Mobile Offshore Drilling Unit Market Trends

Mobile Offshore Drilling Unit Market Overview:

Mobile Offshore Drilling Unit Market Size was valued at USD 5.39 Billion in 2023. The Mobile Offshore Drilling Unit market industry is projected to grow from USD 5.81 Billion in 2024 to USD 9.82 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.78% during the forecast period (2024 - 2032). Increasing Demand for oil and gas, depletion of onshore reserves, technological advancements in MODU, regulatory environment, economic and political factors, offshore discoveries, renewed investments, aging infrastructure, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mobile Offshore Drilling Unit Market Trends

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  Increasing demand for oil and gas is driving the market growth

  
  

Exploration, production, and the market for mobile offshore drilling units (MODUs) are just a few of the areas of the energy business that are heavily impacted by the rising demand for oil and gas. The demand for energy to run businesses, transportation, and homes rises as people and world economies grow. The strategy and investments of oil and gas firms are shaped by this unrelenting need for oil and gas, which has significant effects on the world's energy system.

The need to find new sources of oil and gas to meet the rising demand is one of the main factors driving the market. Oil and gas corporations look to offshore regions, which are believed to possess large hydrocarbon resources, as onshore reserves diminish and get harder to reach. Companies require cutting-edge and specialized drilling equipment, like MODUs, to recover these lucrative reserves. These offshore drilling units make it possible to discover and produce oil and gas in previously inaccessible deep oceans and far-flung areas.

The regulatory environment is a significant factor in determining how the market for MODUs will develop. To reduce potential dangers and the environmental impact of offshore drilling operations, governments and international organizations establish strict safety and environmental rules. Oil and gas firms and investors gain confidence from a stable and transparent regulatory environment, which motivates them to invest in offshore projects and purchase or construct new MODUs.

The dynamics of the oil and gas sector are influenced by political and economic considerations. Geopolitical tensions, supply disruptions, and changes in the state of the world economy all have an impact on oil prices. Increased exploration and production activities are frequently encouraged by higher oil prices, which drives up demand for MODUs. In contrast, corporations might postpone or scale back their offshore drilling projects during times of economic gloom or low oil prices, which would have an impact on the demand for MODUs.

Companies actively look for new offshore reserves through seismic surveys and exploration activities as the demand for oil and gas rises. The market can be drastically altered by significant offshore finds, which will increase demand for MODUs as businesses scramble to profit from the newly discovered resources. The additional potential for exploration and production created by these finds increase the need for drilling equipment. Thus, driving the Mobile Offshore Drilling Unit market revenue.

Mobile Offshore Drilling Unit Market Segment Insights:

Mobile Offshore Drilling Unit Type Insights

The Mobile Offshore Drilling Unit Market segmentation, based on type includes Jackup, Semi-submersible and Drillship. The jackup segment dominated the market in 2022 due to its many characteristics, including its self-sustaining drilling structure and simplicity of installation on the seafloor platform.

Mobile Offshore Drilling Unit Application Insights

The Mobile Offshore Drilling Unit Market segmentation, based on Application, includes Shallow Water and Deepwater. The deepwater category generated the most income in 2022. The potential size of deepwater reserves is substantially greater than that of shallow oceans. Oil and gas corporations have been looking into deeper offshore areas to acquire more substantial resources as onshore and shallow water deposits become depleted.

Figure 1: Mobile Offshore Drilling Unit Market, by application, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mobile Offshore Drilling Unit Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Mobile Offshore Drilling Unit Market dominated this market in 2022 (45.80%). The Gulf of Mexico is one of the most prolific offshore oil-producing basins in the world, drawing large expenditures in research and development. The need for MODUs to explore, develop, and extract oil and gas from these deepwater fields has been fueled by the quantity of these reserves. Further, the U.S. Mobile Offshore Drilling Unit market held the largest market share, and the Canada Mobile Offshore Drilling Unit market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Mobile Offshore Drilling Unit Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Mobile Offshore Drilling Unit market accounts for the second-largest market share. The seas and oceans that round Europe may contain offshore oil and gas reserves. Significant portions of Europe's oil and gas production have come from areas including the North Sea, Norwegian Sea, and Barents Sea. The need for MODUs to explore and produce from these regions is driven by the presence of significant offshore resources. Further, the German Mobile Offshore Drilling Unit market held the largest market share, and the UK Mobile Offshore Drilling Unit market was the fastest growing market in the European region

The Asia-Pacific Mobile Offshore Drilling Unit Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region is home to China and India, two of the world's most populous countries that are also experiencing rapid economic growth and urbanization. As a result, there is a significantly increased need for energy, notably oil and gas. To meet this expanding need, nations in the area are actively discovering and utilizing their offshore hydrocarbon deposits, which is boosting the market for MODUs. Moreover, China’s Mobile Offshore Drilling Unit market held the largest market share, and the Indian Mobile Offshore Drilling Unit market was the fastest growing market in the Asia-Pacific region.

Mobile Offshore Drilling Unit Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Mobile Offshore Drilling Unit market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Mobile Offshore Drilling Unit industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Mobile Offshore Drilling Unit industry to benefit clients and increase the market sector. In recent years, the Mobile Offshore Drilling Unit industry has offered some of the most significant advantages to medicine. Major players in the Mobile Offshore Drilling Unit market, including Keppel Corporation Limited (Singapore), Samsung Heavy Industries(South Korea), Sembcorp Marine (Singapore), Daewoo Shipbuilding & Marine Engineering (South Korea), Hyundai Heavy Industries (South Korea), Friede & Goldman Ltd (Us), Damen Shipyards Group (Netherlands), Yantai Cimc Raffles (China), Offshore Limited (Norway), Irving Shipbuilding Inc. (Canada), Diamond Offshore Drilling Inc. (Us), Nabors Industries Ltd. (Bermuda) and others, are attempting to increase market demand by investing in research and development operations.

Keppel Corp Ltd., an investment holding and management company, is a business. Through its subsidiaries, the company engages in commerce in the maritime, real estate, infrastructure, telecommunications, and transportation sectors. Shipbuilding, ship repair, ship conversion, offshore oil rig building, repair, and upgrade, real estate development, fund management, investment, logistics, wastewater management, and telecommunications sector investments are some of its businesses. The company has a global network that extends throughout Asia, the Americas, the Caspian Sea region, the Middle East, and Europe. The main office of Keppel is located in Singapore.

The former Hyundai Heavy Industries Holdings Co Ltd, currently known as HD Hyundai Co Ltd (HD Hyundai). It provides services to the energy and heavy industries sectors through its subsidiaries. Shipbuilding, offshore engineering, refineries, petrochemicals, and smart energy management are some of the corporation's commercial ventures. Offshore plants, ship lifecycle maintenance services, and ship propulsion systems are just a few of the maritime solutions provided by HD Hyundai. The company conducts business in Korea, North America, Europe, and Asia. HD Hyundai's headquarters are in Daegu, Yeongnam, South Korea.

Key Companies in the Mobile Offshore Drilling Unit market include

• Keppel Corporation Limited (Singapore)


• Samsung Heavy Industries(South Korea)


• Sembcorp Marine (Singapore)


• Daewoo Shipbuilding & Marine Engineering (South Korea)


• Hyundai Heavy Industries (South Korea)


• Friede & Goldman Ltd (Us)


• Damen Shipyards Group (Netherlands)


• Yantai Cimc Raffles (China)


• Offshore Limited (Norway)


• Irving Shipbuilding Inc. (Canada)


• Diamond Offshore Drilling Inc. (Us)


• Nabors Industries Ltd. (Bermuda)

Mobile Offshore Drilling Unit Industry Developments

June 2023- aipem has obtained two new offshore drilling contracts worth USD 550m (€502.75m). The contracts are for drilling in the Middle East and the Mediterranean Sea. Saipem, in the Middle East, has been chosen to continue the activity of the Perro Negro 7 jack-up drilling unit from the second half of 2023.July 2023- Valeura Energy Inc, in the first week of July, stated that second-quarter production was up, as it also reported success in its drilling campaign. The Thailand and Turkey-focused oil & gas firm based in Alberta, Canada, stated second quarter total working interest production was 22,097 barrels of crude oil per day, up 8% from a year ago.June 2023- Stena Drilling is pleased to disclose that the company has signed the latest agreement with Shell Offshore Inc. for MODU Stena evolution. The maneuvers for Stena Evolution across the United States Gulf of Mexico are given to initiate in Q2 2024 for an immediate period of around 5 years, with a selection to completion of the primary period. Stena Drilling is happy to ensure this long-term extent of employment with Shell Offshore Inc. across the United States Gulf of Mexico. The enterprise looks ahead to the Stena Evolution meeting the active fleet performances and running with Shell to finished a safe and efficient campaign.JULY 2023- Uzma Engineering Sdn. Bhd. ("UESB") owned leading Malaysian energy and technology company offering integrated solutions and innovative services across Southeast Asia, Uzma Berhad, and Malaysia Marine and Heavy Engineering Sdn. Bhd. are happy to disclose the recent signing of a Memorandum of Understanding (MoU) for strategic collaboration. The meticulous collaboration focuses on exploring possible collaborations, offering comprehensive services, and building innovative solutions to meet the increasing demands of the oil and gas industry.

April 2019: 200 million dollars will be spent by Saipem on two offshore drilling contracts in the Middle East and Norway. The first contract was signed with Wintershall for the drilling of two wells in the Norwegian Sea, plus two more optional wells. A second agreement was negotiated to extend the high-spec Jack up Perro Negro7's use in the Middle East for another four years.

In August 2021, Transocean Ltd received USD 252 million contract for its ultra-deepwater drillship from BOE Exploration & Production LLC (“BOE”)

Mobile Offshore Drilling Unit Market Segmentation:

Mobile Offshore Drilling Unit Type Outlook

• Jackup


• Semi-submersible


• Drillship


• Drilling Barges


• Submersible Rigs

Mobile Offshore Drilling Unit Application Outlook

• Shallow Water


• Deepwater

Mobile Offshore Drilling Unit Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America