Market Trends of Europe ROV Industry
This section covers the major market trends shaping the Europe ROV Market according to our research experts:
Oil & Gas Application to Dominate the Market
- The North Sea is a major offshore production hydrocarbon basin in the European region with the interests of several countries in it. It has been a significant contributor to European economies for over fifty years. The basin presents exciting prospects with a potential of up to 20-30 billion boe of undiscovered resources. The availability of abundant resources, coupled with increased potential to recover oil and gas from deepwater and ultra-deepwater areas, is expected to provide a great opportunity for the Europe ROV market.
- As per the BP Statistical Review of World Energy 2022, oil production in Europe has witnessed significant growth. Denmark has produced oil of 65 '000 barrels per day, Norwayproduced oil of 2025 '000 barrels per day and the United Kingdom has produced oil of 874 '000 barrels per day.
- The United Kingdom is expected to spend around EUR 15.3 billion on decommissioning, over the next ten years. Approximately, 2,400 wells are expected to be decommissioned across the whole North Sea and West of Shetland region, by 2027. Around 914 of these wells are located across the Norwegian, Danish, and Dutch.
- As of March 2022, the United Kingdom was preparing a new energy strategy that involved more North Sea oil and gas production. The government was planning to open up the first round of exploration licenses in 2019. Even though these steps are being taken to counter the Russian dependency, they are likely to drive the Europe ROV market when players begin to develop the acreages after receiving their license.
- In February 2022, Aker BP announced its plan to drill 13 exploration wells, with a potential of around 250 mmboe, while also working to develop several projects in Norway, including a new Alvheim tieback. This field development activity is expected to drive the Europe ROV services well in the region.
- Considering the above-mentioned points, the Europe ROV market is likely to witness significant growth during the forecast period.
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Norway Expected to Witness Significant Growth
- Due to its highly-developed offshore oil and gas, and wind energy sector, Europe is also a major market for ROV services. The demand for ROV services is concentrated in 2 regions, the North Sea and the Mediterranean Sea.
- The North Sea Region is a major oil and gas producing region in Europe, and the region is dominated by oil producers from neighbouring countries such as Norway, Denmark, Sweden, and the United Kingdom. Due to the maturity of the industry in the region, the upstream industry is highly developed and automated, and the demand for ROVs is high.
- Drawing from their expertise in offshore oil and gas E&P activities, many large renewable energy companies in the region are looking to harvest the wind potential in the region by creating massive offshore wind farms in the region. Due to this, the North Sea region is home to the largest under-construction offshore wind farms globally, such as the under-construction 1.2 GW Dogger Bank project.
- As per Norwegian Petroleum Directorate, in 2021, the total oil production was 55.44 million Sm3. The increasing production of oil acrosss the oil field are expected to drive the Europe ROV market during the forecast period.
- As Europe transitions away from fossil fuels and increases its renewable energy capacity, countries in this region view the region and its wind resources as a critical component of their energy security strategies. Due to this, most countries are inviting bids from developers for large-scale offshore wind power plant projects.
- For instance, in February 2022, Norway announced plans to for its first auction for offshore wind. The tender is scheduled in the second half of 2022 and aims to develop 1.5 GW of offshore wind capacity to supply the country.
- In June 2022, Five oil and gas companies in Norway, partners in the Troll and Oseberg fields in the North Sea, are planning to build a 1GW floating wind farm in the Troll area, with the plan to use the wind farm to power oil and gas installations. The final investment decision is expected to be made in 2023. The wind power project, called Trollvind, is being worked on by Equinor and its partners Petoro, TotalEnergies, Shell and ConocoPhillips. The wind farm would be located 65 kilometres west of Bergen, Norway. This project creates significant opportunities for ROV services.
- Therefore, owing to the above points, the Norway is expected to witness significant growth in the Europe ROV market during the forecast period.
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