The Global Subsea market forecast
Too hot to Handle
If you can’t stand the heat, get out of the kitchen. It’s a hackneyed phrase. But once you’re in the subsea market’s kitchen or boiler room there’s usually not an easy way out. It’s clearly hot and sweaty in there.
The subsea market hitting a rolling boil has been a long time coming. But it’s here. And for once the market hasn’t aligned its own weapons and shot itself through the foot.
When demand goes up, supply usually loses its head and destroys any recovery. Not this time. There might be some newbuilding, but thanks to increased costs and longer delivery times, the new ships are at the lower end of the market. Nothing’s on the way for the top end. A simple sum of increased demand and reduced supply sets the market up for sauna-like high tension.
Plus, the market is more consolidated than it has even been. Limited competition is another means to increase pricing, and with contractors sitting on record backlogs, then that’s not hard to pull off. Supply was already slashed at the bottom of the market cycle on the back of scrapping and sales to other workmodes.
For contractors and vessel owners, everything seems to be aligning. Utilisation is right up and the tension between demand and supply is palpable. End clients could be caught on the hop.
Strategic Offshore Research’s latest Global Subsea Market Report details these key issues year-on-year and the numerous implications of such significant changes. The latest edition forecasts the market out through 2031. As always, the report breaks down the market projections into easy to digest conclusions no matter which side of the market fence the reader sits. This time changes in the contractual set-up of the market and how competition has changed are also examined, showing who’s in the new driving seat
The market’s in an up-cycle that has steely resolve. It doesn’t look like much can throw it off kilter. Now, it’s time for all sides of the market to feel the heat.For further details contact Jo Slade at jslade@strategicoffshore.com or telephone +44 1224 498023.