[Research Report] The FPSO market was valued at US$ 11,911.53 million in 2021 and is expected to reach US$ 21,833.07 million by 2028; it is estimated to grow at a CAGR of 8.0% from 2021 to 2028.
The industrialization of the deep sea is expanding across the world. Deep water areas are one of the most important fields for increasing oil & gas reserves and production worldwide. Hence, they are emerging as a hotspot for global oil & gas exploration due to the depletion of easily accessible oil & gas resources and technological improvements. This, in turn, is driving the FPSO market. Moreover, there is an increasing presence of major oil & gas extractions companies, such as Petrobras, in offshore exploration and production activities. In Petrobras, most of the oil reserves are in offshore fields, which has led the drilling activities to reach ever-greater depths. In addition, over the next five years from 2019-2023, the company expects more than ten new production systems to come on stream, which will ensure a 5% growth in production by 2023. Moreover, according to the International Energy Agency (IEA), by 2040, annual capital expenditures for offshore oil & gas production activities in Brazil would total US$ 60 billion. Moreover, the increase in the number of exploitations of marginal oil reserves in remote offshore areas, along with the flexibility of FPSOs to operate without the support of a fixed structure, boosts the FPSO market growth. Thus, the reasons mentioned above are further driving the FPSO market size.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
FPSO Market: Strategic Insights
Market Size Value in US$ 11,911.53 Million in 2021 Market Size Value by US$ 21,833.07 Million by 2028 Growth rate CAGR of 8.0% from 2021 to 2028 Forecast Period 2021-2028 Base Year 2021
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
FPSO Market: Strategic Insights
| Market Size Value in | US$ 11,911.53 Million in 2021 |
| Market Size Value by | US$ 21,833.07 Million by 2028 |
| Growth rate | CAGR of 8.0% from 2021 to 2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Impact of COVID-19 Pandemic on FPSO Market
The COVID-19 pandemic negatively influenced the overall oil & gas industry in 2020 and 2021, owing to considerable disruption in the industry supply chain activities, coupled with several countries sealing off their international trade in the wake of the pandemic. Furthermore, as the global oil prices plummeted significantly due to limited demand and continuous production by the oil-producing countries, there was a considerable decline in production activities among the major oil-producing countries. Consequently, the discontinuation of oil & gas activities virtually disrupted the demand for any related products & services, including FPSO. For example, in 2020, due to delays in FPSO construction projects and more extended shutdowns of the producing ones, MODEC, the FPSO construction business, saw a drop in profits. The most significant reason behind this was a cost overrun caused by supply chain difficulties. The oil & gas sector rebounded strongly since mid-2021, with higher prices. However, the industry's recovery is better than expected, and uncertainty remains over FPSO market dynamics in the coming years. In March 2022, Helix Energy Solutions Group—a US offshore oil & gas services company—signed an agreement with Shell to provide Well Intervention services in the Gulf of Mexico. However, in the post-COVID scenario, the resumption of oil extraction projects is driving the FPSO market.
Lucrative Regions in FPSO Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights – FPSO Market
Surging Demand for Natural Gas and Crude Oil Propels FPSO Market Size
The demand for natural gas and crude oil is constantly increasing worldwide. For instance, in 2018, the oil demand increased by 1.3% across the globe, which fueled the oil industry's growth in the US. According to the International Energy Agency forecasts, in Q3 2019, the oil demand rose by 1.1 million barrels (mb)/day, signifying more than double growth compared to the previous quarter. The US and China have presented the most considerable growth. The robust increase in petrochemical demand in the US resulted in increased consumption and is driving the FPSO market. The Organization of the Petroleum Exporting Countries (OPEC) report stated that natural gas is expected to be the fastest-growing fossil fuel and would be the second-largest contributor to the energy mix, which is expected to hold a 25% share in 2045. In the coming years, Asia Pacific is anticipated to witness high demand for natural gas, owing to the rising use of natural gas in diverse industrial sectors. As per the BP Statistical Review of World Energy 2020, the increase in natural gas consumption worldwide averaged 2% in 2019, while in Asia Pacific, the natural gas consumption showed 4.7% Y-o-Y growth in 2019. Thus, the rising demand for natural gas and crude oil worldwide is expected to offer lucrative opportunities for the FPSO market growth during the forecast period.
Water Depth-Based Insights
Based on water depth, the FPSO market is segmented into shallow water, deep water, and ultra-deep water. The shallow water segment held the largest market share in 2021. In uncooled camera technology, the imaging sensor does not require cryogenic cooling. The depletion of natural gas and oil in shallow waters due to extensive extraction and increased demand have led engineers to develop floating production platforms that can thrive well in the adverse conditions of deep waters. Thus, the above mentioned benefits of shallow water drilling, the exploration and production process in shallow water is increasing, driving the businesses of FPSO market players offering their FPSO solutions for shallow waters.
The FPSO market players are mainly focused on the development of advanced and efficient products.
- In 2022, Petrobras signed contracts with the companies Yinson Bergenia Production B.V. and Yinson Bergenia Serviços de Operação LTDA, both from Yinson Production PTE Ltd. Group, for the chartering and provision of services of Maria Quitéria FPSO for the Parque das Baleias Integrated Project, to be installed in the Jubarte Field, located in the north of Campos Basin.
- In 2022, Bumi Armada agreed to sell subsidiaries owning ice-class vessels operating in the Caspian Sea for US$ 44.5 million in cash. The company plans to use US$ 38 million of the proceeds from the sale to reduce debt, with the remaining US$ 6.5 million going toward working capital.
The FPSO market is segmented based on water depth, hull, mooring, and construction. Based on water depth, the market is segmented into shallow water, deep water, and ultra-deep water. In 2021, the shallow water segment led the market and accounted for the largest market share. In terms of hull, the market is segmented into single hull and double hull. In 2021, the double hull segment led the market and accounted for a larger market share. Based on mooring, the FPSO market is segmented into spread mooring and disconnectable mooring. In 2021, the disconnectable mooring segment led the market and accounted for a larger market share. In terms of construction, the FPSO market is segmented into newly built and converted. In 2021, the newly built segment led the market and accounted for a larger market share. Geographically, the FPSO market is broadly segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, SAM accounted for a significant share of the global FPSO market.
MODEC, PETROBRAS, BUMI ARMADA, SBM OFFSHORE, CHINA NATIONAL OFFSHORE OIL, ROYAL DUTCH SHELL, EQUINOR ASA, TOTAL, EXXONMOBIL, and BW OFFSHORE are among the major companies operating in the FPSO market.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Water Depth, Hull,, Mooring, and Construction
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The top five key players operating in the global FPSO market Petrobras, CNOOC Limited, Total Energies SA, Exxon Mobil, and Equinor ASA in 2020. The market is moderately consolidated with several prominent players catering to domestic and international demand. Ownership of FPSOs is split between operators and contractors. Petrobras is the leading player in the FPSO market followed by CNOOC Limited, and Total Energies SA.
The global FPSO market is segmented into five major regions— North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2020, South America led the global FPSO market share, followed by the Middle East & Africa, and the Asia Pacific. The presence of developed countries such as the US and Canada and the high focus on oil manufacturers are two major factors driving the FPSO market in North America.
Based on the hull, the FPSO market is segmented into a single hull and a double hull. The ship's hull is the vessel's outer skin, which prevents water from entering the vessel and ensures the ship's watertight integrity in order to keep it floating. Double hull is anticipated to continue to drive the FPSO market by hull segment owing to the growing number of government laws governing maritime traffic.
Based on water depth, the FPSO market is segmented into shallow water, deep water, and ultra-deepwater. Shallow water is anticipated to continue driving the FPSO market by water depth segment due to the various benefits associated with shallow-water drilling the exploration and production process in shallow water increases and is driving the market growth.
The demand for natural gas and crude oil is increasing constantly across the world. The oil demand is increased by more than 1% across the globe, which fueled the growth of the oil industry in the US. Additionally, the interregional trade of gas increased by more than 4%, representing over double growth in the 10-year average. Thus, the rising demand for natural gas and crude oil across the world is expected to offer lucrative opportunities for the FPSO market growth during the forecast period.
The industrialization of the deep sea is expanding across the world. Deepwater areas are one of the most important fields for increasing oil and gas reserves and production worldwide. Hence, they are emerging as a hotspot for global oil and gas exploration due to the depletion of easily accessible oil and gas resources and technological improvements. . Thus, increasing oil and gas production in deepwater and ultra-deepwater drives the demand for the integration of FPSOs into the ships used to explore oil and gas, which fuels the growth of the FPSO market.
The List of Companies - FPSO Market
- MODEC, Inc.
- Petrobras
- Bumi Armada Berhad
- SBM Offshore
- CNOOC Limited
- Total Energies
- EXXON MOBIL CORPORATION
- BW Offshore
- Equinor ASA
- Shell plc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to FPSO Market
Apr 2022
Offshore Oil and Gas Pipes, Fittings, and Flanges Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Product Type (Pipes, Fittings, and Flanges), Material Type (Steel, Alloy Steel, Nickel Alloy, and Copper Alloy), and Geography
Apr 2022
Spent Nuclear Fuel Waste Management Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Reactor Type (Pressurized Water Reactor, Boiling Water Reactor, Gas-Cooled Reactor, and Others); Disposal Type (Near Surface Disposal and Deep Surface Disposal); and Geography
Apr 2022
Gas Pipeline Infrastructure Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Operation (Transmission and Distribution), Equipment (Pipeline, Compressor Station, Metering Skids, and Others), and Application (Onshore and Offshore)