Offshore Decommissioning Market

Offshore Decommissioning Market Size

The offshore decommissioning market was estimated at more than USD 10.5 billion in 2024. The market is expected to grow from 11.1 billion in 2025 to USD 19.7 billion in 2034, at a CAGR of 6.5%, according to Global Market Insights Inc.

• The offshore decommissioning market is driven by a complex interplay of regulatory, environmental, economic, and technological factors that collectively shape its trajectory. Growing need to decommission aging offshore oil and gas infrastructure, including platforms, plug and abandonment service, pipelines, subsea wells, and related facilities in a manner that ensures safety and operational efficiency.
  
• For instance, in June 2025, Baker Hughes secured a contract from Equinor to deliver plug and abandonment (P&A) services at the Oseberg East field in the Norwegian North Sea. Under this agreement, Baker Hughes will oversee both the planning and execution phases of an integrated P&A campaign across multiple wells.
  
• Regulatory framework is one of the major drivers in shaping the industry landscape. Governments and international bodies impose stringent guidelines to ensure that decommissioning activities adhere to safety, environmental, and operational standards that impact the market evolution.
  
• For instance, in 2024, Offshore Energies UK (OEUK) introduced the first comprehensive guidelines for decommissioning of wind turbines, marking a major advancement for the renewable energy industry. These strategies aim to streamline the processes of turbine removal and recycling.
  
• Rising environmental considerations by government and private bodies associated with the mature offshore structure are driving the market.  The ecological impact of leaving offshore structures in place versus removing them entirely is rapidly influencing industry development by taking strong action on it. Moreover, increasing awareness of marine biodiversity and the potential hazards posed by abandoned infrastructure, such as pollution and habitat disruption, has intensified the push for responsible decommissioning practices.
  
• Rising economic factors such as aging infrastructure, crude oil prices, and government policies also exert substantial influence on market growth. Additionally, considering the operations, companies seek cost-effective solutions that balance regulatory compliance, and contracts are boosting market growth in recent years.
  
• For instance, in March 2025, Island Drilling Company AS secured a three-year contract from Equinor, which was valued at around USD 330 million. Contract is to carry out well-plugging operations before decommissioning on the Norwegian continental shelf using its Island Innovator semi-submersible rig.
  
• Ongoing investments by key players in developing advanced technology are driving the process growth by providing enabling safer, more efficient, and less costly operations. Innovations in robotics, remotely operated vehicles (ROVs), and subsea cutting and lifting technologies have expanded the capabilities of service providers that indirectly boost the decommissioning demand. Moreover, digitalization, including the use of data analytics and simulation models, enhances planning and decision-making, contributing to industry growth.
  
  

Offshore Decommissioning Market Trends

• The strategic shift toward energy transition and decarbonization also influences the industry. Decommissioning is prompting a broader transition to renewable energy sources, freeing up marine space for offshore wind farms. For instance, in March 2025, the Gyda decommissioning and recycling project officially concluded, marking a major achievement in sustainable offshore dismantling. Throughout the operation, approximately 28,000 tonnes of material were dismantled, achieving an outstanding recycling rate of 98.5%.
  
• Stakeholder collaboration with different firms has boosted the market in recent years. Operators, regulators, environmental groups, and service providers are collaborating to develop best practices, share knowledge, and promote transparency, thereby creating demand in the market. Moreover, public perception and community engagement also induce business dynamics, as decommissioning projects often attract scrutiny regarding environmental impact and economic implications.
  
• Companies are actively shaping industry dynamics by forming strategic alliances aimed at expanding their geographic footprint, integrating specialized technologies, and delivering comprehensive decommissioning solutions. For instance, in February 2023, DNV partnered with Oceans of Energy to advance offshore solar technology and support the global energy transition. Together, they achieved a key milestone by receiving a Statement of Conformity for operating in harsh environments.
  
• Aging infrastructure, regulatory mandates, environmental stewardship, economic pressures, technological progress, and the global energy transition is set to influence the business scenario. These factors collectively drive the heavy investment approaches in the market.
  
• For instance, in July 2024, according to data from the North Sea Transition Authority, the UK Continental Shelf (UKCS) is projected to see significant investment in decommissioning activities, with the oil and gas industry expected to spend approximately USD 27.9 billion between 2023 and 2032, which will drive the market dynamics and uplift the industry.
  

Offshore Decommissioning Market Analysis

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• Based on service type, the offshore decommissioning market is divided into permitting & regulatory compliance, project management, engineering, & planning, mobilization & platform preparation, well plugging and abandonment, demobilization of derrick barges, pipeline and power cable decommissioning, conductor removal, material disposal, and site clearance. The well plugging and abandonment segment dominated around 34.2% market share in 2024 and is anticipated to grow at a CAGR of 7% through 2034.
  

• Well plugging and abandonment is a significant component of the offshore decommissioning market owing to its major role in the overall process. This is driven by the regulatory mandates and economic necessities in recent years, thus reflecting 7% CAGR through 2034. Moreover, regulations require the decommissioning of wells that have reached the end of their operational life to prevent environmental harm and ensure safety. This factor will boost market growth.
  
• Effective project management is experiencing significant growth in recent years, driven by the rise in offshore operations, taking CAGR to 5.8% through 2034. Strong project management frameworks enable risk mitigation, stakeholder coordination, and adaptive decision-making are driving overall market growth via influencing the project process. For instance, in March 2025, Norwegian engineering and construction firm AF Gruppen secured a new decommissioning assignment on the UK Continental Shelf, approximately USD 9.2 to USD 11.6 million. The project involves engineering and offshore preparation activities for the removal of three platforms in UK waters, further strengthening its role in offshore dismantling operations.
  
• Pipeline and power cable decommissioning is driven by the need to mitigate environmental risks, comply with regulatory mandates, thus indicating 5.6% CAGR. Regulatory bodies require detailed assessments to determine whether removal, burial, or in-situ abandonment is appropriate. The process demands specialized engineering, environmental monitoring, and logistical coordination, which is influencing market growth.
  
• Platform preparation is one of the fastest-growing segments, anticipated to attain over 4% CAGR through 2034. It is a foundational phase in the process, involving detailed structural assessments, safe removal of equipment, and implementation of safety measures. This is to ensure secure and efficient dismantling of offshore installations before full-scale removal operations begin. For instance, in October 2025, Heerema Marine Contractors announced the award of a decommissioning contract from BP for the Engineering, Preparation, and Removal (EPR) of the Andrew platform’s topside and jacket. This involves the removal of the topside and a 4 legged steel jacket with 12 skirt pile.
  

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• Based on structure, the offshore decommissioning market is segmented into topside, substructure, and sub infrastructure. The topside segment dominates the market with a 48.6% share in 2024 and is expected to grow at a CAGR of over 7.1% from 2025 to 2034.
  

• Topside decommissioning is driven by aging infrastructure, safety concerns, and regulatory mandates requiring the removal of surface-level equipment and structures. As platforms reach the end of their operational life, topside systems such as processing units, living quarters, and cranes need to be dismantled and disposed of responsibly. All these factors are influencing the decommissioning market globally.
  
• For instance, in 2023, Boskalis completed its first decommissioning project using its largest semi-submersible heavy transport vessel. The Boka Vanguard transported a floating production unit (FPU) to a ship recycling facility, marking a key milestone in its decommissioning capabilities.
  
• Substructure is influenced by structural integrity concerns, positively boosting market growth in recent years by indicating a 5.9% CAGR. Moreover, the removal or repurposing of platform support structures, such as jackets and caissons, is also rising the business activities in the emerging countries.
  
• Sub-infrastructure will grow at over 6% CAGR by 2034, as it focuses on the retirement of subsea systems such as manifolds, templates, risers, and control umbrellas. Technological advancements are one of the key driving factors influencing the segmental growth.
  
• For instance, in February 2024, a successful pilot project demonstrated the use of a new digital service aimed at enhancing the sustainability of wind turbine decommissioning. The tool, ReWind, automatically generates tailored decommissioning plans based on user data; this will shift the industry dynamics towards new approaches.
  
• The adoption of digital twin technology for condition assessment and the use of autonomous underwater vehicles (AUVs) for mapping and monitoring are boosting industry dynamics. Operators are increasingly prioritizing environmentally sensitive approaches and lifecycle cost analysis that induce market growth. The emphasis is on reducing seabed disturbance while ensuring safe and complete removal or abandonment of subsea assets.
  

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• The U.S. dominated the offshore decommissioning market in North America with around 78.7% share in 2024 and generated USD 1.4 billion revenue in 2024.
  

• In North America, particularly the Gulf of Mexico, the market will grow more than 7% CAGR through 2034, driven by aging infrastructure, and stringent environmental regulations. Moreover, increasing liability concerns is influencing the market. Many platforms have exceeded their design life, prompting operators to prioritize safe and compliant removal. Regulatory bodies enforce strict standards for asset retirement, waste disposal, and site restoration, pushing companies to adopt advanced planning and execution strategies.
  
• Europe offshore decommissioning market market is primarily influenced by robust regulatory frameworks and aggressive sustainability targets, thus proclaiming a 6.8% CAGR. Operators are prompted to act on decommission projects that are also influencing market growth. For instance, in July 2021, Norway-based Aker Solutions and AF Gruppen agreed to merge their offshore decommissioning operations, forming a new global company focused on offshore decommissioning and recycling. The newly established entity will impact the market expansion in the upcoming years.
  
• Asia Pacific offshore decommissioning market is set to grow more than 6% CAGR through 2034, driven by the strong offshore operations in the region. Aging infrastructure in countries such as Malaysia, Thailand, Indonesia, and Australia, evolving regulatory standards, and growing environmental awareness will augment the business landscape. Many offshore assets are approaching the end of their operational life, prompting governments and operators to address decommissioning more proactively.
  
• For instance, in April 2023, InterMoor, part of Acteon’s engineering, moorings, and foundations division, was awarded an extended decommissioning contract by Chevron Thailand Exploration and Production.
  
• The Middle East and Africa offshore decommissioning market will grow over 7% CAGR driven by aging shallow-water infrastructure, emerging regulatory frameworks, and increasing environmental scrutiny. The region is beginning to address the long-term risks associated with inactive offshore assets.
  
• For instance, in August 2022, James Fisher and Abu Dhabi’s NMDC Group announced a strategic partnership to collaborate on marine and subsea projects. This alliance aims to enhance their joint capabilities in offshore wind development, comprehensive oil and gas decommissioning services.
  
• In Latin America, industry is gaining momentum, driven by aging infrastructure in countries such Brazil and Mexico, thus showing over 5% CAGR through 2034. Moreover, evolving environmental regulations and increased pressure for transparency and accountability.
  
• For instance, in September 2025, OceanPact signed a contract with Trident Energy valued at around USD 188 to USD 190 million in Brazil, to deliver offshore decommissioning services under the EPRD (Engineering, Preparation, Recovery, and Final Disposal) model. Such initiatives will help market dynamics to push the market in the forecast years.
  

Offshore Decommissioning Market Share

• The top 5 companies in the offshore decommissioning industry are TechnipFMC , Subsea 7, Saipem, Petrofac, and Baker Hughes. These companies consistently advance by specialized technologies, forging strategic alliances, and broadening their service portfolios to address the evolving complexities of decommissioning aging offshore infrastructure.
  
• Their collaborative efforts and innovations enhance their influence on the market, thus driving offshore operations globally. Moreover, the operational efficiency, safety, and environmental compliance set new benchmarks for sustainable and cost-effective decommissioning solutions worldwide.
  
• TechnipFMC dominates the market through its services are part of its broader integrated Engineering, Procurement, Construction, and Installation (iEPCI) offerings. The company’s sustained focus on decommissioning within the oil and gas sector is a key driver of its long-term growth and market expansion.
  
• For instance, in May 2023, Woodside Energy awarded a series of major decommissioning contracts to several specialist firms, including TechnipFMC, for the removal and disposal of subsea infrastructure at four offshore oil and gas fields in Western Australia.
  

Offshore Decommissioning Market Companies

Major players operating in the offshore decommissioning industry are:

• Able UK Ltd
• AF Gruppen Norge AS
• Aker Solutions ASA
• Allseas Group SA
• Baker Hughes
• Boskalis
• DeepOcean Group Holding BV
• DNV Group AS
• Halliburton
• Heerema International Group
• John Wood Group PLC
• Oceaneering International Inc
• Perenco
• Petrofac Ltd.
• Ramboll Group AS
• Saipem S.p.A.
• Subsea 7 SA
• TechnipFMC plc
• Weatherford International Plc.
• Well safe solution
  
• Subsea 7 offers a robust offshore decommissioning portfolio through its i-Tech Services and Seaway 7 divisions, delivering solutions such as subsea infrastructure removal, SURF (Subsea Umbilicals, Risers, and Flowlines) recovery, ROV-based cutting, dredging, debris clearance, and heavy-lift operations. It delivered 6,837 million in revenue for 2024, driven by the investments in advanced technologies.
  
• Baker Hughes focuses on well-centric process through its Process & Pipeline Services (PPS) division, offering solutions such as well plugging and abandonment (P&A), hydrocarbon freeing, system cleaning, pressure control, and pipeline decommissioning. The company’s EBITDA margins were up by 1.7% points to 16.5% for the year 2024.
  
• Petrofac delivers end-to-end offshore decommissioning services, including late-life asset management, well P&A, top side and subsea infrastructure removal, and decommissioning project management. Revenue for the first half of the year reached approximately USD 1.2 billion, maintaining a performance level consistent with the same period in the previous year.
  
• Saipem delivers its advanced fleet, including the 7000 Saipem heavy-lift vessel. The company specializes in modular dismantling, logistics coordination, and waste recycling, achieving high sustainability standards. The company’s shares surged by 71%, markedly outperforming the FTSE MIB index and reflecting strong investor confidence in the company’s strategic direction and market performance
  

Offshore Decommissioning Market News

• In September 2025, Baker Hughes signed a multi-year agreement with Petrobras to continue operating its Blue Orca and Blue Marlin stimulation vessels in Brazil’s offshore oil and gas fields. This contract, awarded through an open tender, is designed to enhance production efficiency in both pre-salt and post-salt regions by delivering specialized chemical treatments.
  
• In September 2025, Allseas secured a decommissioning contract from the UK division of Abu Dhabi National Energy Company PJSC (TAQA) for work on an offshore platform located in the UK Central North Sea, marking a new project in its offshore dismantling portfolio.
  
• In September 2025, AF Gruppen, through its subsidiary AF Offshore Decom, and in a joint venture with Three60 Energy, was awarded a contract with supermajor BP to provide decommissioning services, including topsides and substructure for the Andrew field in the North Sea.
  
• In May 2025, Dutch offshore services provider Boskalis successfully executed a complex maritime operation involving the disconnection and towing of a storage, floating production, and offloading vessel from Côte d’Ivoire to a dry dock facility in Dubai, where it is going to undergo a whole refurbishment.
  

The offshore decommissioning market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Service type

• Permitting & regulatory compliance
• Project management, engineering, & planning
• Mobilization & demobilization of derrick barges
• Platform preparation
• Well plugging and abandonment
• Conductor removal
• Pipeline and power cable decommissioning
• Material disposal
• Site clearance

Market, By Depth

• Shallow water
• Deepwater

Market, By Structure

• Topside
• Substructure
• Sub infrastructure

Market, By Application

• Oil & gas
• Wind
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Asia Pacific
  • China
  • India
  • Australia
  • Malaysia
  • Thailand
• Europe
  • UK
  • Norway
  • Denmark
  • Germany
  • Netherlands
• Middle East & Africa
  • Saudi Arabia
  • Qatar
  • UAE
• Latin America
  • Brazil
  • Mexico