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Offshore Oil Rig & Platform Construction in the US - Market Research Report (2014-2029)

Shahool Al Bari Shahool Al Bari New York, United States Last Updated: October 2024 NAICS OD4723

Revenue

$2.6bn

2024

$2.6bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

7,124

Businesses

116

Wages

$XXX.Xm

Offshore Oil Rig & Platform Construction in the US industry analysis

Offshore oil and rig platform construction contractors have faced a tumultuous landscape in recent years, characterized by significant price volatility in key commodities like crude oil and steel. The pandemic wreaked havoc on construction schedules and budgets, with crude oil prices plunging and project delays becoming commonplace. As the market stabilized, contractors struggled to regain revenue, navigating the complexities of long-term contracts and fluctuating material costs. Overall, revenue has pushed down at a CAGR of 5.5% through 2024, reaching $2.6 billion, including a slight 0.4% bump in 2024 alone. Profit has remained stable, primarily because companies typically have long-term supply contracts and established backlogs of projects.

Trends and Insights

  • Offshore oil production remains riskier and more complex than onshore operations. The lengthy construction process and reliance on foreign manufacturing make offshore projects challenging for contractors, often impacting timelines and budget estimates.
  • Drill ships construction remains the industry’s largest service segment. Semi-submersibles construction also accounts for a significant portion of demand.
  • Offshore oil rig and platform construction contractors choose to locate themselves near suppliers, making the Southeast the most popular choice to set up establishments. Contractors are able to quickly and conveniently acquire raw material while saving on transportation costs.
  • Competitive pricing is key to attracting downstream customers in a relatively low-margin industry. Offshore oil rig and platform construction contractors must be able to deliver a range of high-quality services.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 5.5 % over the past five years, to reach an estimated $2.6bn in 2024.

Trends and Insights

Highly volatile crude oil steel prices constrain growth

  • Commodity and raw material prices have experienced significant volatility because of economic disruptions. Crude oil prices dropped sharply during the pandemic, severely impacting construction projects. This trend was aggravated by a price war between Saudi Arabia and Russia, as Saudi Arabia implemented a sharp oil price cut after Russia refused to agree to an OPEC demand to jointly cut oil production.
  • Additional trends and insights available with purchase
Offshore Oil Rig & Platform Construction in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

Strong production to persist, but prices will remain unfavorable

  • Oil and gas production will expand at a healthy pace throughout the outlook period. This growth will primarily be driven by the extraction of onshore shale deposits, although offshore activity is also set to swell.

Biggest companies in the Offshore Oil Rig & Platform Construction in the US

Company
Market Share (%)
2024
Revenue ($short_0)
2024
Profit ($short_0)
2024
Profit Margin (%)
2024

There are no companies that hold a large enough market share in the Offshore Oil Rig & Platform Construction in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

Offshore Oil Rig & Platform Construction in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Jack-ups, Semi-submersibles and Drill ships. Jack-ups is the largest segment of the Offshore Oil Rig & Platform Construction in the US.

Trends and Insights

Drill ships are highly expensive to produce

  • Drill ships are self-propelled mobile rigs that drill for oil through a large hole located in the center of the boat, often referred to as a moon pool.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry constructs offshore drilling platforms, also known as oil rigs, for oil exploration companies. Many operators also provide offshore platform support services.

What's included in this industry?

Fabricating oil rig and platform structural component partsOffshore assembly of oil rigs and platformsMaintenance, repair and upgrade services for existing offshore oil rigs and platformsFabrication of support vessels for offshore oil rig and platform maintenance

Companies

Purchase this report to view all major companies in this industry.

Related Terms

PONTOONDOWNTIMEBACKLOGDAY RATE

Industry Code

NAICS 2017

NAICS 33661 - Offshore Oil Rig & Platform Construction in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Offshore oil production remains riskier and more complex than onshore operations. The lengthy construction process and reliance on foreign manufacturing make offshore project...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Drill ships construction remains the industry’s largest service segment. Semi-submersibles construction also accounts for a significant portion of demand.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Offshore oil rig and platform construction contractors choose to locate themselves near suppliers, making the Southeast the most popular choice to set up establishments. Cont...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competitive pricing is key to attracting downstream customers in a relatively low-margin industry. Offshore oil rig and platform construction contractors must be able to deli...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Despite the small number of overall companies, none of them dominate the industry. Offshore oil rig and platform construction is localized and each company services a particu...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Offshore oil rig and platform construction contractors are under heavy environment and noise regulation. These include the Clear Water Act, Resource Conservation and Recovery...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Purchases are the biggest expense for offshore oil rig contractors, making up nearly half of their revenue. Swelling steel prices can pose challenges, but long-term contracts...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Industry Multiples (2017-2022)
    • Industry Tax Structure (2017-2022)
    • Income Statement (2017-2022)
    • Balance Sheet (2017-2022)
    • Liquidity Ratios (2017-2022)
    • Coverage Ratios (2017-2022)
    • Leverage Ratios  (2017-2022)
    • Operating Ratios (2017-2022)
    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Offshore Oil Rig & Platform Construction in the US industry in United States in 2024?

    The market size of the Offshore Oil Rig & Platform Construction in the US industry in United States is $2.6bn in 2024.

    How many businesses are there in the Offshore Oil Rig & Platform Construction in the US industry in 2024?

    There are 116 businesses in the Offshore Oil Rig & Platform Construction in the US industry in United States, which has declined at a CAGR of 5.4 % between 2019 and 2024.

    Has the Offshore Oil Rig & Platform Construction in the US industry in United States grown or declined over the past 5 years?

    The market size of the Offshore Oil Rig & Platform Construction in the US industry in United States has been declining at a CAGR of 5.5 % between 2019 and 2024.

    What is the forecast growth of the Offshore Oil Rig & Platform Construction in the US industry in United States over the next 5 years?

    Over the next five years, the Offshore Oil Rig & Platform Construction in the US industry in United States is expected to decline.

    What does the Offshore Oil Rig & Platform Construction in the US in United States include?

    Fabricating oil rig and platform structural component parts and Offshore assembly of oil rigs and platforms are part of the Offshore Oil Rig & Platform Construction in the US industry.

    How competitive is the Offshore Oil Rig & Platform Construction in the US industry in United States?

    The level of competition is moderate and increasing in the Offshore Oil Rig & Platform Construction in the US industry in United States.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • There are no industries to display.

    Complementors

    • Oil Drilling & Gas Extraction in the US
    • Oil & Gas Field Services in the US
    • Ship Building in the US
    • Boat Building in the US
    • Oil & Gas Pipeline Construction in the US

    International industries

    • Structural Metal Product Manufacturing in Canada
    • Structural Metal Product Manufacturing in Australia
    • Structural Metal Product Manufacturing in New Zealand
    • Metal Structure Manufacturing in the UK
    • Structural Metal Product Manufacturing in Ireland

    View all industries in United States

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    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in the US include: 

    • US Census Bureau
    • US Bureau of Labor Statistics
    • US International Trade Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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