Construction Vessel Market Size is Slated to Grow Substantially 3.9% CAGR During Forecast Period
Construction vessels are specially designed ships used for transporting goods and personnel to the offshore construction sites. Usually, these ships are larger, ranging from 20 meters and 100 meters. They are used in constructing oil and gas platforms, wind farms, and subsea pipelines in deep oceans. Construction vessels are made to resist the harsh and fluctuating environmental conditions in the sea. Construction vessels are used for complex tasks as building a platform as well as they are utilized in supporting offshore construction work. They are equipped with cranes and other construction tools that are employed while constructing platforms. Not only does the ship have cranes, but it also has enough accommodation for ship crew and includes offices, workspace, cabins, and recreational spaces.
|Fastest Growing Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The goods are being transported between countries through three significant modes of transportation: air, water, and road. But not all modes of transportation are compatible with all types of products and have their respective drawbacks. The transportation of liquid products between countries is practically not possible through air and road. The subsea pipeline can be built with the help of construction vessels and can be further used in transporting oil, gas, and water between countries. Burgeoning offshore activities are creating the need for construction vessels.
The construction vessel market is in the growth stage and is expected to remain in the growing stage during the forecast period. The construction vessel powered by coal have become heritage vessels and are banned by various countries on account of environmental issues. The innovations and development in the use of energy to run the construction vessel are aiding the market to maintain the growth stage. LNG and the use of fuel cells to power the ship are attracting the construction vessel market owners toward them. The special-purpose ships also use biofuels in order to reduce the pollution caused by the use of fuel.
The emerging economies in search of resources are investing in offshore activities. The increasing need for energy around the world is an essential driving factor in the construction vessel market. Industries are snowballing globally, and there is no sufficient energy available to supply and fulfill the energy and electricity needs of the manufacturing plants. The use of renewable energy in manufacturing units is profitable for industry owners as it entails fewer costs and is a decisive factor for the growth of the construction vessel used in building wind farms.
There are frequent technological advancements taking place in the construction vessel market. The dynamic positioning feature of the vessel decides how deep or shallow water the construction vessel will work in. Earlier, there were construction vessels that operated efficiently in shallow waters, which could not be used in the deep sea. Thus, the new Differential Global Positioning System (DGPS) installed in the vessels enables seamless deep-sea operations. For instance, Delta SubSea’s vessel is featured with advanced DP system mode that imparts significant fuel efficiency and lower emissions. The DGPS system enables smooth communication between the vessels and shore and effective working of the construction vessels.
Russia is rich in natural gas resources and is seeking to expand the industry by increasing export activities. In light of the growing tension between China and the U.S. and China’s fragile relations with the Western countries, Russia’s business leaders are looking forward to export natural gas and establish healthy business relations with China. This has led to the development of a new natural gas pipeline connecting Russia and China for importing gas. Russia is not only joining forces with China but also with Istanbul to have a new exporting pipeline for natural gas. Moscow, earlier dependent on Ukraine for exporting natural gas to Europe, now has ‘TurkStream Pipeline’. This increasing bilateral and multilateral agreement among nations is foreseen to engender subsea pipeline developments, ultimately boosting the construction vessel market growth. Therefore, the transfer of natural gas through subsea pipelines will encourage the global construction vessel market growth.
According to the statistics below, it can be stated that Oceania and Europe are the leading importers for the construction vessels market. It is because of the long sea bed and large ports present in these regions.
To reduce the imports of the construction vessels, the European government has introduced initiatives such as ‘Maritime Agenda 2025’ to make Germany the marine industry hub. Accordingly, other countries are following the same path, taking initiatives and improving their shipbuilding and marine industry, thus presenting substantial opportunities for the construction vessel market. Moreover, the countries are entering into bilateral agreements to expand the offshore construction that will enhance the trade. This trend will have a positive impact on the global construction vessel market.
Against the backdrop of falling crude oil prices and the shift of consumers toward more sustainable and electric power, the demand for oil and petroleum is foreseen to hit a roadblock. The reduced demand will affect government spending on crude oil extraction and the drilling process of the countries. Several companies based out of the U.S. oil industry are expected to cut capital spending by 10 to 15% in the year 2020 and focus more on restructuring.
There is research and development underway in the offshore construction vessel industry. New innovations in the stream are tried and tested to optimize the vessel’s performance for the owners. Development of the new electric and hybrid propulsion in the offshore construction or survey vessels allows the diesel engines to function 20% better while reducing greenhouse gas emissions.
The industry is gradually moving toward the era of smart ships, indicating promising growth prospects in the global construction vessel market. Cyber-enabled and smart autonomous ships ensure safety and improved the environmental impact of the vessel as it necessitates less human intervention. The construction vessels, however, exhibit three main problems, including ship safety, energy conservation, reduced environmental impact, and production optimization. The smart construction of ships is the solution to these problems as they will involve less human interference, relying on machines and the internet of things. As the autonomy on the construction vessels increases, it reduces the need for human labor on the ship, thus reducing the production cost for the owners. Several initiatives and notations are devised to strengthen the ship’s cyber-security, thereby preventing them from hacking. For instance, SYS-COM is a notation by Bureau Veritas that prohibits cyber-attacks on construction vessels or survey vessels while transferring data to the shore.
Countries are becoming more aware of pollution and environmental harm caused by different offshore and onshore activities. The offshore vessels using fuels emit harmful gases and toxins that deplete the water bodies. Thus to protect the underwater life and to take action toward mitigating the pollution, countries have come up with stricter norms and regulations for sea vessels. In 2013, the International Maritime Organization (IMO) introduced a regulation for the vessels that state the new energy efficiency of the ships under IMO 2016. The regulation targets the ships that are built after 2025 to be 30% more fuel-efficient.
The top leaders present in the global construction market are able to retain their position due to their ability to provide after-sales services to their customers. Services like maintenance, site surveys, upgradation, on-call repair service, and training are attracting more consumers toward these players.
Continuous research and development in providing technologically advanced solutions related to the vessel are contributing to the growth of the players.