FPSO Market Share, Trends | Global Report Forecast 2028

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FPSO Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Water Depth (Shallow Water, Deep Water, and Ultra-Deep Water), Hull (Single Hull and Double Hull), Mooring (Spread Mooring and Disconnectable Mooring), and Construction (Newly Built and Converted)

Publication Month: Apr 2022 | Report Code: TIPRE00027554 | No. of Pages: 179 | Category: Energy and Power | Status: Published

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.

Strategic Insights

Report Coverage - FPSO Market
Report CoverageDetails
Market Size Value inUS$ 11,911.53 Million in 2021
Market Size Value byUS$ 21,833.07 Million by 2028
Growth rateCAGR of 8.0% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
No. of Pages179
No. of Tables114
No. of Charts & Figures75
Historical data availableYes
Segments coveredWater Depth, Hull,, Mooring, and Construction
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
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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

Lucrative Regions in FPSO Market

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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.

Frequently Asked Questions

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 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.
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.
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.
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.
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 List of Companies - FPSO Market

  1. MODEC, Inc.
  2. Petrobras
  3. Bumi Armada Berhad
  4. SBM Offshore
  5. CNOOC Limited
  6. Total Energies
  7. EXXON MOBIL CORPORATION
  8. BW Offshore
  9. Equinor ASA
  10. Shell plc
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the global FPSO market.
  • Highlights key business priorities in order to assist companies to realign their business strategies
  • The key findings and recommendations highlight crucial progressive industry trends in the global FPSO market, thereby allowing players across the value chain to develop effective long-term strategies
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution
TIPRE00027554
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