The market for Offshore Supply Vessel (OSV) is expected to grow at a CAGR of roughly 8.3% over the next five years, will reach US$ 25 billion in 2023, from US$ 15.5 billion in 2017, according to a new study.
The Anchor Handling Tug Supply (AHTS) vessels segment accounted for the largest share, 45% of the market, said a report by 360 Market Updates.
AHTS vessels are principal support vessels used for towing, anchoring, and supplying equipment to drilling rigs and production platforms, making them the largest segment of the OSV market.
Demand for offshore drilling is projected to recover slowly, particularly in deepwater fields as oil prices stabilize, thus, helping the AHTS market., On the basis of depth, the market has been segmented into shallow water and deepwater segments.
The application of OSV in shallow water projects is estimated to lead the market, in terms of market value share of 70.7% in 2017. The shallow water basins in the Middle East, Asia-Pacific, Europe, and North America will play a major role in driving the Offshore Support Vessel Market.
Shallow water operations are typically less expensive compared to deepwater operations. Thus, recovering oil prices will lead to a faster increase in offshore activity in shallow water basins compared to deepwater ones.
The OSV market is less concentrated, various enterprises have invested in fleet expansion, so as to replace older vessels, and enhance their position in global market.
Key players in offshore support vessel market include Edison Chouest, Tidewater, Bourbon Offshore, DOF, Swires, Maersk Supply Service, Farstad Shipping, Hornbeck, Cosl, Island Offshore Management, Gulf Mark and Havila Shipping.
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