Market Trends of Asia-Pacific AUV Industry
This section covers the major market trends shaping the APAC AUV Market according to our research experts:
Oil and Gas Segment to Dominate the Market
- The Asia-Pacific region is rich in oil and gas reserves. The dependence on oil and gas increases as major economies across the world still rely heavily on petroleum-based products. The oil and gas industry displays immense influence in international politics and economics.
- The oil production in Asia-Pacific decreased from 8,372 thousand barrels per day in 2015 to 7,335 thousand barrels per day in 2021. However, the demand has increased post-pandemic, particularly in the transportation and industrial sectors.
- Many of the potential global reserves of hydrocarbons lie beneath the sea. The hydrocarbon industry has developed techniques suited to conditions found in offshore sites to find oil and gas and produce it successfully.
- In August 2022, Indian oil explorer and producer Oil and Natural Gas Corp. signed a Heads of Agreement (HoA) with global petroleum giant ExxonMobil Corp for deepwater exploration on the country's East and West coasts. The two oil explorers would focus on the Krishna Godavari and Cauvery basins in the eastern offshore and the Kutch-Mumbai region in the western offshore. This may, in turn, culminate in using autonomous underwater vehicles (AUVs) for explorations.
- Furthermore, in March 2022, Petronas Chemicals Group Berhad announced that it had signed four production-sharing contracts for five offshore blocks in Malaysia. The development is expected to bolster offshore exploration activities and is expected to drive the demand for the AUV market in the region during the forecast period.
- Owing to the above points, the oil and gas segment is expected to dominate the market during the forecast period.
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China is Expected to Dominate the Market
- China is the world's second-largest consumer of oil and gas and the sixth-largest producer of oil and gas across the world. The country's oil and upstream gas market is dominated by state-owned oil and gas companies by developing the country's domestic oil and gas exploration and production activities.
- China's natural gas production has witnessed significant growth with rising demand from numerous industries. Natural gas production increased to 207.58 billion cubic meters in 2021 from 176.1 billion cubic meters in 2019. This is expected to attract major investments to meet the demand.
- Moreover, in January 2022, China National Offshore Oil Corporation (CNOOC) announced its oil production target for the year 2022 at 10% above last year's goal. Also, the country expects its domestic crude oil output to hit a plateau by 2030 and domestic natural gas by 2035, in line with China's peak fuel demand. This, in turn, promotes the growth in the utilization of AUVs for detecting and mapping oil and gas reserves across the country.
- Furthermore, in September 2022, the country has planned to supply highly advanced stealth autonomous underwater vehicles (AUVs) manufactured by China Shipbuilding Power Engineering Institute Co. to the Saudi Arabian Kingdom. This showcases that the country is ahead in the AUV market.
- Owing to the above points, China is expected to dominate the Asia-Pacific AUV market during the forecast period.
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