World ROV Operations Market Forecast 2015-2019 Leaflet + Contents

World ROV Operations
Market Forecast 2015-2019energy business insight
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© 2015 Douglas-Westwood 40World ROV Operations Market Forecast 2015-2019
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IRM Support Market Demand by Region
Chapter 5 : The ROV Operations Market
Figure 25: Global IRM ROV Spending and Days by Region 2010-2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
ROVExpenditures($billion)
ROVDaysbyRegion
Africa Asia
Australasia Eastern Europe & FSU
Latin America Middle East
North America Western Europe
ROV Expenditure
Market shares (2015)
% Africa
% Asia
% Australasia
% Eastern Europe & FSU
% Latin America
% Middle East
% North America
% Western Europe
2015-2019 nominal growth
~ days added
~ units added
~$ million added
+ % CAGR (in volume)
+ % CAGR (in value)
ROV Days/Units/$m 2014 2015 2016 2017 2018 2019
Africa
Asia
Australasia
Eastern Europe & FSU
Latin America
Middle East
North America
Western Europe
Total IRM ROV Days
Africa
Asia
Australasia 3
Eastern Europe & FSU 5
Latin America
Middle East 9
North America
Western Europe
Total IRM ROV Units
Africa
Asia
Australasia 10
Eastern Europe & FSU 16
Latin America
Middle East
North America
Western Europe
Total IRM ROV Expenditure ($m)
Table 7: Global IRM ROV Days, Units and Spend by Region 2014-2019
% of global market with steady
growth
ROV days for IRM support were
contracted in 2015. Demand is expected to
grow at a CAGR of %, reaching
days in 2019, thus adding days over
the forecast period.
Accounting for % of the global ROV
demand, IRM is the smallest market for
ROV operations, but also least volatile due
to its stable fundamentals. Demand for IRM
is driven by the ageing platform popula-
tions, in addition to subsea infrastructure
and pipelines. With a dense infrastructure
network and more than producing
platforms in the US GoM only – i.e. % of
the global population, North America is the
first IRM market for ROVs. It accounts for
% of the global IRM support market.
The Role of the ROV in IRM
The human dexterity of divers can some-
times prove more effective for shallow-
water IRM operations, whilst some older
infrastructure may not have originally been
designed for ROV intervention.
This can be seen in benign shallow areas
where a significant share of the IRM market
is taken by divers. The Middle East is by far
the largest market for commercial divers,
who see the bulk of the IRM work in the
shallow waters of the Persian Gulf.
However, in other regions ROVs push
divers out of the shallow waters on the as a
function of costs and safety requirements..
Price Pressure Impacts Overall Spend
In 2016, IRM support expenditures are
expected to retreat to $ , as
dayrates are lower due to pricing pressure.
The market spend is expected to growth at
an overall CAGR of % to 2019 to reach
$ .
“As oil price go down, drilling activity
goes down, which is why 2015 will
be a bad year for Oceaneering.
On the other hand, several smaller
companies like us are much more
IRM-focussed. Then with ageing
infrastructure, so on, I think that our
growth is expected to be pushed
forward despite the current price.”
CEO, ROV Operator
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ROV Market Model Methodology
Chapter 5 : The ROV Operations Market
DW
ROV
modelling methodology
The main
inputs of this ROV
mode
l come
from
our rig dema
nd and subse
a vesse
l
in-ho
use datab
ases.
Assumptio
ns used
to
generate market dema
nd have
been
vet-
ted and are the result of our prima
ry and
secon
dary resea
rch, which
involv
e indus
try
consu
ltations with ROV
experts work
ing
for the leadin
g comp
anies
involv
ed in this
indus
try. The mode
l produces
outpu
ts
(ROV
days,
units
and expenditures) for the
relevant ROV
markets, which
are sorte
d
by water depth
s, regions and comp
onents
when
suitab
le.
ROV
model structure
Global energ
y dema
nd is the main
underly-
ing driver for the comm
ercial ROV
market.
The offshore oil and gas production
requi
red to meet
energ
y dema
nd drives
an increase in explo
ration
drillin
g as new
reserves are requi
red, and simila
rly in de-
velop
ment
drillin
g as operators
seek
to put
assets onstr
eam and maximise
outpu
ts from
existi
ng production sites.
Offsh
ore drillin
g deter
mines rig dema
nd and
there
fore ROV
dema
nd for drillin
g support.
Deve
lopm
ent drillin
g drives installation
s of
subse
a equip
ment
and subse
quently de-
mand
for subse
a vesse
ls. These vesse
ls are
equip
ped with ROVs and deplo
yed for both
const
ructio
n and IRM work
s, thus drivin
g
ROV
dema
nd for both
IRM and const
ruc-
tion support.
Main
assumptionsNum
ber of ROVs equip
ped on rigs/v
essels:
Adjustments have
been
made
globa
lly
based
on offshore vesse
l types
, and region-
ally based
on operating
prefe
rence
s.ROV
dayra
tes:Adjustments were
made
globa
lly based
on
the work
scope
s (drilling, IRM,
const
ruc-
tion), and also regionally based
on labou
r
costs, safety
requi
reme
nts, operating
prefe
r-
ences.
ROV
fleet utilisa
tion rates:
Globally weigh
ted depending
on ROV
operators’ relative market share
s.Completio
n assum
ption
s:
Adjustments made
regionally to reflec
t the
differ
ence
between surface and subse
a
comp
letion
s.
Divin
g assum
ption
s:Adjustments made
to reflec
t the diving
mar-
ket share
in shallo
w waters. Globally, based
on water depth
and work
scope
s (main
ly
IRM). Regio
nally,
based
on safety
requi
re-
ment
s and operating
prefe
rence
s.
D&P
Drilling
E&A
Drilling
Rig Demand
Construction
Vessels
IRM Vessels
Subsea Equipment
Subsea Vessels
O&G Production
Energy Demand
ROV
Demand forDrilling ROV
Demand forConstruction ROV
Demand forIRM
Model
InputAsset
Data
Macro
Driver
Model
Output
Offshore
Asse
tData
DW
Rig Demand Data
DW
Subsea Vessel Data
ModellingProcess
Work Scopes
Water Depth
Region
Assumptions
ModellingOutputs
Water Depth
Region
Component
Drilling Support ROVMarket Construction SupportROV Market IRM Support ROVMarket
Key
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Subsea Focus AreasChapter 4 : Market Drivers
Speci
ficatio
n requi
reme
nts of ROVs
are largely deter
mined by a com-
bination of water depth
and ocean
conditions
.
Mark
ets with harsh
sea states such
as
the North Sea will typically need
high-
end assets with excel
lent powe
r rating
and statio
n keeping. Harsh weather
conditions
would put additional
stress
on safe launc
h and recov
ery.
West
Africa or Brazil are mark
ets
focus
sed on subse
a const
ructio
n,
thus requi
ring heavy
lifting
, in addition
to statio
n keeping and deepwater
capab
ilities.
In Asia and the Middle East,
typically
less comp
lex ROVs are favou
red, as
these
are rathe
r benig
n shallo
w areas
,
and mainly drillin
g-oriented
.
However increasing
custo
mer prefe
r-
ence
for reliab
ility and operational
efficie
ncy is drivin
g chang
e in these
regional fleets
.
Nort
h Ame
rica
The North American
market is focus
ed
on the GoM
which
is comp
rised
of a very
large
and mature shallo
w water segm
ent
and ultrad
eep water segm
ent. Sea states
are typica
lly benig
n but harsh
durin
g the
hurric
ane seaso
n which
lasts from
June to
Nove
mber
.
2,101 16%
1,060m
Benign
Latin
Ame
rica
Latin
American
subse
a activity is domi
-
nated
by Brazil throu
gh state-own
ed oil
comp
any Petro
bras.
Brazil alone
will ac-
count for 16% of globa
l tree installation
s
over
the next
five years
, 94% of these
will
be in ultrad
eep water.
2,140 19%
1,200m Medium
Afric
a
As a part of the deepwater ‘Gold
en
Triangle’, Africa is a major subse
a market.
Histo
rically
, subse
a activity has been
focus
ed in the Gulf Of Guinea. However,
East Africa is expected to become one
of the world
’s prom
inent
grow
th markets
over
the next
decad
e. Subse
a activities
are domi
nated
by IOCs
.
3,478 25%
931m
Benign
Aust
ralia
The market is a major subse
a grow
th
provi
nce with a subst
antial
backlog of
major gas expo
rt proje
cts. Simila
r to the
North Sea, the operating
environme
nt is
relatively shallo
w but challe
nged
by harsh
weather.
682
6%
429m
Mediu
m/
Harsh
Nort
h Sea
Traditionally, the North Sea is shallo
w
water with 62% of trees
installed in a
water depth
<250
m over
the past five
years
. Extre
me metaocean conditions
necessitate high specificatio
n vesse
ls.
3,289 10%
200m
Harsh
Asia
Asia is a very large,
predo
minat
ely shallo
w
water market. Activities are curre
ntly fo-
cused
on Bay of Bengal, Java Sea, Celeb
es
Sea and South
China
Sea. Altho
ugh the
market is curre
ntly focused on shallo
w wa-
ter IRM activities, a backlog of high profile
deepwater subse
a proje
cts will drive
field
development over
the next five years.
910
9%
480m
Benig
n/
Mediu
m
Key
2011-
2015
Avera
ge subse
a
produ
ction
kboe/
d
Typica
l metoc
ean
condi
tions
Avera
ge tree water
depth
as
of 2015
2011-
2015
% Subse
a tree
popul
ation
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Design Trends: Efficiency and Ease of Use
Chapter 3 : Competitive Landscape
The bigger, the more powerful
Weig
ht and horse
powe
r are corre
lated
for
work
-class
ROV
systems. The larger the
design of the ROV,
the more
powe
rful it is
likely
to be.
SMD’s Atom
is the most
comp
act hydra
ulic
WRO
V in the market and hence the lighte
st
vehic
le of the panel, rated
at 100H
P and
weigh
ing 2.0 tonne
s. Its powe
r-to-w
eight
ratio
is 1/20.
This is simila
r to what
the
heavi
est vehic
le achie
ves, i.e. Schilling’s
UHD
-III, which
is rated
250H
P and weigh
s
5.6 tonne
s, resulting in a ratio
of 1/22.
Therefore
, the powe
r-to-w
eight
ratio
can
be considered
near
const
ant at 1/20
on
avera
ge, slightly decre
asing
with size. There
are some
exception
s to this howe
ver, such
as i-Tech
’s systems which
are comp
act
designs that aim to limit weigh
t and deck
footp
rint, with avera
ge powe
r-to-w
eight
ratios
of 1/17.
Among the larger vehic
les weigh
ing more
than four tonne
s, Ocea
neering’s heavy
-duty
vehic
le Maxx
imum
has the highe
st powe
r-
to-weight
ratio
at 1/18,
with 270 HP for
4.85 tonne
s.
Power does not always translate
into performance
ROV
perfo
rman
ce canno
t be meas
ured
based
on powe
r alone
. The most
powe
rful
vehic
les are not alway
s the most
efficie
nt.
The chart
on the left comp
ares various
systems’ weigh
ts and lifting
capac
ities
throu
gh-fra
me.
The systems with the highe
st powe
r-to-
weigh
t ratios
do not necessarily have
the
best lifting
-to-w
eight
ratios
. Among systems
weigh
ing under four tonne
s, i-Tech
’s designs
rank quite
high,
but not as high as when
they are ranke
d in terms of powe
r-to-
weigh
t ratio.
In addition, there
is a trade
-off between
ROV
perfo
rman
ce and deepwater capab
ility
– the Pione
er HD, Centurion
HD and FCV
2000
are rated
up to 2,000
m.
Arguably, new systems impro
ved in terms
of efficie
ncy. Altho
ugh Maxx
imum
has one
of the highe
st powe
r-to-w
eight
ratios
, it
poorly features in this secon
d chart
(purp
le
dot).
But Ocea
neering’s new mode
l Nexx
us
achie
ves highe
r perfo
rman
ce with slightly
less powe
r, size and weigh
t – it is more
efficie
nt.
Over
the past few years
, each
new
gener
ation
of WRO
Vs has been
more
powe
rful than the previous; yet the
recen
t oil price
down
turn has cause
d
designs to focus
more
on perfo
rman
ce
and efficie
ncy.
Ease of use will also be of crucial
importanc
e, as many
operators
see
their
more
experienced pilots
retiring.
WRO
Vs are set to become increas-
ingly
auton
omou
s, blurring the line
between ROVs and AUVs.
“Low
ering
cost and weigh
t will be a
key trend
as well.
People are fixate
d
with horse
powe
r figure
s, but it does
not translate into perfo
rman
ce if the
system is ineffic
ient. I think
we might
see more
custo
mers’ requi
reme
nts
increasingly focus
on efficie
ncy and
perfo
rman
ces.”
Oper
ations Mana
ger
ROV
manu
facturing comp
any
“A long-lasting trend
in the ROV
manu
facturing indus
try has been
to
‘de-sk
ill’ the operators
by makin
g
ROVs as easy to use as possible,
with plenty of autom
atic functions.”
Oper
ations Mana
ger
ROV
manu
facturing comp
any
Figure
4: Lifting
-to-W
eight
ratios
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
1.5
2.5
3.5
4.5
5.5
6.5
Liftin
gcapaciy(tonn
es,000s
)
Weig
ht (tonn
es, 000s)
Figure
5: Power-to-W
eight
ratios
-
50
100
150
200
250
300
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
Hors
epow
er(HP)
Weig
ht (tonn
es, 000s)
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Top Tier ROV Operators
Chapter 3 : Competitive Landscape
OceaneeringUnited States
ROV
Revenue (2014
):
$1,069m
Worl
d’s largest WRO
V operator and WRO
V manu
facturer.
Ocea
neering’s WRO
V fleet is predo
minantly drillin
g support fo-
cused
, with a high expo
sure to US GoM
(33%
of reven
ue in 2014).
Ocea
neering domi
nates
the globa
l drillin
g support market with a
60% market share
.
%
%
%
%
%
Share
of Global Fleet
Scope of Work
Sonsub SaipemItaly
ROV
Revenue (2014
):
-
Through acqui
sition
of Sonsub, Saipe
m gaine
d remo
te subse
a tech-
nolog
ies which
the comp
any is now
exten
sively
utilising in subse
a
const
ructio
n activities.Cons
truction support accou
nts for the majority of its activity. With
11 const
ructio
n support vesse
ls which
are exten
sively
utilise
d.
%
%
%
%
%
Share
of Global Fleet
Scope of Work
C-InnovationUnited States
ROV
Revenue (2014
):
-
C-Innovatio
n, a subsid
iary of Edison
Chouest Offshore, provid
es the Group
with integrated ROV
suppo
rt services.
Chouest Offshore create
d C-Innovatio
n to meet
increa
sing demand for
advan
ced subsea opera
tions.
C-Innovatio
n’s fleet consis
ts of exclus
ively heavy-duty
WRO
Vs which
provid
e
solutio
ns to construction suppo
rt, IRM suppo
rt and drilling
suppo
rt marke
ts.
%
%
%
%
%
Share
of Global Fleet
Scope of Work
DOF SubseaNorw
ay
ROV
Revenue (2014
):
$129m
Constructio
n suppo
rt activity is expec
ted to be robus
t to 2015
due to
a health
y backlo
g. From
2016
activity may declin
e as green
field subsea
projects are delaye
d as a result
of low oil price.
North
Sea remains their largest marke
t with 17 ROVs
opera
ting. Follow
ed
by emerging Brazil
deepw
ater offsho
re (14 ROVs
) & APAC
(9 ROVs
).
%
%
%
%
%
Share
of Global Fleet
Scope of Work
Helix Energy SolutionsUnited States
ROV
Revenue (2014
):
$420m
Formerly Cal Dive,
Helix
has a long track-record in ROV
suppo
rt for drill-
ing, IRM, subsea constructio
n, seabe
d trench
ing and renew
able opera
tions.
In January 2015,
the group
forme
d a JV with OneS
ubsea
and Schlumberger
called
“Subs
ea Servic
es Alliance”, to develop an offerin
g focusing on well
intervention
services.
%
%
%
%
%
Share
of Global Fleet
Scope of Work
Subsea7 iTechUnited Kingd
om
ROV
Revenue (2014
):
$220m
Subse
a 7 is the secon
d largest WRO
V operator world
wide.
Its subsidiary
I-Tech designs and manu
factures WRO
Vs and toolin
g
solutions.
I-Tech specialises
in deepwater applic
ations and is the market leade
r
in Brazil.
%
%
%
%
%
Share
of Global Fleet
Scope of Work
Fugro
Netherland
s
ROV
Revenue (2014
):
$787m
Fugro
has leading positio
ns in specific key region
s, notab
ly Brazil
(IRM), the
North
Sea (main
pipelin
e inspec
tor, exclud
ing Norw
ay) and the Middle East.
In 2014,
the comp
any down
sized its stand-
alone
ROV
fleet opera
tions in
APAC
region
.Fugro
is rumoured to be seekin
g a buyer/JV partne
r for its subsea solutio
ns
divisio
n, which
includes ROV
services.
%
%
%
%
%
Share
of Global Fleet
Scope of Work
Ocea
neering
Subse
a 7 SA.
Fugro
Sonsu
b Saipe
m
DOF
Subse
a
Helix
C-Inn
ovatio
n (C-I)
WRO
VFleet
Size
2012
2013
2014
Drillin
g SupportCons
truction SupportIRM Support
Scope of Work
Figure
3: Top-tier opera
tors’ work-class ROV fleet
evolution over the 2012
-2014
period
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Chapter 2 : Introduction to ROVsROV Classification
MROV
s and EROV
s are used
as inspec
tion
tools
in the offsho
re indust
ry, for scient
ific
work,
and some
times
for recrea
tional
use.
These
all-ele
ctric,
low cost and easy to handle
units
opera
te either
in open
water
or inside
confin
ed space
s, and are occas
ionally
used
for
diving
suppo
rt. MROV
s repre
sent the fastes
t
growi
ng sector
of the ROV
indust
ry in terms
of
numb
er of units
sold.
They
typica
lly do not go
deepe
r than 100m
and weigh
less than 15kg.
EROV
s are widely
used
as a platfo
rm for a
variet
y of small
senso
rs and toolin
g as well as
light duty manip
ulator
s or cutter
s. The major
ity
are config
ured
to opera
te in water
depth
s of
300m
or less.
Class
1
Minia
ture
& Eyeba
ll ROVs
(MOR
Vs & EROV
s)
IROV
s are used
to perfor
m inspec
tion tasks
on
subse
a struct
ures and hardw
are, to perfor
m
salvag
e and survey
s and to gathe
r physic
al
and photo
graph
ic sampl
es for resear
ch work.
They
will norm
ally have
simila
r manip
ulator
s to
those
found
on larger
ROVs
, often
config
ured
on a remo
vable
tool-s
kid rather
than being
perma
nently
fixed
in place.
This allows
for a
great
deal of flexibi
lity in terms
of their
use of
specia
lised
toolin
g.
Class
2
Inspe
ction
ROV
s (IRO
Vs)
This repor
t focuse
s on work-
class
ROVs
(WRO
Vs) of at least
50HP,
sub-cl
assifie
d as
follow
s:
Light
WRO
Vs (<100HP)Medium WRO
Vs (100-
150H
P)
Heav
y WRO
Vs (>150HP)Weigh
ing betwe
en 1,000
kg and 6,000
kg, they
are used
for drilling
, subse
a constr
uction
and
IRM in deep
water
s, far beyon
d the reach
of
divers
. WRO
Vs are equip
ped with full-fu
nction
manip
ulator
s to direct
ly grip, push,
pull, turn,
or
to use a tool like a huma
n hand.
They
are high-
ly mano
euvra
ble, able to carry
heavy
burde
ns,
and also provid
e mean
s of visual
super
vision
.
Addit
ional
tools
can be made
access
ible on a
detac
hable
‘tool-s
kid’.
Class
3
Work
-Clas
s ROV
s (WR
OVs)
Tracke
d ROVs
or remo
tely opera
ted ploug
hs
are exten
sively
used
to bury
pipelin
es, cables
and umbil
icals for oil, gas, powe
r and teleco
m
indust
ries in areas
of the seabe
d that are at risk
from
fisheri
es’ activit
ies. The use of tracks
rath-
er than thrust
ers for propu
lsion
is possib
le as
these
vehicl
es only work
on the seabe
d and are
far larger
and heavie
r than a norm
al WRO
V. It
is also possib
le to add tracks
to a conve
ntiona
l
WRO
V throu
gh the use of a detac
hable
tool-
skid arrang
emen
t and this appro
ach has been
used
on vehicl
es of all sizes.
The larges
t ploug
hs may weigh
up to 150
tonne
s.
Class
4Track
ed ROV
s (TRO
Vs)
Specialised
ROVs are used
predo
minantly
in the oil & gas and defen
ce indus
tries.Autonomo
us Unde
rwate
r Vehic
les (AUV
s)
AUVs are self-p
ower
ed robot vehic
les
that have
a level
of adaptive systems to
follow
a pre-p
rogra
mme
d route
. A typica
l
applic
ation
is in deepwater surve
y opera-
tions
for the offshore oil & gas indus
try.
Unmanned Surface Vehic
les
USVs
have
been
developed
more
recen
tly and are mainly used
as platfo
rms
for surve
y senso
rs.
Class
5
“Just
like a car, you can expect a work
-class
ROV
to last for 10 years
, some
even
reach
15 years
. Realistically you
can be happy after
8 years
becau
se these
assets deter
iorate
rathe
r quick
ly, being
const
antly
operated underwate
r.
A major overh
aul/re
pair is recom
mend
ed after
5 years
of operations.”
ROV
Oper
ations Mana
ger – ROV
manu
facturing comp
any
“Work-cla
ss ROVs are widely seen
as the pick-up trucks of the offshore indus
try. Oper
ators
expect them
to be
highly
versa
tile; no-one buys
a WRO
V to perfo
rm only one task. However,
you do not need
the same
specs
for
all jobs,
and design settin
gs can be custo
mised
at wish.”
Subse
a Robo
tics Engin
eer – ROV
manu
facturing comp
any
SeaEye Tiger
Forum
Super
Moha
wk II
Schilling HD
SMD
Q-Trencher
1400
ECA A9-S
ROV Work Class Operations Market
Lower on Weaker Rates & Utilisation
Douglas-Westwood (DW) forecast the market
for the operation of work-class ROVs through
to 2019 in this seventh edition of the World
ROV Operations Market Forecast. This edition
has seen a full refresh of the market model with
the latest DW offshore data and revisions to
methodology, sense-checked through extensive
consultation with industry.
The conclusions of the report highlight the
current market challenges with weaker dayrates
and lower levels of utilisation for the work-class
fleet. DW anticipates the global ROV market
to significantly contract in value terms in 2016
(-6.3%) and then plateau in 2017, due to the
current oil price downturn.
Recovery later in the decade results in an over-
all compound annual growth rate (CAGR) of
4.3% for ROV expenditures over the forecast
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. 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.
Drilling support accounts for some 55% of the
current market followed by construction sup-
port at 29%. The remaining IRM market is the
smallest but also the most resilient to down-
turns in oil price.
Regionally, the Middle East is a bright spot, with
no downturn in expenditure evident and a
CAGR of 6.5% to 2019. It does, however, only
accounts for 10% of overall spend in 2015 due
to the extensive use of divers in the region.
Latin America is now the largest market albeit
growth levels are somewhat muted at 3.3%
CAGR as a result of slowdown in develop-
ments in Brazil.
The World ROV Operations Market Forecast
2015-2019 analyses the main factors driving
demand for ROV operations and key themes
include:
• Market drivers – identification and discus-
sion of key underlying drivers and their
influence on the global work-class ROV
operations market.
• Historic and forecast activity – 2010 to
2019, segmented by region & sector.
• Market segmentation – by drill support,
construction support and repair & mainte-
nance, detailed by ROV days and units.
• Detailed forecasts – of ROV activities, in-
cluding work requirements on subsea trees,
umbilicals & flowlines, subsea processing,
FPSO mooring & risers, trunkline instal-
lation, exploration & appraisal wells and
subsea development wells.

Market Forecast 2015-2019energy business insight
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Why purchase the World ROV
Operations Market Forecast?
The World ROV Operations Market Forecast is an
excellent source of information for those seek-
ing a timely update on this dynamic and rapidly
changing industry. Geared to senior executives’
needs, the report assumes no previous knowl-
edge of the subject area. The report provides
the reader with a comprehensive understand-
ing of the key trends involved in shaping the
requirement for ROV operations
DW’s market forecasting is trusted by sector
players worldwide, with clients including the
world’s top-10 oil & gas companies, top-10
oilfield services companies and top-10 private
equity firms.
The report is relevant to strategy teams within
subsea manufacturing, subsea services, drilling
operations and offshore construction compa-
nies as well as financial institutions.
More about Douglas-Westwood’s
Capabilities in the ROV Sector
DW’s research team monitors and analyses
every aspect of the global work-class ROV mar-
ket. Through our commissioned research we
assist ROV manufacturers, operating compa-
nies, support vessel owners, oil & gas com-
pany end users and investors in the sector, in
determining market dynamics and assessing the
supply and demand for ROVs and associated
services on a regional and country-specific basis. ISBN 978-1-910045-22-0
"Your market analysis was vital
for our business planning"
- ROV Operator
" A well put together report –
precisely what we needed"
- Engineering Contractor
"The report goes into
great detail"
- ROV Operator

2015World ROV Operations Market Forecast
Prospects, Technologies, World Markets
2015-2019

Contents
Table of Contents
1 Summary & Conclusions..........................................7
Summary......................................................................................................................................... 8
Conclusions.................................................................................................................................... 9
2 Introduction to ROVs ........................................... 10
ROV Classification......................................................................................................................11
ROV Work Scopes .....................................................................................................................12
ROV Deployment .......................................................................................................................13
3 Competitive Landscape......................................... 14
Competitive Landscape: ROV Operators..............................................................................15
Top Tier ROV Operators..........................................................................................................16
Competitive Landscape: ROV Manufacturers .......................................................................18
Top Tier ROV Manufacturers...................................................................................................19
4 Market Drivers ....................................................... 25
Population & GDP Growth Drive Energy Demand .............................................................26
Oil Supply & Demand.................................................................................................................27
Offshore Oil & Gas.....................................................................................................................28
Oil & Gas Challenges .................................................................................................................29
Oil Price Volatility.......................................................................................................................30
Offshore Rigs and Offshore Capex.........................................................................................31
Subsea Focus Areas ....................................................................................................................32
Offshore Fixed & Floating Platform Population ....................................................................33
5 The ROV Operations Market.............................. 34
ROV Market Model Methodology ...........................................................................................35
Methodology: Barriers and Limitations ..................................................................................36
Global ROV Forecast Totals by Hardware ............................................................................37
Global ROV Forecast Totals by Region ..................................................................................38
Drilling Support Market Demand by Region.........................................................................39
Construction Support Market Demand by Region..............................................................40
IRM Support Market Demand by Region...............................................................................41
Africa.............................................................................................................................................42
Asia ................................................................................................................................................43
Australasia ....................................................................................................................................44
Eastern Europe & FSU................................................................................................................45
Latin America...............................................................................................................................46
Middle East...................................................................................................................................47
North America............................................................................................................................48
Western Europe..........................................................................................................................49
6 Appendix .................................................................. 50
Data and Text Conventions......................................................................................................51

Contents
Figures & Tables
Figures
Figure 1: Global ROV Spending and Global ROV Days by Components 2010-2019................7
Figure 2: Global WROV Fleet Operator Tier Split ....................................................................................14
Figure 3: Top-tier operators’ work-class ROV fleet evolution over the 2012-2014 period..15
Figure 4: Lifting-to-Weight ratios.........................................................................................................................22
Figure 5: Power-to-Weight ratios........................................................................................................................22
Figure 6: Components of a blowout preventer...........................................................................................23
Figure 7: Global Population Growth & Energy Demand, 1965-2012...............................................25
Figure 8: Primary Energy Demand by Region 1965-2015 ......................................................................25
Figure 9: Oil Price & Demand 1990-2014......................................................................................................26
Figure 10: World Liquids Production Growth, 2005-2015 ...................................................................26
Figure 11: Onshore vs Offshore Oil & Gas Production, 2005-2021 ................................................27
Figure 12: Development Wells in Water Depth (1960 – 2020).........................................................27
Figure 13: Oil & Gas Production versus E&P Spend, 2000-2015e.....................................................28
Figure 14: Skilled Workers by Age Category, 2014...................................................................................28
Figure 15: Historical Brent and WTI Oil Prices, January 2010 – July 2015....................................29
Figure 16: Brent Annual Average Spot Price Forecasts, 2010 - 2020...............................................29
Figure 17: Offshore Rigs Contracted 2000-2020........................................................................................30
Figure 18: Offshore Capex by Component...................................................................................................30
Figure 19: Total Platform Population by Region, 2015..............................................................................32
Figure 20: Fixed and Floating Platform Population by Region, 2015-2020 ....................................32
Figure 21: Global ROV Spending and Global ROV Days by Components 2010-2019 ..........36
Figure 22: Global ROV Spending and ROV Days by Region 2010-2019 .......................................37
Figure 23: Global ROV Drilling Support Spending and Days by Region 2010-2019................38
Figure 24: Global ROV Construction Support Spending and Days by Region 2010-2019...39
Figure 25: Global IRM ROV Spending and Days by Region 2010-2019 .........................................40
Figure 26: Africa ROV Spending and Global ROV Days by Components 2010-19 .................41
Figure 27: Asia ROV Spending and Global ROV Days by Components 2010-19.....................42
Figure 28: Australasia ROV Spending and Global ROV Days by Components 2010-19.......43
Figure 29: E.E & FSU ROV Spending and Global ROV Days by Components 2010-19 ........44
Figure 30: L. America ROV Spending and Global ROV Days by Components 2010-19.......45
Figure 31: Middle East ROV Spending and Global ROV Days by Components 2010-19.....46
Figure 32: N. America ROV Spending and Global ROV Days by Components 2010-19 .....47
Figure 33: W. Europe ROV Spending and Global ROV Days by Components 2010-19.......48
Tables
Table 1: ROV Operators Competitive Landscape......................................................................................14
Table 2: ROV Manufacturers Competitive Landscape..............................................................................17
Table 3: Global ROV Days by Components, Units and Spend by Market 2014-2019 ..........36
Table 4: Global ROV Days, Units and Spend by Region 2014-2019 ...............................................37
Table 5: Global Drilling Support ROV Days, Units and Spend by Region 2014-2019 ............38
Table 6: Global Construction Support ROV Days, Units and Spend by Region 2014-2019 39
Table 7: Global IRM ROV Days, Units and Spend by Region 2014-2019 .....................................40
Table 8: Africa ROV Days by Components, Units and Spend by Market 2014-2019 ............41
Table 9: Asia ROV Days by Components, Units and Spend by Market 2014-2019 ................42
Table 10: Australasia ROV Days by Components, Units and Spend by Market 2014-19 ....43
Table 11: EE & FSU ROV Days by Components, Units and Spend by Market 2014-19 .....44
Table 12: L. America ROV Days by Components, Units and Spend by Market 2014-19 ....45
Table 13: Middle East ROV Days by Components, Units and Spend by Market 2014-19 ...46
Table 14: N. America ROV Days by Components, Units and Spend by Market 2014-19 ...47
Table 15: W. Europe ROV Days by Components, Units and Spend by Market 2014-19 ....48

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