A recent report on the North America Decommissioning and Closure Service market by Verified Market Reports forecasts that the market will reach US$14.8bn by 2030, growing at a CAGR of 6.9% from 2024 to 2030.
This is driven by factors such as ageing infrastructure, stricter environmental policies and the increasing cost-effectiveness of decommissioning technologies, with key advancements including improved safety standards, automation of certain decommissioning processes and enhanced waste management techniques.
Ageing infrastructure is a major driver with older plants requiring decommissioning and closure as they reach the end of their life cycle, to ensure compliance with safety and environmental standards, such as the BSEE regulation that stipulates that wells must be plugged and abandoned within three years of being deemed ineligible for further work, and platforms must be removed within five years of being no longer useful for operations.
Increasingly stringent environmental regulations and policies related to waste disposal, emissions control and site remediation are pushing companies to engage in responsible decommissioning practices and improve the environmental footprint of their operations, which is vital for safeguarding public health and the environment.
Trends such as the emphasis on environmental sustainability and the integration of circular economy practices also play a significant role in shaping the market’s future, with an increasing focus on repurposing and recycling decommissioned assets.
Technology plays a critical role in improving the efficiency, safety and environmental impact of decommissioning services. The integration of advanced technologies such as AI, drones, robotics and automation in the decommissioning process has significantly improved efficiency, reduced human exposure to hazardous environments, and lowered operational costs. Furthermore, advancements in data analytics and AI help companies manage decommissioning projects more effectively by predicting potential risks and improving decision-making.
Challenges highlighted by the report include ongoing supply chain disruptions, particularly in the materials needed for decommissioning projects, which can result in delays, necessitating the improving of supply chain management and diversification of sources of materials. Navigating complex regulatory environments can also delay projects, with increased collaboration between service providers and regulatory bodies needed to streamline approval processes. Pricing pressures are also a constraint, driving the leveraging of technology to reduce operational costs and improve overall efficiency.
