DP market expected to hit $1.48 billion by 2020

The following is the text of a news release from the research company MarketsandMarkets:

(DALLAS) — The dynamic positioning systems (DPS) market is expected to reach $1.48 billion by 2020, growing at a compound annual growth rate (CAGR) of 4.36 percent.

The rising capabilities on offshore tonnage have surged the demand for DP systems across the globe. A major factor aiding to the growth of the DPS market is the rising demand for floating, production, storage and offloading (FPSO) vessels. The orders for such vessels witnessed a dramatic rise compared to the last decade. This trend is expected to continue in the near future since the global energy consumption rate is rising rapidly.

The growth in the DPS market is expected to be driven by the increasing deep-sea excavations and the rising maritime trade with the Asia-Pacific and African regions. The dynamic positioning systems market is expected to witness remarkable growth during the forecast period. Countries such as China, Saudi Arabia, UAE, South Korea, Japan and Russia are identified as revenue hotspots, which are expected to witness an upsurge in the demand for DP systems. Ensuring safety operations across deep ocean waters during offshore oil and gas operations will accelerate the demand for DP systems in these countries.

The worldwide merchant fleet expanded by 78 percent between 2004 and 2013, and within this aggregation, bulk carriers and containership tonnage dramatically multiplied. Owing to this, the DPS market is expected to witness an increase in the demand for merchant vessels, such as shuttle tankers, container vessels and bulk carriers. Also, with the rising demand for megayachts and cruise ships, the demand for DP systems is projected to increase over the next five years.

The primary interest for the stakeholders in the dynamic positioning systems market is for systems’ ability to withstand harsh environmental conditions, especially for offshore vessels such as drillships, accommodation barges, AHTS, dredging ships and so on.

The necessity for technologically advanced and an automated DP system is driving the design and manufacturing of dynamic positioning systems. Manufacturers are significantly investing in research and development to bring the best-in-class DP systems, which can be used across the desired naval applications.

By Professional Mariner Staff