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Market Supply

Cyclicality is an inherent characteristic of the subsea ves- sel industry. To date there have been two major build cycles, where the size of the global subsea ? eet increased by 112%, driven by interworking factors such as the changing E&P en- vironment and oil & gas prices.

Among the various vessel types, MSVs have the highest or- der book to existing ? eet ratio. Across the global subsea ves- sel ? eet, average vessel days are expected to become more expensive due to increasing demand for higher speci? cation vessels and stringent customer requirements.

There will likely to be a decoupling of supply from demand due to market fragmentation, as more vessel owners enter the market. There is also a growing number of vessels being constructed in the Chinese shipyards as attractive ? nancing terms lower building costs for vessel owners. Despite the po- tential growth in subsea vessel supply, we still see a shortage of vessels in regions with harsh operating conditions, requir- ing units with higher speci? cations.

Conclusion

Global expenditure for subsea vessel operations will un- doubtedly grow over the next ? ve years. This increase in ex- penditure will be driven by growing requirements for vessels to operate in harsh conditions in isolated regions, for longer duration on site and the large increase in deepwater activi- ties. The outlook for subsea vessel activities will be robust over the forecast period in regions such as Asia, Africa, Latin

America and North America. Despite unprecedented levels of recent vessel deliveries, increasingly complex operating conditions and stringent customer requirements will drive demand for further deliveries.

About the Author

Chen Wei is a researcher in the Singapore Of? ce, under- taking research and analysis for publications and projects.

He holds a Bachelor of Science (Economics) and a sec- ond major in ? nance from the Singapore Management

University. During his industry attachment, he was an

Associate at Continento Research Private Limited where he conducted research and data analysis on the maritime sector. He also spent some time at IHS Private Limited as an Intern for Economics and Country Risk Consulting

Asia Paci? c.

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The World Subsea Vessel Operations Market Forecast 2015-2019 analyses the main factors driving demand for

MSV, DSV, Flexlay, LWIV and Pipelay Vessels. Results analyse vessel demand for key subsea markets, with his- toric data covering the period 2010-2014 and forecast data for 2015-2019.

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