The global unmanned underwater vehicle market size is expected to reach USD 7,830.8 million by 2027, exhibiting a CAGR of 14.91% during the forecast period. The increasing application of UUVs in underwater search and survey, communication, navigation, and maritime surveillance will propel the healthy growth of the market, states Fortune Business Insights, in a report, titled “Unmanned Underwater Vehicles Market Size, Share and Global Trend by Type (Remotely Operated Vehicle (ROV), and Autonomous Underwater Vehicle (AUV)) By Application (Commercial Exploration, Scientific Research, Defense, and Miscellaneous) By Product Type (Small Vehicle, High-Capacity Electric Vehicle, Work-Class Vehicle, and Heavy Work-Class Vehicle), By Propulsion System (Electric System, Mechanical System, and Hybrid System) By Payload (Camera, Sensors, Inertial Navigation System, and Others), and Regional Forecast, 2020-2027.” The market size stood at USD 3,265.5 million in 2019.
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Market Driver:
Surging Deep Water Oil and Gas Production to Facilitate Growth
The increasing gas and oil production and exploration activities will have a tremendous impact on the global market. For instance, 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 and gas industry is expected to account for the lion’s share in the world’s primary energy supply by 2050. The increasing utilization of UUVs 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 growth of the market.
Disrupted Oil Industry to Dampen Business Amid Coronavirus
COVID-19 had a severe impact on the industries due to the spread of the disease to almost 200+ countries worldwide. Moreover, the global oil industry experienced a sudden drop in demand across various countries. The oil demand is projected to fall 9.3 mb/d year-on-year basis in 2020 and 2021. According to UNCTAD, global maritime transport plunged by 4.1% in 2020 due to unexpected disruption caused by the COVID-19 pandemic. The disorder has mainly hampered the supply chain, shipping network, trade volumes, and port. However, the global Shipping industryis making efforts for sustainable recovery and smooth operations, which, in turn, will aid the market.
Regional Analysis:
Increasing Investments in the Defense Sector to Augment Growth in Asia Pacific
North America is expected to hold the largest share during the forecast period. The United States is the largest producer, operator, and exporter of UUVs globally. The increasing use of remotely operated vehicles (ROVs) in commercial and defense sectors will promote the expansion of North America's market. The growing use of autonomous underwater vehicles (AUVs) for carrying deep-water surveys in oil and gas production can contribute positively to the market growth in the region. Asia Pacific is expected to experience a significant growth rate during the forecast period. The growth is attributed to the increasing investments in the defense sector from several countries such as India, China, Japan, South Korea, and others.
Key Development:
June 2020: Seamec Limited announced that it has signed a three-year contract with Fugro for inspection, repair, and maintenance (IRM) of subsea pipeline on India's west coast. Fugro is expected to offer work class ROV services to Seamec during the contract duration.
Browse Summary of This Research:
https://www.fortunebusinessinsights.com/unmanned-underwater-vehicles-uuv-market-102527
