UK underwater market hits £9.4 billion: Project delays place offshore energy supply chain at risk

November 26, 2025, by Melisa Cavcic

Global Underwater Hub (GUH), the trade and development body representing the UK’s multibillion-dollar subsea sector, has undertaken a new study for the nation’s underwater sectors, which emphasizes that frequent delays to offshore energy and infrastructure projects threaten the viability of Great Britain’s supply chain.

While the size of the UK underwater market grows to £9.4 billion (approximately $12.4 billion), GUH’s survey spotlights the growing risk of the nation’s offshore energy supply chain relocating overseas because of project delays, as the current government policy is perceived to be having a negative impact on the supply chain.

Neil Gordon, GUH’s CEO, commented: “For much of the last year I have warned of the risk of ‘minding the gap’, where oil and gas projects slow and renewables projects are delayed, creating a vacuum of inactivity that threatens the UK’s world-leading underwater supply chain.

“Our latest business survey shows this is already playing out and, increasingly, there is a real possibility this gap will be filled by fast-moving international projects, drawing away our assets, facilities and skilled personnel. If this is to happen, then a return to the UK will be incredibly unlikely, even when our own projects eventually begin.”

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While nearly all respondents (96%) to Global Underwater Hub’s Business Survey 2025 claim that work in the likes of oil and gas, offshore wind, and defence is moving too slowly, 81% think developments are not progressing at the needed pace.

The report entitled ‘Minding the Gap’ warns that companies may look to relocate overseas, with 82% of the sector feeling that Britain’s supply chain capacity is not aligned with demand.

Gordon added: “The UK has a supply chain with the capability and capacity to lead, but confidence in project timelines and policy support is eroding. Major industrial projects take years to mobilise, and we risk repeating past declines that cannot be reversed overnight.”

Even though the study revealed that the size of the UK underwater market increased from £9.2 billion (around $12.1 billion) in 2024 to £9.4 billion in 2025, largely attributed to an uptick in construction of new projects across multiple markets, many of which are global and reflect increasing exports, the news comes with an associated risk.

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The observed downside arising from such an achievement, which reflects the high regard in which the supply chain is held internationally, lies in the potential relocation to other offshore energy playgrounds, as exports account for 43% of all revenue generated by UK underwater supply chain companies.

Gordon emphasized: “Our research shows that companies increasingly view greater prospects internationally than domestically, with shorter timelines, supportive government policy and greater volume.

“A sea-based supply chain is, by nature, highly mobile and, unless things improve in the UK, then it seems inevitable that companies will consider not just exporting to other regions but relocating there.”

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With this in mind, the report calls for urgent action to safeguard the UK’s underwater supply chain ahead of the Autumn Budget, recommending four key steps: accelerate domestic project delivery, enhance policy certainty and support, strengthen the skills pipeline, and promote strategic diversification.

When combined, these measures are anticipated to have the power to curb the energy transition gap, improve supply chain utilization, and build a more resilient, future-ready industry.

Gordon concluded: “This is a pivotal moment. We need a coordinated industrial strategy, targeted investment and a sustainable skills pipeline to keep the UK at the forefront of underwater innovation.

“Stakeholders must act now to align policy, project flow and investment with the supply chain’s readiness and ambition. The opportunity is clear, but so is the risk.”