The Global Subsea market forecast
Take a breath
Sometimes you just need to take a breath. Sometimes you’re forced to. When the subsea market is like a roller-coaster, it can sneak up and affect your breathing now and again.
Subsea has been through a remarkable turnaround. Trading conditions are right back to being pretty hot and the market’s long-term fundamentals rock solid. Money is well and truly back in the system though a lot of it is going on bungs to keep shareholders, many of them long suffering, happy.
There’s always a “but” in the subsea market. And 2026 is sort of the “but”. This year for some will see a degree of the market taking a breather. Don’t panic. That doesn’t have to be sinister and doesn’t have to be a reason to go searching for worry-beads. Any market couldn’t quite keep up the growth pace subsea had been setting. This year will be a bit more tricky, but only for a bit. Demand increases again after that. Though there are some vessel supply issues to maybe fret about depending on where you sit in the market food-chain. Speculative newbuilds are back and looking for homes. That might spoil the party temporarily, but this time around the risk is squarely sitting on the vessel owners’ shoulders. The contractors are showing much more restraint to not throw money at new ships all over again.
Consolidation is back in play though, with the forthcoming Subsea 7 and Saipem merger to be the biggest the industry has ever seen. That changes things. Obviously at the top end of the market, but there will be a cascade right down through all the market’s layers. The pecking order will get mixed up like never before, and clients will need to be prepared for that too. Smart investors are returning to the market as well after shunning the offshore market for too long. In a strong and consolidated market, there’s the opportunity for some of those investors to hit pay-dirt.
Of course nothing is ever a cast-iron guarantee. Plenty of smart wags are endlessly talking of oil oversupply and forthcoming oil price crashes. Which is all very politically expedient. You don’t need to go searching for confusion in the energy markets, it will come to you at every turn. Get that out of the way and turn down the noise and the need for energy, and more energy, isn’t going away and is blatant as blatant can get. Don’t believe a word of the offshore market demise narrative. The industry is different for sure. Yet it’s more vital than ever, truly grown up, and making real returns.
As always, Strategic Offshore Research’s latest Global Subsea Market Report rips down all the wallpaper to show you really what’s behind the market now and ahead, cracks and all. The latest edition forecasts the market out through 2032 and tells it like it really is in the most direct fashion possible. Just as importantly, potential downsides are also evaluated. The market’s in an up-cycle that has steely resolve. It doesn’t look like much can throw it off kilter. Now, it’s time for all sides of the market to feel the heat.For further details contact Jo Slade at jslade@strategicoffshore.com or telephone +44 1224 498023.