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Unmanned Under Water Oil & Gas Exploration – A $9.5 Billion Market Waiting to be Discovered

Stockhouse Editorial
1 Comment| June 25, 2021

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(Image via International Submarine Engineering Ltd.)


Oil and gas explorers are digging to new depths to unearth new resources and to accomplish this, unmanned underwater vehicles (UUVs) are becoming the most useful tool to meet this end.

A new report released on Friday by Fortune Business Insights looked at the market’s growth from 2021 to 2028 and found that the global unmanned underwater vehicles market size is expected to reach $9.5 billion (USD) by 2028, exhibiting a compound annual growth rate (CAGR) of 17.59% during the forecast period.

Healthy growth of the market is expected to be propelled by the increasing application of UUVs in underwater search and survey, communication, navigation, and maritime surveillance. While defense spending takes up the biggest chunk of resources dedicated to this field, commrecial applications are a solid second driver. Increasing gas and oil production and exploration activities are expected to have a significant impact on the global market.


From the report:

In 2019, the Gulf of Mexico observed new oil discoveries by key companies such as Shell, Chevron, Repsol, and Equinor. Shell has been successful in deep-water well-exploration projects. The new exploration project is expected to produce more than 900,000 barrels of oil by 2020. The increasing energy demand will subsequently accelerate deep-sea exploration, which, in turn, will aid expansion of the market. The oil & gas industry is expected to account for the lion’s share in the world’s primary energy supply by 2050. The increasing utilization of unmanned underwater vehicles in the oil and gas industry can have an outstanding effect on the market in the forthcoming years. Moreover, the increasing commercial applications such as seafloor mapping or seabed imaging and pipeline disruption study in the sea environment will foster healthy unmanned underwater vehicles market growth.


(Image via Fortune Business Insights.)


Companies to benefit from this growth:

Click to enlargeSeamec Ltd. (NSE: SEAMECLTD) announced earlier this month that it had signed a three-year contract with Netherlands-based Fugro (AMS: FUR) for inspection, repair, and maintenance of subsea pipeline on India's west coast. Fugro is expected to offer work class ROV services to Seamec.

The Boeing Company (NYSE: BA) - Major aerospace and defense firm that operates in four segments, commercial airplanes, defense, space & security, global services, and Boeing capital.

International Submarine Engineering Ltd. – A Canadian high technology engineering company engaged in the development and manufacture of subsea, land and space robotic systems (pictured above left).


COVID-19 impacts:

COVID-19 has disrupted the supply chain of every industry around the world, causing some industries are to struggle, while some are thriving. Nearly every sector is estimated to have been impacted by this pandemic. The report looks at COVID-19’s impact on the market and factors exhibiting market growth.



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