Market Size (2015)
2015
$4.35B
Vertical: EnPBase Year: 201610 Sections
Market Size (2015)
2015
$4.35B
Projected (2023)
2023
$7.35B
CAGR (2015–2023)
6.8%
6.8%Key Players
113+
Offshore decommissioning refers to the decommissioning of oil and gas facilities that are approaching the end of their useful design life or economic operation. Aging offshore oil and gas structures are a major environmental concern and liability to countries, operators, contactors and affects surrounding marine environment.
The market is driven by various factors such as increasing oil and gas platform around the world. Especially in the North Sea region and Gulf of Mexico, the oil and gas industry is determined to remove these structures to reduce environmental penalties and also to reduce operating cost of these aging wells. However, the growth of this market is expected to be hindered by the uncertain cost and strict environmental and regulation laws surrounding the offshore decommissioning projects.
The global offshore decommissioning market is expected to grow at 6.93% CAGR during the forecast period. In 2016, the market was led by Europe, with a 70.1% share, followed by North America and Asia-Pacific with shares of 18.9% and 8.9%, respectively.
The global offshore decommissioning market has been segmented based type, service type, application and by region. On the basis of type, topside structures accounted for the largest market share of 56 % in 2016, with a market value of USD 2,586.4 million and is projected to grow at the highest CAGR of 9.05% during the forecast period. Based on application, shallow water accounted for the largest market share of 71.2 % in 2016, with a market value of USD 3,294.3 million and is projected to grow at a CAGR of 7.98% during the forecast period.
The Offshore Decommissioning Market market is projected to grow at a CAGR of 6.8% from 2015 to 2023.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansOffshore decommissioning of aging oil and gas platforms, subsea wells, and related infrastructure is essential to safely remove the equipment used for oil or gas exploration and production, and dispose them at the end of their production. The process of decommissioning of offshore oil and gas platforms, is critical in terms of environmental protection concerns, as it has probable effects on the marine ecosystem, along with disposal of hazardous substances. Offshore decommissioning encompasses different activities for removal of installations, namely, project management, engineering and planning, permitting and regulatory compliance, platform preparation, well plugging and abandonment, conductor removal, mobilization and demobilization of derrick barges, platform removal, pipeline and power cable decommissioning, materials disposal, and site clearance.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2016
Historical Period
2015 – 2016
Forecast Period
2016 – 2023
Primary Interviews
150+
Historical data (2015–2016) and forecast period (2016–2023)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThreat of New Entrants
Offshore decommissioning companies, trying to enter the market, are required to meet high capital requirements to procure technologies and vessels required for offshore decommissioning. Also, the requirements of high technology and technically advanced resources along with government regulations further increase the threat for new entrants to enter the market. Hence, the threat of new entrants in offshore decommissioning market is low.
Bargaining Power of Suppliers
The suppliers in the offshore decommissioning market are the technology and decommissioning vessel suppliers. Supplier concentration in low due to minimum number of suppliers offering various offshore decommissioning technologies. Switching cost of these suppliers is also high, as manufacturers tend to enter into long-term associations with them, in order to ensure uninterrupted decommissioning activity, resulting in the bargaining power of suppliers in the market ranging from high to medium.
Threat of Substitutes
The threat of substitutes is very low in the global offshore decommissioning market. There are no close substitute technologies in the offshore decommissioning market. On the other hand, the price differentiation of different substitutes offered by different companies is high.
Bargaining Power of Buyers
The market has a large number of buyers comprising of oil and gas extraction companies, pipeline installers and offshore platform operators. The competition is, thus, expected to intensify over the period of time and would increase the bargaining power of buyers making it medium to high in the offshore decommissioning market.
Rivalry
The intensity of competitive rivalry is low to medium, as there are several firms offering the offshore decommissioning technology and services. The competition is increased by the presence of new technologies among key players and new entrants, who managed to enter the industry in spite of high entry barriers.
Market estimates by geography (2023)
InsightEurope leads with $5.33B by 2023.
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View Subscription Plans| REGION | 2015 | 2016 | 2023 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $397.30M | $445.50M | $513.30M | 3.3% | 7% |
| Europe | $3.03B | $3.97B | $5.33B | 7.3% | 73% |
| Rest of the World | $97.10M | $107.20M | $121.70M | 2.9% | 2% |
| North America | $825.30M | $1.05B | $1.38B | 6.7% | 19% |
| Total | $4.35B | $5.57B | $7.35B | 6.8% | 100% |
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View Subscription PlansTotal Market Size
$7.35B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Topside | $4.72B | 6.8% | 72% |
| Substructure | $1.46B | 6.8% | 66% |
| Sub Infrastructure | $1.16B | 6.8% | 77% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Offshore Decommissioning Market covering market dynamics, competitive landscape, and strategic outlook.
The Offshore Decommissioning Market market is projected to reach $7.35B by 2023, growing at 6.8% CAGR. The Topside segment holds the largest share.
There is an increasing demand for decommissioning of aging oil and gas platforms around the world, with more than 600 projects expected to be dismantled during the next five years. Aging oil and gas fields, are predominant in the North Sea region and Gulf of Mexico region and the oil and gas industry is focussing on removing these structures. Moreover, the oil production from the world’s giant old fields, is continuously declining, and is expected to decline further. This is driving the global oil and gas companies to focus on cost effective ways of decommissioning these fields, while maintaining focus on high environmental and safety standards. According to Oil and Gas Authority. Aberdeen, Scotland, a total of 1,832 wells are forecast to be plugged and abandoned in the North Sea and Norwegian Continental Shelves region. The decommissioning of oil and gas fields help companies develop expertise that can be exported throughout the world, from the Gulf of Mexico to the South China Sea that can generate revenue and also can create thousands of highly skilled jobs.
Offshore oil and gas facilities have the potential of becoming the largest artificial reef systems in the world. Global operators are committing themselves to the Rigs to Reef program, thereby repurposing decommissioned rigs to convert them to artificial reef structures. After decommissioning, these facilities offer vital habitat for marine life in the region. Such biotic reefs have been created in the U.S, the Gulf of Mexico region, Brunei and Malaysia. This can significantly bring down the cost of decommissioning while helping the surrounding marine environment.
The main concern for the operators carrying out offshore decommissioning and abandonment activities is clearly the apparent high cost of decommissioning and lack of return on investment. It is obvious that offshore oil fields generate revenue during the operational phase and bear significant costs that produce no revenue, during decommissioning and abandonment phase. As these costs have been significantly increasing over the previous decades, operators are faced with a major challenge of accurately estimating the final cost for decommissioning projects.
Similarly, the cost of decommissioning varies operators due to their unique approaches and services for decommissioning activities. Furthermore, global operators experienced in decommissioning are generally limited (except the Gulf of Mexico region), which further adds to this cost uncertainty. These high costs may restrain growth of offshore decommissioning market.
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Profiles of 113 companies operating in the Offshore Decommissioning Market market, including revenue, employee count, and market positioning where available.
Showing 113 of 113 companies
Ramboll Group A/S
Company Headquarters: Copenhagen, Denmark. Founded: 1945 Workforce: ~ 16,500 Company Working: Ramboll Group A/S is a global architecture, engineering, and consultancy company, that delivers expertise and sustainable solutions to clients and partners. Ramboll today operates across 35 countries. Ramboll combines deep local insight and experience with a global knowledge base to create sustainable societies and drive positive change for clients. Ramboll works across clients’ value chains, leveraging its expertise, innovation, and creativity to address the risks and opportunities that follow from sustainable change. By bringing together its technical expertise, domain knowledge, and digital capabilities, Ramboll supports clients in driving improvement and developing new business models that are inherently sustainable. Ramboll’s experts are at the heart of Ramboll s operations, helping drive sustainable impact. They deliver standalone and multidisciplinary solutions across Buildings, Transport, Energy, Environment & Health, Water, Management Consulting, and Architecture & Landscape. As The Partner for Sustainable Change, Ramboll enables stakeholders to realize their goals and navigate the transition to a more sustainable future. Ramboll is a member of the UN Global Compact.
Amec Foster Wheeler
Amec Foster Wheeler was established in the year 1982 with headquarters in London, United Kingdom. Amec Foster Wheeler operates currently in more than 55 countries such as USA, Kuwait, Saudi Arabia, New Zealand, Canada and China with almost 36,000 employees. Its diversified business is primarily focused on the oil gas & chemicals, power & process, environment & infrastructure and mining. The company offers consultancy, engineering, project management, operations and construction services, project delivery and specialized power equipment services to customers worldwide. The company offers key services in carbon capture and storage, condition assessments, consulting, construction, decommissioning, engineering, environmental services, new build operations & maintenance, project management, sustainability services and training & development. AMEC NSS Limited, Amec Kamtech, Inc.,Stevenson & Associates SRL and Foster Wheeler LLC are its subsidiaries. Amec Foster Wheeler competes with companies such as Claxton Engineering, BP PLC., Allseas Group S.A and Aker Solutions ASA.
Aker Solutions ASA
Aker Solutions ASA was established in the year 2008 with headquarters in Fornebu, Norway. The company is a global provider of products, systems and services to the oil and the gas industry. The company operates currently in 46 locations over 20 countries such as Brazil, Australia, Canada, India, Nigeria and Norway with almost 14,000 employees. Its diversified business is primarily focused on the exploration, development and production and decommissioning. The company offers services from subsea to surface and concept to decommissioning. Some of the subsidiaries of the company are Aker Solutions Enterprises LDA, C.S.E. Mecânica e Instrumentacâo Ltda, Aker Solutions Ghana Ltd, Aker Solutions APAC Sdn Bhd, Aker Powergas Pvt Ltd and Aker Solutions Asset Integrity and Mgt. Canada Inc. Aker Solutions ASA, competes with companies such as Claxton Engineering, BP PLC., Statoil ASA, AF Gruppen ASA and John Wood Group.
AF Gruppen ASA
AF Gruppen ASA was established in the year 1985 with headquarters in Oslo, Norway. The company has operational presence in 35 countries such as Sweden, India, China, and Indonesia with 300 offices. Its diversified business is primarily focused on the civil engineering, building, property, environment, and energy and offshore. The company employs 3049 personal as of 2016. The company has considerable and varied activities aimed at the oil and gas industry, with core areas such as the removal, dismantling and recycling of decommissioned offshore installations. AF Gruppen has built and operates Europe's most advanced reception facility for decommissioned offshore installations: Vats Environmental Base, Norway. The operation also offers offshore studies, review of hazardous waste and rig services. The company has subsidiaries such as AF Bygg Oslo, AF Byggfornyelse, AF Bygg Østfold, AF Nybygg, AF Bygg Prosjektpartner, Strøm Gundersen, LAB and AF Bygg Sweden. AF Gruppen ASA competes with companies such as DNV GL, BP PLC, Statoil ASA, Deepocean Group and Ramboll Group A/S.
Statoil ASA
Statoil ASA, is a multinational oil and gas company founded in the year 1972 with headquarters in Stavanger, Norway. They have operational presence in 36 countries such as Norway, Belgium, U.K., U.S., Tanzania, Angola and Canada. The company has about 23,000 employees and produces, transports, refines petroleum and petroleum-derived products. The company processes, manufactures, markets, and trades oil and gas commodities, such as crude, condensate, gas liquids, products, natural gas, and liquefied natural gas (LNG). The company also develops offshore renewable wind energy, carbon capture and storage projects and offshore decommissioning and other low-carbon energy solutions. The company has subsidiaries such as Statoil Natural Gas LLC, Statoil Petroleum AS and Shah Deniz. Statoil ASA competes with companies such as DNV GL, Claxton Engineering, Aker Solutions ASA, Allseas Group S.A and Amec Foster Wheeler.
BP P.L.C.
BP p.l.c. is an integrated oil and gas services company, established in the year 1908 with headquarters in London, the U.K .The company mainly operates through three segments such as Upstream, Downstream and Energy Trading. BP p.l.c., predominantly engage in oil and gas exploration, extraction, transportation and trading, manufacturing and marketing fuels products and renewable energy. They are also operating in establishing alternative energy system operations such as wind turbine, bio butanol and bio ethanol. The company manufacturer’s products such as petroleum, natural gas motor fuels aviation fuels and petrochemicals. BP has operational presence across all six continents and in 72 countries including UK, Hungary, Norway, Russia, India, Australia and China. BP is one of the top seven oil producers in the world and also has around 18,000 fuel retail sites expanded throughout the globe. The subsidiaries of the company include ARCO, Britoil, Pan American Energy, Castrol and Scottish Oils Ltd. BP P.l.c., competes with companies such as John Wood Group PLC., DNV GL, Claxton Engineering, Aker Solutions ASA and Amec Foster Wheeler.
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Offshore Decommissioning Market