According to the latest research report released by Technavio, the global anchor handling tug supply (AHTS) vessels market is expected to record a CAGR of more than 13% until 2020.
This report titled ‘Global AHTS Vessels Market 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. The report also presents the vendor landscape and a corresponding detailed analysis of the top six vendors in the market. To provide the ranking of the leading vendors in the market, the report considers different qualitative and quantitative parameters.
“As LNG is cost-effective, the market is showing a trend of using LNG-fueled AHTS vessels instead of diesel-fueled ones. At present, rising diesel costs are leading to an increase in operational expenditures for running the AHTS fleets. In addition, LNG is a low-pressure gas, which is more suited for AHTS. LNG-fueled vessels are expected to reduce costs involved in the operation of AHTS during the forecast period,” said Abhay Singh, one of Technavio’s lead industry analysts for logistics.
Some of the other driving forces behind the growth of the global anchor handling tug supply vessels market are as follows:
-Rise in oil prices
-Increase in E&P activities
-Growing number of offshore oil rigs
Rise in oil prices
One of the major factors for the growth of the market is the rise in, and future uncertainty of oil prices. Due to an increase in oil prices more blocks are awarded by the government for E&P. Increased oil prices encouraged both exporters and importers of oil to look for more oil in the ocean due to the escalating demand. The global oil and gas market was valued at USD 3.4 trillion in 2014 and is growing at a CAGR of 7%. The rise in demand in the oil and gas market is expected to lead to an increase in the production and extraction of oil and gas resources. Thus, it will result in the increased use of marine support vessels used for transporting oil and energy resources. In addition, the increase in production will lead to growth in the oil and gas carriers market.
Increase in E&P activities
E&P activity is an upstream process in the oil and gas industry. It includes searching for oil and petrochemical products, locating oil rigs, underwater drilling for crude oil and natural gas fields, and operating subsea vessels. Vessel operators and owners of oil and gas fields work with contractors such as engineering, procurement, and construction (EPC) contractors and oil rig companies for the procurement of underwater natural resources.
An increase in the E&P expenditure of oil and gas production companies is expected to result in a robust demand for AHTS vessels. Different types of marine support vessels are used for specific drilling activities. The CAPEX for E&P activities of the top 10 oil and gas companies grew at a CAGR of 12% during the period 2010-2014. The companies involved in E&P activities have a high utilization rate of AHTS vessels. Thus, the rise in the E&P expenditure of oil and gas companies will propel the growth of the global AHTS vessels market during the forecast period.
Growing number of offshore oil rigs
Another major factor for the growth of the market is growing number of offshore oil rigs. Oil rigs are offshore oil platforms that facilitate the drilling of wells for E&P activities. The increase in drilling of offshore oil and gas reserves will lead to a rise in the demand for AHTS vessels. The maturing onshore oil reserves in the North Sea and the Gulf of Mexico will result in high demand for AHTS vessels. In addition, the Gulf of Mexico is observing an increase in the number of oil rigs, and the number of jackup rigs in the Middle East is expected to grow at a CAGR of 11% during the forecast period.
Source: Technavio Research