules governing the use and extraction of fossil fuels are projected to spur the growth of efficient LNG bunkering networks. Tanker owners now have additional opportunities to contract with various regions near offshore oil production units. The demand for highly durable and speedier transport vessels is expected to spur R&D efforts to improve the technical features of AHTS, PSV, and MPSV. Various companies have engaged in fleet growth to replace aging boats and enhance their global market position. Bourbon, Tidewater, Total SA, and ExxonMobil are major players in the offshore support vessel sector, and Tidewater has invested in renovating and adding additional boats and securing contracts with various oil and gas companies. In addition, with shallow water reserves reaching maturity, oil and gas companies are looking at profound and ultra-deepwater potential to fulfill rising demand. This has boosted offshore and subsea activity investment. The shallow water sector accounts for the majority of the market. However, due to extreme climatic conditions, the vessels deployed here are not capable of working in deepwater or ultra-deepwater. Manufacturers will have an excellent opportunity to produce technologically advanced ships that withstand harsh environmental conditions. Technological advancements are one of the primary forces driving the growth of the offshore support vessel market. For example, the innovation of the Dynamic Positioning (DP) system for marine vessels is outstanding and widely acknowledged. Due to changing requirements and the necessity for upgrades, DP-1 ships are nearing the end of their service life and are only employed as crew supply vessels. The DP-2 and DP-3 vessels are becoming more popular in PSVs and are gaining market share. One example of a technology update that allows vessels to work under challenging conditions is the evolution of DP vessels.
Recent Market Developments:
In March 2022, Havila Shipping bagged a contract for an offshore construction vessel Havila Phoenix from Nexans Norway. The vessel will be in service until the end of October 2022.
In March 2021, Ostensjo Rederi received a contract from Edda Wind for two additional commissioning service operation vessels (CSOV) and four vessels being constructed by it. These vessels are specially designed for service operations during the commissioning and operation of offshore wind farms. All six vessels being developed are based on zero-emission technology.
In December 2020, Siem Offshore launched its first hybrid vessel, Siem Symphony. This vessel is fitted with a 600 kWh chargeable battery pack as an additional power supply, which substantially lowers the vessel’s fuel consumption. It is especially effective during standby mode when positioned dynamically or in ports.