GLOBAL INERTIAL SYSTEMS IN SUBSEAAPPLICATIONS

Market Shares, Forecasts& Trends

2014 - 2019

mordorintelligence.com

Subsea Applications in Inertial Systems | Sample 22

TABLE OF CONTENTS

1. INTRODUCTION 1

1.1 Research Methodology 2

1.1.1 Definition of the Market 3

1.1.2 Report Description 4

1.1.3 Executive Summary 5

2. KEYFINDINGS OF THE STUDY 6

3. MARKET OVERVIEW 7

3.1 Market Segmentation 8

3.2 Overview 9

3.3 Industry Value Chain Analysis 10

3.4 Industry Attractiveness – Porter’s 5 Force Analysis 11

4. MARKET DYNAMICS 14

4.1 Introduction 15

4.2 Drivers 16

4.3 Constraints 23

5. Technology Overview 30

5.1 Technology Snapshot 31

5.2 Industry Applications 32

6. Different types of inertial sensors 33

6.1 Gyroscopes 34

6.2 Accelerometers 34

6.3 Inertial Measurement Units 34

Subsea Applications in Inertial Systems | Sample 22

6.4 GPS/INS 35

6.5 Multi Axis Sensors 36

7. MARKET ANALYSIS AND FORECAST 37

7.1 Inertial Systems in Subsea Oil and Gas Operations 38

7.2 Role of Remotely Operated Vehicles and Autonomous

Underwater Vehicles in Subsea Oil and Gas Production 39

7.3 Exploration 40

7.3.1 Overview 41

7.3.2 Drivers 42

7.3.2.1 Development in the Technology of Sensors 42

7.3.2.2 Increasing Oil and Gas Demand 44

7.3.3 Market Size and Forecast 45

7.3.4 Analyst View 47

7.4 Well Construction 48

7.5 Monitoring/Surveillance 56

7.6 Production and Operation 63

7.7 Repair and Maintenance 70

7.8 Other Services 77

7.9 Global Market Segmented by Equipment 78

7.9.1 Gyroscopes 79

7.9.2 Accelerometers 80

Subsea Applications in Inertial Systems | Sample 22

7.9.3 Inertial Measurement Units 81

7.9.4 GPS/INS 82

7.9.5 Multi Axis Sensors 83

7.10 Global Market Segmented by Grade 84

7.10.1 Navigational 85

7.10.2 Tactical 86

7.10.3 Industrial 87

7.10.4 Automotive 88

7.11 Global Market - Segmented By Region 89

7.11.1 North America 90

7.11.1.1 USA 90

7.11.1.2 Canada 92

7.11.1.3 Others 94

7.11.2 Europe 96

7.11.2.1 Germany 98

7.11.2.2 United Kingdom 100

7.11.2.3 Spain 102

7.11.2.4 Others 104

7.11.3 APAC 106

7.11.3.1 Japan 108

7.11.3.2 China 110

Subsea Applications in Inertial Systems | Sample 22

7.11.3.3 South Korea 112

7.11.3.4 Others 114

7.11.4 ROW 116

8. Competitive Landscape 118

8.1 Mergers & Acquisitions 120

8.2 Joint Ventures 121

8.3 New Product Launches 122

8.4 5 Biggest Companies by Revenue 123

8.5 2 Most active companies in the past three years 124

9. Company Profiles 125

9.1 Aeron 126

9.1.1 Overview

9.1.2 Major Products and Services

9.1.3 Financials

9.1.4 Recent Developments

9.2 MEMSIC 128

9.2.1 Overview

9.2.2 Major Products and Services

9.2.3 Financials

9.2.4 Recent Developments

9.3 Systron Donner 130

9.3.1 Overview

9.3.2 Major Products and Services

9.3.3 Financials

9.3.4 Recent Developments

Subsea Applications in Inertial Systems | Sample 22

9.4 Trimble Navigation 132

9.4.1 Overview

9.4.2 Major Products and Services

9.4.3 Financials

9.4.4 Recent Developments

9.5 Lord Microstain 134

9.5.1 Overview

9.5.2 Major Products and Services

9.5.3 Financials

9.5.4 Recent Developments

9.6 Vectornav Technologies 136

9.6.1 Overview

9.6.2 Major Products and Services

9.6.3 Financials

9.6.4 Recent Developments

9.7 Systron Donner Inertial 138

9.7.1 Overview

9.7.2 Major Products and Services

9.7.3 Financials

9.7.4 Recent Developments

9.8 L3 Communications 140

9.8.1 Overview

9.8.2 Major Products and Services

9.8.3 Financials

9.8.4 Recent Developments

9.9 Ixblue 142

9.9.1 Overview

9.9.2 Major Products and Services

9.9.3 Financials

Subsea Applications in Inertial Systems | Sample 22

9.9.4 Recent Developments

9.10 Honeywell 144

9.10.1 Overview

9.10.2 Major Products and Services

9.10.3 Financials

9.10.4 Recent Developments

9.11 SBG Systems 146

9.11.1 Overview

9.11.2 Major Products and Services

9.11.3 Financials

9.11.4 Recent Developments

9.12 Tyndall 148

9.12.1 Overview

9.12.2 Major Products and Services

9.12.3 Financials

9.12.4 Recent Developments

9.13 Moog 150

9.13.1 Overview

9.13.2 Major Products and Services

9.13.3 Financials

9.13.4 Recent Developments

9.14 Xsens 152

9.14.1 Overview

9.14.2 Major Products and Services

9.14.3 Financials

9.14.4 Recent Developments

9.15 Sagem 154

9.15.1 Overview

9.15.2 Major Products and Services

Subsea Applications in Inertial Systems | Sample 22

9.15.3 Financials

9.15.4 Recent Developments

10. Appendix 156

10.1 Abbrevations 156

10.2 Sources 157

10.3 Bibliography 159

10.4 Disclaimer 159

Subsea Applications in Inertial Systems | Sample 2 | Mordor Intelligence 22

RESEARCH METHODOLOGY

The research methodology can be put into the following sequence:

1) Secondary Research: Information was collected from a number of public and paid data sources.

Public databases, company annual reports, white papers and research publications by recognized

industry experts were utilized. Paid data sources include authentic industry databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were

conducted with stakeholders at different points of the value chain like manufacturers, oil and gas

explorers, Robotics manufacturers and key opinion leaders of the industry. Primary research was

used both to validate the data points obtained from secondary research and to fill the data gaps

after secondary research.

3) Market Engineering: The market engineering phase involves analysing the data collected, market

breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches

are used to arrive at a complete set of data points that give way to valuable qualitative and

quantitative insights. Each data point is verified by the process of data triangulation to validate the

numbers and arrive at close estimates.

4) Expert Validation: The market engineered data is verified and validated by a number of experts,

both in-house and external.

5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the

analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to

visualize the entire ecosystem in a single report.

Subsea Applications in Inertial Systems | Sample 7 | Mordor Intelligence 22

MARKET OVERVIEW – INERTIAL SYSTEMS IN SUBSEA APPLICATIONS

The use of Inertial systems in subsea applications to reduce human intervention in Inertial

Navigation and motion Sensing is on the rise. The compatibility with advanced technologies like

MEMS has enabled the application of inertial systems to create underwater navigation solutions

cost effective methods. The market for Navigation systems in subsea applications alone is 14.73

Million USD and is expected to reach 19.14 Million USD by the end of 2019. This growth is driven by

the increasing underwater exploration in regions like the Gulf of Mexico and the North Sea.

The Aquatic exploration market is estimated to be around 350 Million USD and is expected to rise

rapidly. The Deepwater Horizon incident has made the industry aware of the utility of ROV's in the

containment of leaks and ability to repair deep-sea oil and gas wells.

Market Value of Inertial Systems in Subsea Applications – By Type (2014-19) In Million USD

Type 2014 2015 2016 2017 2018 2019

Gyroscopes xx xx xx xx xx xx

Accelerometers xx xx xx xx xx xx

Inertial Measurement Units xx xx xx xx xx xx

GPS/INS xx xx xx xx xx xx

Multi Axis Sensors xx xx xx xx xx xx

Subsea Applications in Inertial Systems | Sample 16 | Mordor Intelligence 22

DRIVERS

The key driver for the Inertial systems market in Subsea applications is their employability in

Remotely Operated Vehicles (ROV) and Autonomous Underwater Vehicles. The advancements in

technology have enabled the seamless integration of inertial sensors into applications such as AUV

control and SONAR data geo - referencing. The advantages offered by inertial systems over

alternatives like acoustic positioning like considerably low power consumption are critical during

underwater exploration. The rise of underwater exploration in regions like the South China Sea and

South East Asia is expected to create a massive demand for ROV's as mundane exploratory tasks

are better suited to be done by automated vehicles rather than a crewed ship. The long term

financial benefits also contribute to the employment of drones.

Market Value of Inertial Systems in Subsea Applications – By Grade (2014-19) In Million USD

Type 2014 2015 2016 2017 2018 2019

Navigational xx xx xx xx xx xx

Tactical xx xx xx xx xx xx

Industrial xx xx xx xx xx xx

Automotive xx xx xx xx xx xx

Subsea Applications in Inertial Systems | Sample 38 | Mordor Intelligence 22

ROLE OF REMOTELY OPERATED VEHICLES AND AUTONOMOUS UNDERWATER

VEHICLES IN SUBSEA OIL PRODUCTION

Subsea oil production includes the exploration, drilling and development of oil and gas fields in

underwater locations. The rise in number of Deepwater wells has marked a remarkable increase in

the need for the employment of remotely operated vehicles. At depths greater the 600 feet where

manned diving is impractical these vehicles are used to collect mineral samples from prospective

mine sites. Using drills and other cutting tools, the ROVs obtain samples to be analyzed for desired

minerals. Exploration is a mundane and tedious task which requires intense concentration with

unwavering accuracy. This makes it a perfect sweet spot for the ROV and AUV market.

ROVs being unoccupied, highly maneuverable and operated by a crew aboard a vessel prevent the

vessel and the crew from being exposed to the hazardous conditions in the deep sea. The ability to

place various sensors like Sonars, magnetometers, a still camera, a manipulator or cutting arm,

water samplers, and instruments that measure water clarity, water temperature, water density,

sound velocity, light penetration, and temperature makes ROVs a versatile utility tool in the process

of Subsea Oil and Gas production.

Rise in use of ROVs in Subsea Oil and Gas Production

No. o

f ROV

s

Subsea Applications in Inertial Systems | Sample 40 | Mordor Intelligence 22

EXPLORATION

The oil and gas industry uses AUVs to make detailed maps of the seafloor before they start building

subsea infrastructure; pipelines and subsea completions can be installed in the most cost effective

manner with minimum disruption to the environment. The AUV allows survey companies to conduct

precise surveys of areas where traditional bathymetric surveys would be less effective or too costly.

Also, post-lay pipe surveys are now possible with increasing advancements in technology.

Radio waves cannot penetrate water very far, so as soon as an AUV dives it loses its GPS signal.

Therefore, a standard way for AUVs to navigate underwater is through dead reckoning. Navigation

can however be improved by using an underwater acoustic positioning system. This is where the

inertial sensing systems come into play. Sensors like gyrometers and accelerometers are

incorporated to improve estimation of its position, and reduce errors in dead reckoning (which grow

over time), the AUV can also surface and take its own GPS fix. Between position fixes and for precise

maneuvering, an Inertial Navigation System on board the AUV calculates through dead reckoning

the AUV position, acceleration, and velocity.

The market is in a booming phase with increasing reliance on technology and miniaturization of

sensors. This has resulted in the reduction of power requirement and thereby enabling longer

underwater missions. The ever increasing energy requirements and declining reserves in existing

wells are driving subsea exploration ahead. Decreasing costs in operation have made the

employment of drones economically feasible and profitable in the long term. The Gulf of Mexico,

Africa and Latin America will be the major areas of exploration.

Subsea Applications in Inertial Systems | Sample 41 | Mordor Intelligence 22

Increase in Exploration Activity - By Region

DEVELOPMENT IN THE TECHNOLOGY OF SENSORS

Doing more with less is the mantra of our era and nowhere is this more apparent than in the drive

towards miniaturization in next-gen electronic components and systems where new manufacturing

techniques are pushing the limits of smaller, faster, and cheaper. The push for smaller parts is

coming from both the need for lighter assemblies of machines and the need to reduce material

costs via smaller parts that work as well as larger ones.

Inertial systems have come a long way from the Floated Rate Integrating Gyro (RIG) and 'torque to

balance accelerometers ' developed in the 1950's. Although very few 'highaccuracy gimballed

Inertial Navigation systems' have been developed since the 1990's, they have been the turning point

in ushering in an accurate inertial navigation system. The advancement in microcomputer

technology and development of gyros with high dynamic range heralded in the era of strapdown

technology. The systems became more reliable, rugged and remarkably smaller.

Subsea Applications in Inertial Systems | Sample 42 | Mordor Intelligence 22

Refinements in technology have led to the development of economically profitable technologies like

the Optical Gyro, Coriolis vibrating gyros, quartz resonant accelerometers and then finally the MEMS

inertial sensors. The global market for just MEMS based accelerometers is over 2.3 billion USD and

is expected to grow rapidly with increasing applications across various fields.

The development GPS systems although initially threatened to supplant Inertial Navigation could not

do the job on its own and became seamless partners providing excellent synergy. The

complimentary development in the computational power has made it possible to compensate errors

by software. This has enabled the employment of sensors in new and advanced applications with

greater ease.

BLOCKED FROM THE VIEW

Subsea Applications in Inertial Systems | Sample 44 | Mordor Intelligence 22

INCREASING OIL AND GAS DEMAND:

The demand for oil and gas is rapidly increasing. The emergence of the Asia Pacific region as a

global force has driven the consumption to unprecedented levels. Forecasts suggest that the global

consumption of petroleum and other fuels will reach 93.08 million barrels per day by 2015, up from

89.17 million barrels per day in 2012. With the majority of the fuel demand expected to come from

China and India, companies are looking to develop new fields to increase their life expectancy and

their resource bank. Increasing industrialization, especially in emerging markets, is also a key factor

behind the energy demand. Businesses, factories in particular, require significant amounts of energy

in the form of both electricity and petroleum-based fuels in order to operate. As economies

industrialize at an escalating pace, the energy demand is increasing as well.

20000

22000

24000

26000

28000

30000

32000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

No

. of

Bar

rels

Oil Consumption

Subsea Applications in Inertial Systems | Sample 45 | Mordor Intelligence 22

INCREASING DEEP SEA DRILLING ACTIVITIES:

According to EIA, around 10% of the world’s remaining recoverable conventional oil and gas

resources lie below the ocean surface in deep waters. It is expected that deep water drilling and

production activities are set to increase in the coming future. Often the resource areas in the region

are confined to large finds, containing the equivalent of a million barrels of oil some times, which is

attracting the operators, because it is easier and more economical to drill in such areas. This has

resulted in the need for more sophisticated equipment with capabilities of performing advanced

tasks in deepwater conditions.

SUBSEA MONITORING/SURVEILLANCE

Even minor leaks of oil into the ocean result in a severe environmental catastrophe and damage the

ecology surrounding the well. These incidences need to be capped and repaired as soon as possible.

Unmanned Surveillance vehicles enable us to monitor the depths of the ocean and empower us with

a view of hazardous and humanly unreachable parts of the well.

Autonomous monitoring systems are used for a wide number of low-cost, long endurance subsea

monitoring applications. Monitoring long-term trends in pipeline movement or seabed settlement are

essential to the underwater production and transportation of oil. The autonomous functionality of

the system enables it to operate for several years without human or system intervention. This

removes the requirement and cost overhead associated with the presence of a surface vessel or

subsea ROV throughout the monitoring period.

Subsea Applications in Inertial Systems | Sample 46 | Mordor Intelligence 22

Autonomous Monitoring Transponders require very precise sensors to measure the changes in pitch

and roll of the pipeline and the surface on which the transponder is placed. The market is in a

booming phase with increasing reliance on technology and miniaturization of sensors. This has

resulted in the reduction of power requirement and thereby enabling longer underwater missions.

The ever increasing energy requirements and declining reserves in existing wells are driving subsea

exploration ahead. Decreasing costs in operation have made the employment of drones

economically feasible and profitable in the long term. The Gulf of Mexico, Africa and Latin America

will be the major areas of exploration.

Major Accidents And Oil Spills - By Region

North America Europe Middle East and Africa

Latin America Asia Pacific

No

. of

Maj

or

Acc

iden

ts

2008-2014

Subsea Applications in Inertial Systems | Sample 146 | Mordor Intelligence 22

COMPETITION ANALYSIS

SBG SYSTEMS

SBG Systems is a fast growing supplier of miniature, high performance and innovative motion

sensing solutions. SBG Systems is headquartered in Rueil Malmaison, France and operates in North

America from its subsidiary in Chicago, IL.

SBG Systems offers a complete line of inertial sensors, such as Attitude and Heading Reference

System (AHRS) or Inertial Measurement Unit (IMU), based on the state of the art MEMS technology.

The manoeuvring of ROV's and AUV's requires the roll, pitch, heading, velocity and position data

from Inertial systems. SBG offers the following products:

Ellipse-A: Cost Effective Inertial Sensors for ROV Orientation

Ekinox-E: High Accuracy ROV Navigation and Orientation

Ekinox-U: Inertial Navigation System with Subsea Enclosure

Ellipse-E: Miniature Inertial Navigation Sensor for Small AUVs

ANALYST VIEW

Apart from Subsea Applications, SBG also offers high-accuracy inertial sensors, miniature inertial

sensors, compass & inclinometers for application in Aerospace, Land based navigation, Marine and

Virtual Reality industries.

Subsea Applications in Inertial Systems | Sample 147 | Mordor Intelligence 22

Subsea science is the second most important market for SBG as new technologies enable new

research projects. The ratio between the cost, the accuracy, the size and the power consumption is

a very important factor for this market. The marine defense industry is also a promising market for

SBG System as the need to offer smaller and lower cost solutions such as diver's navigation is more

and more important.

The company believes that the next evolution in MEMS inertial sensors will certainly open up new

opportunities with decreased size, power consumption and price over they FOGs counterpart.

Research and Development is a major area of focus for the company with more than 40% of the

turnover being invested in product development or to research new technologies.

In 2009 SBG Systems has introduced its first miniature motion sensor after three years of R&D.

Since then, each year new products or technologies have been introduced. In 2013, the Ekinox series

was a milestone for the company with a subsea enclosure launched in 2014. In only four years, the

accuracy has been improved by a factor of 10 with all famous features needed by the subsea and

marine markets such as delayed / real-time heave DVL, Ethernet, web page configuration, sonar

compatibility. The company is eager to strengthen their position in the subsea and marine markets

in 2014 with the introduction of new exciting products and technologies.

DISCLAIMER

Mordor Intelligence Reports and their contents, including all the analysis and research containing

valuable market information, are provided to a select group of customers in response to orders. Our

customers acknowledge when ordering that Mordor Intelligence strategic analysis services are for our

customers’ internal use and not for general publication or disclosure to third parties.

Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. Mordor

Intelligence takes no responsibility for any incorrect information supplied to us by manufacturers or users.

No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written

permission. Reproduction and/or transmission in any form and by any means including photocopying,

mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited.

ABOUT US

Mordor Intelligence is a global market research and consulting firm. Our singular focus is to provide research

insights for business success.

Our research team has expertise in diverse fields like Agriculture, Healthcare, ICT, Chemicals, Manufacturing,

Logistics, Electronics and Automotive. However diverse the expertise maybe, everyone in our team shares one

common trait - we love data and we love providing solutions to clients using that data even more. Seeing your

business flourish based on our solutions and strategy is what we love the most.

For information regarding permissions and sales, please contact: info@mordorintelligence.com

7 | Mordor Intelligence !

!

Mordor Intelligence LLP No. 30, Padma Nilaya, Chola Nagar Bangalore, Karnataka, India 560032

+1 781 881 1110 | info@mordorintelligence.com

Copyright © 2014 Mordor Intelligence LLP All Rights Reserved. This document contains highly confidential information and is the sole property of Mordor Intelligence LLP. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of Mordor Intelligence LLP.