DW: Operator budgets tighten, but spend for downstream maintenance still sees rise

Douglas-Westwood (DW) is forecasting global downstream asset maintenance expenditure to total $322 billion between 2015 and 2019, an increase of 12% when compared to the previous five-year period. In 2014, spend totaled $63 billion for the world’s global downstream population of approximately 13,000 facilities. Over the next five years, DW expects a 4.8% compound annual growth rate (CAGR) with spend reaching almost $71 billion in 2019.

“A minor drop in expenditure is expected in 2015, due to industry-wide price deflation of equipment and services and budget tightening from integrated operators across their upstream and downstream operations.” said Kathryn Symes, author of DW's “World Downstream Asset Maintenance Market Forecast” report. “However, the reduction in expenditure is expected to be short lived as the aging existing asset population, as well as a number of new installations, drive the overall growth.  

“North America will remain the largest market, accounting for 35% of global expenditure between 2015 and 2019,” she added. “The region’s large, aging downstream population requires a high level of maintenance, particularly as the level of regulation is relatively high, further driving the amount of maintenance services required to ensure downstream plants meet standards. The majority of forecast expenditure will be attributable to Asset Services, accounting for 72%, with the remaining 28% consisting of Asset Integrity services. Of this, Integrity Services and Electrical & Instrumentation (E&I) services dominate across all regional markets.”

The new edition of DW’s “World Downstream Asset Maintenance Market Forecast” analyzes the demand for asset services and asset integrity across refineries, and petrochemical, gas processing, and LNG plants.


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