Across offshore energy markets, vessel fundamentals are entering a more nuanced phase of recovery. While macroeconomic and geopolitical forces continue to weigh on oil prices and capital allocation, utilisation trends across offshore support, wind and service fleets point to a tightening supply-demand balance through 2026 and beyond. Fleet ageing, constrained reactivation, and selective newbuild ordering are increasingly shaping utilisation outcomes rather than demand growth alone.
The global offshore support vessel (OSV) market posted modest but meaningful improvement in 2025. Demand days increased by two per cent year-on-year, lifting marketed utilisation to an average of 76 per cent. Westwood’s MarineLogix data underscored a steadily tightening market, particularly when viewed against the backdrop of a maturing fleet.
More than half of the operational OSV fleet is now over 15 years old. Nevertheless, the operational fleet expanded slightly in late 2025 to 3,209 units due to newbuild deliveries, while the laid-up fleet declined marginally. The net reactivation of only two vessels highlights a key theme: utilisation is improving not because of aggressive reactivation or scrapping cycles, but because accessible and commercially viable supply is increasingly limited.
Regionally, demand remains concentrated in the Middle East, Latin America and Southeast Asia, together accounting for close to half of global OSV demand days. Operational fleet movements have been uneven. South Asia and West Africa recorded net inflows of active tonnage, while the North Sea saw the largest outflow, reflecting both regulatory pressure and continued redeployment.
The laid-up fleet has fallen sharply from more than 1,500 vessels during the Covid-19 downturn to fewer than 400 units by Q4 2025. However, demolition activity remains muted, constrained by low scrap steel prices and uncertainty around future utilisation. This has preserved optionality within the supply side but at the cost of higher average fleet age.
Looking ahead, marketed utilisation is forecast to rise to 77 per cent in 2026 and exceed 79 per cent in 2027. With the OSV orderbook standing at 216 vessels – mostly AHTS vessels and PSVs – incremental supply growth remains manageable. In essence, incremental demand growth is translating more directly into utilisation upside than at any point in the past decade.
Major offshore wind markets across the UK, Europe and APAC (excluding mainland China) are increasingly aligning and streamlining policy frameworks to support project execution, in contrast to the US where regulatory uncertainty continues to weigh on market momentum. Marketed utilisation for wind turbine installation vessels (WTIVs) engaged in transport and installation (T&I) activities moderated to 64 per cent by end 2025, down from 70 per cent in 2024, before rebounding to c.79 per cent in 2026.
This acceleration is primarily driven by a step-up in turbine and foundation installation activity. Installation volumes in 2026 are expected to nearly double year on year, while cumulative installed offshore wind capacity is forecast to exceed 236 GW by 2030. Although the near-term project pipeline has softened marginally, the medium- to long-term outlook remains structurally robust, underpinned by continued capacity expansion and policy support.
In 2025, a greater share of heavy lift vessel activity was driven by offshore wind projects relative to 2024. Looking ahead, demand is expected to be supported by a resurgence in oil and gas workscopes, with utilisation projected to reach approximately 78 per cent.
Fleet fundamentals reinforce this utilisation outlook. At the end of 2025, the global operational fleet (excluding mainland China) comprised 38 WTIVs, 51 heavy lift vessels, and 87 commissioning service operation vessels (CSOVs). The WTIV and heavy lift orderbook remains limited with only five WTIVs and seven heavy lifts on order respectively, whereas the CSOV segment is experiencing a pronounced build cycle with 58 firm orders.
Over the medium term, the WTIV T&I segment is expected to remain structurally undersupplied based on the currently visible fleet, with the heavy lift market also showing signs of tightening. While some incremental capacity may be unlocked through the retrofitting of mainland China units or the redeployment of vessels from the oil and gas sector, such measures are expected to provide only limited relief and remain dependent on vessel suitability and regulatory compliance.
In 2025, marketed utilisation averaged 73 per cent for pipelay vessels, while ROV support vessels (ROVSVs) and saturation dive support vessels (sat DSVs) recorded 75 per cent and 73 per cent, respectively.
These segments have exhibited disciplined fleet expansion, with newbuild activity remaining constrained due to the significant capital intensity required. The current operational fleet comprises 105 pipelay vessels, 207 ROVSVs and 74 sat DSVs. Orderbook visibility is limited across most segments, with the exception of ROVSVs, and only a single pipelay vessel is currently under construction.
ROVSVs and sat DSVs are expected to sustain elevated utilisation levels, underpinned by ongoing brownfield activity, IRM requirements, and continued offshore wind development. The inherent versatility of ROVSV units enables deployment across offshore wind workscopes, including cable installation support and walk-to-work accommodation. Demand for sat DSVs is expected to be further supported by project activity in the Gulf Cooperation Council region and across Asia.
While the Middle East and Asia continue to account for the majority of pipelay activity, 2026 is expected to see increased contributions from regions such as Africa, Latin America and Australia, driving utilisation up to approximately 86 per cent.
While macroeconomic risks persist, particularly around price volatility and policy uncertainty, underlying vessel markets are increasingly characterised by tightening fundamentals. For owners and investors, the next phase of the cycle is expected to be defined less by rapid fleet expansion and more by optimising utilisation, advancing fleet renewal, diversifying geographically, and strategically positioning for structurally tighter market conditions through the latter half of the decade.
