"Actionable Insights to Fuel Your Growth"
The global offshore inspection, repair, and maintenance market size was USD 8.93 billion in 2020. The market is projected to grow from USD 9.64 billion in 2021 to USD 18.04 billion by 2028, exhibiting a CAGR of 9.4% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with the global market witnessing a negative demand across all the regions. Based on our analysis, the market exhibited a lower growth of about -15.0% in 2020 compared to average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The wind farm construction will be propelled by increased concerns about reducing greenhouse gas (GHG) emissions, as well as favorable government policies to promote green energy. As a result, the inspection, repair, and maintenance industry will rise. Furthermore, the industry is growing as a result of government measures to develop wind turbines and reduce greenhouse gas emissions to the environment. Following the increased energy demand, exploration activities are being carried out at diverse ocean depths and in hostile environments, using the innovative technology developed over the recent years. All of these variables combine to accelerate offshore inspection, repair, and maintenance efforts for diverse structures around the world. Ship husbandry, offshore mooring, offshore civil engineering projects, and a variety of other companies that operate in offshore regions benefit from these services.
Impact of COVID-19 on Global Offshore Inspection, Repair, and Maintenance Market
The pandemic of COVID-19 has shaken the hydrocarbon industry as the demand for oil and gas has decreased. This was mainly observed because a large number of people were confined to their homes in 2020 as the government across the nation has imposed a strict lockdown and offices adopted remote working policies to contain the spread of coronavirus. The offshore inspection, repair, and maintenance market growth is hampered as IMR operations are a vital part of the oil & gas industry deployed to support the continuous production of hydrocarbons.
Request a Free sample to learn more about this report.
Growing Deployment of Drones for Remote Inspections to Foster Demand for IMR Operations
Conducting inspection, repair, and maintenance operations across the offshore rigs is susceptible to various risks. To prevent human casualties that may occur during these activities, major key players are deploying drones that improve the efficiency of the IMR operations. For example, in June 2020, the Scout Drone Inspection worked with DNV GL for the development of an autonomous UAV that can successfully inspected a 19.4-meter oil tank.
Increasing Demand for Energy is Boosting Installation of Wind Farms
The growing demand for energy across the region is pushing their government to install the wind farms. The major region is strengthening its power infrastructure through renewable sources. In addition, the favorable government policies to reduce the emission of GHG gases are propelling the installation of offshore wind farms. This, in turn, will boost the inspection, repair, and maintenance market growth. For example, in India, the Union Ministry of New and Renewable Energy (MNRE) is eyeing installation of 5 GW offshore capacity by the year2022, expanding it to 30 GW by the end of 2030.
Revitalization of Oil & Gas Industry to Boost Market
The downturn faced by the oil & gas industry in 2014 is over, and recovery is now progressing, with operators producing hydrocarbons more efficiently than ever before. The industry’s revitalization can be seen with the increasing investments in the offshore sector by various countries around the globe. The other factor driving the market trends is the rising energy demand due to social and demographic factors that include rising population across the world. For Example, In December 2020, the oil & gas Giant company Aramco has discovered four new oil and gas fields in Saudi Arabia.
Increasing Focus on Advanced Unmanned Vehicles for Offshore Operations to Favor Growth
The various advantages offered by advanced unmanned vehicles, which include stability, low deployment cost, improved data quality, and excellent navigation algorithms, have resulted in their increased utilization for offshore inspection, repair, and maintenance services. The use of these advanced unmanned vehicles has grown in the oil & gas industry as well as in the defense sector. This has driven the investments in this domain and boosted the offshore inspection, repairs, and maintenance market revenue. For example, in August 2020, the Equinor ASA, a Norwegian state-owned multinational energy company, has completed a world-first logistics operation with a drone to an offshore installation.
Safety Concern to Hinder Growth of Market
The market involves various risks, especially if the container contains humans. Accidents, equipment failures and loss of communication is a direct threat to living humans. In addition, the ROVs are costly, and any damage to ROVs makes the company reconsider its investment.
To know how our report can help streamline your business, Speak to Analyst
Repair Service to Observe Dominating Share
Based on the service type, this market can be majorly divided into inspection, repair, and maintenance. Repair services are anticipated to lead the market, as any repair services carried out at offshore locations mainly involve a change in part or the whole system depending on the fault detected. This makes the process of repair services a costly one. The other services in the segment include inspection and maintenance. The frequency of carrying out these services is higher than the repair services, but the revenue generation through repairs is high. The inspection services are further segmented into visual inspection, ultrasonic, electromagnetic, radiography, pigging, and others. Similarly, maintenance services are further divided into reactive maintenance, predictive maintenance, preventive maintenance, and reliability-centered maintenance.
Characteristic of Precise Readings and Continued Observation Will Drive AUVs/ROVs Segment Growth
Based on type, the offshore IRM market can be segmented into offshore support vessels, AUVs/ROVs, and others. Autonomous Unmanned Vehicles (AUVs) and Remotely Operated Vehicles (ROVs) are anticipated to dominate the market owing to their growing adoption witnessed in recent years. These are mainly utilized for inspecting the underlying structures. This equipment ensures continuous observation and provides precise results. The other equipment used includes offshore support vessels and others, which mainly consist of cameras and sensors. Offshore support vessels are primarily used for carrying out offshore repair & offshore maintenance activities. Other equipment like cameras & sensors for use for offshore inspection activities.
Increased Demand for Oil Products Will Drive Oil & Gas Industry Growth
Based on the application, the offshore IRM market can be segmented into oil & gas, wind farm, and others. Also, the recent drift towards green energy has led to the deployment of offshore wind farms in various countries. This trend is set to continue with the rising population and rising energy demand. This, in turn, will eventually drive the market growth.
Asia Pacific Offshore Inspection, Repair, and Maintenance Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the market share is segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa. Asia Pacific is projected to project the most robust growth in the given forecast period. The major factors contributing to the growth are the upcoming exploration activities being carried out at offshore locations from countries such as China, India, and other Southeast Asian countries. Government initiatives to boost green energy have led to the installation of new offshore wind farms at a rapid pace in the region, further aiding its dominance of the offshore inspection, repair, and maintenance market share.
In Europe, the major attraction for the market is the planned installations of offshore wind farms in the coming years. The green energy targets rolled out by countries have helped the offshore wind turbine installations to rise in number, which in turn possess growth opportunities for the IRM market. In North America, the major contributor to the offshore IRM market has been the oil & gas industry. Shale gas activities have risen exponentially in the region, and offshore exploration has also grown with the identification of unexplored reserves.
Currently, in Latin America and the Middle East & Africa, since only offshore oil and gas exploration activities are present, they will be the sole contributors to the IRM market. Planned installations of offshore wind in countries in both regions further open up opportunities for offshore inspection, repair, and maintenance services to flourish.
Companies Such as Schlumberger, Fugro, and Baker Hughes are Among the Leading Players Shaping Market Size
The forecast predicts that the market will be mainly dominated by the services being provided by major participants. In recent years, new players have entered the market, and continuous research and development activities are being carried out to keep pace with the evolving technologies and market players. This has fragmented the market, and expanding exploration activities at new locations offer new opportunities for market growth.
An Infographic Representation of Offshore Inspection, Repair & Maintenance Market
To get information on various segments, share your queries with us
The market research report provides detailed information regarding various insights into the market. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2017 to 2028 to provide the financial competency of the market. The information gathered in the report has been taken from several primary and secondary sources.
Value (USD Billion)
By Service Type, By Type, By Application, and By Region
By Service Type
Fortune Business Insights says that the market was valued at USD 8.93 billion in 2020.
The market is projected to reach USD 18.04 billion by 2028.
The market is projected to grow at a CAGR of 9.4%.
Asia Pacific market were valued at USD 2.73 billion in 2020.
The oil & gas application is anticipated to be the leading segment in the market during the forecast period.
Revitalization of the oil & gas industry and increasing focus on unmanned vehicles for offshore IRM services are the major drivers for market growth. Drift towards onshore energy and renewables may have a negative impact on market size during the given forecast period.
Fugro, Baker Hughes, and Schlumberger are among the top players in the market.
With the introduction of stringent guidelines to reduce the carbon footprint, the adoption of renewables has increased. This will boost the offshore wind farm installations, which will ultimately drive the offshore IRM market growth.
Offshore inspection, repair, and maintenance find major applications in the oil & gas industry, with offshore wind farms still being a new form of energy and are yet to be adopted by many countries.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry