The global ROV market is anticipated to significantly contract in value terms in 2016 (-6.3%) and then plateau in 2017, due to the current oil price downturn, according to a provider of market research & consulting within energy industry, Douglas-Westwood (DW).
In its latest ROV market forecast for the operation of work-class ROVs through to 2019, DW has highlighted the near-term market challenges with weaker day rates and lower levels of utilisation for the work-class fleet.
Drilling support accounts for some 55% of the current market followed by construction support at 29%.
However, according to the author, Antoine Paillat, we should see recovery later in the decade and this results in an overall compound annual growth rate (CAGR) of 4.3% for ROV expenditure over the forecast period.
ROV operational expenditure for the forecast period is expected to total $14.2 billion, an increase of nearly 19% over the previous five-year period. In unit terms, the global fleet is forecast to grow 193 units over the period, from 983 in 2014 to 1,176 in 2019.
DW sees Latin America as the largest market, though the growth levels are somewhat muted at 3.3% CAGR as a result of slowdown in developments in Brazil.