Steady return to growth for the offshore MMO sector
Douglas-Westwood’s (DW’s) latest view from the World Offshore Maintenance, Modifications and Operations (MMO) market shows a positive outlook for the sector. A steady recovery from the recent oil price downturn is forecast, with Modifications spend expected to improve significantly between 2017 and 2021. Whilst industry feedback highlights significant pricing pressure among MMO providers, the number of global fixed and floating platforms, coupled with ageing population and industry regulation will continue to drive offshore MMO expenditure over the forecast period.
Over the 2017 to 2021 period we expect to see a 4.1% CAGR growth in global offshore MMO expenditure – global MMO expenditure for the world’s global offshore platform population of approximately 8700 fixed and floating assets is expected to increase from $81bn in 2017 to $95bn in 2021. Driving this spend is degradation of existing asset infrastructure and the need for adherence to industry standards.
By service line, Asset Services accounts for over a half of total expenditure, 60%, with Modifications, 21%, Asset Integrity, 14% and Support Services, 6%. Asia and North America dominate global expenditure, with 24% and 20% of spend over the forecast period.
The World Offshore Maintenance, Modifications and Operations Market Forecast 2017-2021 presents a ‘bottom-up’ (platform-by-platform) analysis of the sector with extensive industry interviews to give a granular and realistic evaluation of current and expected activity in the sector.
The World Offshore Maintenance, Modifications and Operations Market Forecast 2017-2021 analyses the demand for offshore maintenance related work across four main service lines, split into niche sub-service lines in ten regions worldwide. The report includes:
- Drivers & Indicators – offshore fixed and floating platform population and key macroeconomics indicators driving offshore Maintenance, Modifications and Operations expenditure including: E&P trends, oil & gas prices, analysis of the oil price downturn, and policies & regulation.
- Service Line Analysis – this includes the following service and sub-service lines, split out by region with competitive landscape and detailed supply chain analysis.
- Asset Integrity (Consultancy, Asset Management, Integrity Services and Relocation/Decommissioning);
- Asset Services (Mechanical, electrical & Instrumentation, Fabric Maintenance, Speciality Services, Rotating Equipment, Electrical Equipment, Process Equipment and Process Equipment – Prefabrication);
- Modifications (Platform Rig, Subsea Tie-In, LPP, Accommodation, Gas Treatment and Communications);
- Support Services (Hotel Services, Deck Crew and Admin & Other Services)
- Asset Type Analysis – split into Fixed and Floating platforms.
- Regional Analysis – expenditure by service line 2012-2021 with trend commentary for Africa, Asia, Australasia, Eastern Europe & FSU, Latin America, Middle East, North America and Western Europe represented by Norway, Rest of Western Europe and the UK.
Why purchase the World Offshore Maintenance, Modifications and Operations Market Forecast?
Douglas-Westwood’s market forecasting is trusted by sector players worldwide, with clients including the world’s top-10 oil & gas companies, top-10 oilfield services companies and top-10 private equity firms.
An essential report – for financial institutions, equipment manufacturers, operations & maintenance companies and contractors, oil & gas companies and government agencies & departments wanting to make more informed investment decisions.
Our proven approach includes:
- Unique and proprietary data – updated year-round from published sources and insight gained from industry consultation.
- Detailed Methodology – the report uses research from our own in-house downstream databases for refineries, petrochemicals, gas processing and LNG, an information system exclusive to DW, to form the basis of the models. Assumptions used to generate market demand are the result of our primary and secondary research. Demand-side analysis by service line provides a metric on which to establish future opportunities and provide a context for market share assessment.
- Comprehensive Market forecasts – examination, analysis and 10-year coverage of expenditure.
- Concise report layout – consistent with DW’s commitment to delivering value for our clients, all our market forecasts have a concise layout consisting of industry background and supporting materials condensed to enable quick review with ‘speed-read’ summaries of key points throughout.