Off-Shore Helicopters Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Off-Shore Helicopter Market is expected to grow at a CAGR of 5% during the forecast period.

The COVID-19 pandemic had a moderate effect on the market. But the market became stable within a short time and has also grown in 2021 and 2022. With the increase in fuel prices and the increase in demand for fuel, companies have started new oil and gas rig installation projects, which has resulted in an increase in the off-shore helicopters market. Companies also opt for leasing the helicopters instead of purchasing them, which also generated revenue for the market, further resulting in market growth.

Off-shore Helicopters Market Trends

The oil and gas accounted for largest share in 2022 and is expected register high growth during the forecast period

The oil and gas segment held the market's largest share in 2022 and is expected to continue its growth during the forecast period. With the increase in fuel prices, oil, and gas firms are installing more offshore stations for extracting oil and gas, which increases the demand for offshore helicopters, as they would be used for crew and cargo transportation. Many oil and gas rig production plant is under construction which is likely to propel the demand in coming years. For instance, a new LNG export terminal construction work started in the second quarter of 2022 and is expected to be completed by the end of 2025.

Many oil & gas producing companies are securing long-term contracts with helicopter companies to ensure the service for the long term. For instance, in October 2022, Gama Aviation announced that its joint venture with Bond Helicopters has been awarded a contract for supporting offshore operations by an international oil & gas firm. The contract is for a period of 5 years and will start in January 2024. In July 2021, Gazprom, a Russian state-owned energy company, signed an agreement with Russian Helicopters to purchase the Mi-171A3 helicopter for its offshore operations.

Asia-Pacific Expected to Grow During the Forecast period

With the increase in gas and oil extraction in the region, the Offshore Helicopter market is expected to grow in the Asia-Pacific region. With recent tensions and frequent airlifts, the market is expected to grow as most countries opt for search and rescue operations. Also, regional companies are building uncrewed helicopters for offshore operations. In July 2022, China-based CITIC offshore Helicopters Company (COHC) signed a contract with Leonardo to acquire four AW139 Helicopters from Leonardo for Offshore Oil and Gas production operations. The delivery of the helicopters will be done in 2022 and 2023.

In the wake of growing demand, many helicopter service companies have incorporated fleet expansion plans to cater to the emerging market. For instance, With the new four helicopters, the total Leonardo fleet of the company will increase to 10. Along with new purchases, companies are also leasing helicopters for their offshore operations, resulting in the market's growth. In March 2022, during India's premier civil aviation air show in Hyderabad, a company under the Ministry of Civil Aviation, Pawan Hans, announced that it has leased six Sikorsky S-76D helicopters from Milestone Aviation Group, which the company intends to use for its onshore and offshore operations by the Oil and Natural Gas Corporation (ONGC). Such developments are likely to drive market growth over the forecast period.

Off-shore Helicopters Market Competitor Analysis

The market for off-shore Helicopters is moderately consolidated. Airbus SE, Leonardo SpA, Textron Inc, Lockheed Martin, and Russian Helicopters are the prominent players in the market. In November 2021, Airbus Helicopters delivered the first five-bladed H145 helicopter to HTM Helicopters. This helicopter will be used for passenger transport to and from wind farms and for hoisting technicians to wind turbines. With such new helicopters and coordination between helicopter service companies and OEMs, the market is expected to grow steadily during the forecast period.

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