The offshore decommissioning market is estimated to be valued at USD 6.2 billion in 2019 and is projected to reach USD 8.9 billion by 2027, at a CAGR of 4.8% during the forecast period.
The global offshore decommissioning market is dominated by leading players that have an extensive regional presence, said ResearchAndMarkets.
The leading players in the offshore decommissioning industry are Aker Solutions ASA (Norway), Ramboll Group (Denmark), AF Gruppen ASA (Norway), Technipfmc plc (France), John Wood Group plc (UK), and Tetra Technologies Inc. (US).
The factors driving the market include maturing oil & gas fields, low crude oil prices, and aging offshore infrastructure. Offshore decommissioning refers to ending oil & gas operations on offshore platforms and restoring marine life and seafloor to its pre-production conditions.
The well plugging & abandonment segment is expected to be the largest market, by service during the forecast period. This growth is evident owing to key activity to be performed regardless of decommissioning type; it ensures that oil wells do not have any type of leakage after the cessation of production.
The topsides segment of offshore decommissioning is estimated to be the largest market during the forecast period. This growth is attributed to its weight decommissioning of topsides, and related equipment requires specialized heavy-lift vessels and removal equipment.
Europe is the largest market, by value, for offshore decommissioning, followed by North America. The European market is also projected to be the fastest-growing market, during the forecast period, owing to mature oil and gas fields, particularly in the UK and the North Sea.
The impending cessation of production in major oil and gas fields would ensure that the European market would grow at the highest pace. Europe is estimated to witness the highest offshore decommissioning spending, with its well-developed regulatory framework compared to other regions.
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