Publication Month: Apr 2022 | Report Code: TIPRE00027554 | No. of Pages: 180 | Category: Energy and Power | Status: Published
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.
|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|
|No. of Pages||180|
|No. of Tables||114|
|No. of Charts & Figures||75|
|Historical data available||Yes|
|Segments covered||Water Depth, Hull,, Mooring, and Construction|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
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.
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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.
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.
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.