The global FPSO market is projected to reach US$ 27.7 Billion by 2027, growing at a CAGR of 6.4%
The global floating production storage and offloading (FPSO) market is expected to gain momentum with an estimated growth worth USD 19.3 billion by 2028, registering a robust CAGR of 15.3% during the projected timespan 2021-2028. The accelerated growth rate is primarily driven by current market trends and factors such as deployment of long-term agreements among industry participants that are typically focused on construction and operation of vessels including FEED, technology upgradation and commissioning.
In addition, a collaborative effort by multiple industry players targeting the development of higher capacity fields to enhance the industry landscape is favouring the growth of the floating production storage and offloading market. oil and gas companies are extending efforts focusing in integrating highly efficient technology offerings. High prices are likely to restrict the smooth growth curve temporarily. However, various collaborative efforts prompting storage of hydrocarbons emerging from offshore basins are significant opportunities for the global FPSO market players.
Floating production storage and offloading (FPSO) is a uniquely designed vessel unit that is widely used across oil and gas industry as a means for production as well as storage of massive quantities of hydrocarbons from offshore basins. The vessel is effectively applied across varying water depth levels for storage and allows processing of crude oil which is typically produced from the wells. Manufacturing of this special vessel either involves utilization of an existing ship which is further modified for enhanced characteristics or by developing an entirely new unit from scratch.
The unit houses a variety of equipment with capabilities of crude oil segregation thereby enabling contractors with efficient management. Along with offloading the output, these features reduce their need for a separate pipeline infrastructure. Global floating production storage and offloading market players are advancing alongside new peers entering the market with a view of reforming the current systems and technologies. The exceeding number of market participants driving new models and strategies along with the significant upgradation of the FPSO technology is contributing towards strengthening the market landscape.
The major players of the global FPSO market are Exxon Mobil, Petrobras, Chevron Corporation, China National Offshore Oil Corporation (CNOOC), Saipem, Bumi Armada Berhad, SBM Offshore, Royal Dutch Shell, BP, Teekay Corporation, Woodside Energy, Dommo Energia, Keppel Offshore and Marine and Hyundai Heavy Industries. The Floating Production Storage and Offloading market is a large infrastructure of highly robust local players as well as globally placed players. Aforementioned key players are strategizing business growth and development introducing novel approach and capabilities sustaining competitive position in the global market.
FPSO Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2027||US$ 27.7 Billion|
|Growth Rate||CAGR of 6.4% during 2021-2027|
|Segment Covered||by Propulsion Type, Breakup by Hull Type, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Bumi Armada Berhad (Usaha Tegas Sdn Bhd), Bluewater Energy Services B.V. (Aurelia Energy N.V.), BP Plc, BW Offshore Limited, Chevron Corporation, Exxon Mobil Corporation, MODEC Inc., Petróleo Brasileiro S.A., SBM Offshore N.V., Royal Dutch Shell PLC and Teekay Corporation.|
Key Segments of the Global Floating Production Storage and Offloading (FPSO) Market
Type Overview, 2018-2028 (USD Billion)
Hull Type Overview, 2018-2028 (USD Billion)
- Single Hull
- Double Hull
Propulsion Overview, 2018-2028 (USD Billion)
End-Use Overview, 2018-2028 (USD Billion)
- Shallow Water
- Ultra-Deep Water
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East & Africa
Reasons for the study
- The study aims on delivering exhaustive research with conclusive and insightful takeaways on the global floating production storage and offloading market.
- Maintain your competitive edge amidst the constantly evolving innovations led by the key players to accelerate market growth.
What does the report include?
- The study on the floating production storage and offloading industry/FPSO market provides a holistic view consisting of qualitatively significant aspects such as the market drivers, restrains and opportunities.
- The study incorporates a competitive assessment highlighting the key existing players along with promising prospective players of the FPSO market with a detailed strategic analysis.
- The study encompasses both quantitative and qualitative evaluation of the segmented market categories based on product type, hull type, propulsion and end-use. A further regional segmentation allows analysis of key geographies.
- Market share and sizes are estimated for each of the mentioned market segment.
Who should buy this report?
- The report on the floating production storage and offloading market provides suitable set of analysis for all the market participants across the offshore oil and gas industry starting from providers to consumers
- Investors, entrepreneurs and venture capitalists seeking in-depth understanding of the business prospects of the global FPSO market future
- Technology experts, consultants, engineers and researchers looking for technology insights modernising the global floating production storage and offloading market
Frequently Asked Questions (FAQ) :
Extensively pacing expansion in oil and gas exploration and production across offshore fields, deep water and ultra-deep water is expected to propel the opportunities of the floating production storage and offloading (FPSO) market enhancing the growth prospects through the forecast years. Surging energy demand globally are one of the primary factors boosting the FPSO market growth. A number of developed as well as developing countries are experiencing drastic rise in energy consumption for the last few years.
Soaring demand escalation for long-term sustainable fuel sources is poised to facilitate the FPSO market growth during the forecast years. In addition, a substantial growth in the number of offshore drilling activities, increased flexibility is attributed as the positive characteristics contributing to a rise in the demand for the special type of vessel. Costs of installation is another added advantage as FPSO is relatively cost-effective alternative to installation of permanent structures. Exploration and exploitation activities of marginal oil reserves increasing substantially across offshore regions coupled with flexibility and enhanced capacity of FPSOs is expected to drive the market growth over the forecast.
Based on type of construction, the market is classified into converted, redeployed and new-build FPSOs. New-build construction segment accounts for a dominating market share and is likely to continue to do so over the forecast period owing to the higher construction costs with newly built vessels along with an array of configuration options with an appealing design flexibility. The converted FPSO segment is also projecting considerable growth due to the low capital expenditure and relatively short procurement cycles.
Hull Type Segment
In terms of hull type, the market is divided into single and double hull. The double hull FPSOs segment is estimated to be the fastest growing segment over the forecast period owing to the advantages offered such as reduced risks of oil spillage and provision of a dedicated containment area driving the demand for double hull vessels. Single hull is also expected to grow gradually as they offer design stability.
Based on propulsion, the market is bifurcated into towed and self-propelled. The self-propelled FPSO vessels are anticipated to account for maximum share over the forecast period as the transportation costs associated with these vessels is comparatively affordable than the towed FPSOs. Self-propelled require no external propulsion and are thus perceived as a more convenient and cost-effective alternative fuelling the demand for self-propelled FPSOs.
In terms of end-use, the market is categorized into ultra-deep-water, deep-water and shallow water. Deepwater segment is holds promising growth scales and is expected to dominate the FPSO market over the forecast years. Growing preferences of E&P companies inclining towards deeper reservoirs for production along with the ongoing discovery of dee-water reserves is accelerating the deep-water segment. Shallow water segment is also estimated to grow sustainably accounting for a significant market share over the forecast.
The FPSO (floating production storage and offloading) market has dominant presence across Asia Pacific and the region is expected to be one of the leading regional hotspots of the global marketspace. The growth is primarily driven by the surging energy demand across developing economies with larger energy and offshore infrastructure.
North America also displays a flourished floating production storage and offloading market and is expected to offer lucrative opportunities owing to the high production targets coupled with the prevalence of industry giants. Middle East and Africa is positioned to experience the most significant growth over the forecast timespan establishing itself as a key region for the floating production storage and offloading (FPSO) market expansion. It can be attributed to the increasing investments in the offshore asset’s exploration encouraging discovery of new bulk reserves.