by The United Kingdom offshore decommissioning market caters to the demand for responsible decommissioning and dismantling services for aging offshore oil and gas infrastructure. Services offered include plugging and abandoning oil wells, dismantling and removal of platforms and pipelines, debris clearance, and site clearance. The growing emphasis on offshore renewable energy generation from sources such as wind, wave, and tidal has increased the need for skilled decommissioning operators to ensure structures are dismantled safely and cost-effectively to make way for new renewable projects. With over 6000 oil and gas structures expected to complete their operational life by 2050, the decommissioning market is primed for significant growth.
The Global United Kingdom Offshore Decommissioning Market Size is estimated to be valued at US$ 1.30 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the United Kingdom offshore decommissioning are Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA, Ramboll Group A/S, AF Gruppen ASA and Among Others. Veolia and Derrick Services dominate over 50% of the market share due to their proven competence and experience handling large complex offshore decommissioning projects.
The growing emphasis on renewable energy generation from offshore wind farms is driving increased demand for experienced decommissioning contractors. Over 10 GW of additional offshore wind capacity is expected to be added by 2030 requiring removal of old oil and gas platforms. Global initiatives towards achieving net-zero emissions target by 2050 have further accelerated decommissioning of offshore oil infrastructure.
International oil majors are increasingly outsourcing decommissioning projects globally to specialized contractors as they focus on core exploration and production business. Key UK based operators are partnering with international contractors to remove structures across Europe and Gulf of Mexico, benefitting from their offshore expertise.
Market Key Trends
Responsible asset retirement and waste recycling is a key trend in the UK offshore decommissioning market. Regulations stipulate 95% of all materials from decommissioned structures must be recycled or reused to encourage circular economy practices. Leaders are finding innovative ways to upcycle steel, concrete, and other materials into construction products decreasing environmental impact. Specialized modular cutting and lifting techniques further aid recycling while ensuring worker and environmental safety.
Porter’s Analysis
Threat Of New Entrants: High cost of installation makes entry difficult.
Bargaining Power Of Buyers: Few firms dominate the market so buyer power is weak.
Bargaining Power Of Suppliers: Specialized components are required, limiting supplier bargaining power.
Threat Of New Substitutes: No real substitutes available currently for offshore decommissioning.
Competitive Rivalry: Firms compete on experience and price.
Geographical Regions
The North Sea region accounts for the major share of the United Kingdom offshore decommissioning market in terms of value, due to a large number of aging oil and gas assets located in the region that will reach the end of their production life over the forecast period.
The offshore sites located in the Irish Sea are expected to witness the fastest growth during the forecast period. The increasing number of projects for removal of disused offshore oil and gas structures from the Irish Sea basin is driving the market growth in the region.
What Are The Key Data Covered In This United Kingdom Offshore Decommissioning Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United Kingdom Offshore Decommissioning Market’s growth between 2024 and 2031.
:- Accurate calculation of the size of the United Kingdom Offshore Decommissioning Market and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United Kingdom Offshore Decommissioning Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United Kingdom Offshore Decommissioning Market vendors
FAQ’S
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Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United Kingdom Offshore Decommissioning Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the United Kingdom Offshore Decommissioning market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
