LONDON – The offshore maintenance, modifications, and operations (MMO) market is forecast to see a steady recovery, according to analyst Douglas-Westwood.
The analyst firm’s latest report, “The World Offshore Maintenance, Modifications and Operations Market Forecast 2017-2021”, finds that while industry feedback highlights significant pricing pressure among MMO providers, the number of global fixed and floating platforms, coupled with ageing population and industry regulation will continue to drive offshore MMO expenditure over the forecast period.
Over the 2017 to 2021 period, DW expects to see a 4.1% CAGR growth in global offshore MMO expenditure.
MMO expenditure for the global offshore platform population of around 8,700 fixed and floating assets is expected to increase from $81 billion in 2017 to $95 billion in 2021. Driving this spend is degradation of existing asset infrastructure and the need for adherence to industry standards.
By service line, asset services accounts for more than half of total expenditure, 60%, with modifications 21%, asset integrity 14%, and support services 6%. Asia and North America are expected to dominate global expenditure, with 24% and 20% of spend over the forecast period.