Demand for subsea vessels likely to increase says analystNews // October 23, 2014
Douglas-Westwood (DW) says it anticipates that demand for subsea vessels will experience accelerated growth in the coming years at a rate of 7 per cent CAGR.
In DW’s new World Subsea Vessel Operations Market Forecast, global subsea vessel operating expenditure is set to total US$122 billion in the period 2015-2019.
Report author, Chen Wei, said: "Average vessel days are expected to become more expensive due to increasing demand for higher specification assets as field developments move towards deeper waters, as well as more stringent customer requirements for inspection maintenance and repair (IMR) work.
"The subsea vessel industry is currently experiencing a major build cycle with over 54 per cent of the active fleet delivered over the past eight years. There are also an additional 115 vessels under construction, an orderbook to fleet ratio of 21 per cent.
“Field development and IMR will remain the primary drivers of global subsea vessel spending. The field development sector is expected to see high growth at 10 per cent CAGR between 2015 and 2019 with a total spend of US$45 billion and vessel demand of over 184,000 days.
"The IMR sector will account for 39 per cent of spend over the 2015 to 2019 period with a growing installed base of offshore infrastructure combined with a requirement for higher specification vessels driving 9.5 per cent CAGR.
“Asia will be the single largest market with 20 per cent of global expenditure in the next five years, mainly driven by shallow water IMR and pipelay-related activities. Deepwater Gulf of Mexico, West Africa and Brazil are expected to account for 40 per cent of global expenditure.
"Africa alone is set to represent 16 per cent of the market, with the majority associated with deepwater field developments in both traditional Gulf of Guinea markets, such as Angola and Nigeria, as well as the new Indian Ocean growth markets of Mozambique and Tanzania (East Africa).
"Australasia has the fastest growth rate of all regions with a CAGR of 21 per cent through the forecast period, due to a backlog of high profile gas developments intended to support the region’s ambitious LNG export commitments.”