Innovators: Downstream maintenance expenditure returns to growth

OFFSHORE ENERGY PRESS RELEASES

     

    Downstream maintenance expenditure returns to growth

    added on August 10, 2017 @ 11:03am by Admin

    As highlighted in the most recent edition of Westwood’s World Downstream Maintenance Market Forecast, significant price pressure during the oil price downturn has heavily impacted the downstream maintenance market. Global downstream maintenance spend bottomed out in 2016, after falling 26% compared to 2014 levels. Westwood believes that the downstream maintenance market is at the beginning of a recovery cycle. 2017 saw improvements which will be sustained over the forecast with year-on-year growth expected over 2018-2022.

     

    Global Downstream Maintenance Expenditure ($bn), 2013-2022
    Global Downstream Maintenance Expenditure ($bn), 2013-2022

     

    • Global downstream maintenance expenditure declined by 26% over 2014-2016.
    • Westwood expects to see a recovery in the market in 2017, with global expenditure forecast to rise by 4% compared to 2016, reaching $54bn.
    • Growth in the market is expected to be sustained over 2018-2022, with global expenditure forecast to rise at a 3.5% CAGR over the next five years.
    • Petrochemical facilities will account for the largest proportion of downstream maintenance expenditure over 2018-2022, with a market share of 42%.
    • The asset services sector is forecast to account for 72% of downstream maintenance expenditure over the next five years, with asset integrity representing the remaining 28% of the market.
    • North America will continue to represent the largest share of the downstream maintenance market over 2018-2022, with regional expenditure over this period forecast to reach $105bn.

     

    See more at Westwood Global Energy Group