Remotely Operated Vehicle Market Overview
Remotely operated vehicles (ROV) are devices which are usually tethered or connected through a cable and can be remotely operated underwater for various applications in industries such as oil and gas, military & defense, and scientific research. This underwater vehicle is similar to a robotic device and is fitted with different sampling tools, sensors, and umbilical cables. This is mainly used to collect various forms of data and for communication or information transfer.
The market for remotely operated vehicles accounted for a market value of USD 2,099.40 million globally in 2018. Moreover, this market is anticipated to grow further at a significant CAGR of 10.62% over the forecast period, i.e., 2020-2027. This can be primarily attributed to the growing expenses on oil and gas exploration as well as the increasing naval operations, across the globe.
Growth Highlights based on Region during 2018-2027
On the basis of region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. In 2018, the highest share in the remotely operated vehicle market was held by the market in North America, which is anticipated to reach a value of USD 2,344.14 Million by 2027. The growth in North America can be attributed to the increase in investments towards the naval sector by the government entities to maintain the safety and security across the waters. The market in Europe is predicted to hold the second largest share in the market on account of rising technological advancements in the region. The market in Asia Pacific is anticipated to reach a market value of USD 839.55 million by 2027. The market in this region is mainly led by the demand from China, which is predicted to account for the major market share in Asia Pacific by the end of the forecast period. The growing military expenses along with the rising demand for oil and gas in this region are anticipated to result in higher investments by companies in countries such as China, Japan, & India to explore the oil fields and meet the national demands, which in turn assisting the growth of Remotely Operated Vehicles (ROV) in this region.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
On the basis of category, the market is segmented into observation vehicle, light work class vehicle, medium work class vehicle, heavy work class vehicle and towel & bowel crawling vehicle. The observation vehicle segment captured the largest market with a value of USD 1,125.98 million in 2018 and it is projected to witness the highest growth over the forecast period. This can be attributed to the increase in underwater observation operations performed by the naval forces and oil and gas enterprises for better surveillance, security, and inspection purposes.
By End User Industry
The market for remotely operated vehicle (ROV) is segmented on the basis of end user into oil & gas, military & defense and scientific research. Out of these, the oil and gas industry segment is predicted to dominate the market by growing at a CAGR of 10.55% over the forecast period owing to the emerging energy demand across the globe. The oil and gas industry is further segmented into drilling support, construction support, and inspection, repair, & maintenance, within which, the drilling support segment captured the highest market size and share in 2018 and is predicted to grow significantly in the coming years.
By System Component
Based on the system component segment, the market is segmented into electronics & control system, energy & propulsion system, frame, imaging & lighting system, sensors & automation system, steering & positioning system and other components. The frame segment is anticipated to attain a market value of USD 1,730.53 million by 2027 on account of large number of operations performed by the ROVs in different depths underwater for several end use industries.
By Propulsion System
The market is segmented by propulsion system into hydraulic system and electric system. The hydraulic system segment captured the largest market with a value of USD 1,269.76 million in 2018 and it is further anticipated to maintain the highest growth rate over the forecast period.
Based on application, the market is segmented into shallow water, deep water and ultra-deep water. The ultra-deep water segment captured the largest market with a value of USD 522.97 million in 2018 and it is predicted to expand at a significant growth rate in future.
Market Drivers and Challenges
One of the major growth factors for this market is the increasing military expenditure which tends to increase the spending on various operational activities such as hull inspection, ballast tank inspection, search and rescue operations. These create an opportunity for the major players operating in ROVs market to manufacture advanced ROVs to fulfill the industrial application demand. Growing number of oil, gas and wind farms offshore are anticipated to drive the growth of the ROV market further. ROVs are used to investigate the seabed before the various operations are performed. The evolution and advancements in the ROV technology is resulting in increasing applications of ROVs in various operations such as military and defense, scientific research, oil and gas operations. They are equipped cameras, high-frequency image sonar, and lights, which allow the operator to perform a wide variety of tasks including inspection, retrieval and observation among others.
High installation and maintenance cost associated with the remotely operated vehicle is predicted to hamper the growth of the ROVs market. ROVs require continuous maintenance and repair after certain interval which makes them expensive and negatively impacts the ROV market. The high power consumption by the ROVs is another major factor that hinders the growth of the market.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the global remotely operated vehicle (ROV) market are Oceaneering International, Inc., Fugro, Saab AB, TechnipFMC plc, SUBSEA 7, Teledyne Technologies Incorporated, DOF ASA, Total Marine Technology and Helix Energy.