India offshore support vessel market is projected to grow at a double-digit CAGR during the forecast period, FY2024-FY2031. The market was valued at USD 427.2 million in FY2023 and will reach USD 984.49 million in FY2031. Offshore Support Vessels (OSVs) are specially designed ships or vessels which provide various services and support to offshore oil and gas exploration and production processes. These vessels play a significant role in the logistics and operations of offshore oil and gas platforms. There are a variety of offshore vessels that help in exploration and drilling as well as providing necessary supplies for the excavation and construction units located in deep seas, from transporting equipment and rigs to repair and maintain offshore wind turbines. Their high adaptability means that they can be assembled for almost any type of project.
India offshore support vessel market presents a dynamic and evolving landscape characterized by the country’s significant maritime activities and the rapidly growing energy sector. The market encompasses a range of vessels designed to support offshore operations, including exploration, production, installation, logistics, and maintenance, across the vast expanse of India’s oceans and seas.
India with its expanding offshore oil and gas projects in the Bay of Bengal and Arabian Sea as well as its growing focus on renewable energy drives the demand for versatile platform supply vessels (PSVs) equipped with advanced feature such as dynamic positioning systems. PSVs facilitate the transportation of essential supplies and equipment to remote offshore installations and rigs, thus playing a fundamental role in maintaining operational efficiency.
Furthermore, in India, there is a strong emphasis on oil and gas exploration and production activities, hence, the use of seismic vessels is increasing. The seismic vessels conduct underwater surveys and gather geological data to identify optimal subsea areas for drilling while safeguarding the marine ecosystem. India’s commitment to sustainable energy and stringent environmental protection policies bolsters the demand for cutting-edge seismic vessels equipped with state-of-the-art technologies. India’s vast offshore energy reserves and its progressive transition towards renewable energy sources contribute to the diversification of the offshore support vessel market. While the seismic vessel segment remains relevant due to its role in identifying suitable drilling locations and renewable energy installation sites, the demand for platform support vehicles is rising significantly. As India harnesses its offshore energy potential, both vessel segments share prominence in supporting the country’s energy aspirations.
As a result, the offshore support vessel market in India is expected to witness significant growth during the forecast period. Factors such as expansion of deep-water exploration and production activities, increasing installation of offshore wind farms, and technological advancements like dynamic positioning systems and satellite communications will drive the market growth.
For instance, in December 2023, State-run ONGC and Oil India Ltd. (OIL) were in talks with Japan Petroleum Exploration (Japex), Mitsui and Bahrain Petroleum Company (Bapco) to collaborate on increasing domestic exploration and production activities. In the next three years, ONGC plans to establish more than 25 offshore facilities, lay over 1,000 kilometers of sub-sea pipeline, and create offshore infrastructure, requiring an investment of USD 11 billion.
Growing Offshore Exploration Activities
India is currently undergoing a significant increase in offshore exploration activity, spurred by the government’s priority on increasing domestic energy reserves. The huge expanse of India’s coastline is becoming a focal point for exploration efforts aimed at tapping into offshore oil and gas reserves. The increased emphasis is driven by breakthroughs in exploration technologies and a national imperative to reduce dependence on imported energy sources.
As key participants in the oil and gas sector ramp up their efforts on offshore projects, the need for offshore support vessels has increased significantly. OSVs play an important role in aiding vital services such as seismic surveys, drilling operations, and transporting workers and equipment to and from offshore platforms. As a result, the rising demand for OSVs is intricately linked to the growth of offshore exploration operations. As India positions itself as a prominent player in the global energy landscape, the rise in offshore exploration activities highlight the critical role that OSVs play in supporting and upholding the country’s goals for energy security and self-sufficiency. The trend is expected to propel the offshore support vessel market into a period of tremendous growth and innovation, mirroring the dynamic environment of India’s growing energy sector.
For instance, in July 2023, ONGC announced its plan to charter up to 18 offshore vessels to support its upstream operations across the western coast. As a part of the government’s drive to reduce dependence on imports, ONGC has set out an aggressive plan to spend USD 3.64 billion in FY2023-24, mostly on offshore exploration and development activity.
Emerging Offshore Renewable Energy Sector
India’s push towards sustainable energy solutions has given rise to a burgeoning offshore renewable energy sector, particularly in the development of offshore wind farms along its expansive coastline. The government targets an additional 30 GW of offshore wind power capacity by 2030, to bring offshore wind projects to the forefront, necessitating specialized infrastructure and boats. The spike in offshore renewable projects has resulted in a greater need for offshore support vessels.
These vessels are critical in the construction, maintenance, and logistics of offshore wind farms, facilitating the movement of workers, equipment, and supplies to and from the sites. The complexity of offshore wind projects, often located in deep waters, requires the use of advanced vessels equipped with dynamic positioning systems and specialized lifting capacities. These vessels are essential for tasks such as turbine installation, cable laying, and routine maintenance. As India positions itself as a key player in global renewable energy landscape, the demand for versatile and technologically advanced offshore support vessels is set to escalate.
For instance, in May 2023, the Indian government revamped the shipbuilding subsidy scheme to include support for the manufacturing of vessels that help set up offshore wind energy projects and lay undersea cables. Under USD 500 million Shipbuilding Financial Assistance (SBFA), financial assistance of up to 20% of the contract price or the fair price, whichever is lower, is being extended to the Indian shipyards for each specialized vessel built by them.
Technological Advancements
Technological improvements have ushered in a new era for offshore support vessels, adding significantly to their rising demand. The incorporation of cutting-edge technologies has increased the productivity, safety, and versatility of OSVs, making them essential in modern offshore operations. Dynamic positioning systems, satellite communication, and sophisticated navigation aids have changed vessel capabilities, allowing for precise positioning, and maneuvering in challenging offshore environments.
Furthermore, the use of automation and remote sensing technology has improved operating efficiency, reduced human intervention, and increased overall safety. Additionally, to meet the changing demands of the offshore business, OSVs are outfitted with cutting-edge equipment such as specialized cranes, firefighting systems, and oil recovery systems. Companies working in the offshore sector acknowledge the importance of investing in a modern fleet to remain competitive and meet evolving market demands. As offshore projects become more complicated, the requirement for technologically advanced offshore support vessels will continue to rise.
For instance, in October 2023, Praxis Automation, developer of ship automation, electrical propulsion, and dynamic positioning systems, announced that it has been awarded a long-term contract by Rawabi Vallianz Offshore Services, an offshore support service provider. Under the contract, new and existing offshore support vessels will be equipped with Praxis dynamic positioning systems, as well as customized equipment and software integration for digitalization of entire fleet.
Future Market Scenario
- India offshore support vessel market is expanding due to the growth of deepwater projects, increasing exploration and production activities, and increased investments by major oil and gas companies.
- Technological advancements are expected to play a significant role, with vessels increasingly equipped with sophisticated navigation capabilities, dynamic positioning systems, and eco-friendly features. As the industry adopts digitalization and automation, the efficiency and safety of offshore operations are expected to improve.
- Due to the continued push to increase domestic oil and gas production, offshore exploration activities are expected to continue expanding along India’s extensive coastline. The rising energy demand and the commitment to renewable energy projects including offshore wind farms, will further contribute to driving the growth of India’s offshore support vessel market.
Report Scope
“India Offshore Support Vessel Market Assessment, Opportunities, and Forecast, FY2017-FY2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India offshore support vessel market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2024 and FY2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
Click Here: https://www.marketsandata.com/industry-reports/india-offshore-support-vessel-market
About Us:
Markets and Data provides a comprehensive/ panoramic understanding of markets at global, regional, and country levels. Examine changing consumer preferences, emerging challenges, underlying trends, and growth prospects to accelerate your business strategies.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343-3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com