The global floating production systems market is driven by increasing offshore exploration, cost-effectiveness, technological advancements, rising energy demand, and the focus on deep water exploration. These factors are spurring the adoption of floating systems, such as FPSOs and FLNG vessels, in the offshore energy sector. Additionally, the flexibility of floating production systems and their ability to extract hydrocarbons from marginal fields contribute to their growing prominence.
However, the global floating production systems market faces restraints, including high initial investment, technical complexity, environmental and regulatory concerns, and market sensitivity to oil and gas price fluctuations. Despite these challenges, the market continues to grow, driven by collective efforts to address them and capitalize on market drivers.
Increasing offshore oil and gas exploration and production activities have fueled the demand for floating production systems as a reliable, efficient, and cost-effective solution for tapping into deep water reserves and meeting global energy demand.
The offshore oil and gas industry plays a significant role in meeting global energy demands, with over a quarter of the current supply coming from offshore sources. The major contributors to offshore production are regions like the Middle East, the North Sea, Brazil, the Gulf of Mexico, and the Caspian Sea. While offshore oil production has remained relatively stable since 2000, natural gas output from offshore fields has experienced remarkable growth, increasing by more than 50% during the same period.
The oil and gas industry experienced a surge in offshore exploration and production activities in 2022. This resulted in new global oil and gas discoveries reaching a remarkable value of USD 33 billion at base price, the highest in over a decade. The major discoveries in countries like Namibia, Guyana, Brazil, and Algeria played a significant role in driving this remarkable growth in exploration, signaling the industry's continued focus on tapping into new offshore reserves to meet the rising global energy demand.
In response to surging oil prices and Europe's increasing energy demand amid the ongoing Ukraine-Russia war, global oil companies are redirecting their focus towards increasing offshore exploration and production activities. This shift is marked by a reversal in the declining trend of investment in decades-long offshore projects, even in remote iceberg waters far off Canada's Atlantic coast.
The global annual greenfield capital expenditure (capex) in the offshore sector surpassed the significant milestone of USD 100 billion in 2022, marking a remarkable increase in investments in offshore projects. This upward trend is expected to continue in 2023, with the industry projected to breach the USD 100 billion threshold for two consecutive years, a feat not seen since 2012 and 2013.
The motivation behind these massive investments lies in the profitability of offshore drilling. Many of these projects are designed for long-term oil extraction, signifying the confidence in sustained returns by the oil and gas companies.
As global oil companies invest billions of dollars into offshore drilling projects, the demand for floating production systems, such as FPSOs and FLNG vessels, rises significantly. These systems offer viable solutions for extracting and processing hydrocarbons in deep water and remote offshore fields where fixed platforms are not feasible or economically viable.
These floating production systems are favored for their flexibility, scalability, and cost-effectiveness, making them suitable for various offshore projects. As oil companies focus on tapping into new offshore reserves, the demand for these systems to support production activities also rises.
As the industry continues to expand into more challenging offshore locations, floating production systems are expected to play an increasingly significant role in the global energy landscape.
The segment of Floating Production Storage and Offloading market (FPSO) is expected to dominate the global floating production sector by type. FPSOs have consistently been a popular choice for offshore oil and gas production due to their versatility, cost-effectiveness, and ability to handle a wide range of field sizes and production requirements. These systems combine production, storage, and offloading capabilities on a single vessel, making them suitable for various offshore projects, including deep water and remote locations.
The popularity of FPSOs is driven by their flexibility in accommodating different reservoir characteristics and production rates, as well as their ability to be redeployed to new fields once production is complete. Additionally, advancements in FPSO technology have improved their efficiency, safety, and environmental performance, making them a preferred option for oil and gas operators worldwide.
While other types of floating production systems, such as Floating Liquefied Natural Gas (FLNG) vessels and Floating Production Units (FPUs), also play significant roles in the market, FPSOs are expected to continue dominating the global floating production systems market due to their wide-ranging applications and adaptability to various offshore projects.
The global floating production systems market is currently in a strong and stable position due to increased offshore drilling activities. According to the World Energy Report's latest assessment, the floating production market is booming.
Currently, there is a significant surge in floating production projects globally, with 40 projects in the planning stage set to move to the engineering, procurement, and construction (EPC) contract stage within the next 18 months. Among these projects, there are over 25 contracts for Floating Production Storage and Offloading (FPSO) units, several production semis, and eight contracts for Floating Liquefied Natural Gas (FLNG) facilities.
Additionally, more than 90 production floater contracts are planned for award within the next 18 to 60 months. These developments highlight the strong momentum in the global floating production systems market, with an increasing focus on tapping into offshore reserves and enhancing energy production capabilities.
The new market research report from Blackridge Research on the Global Floating Production Systems Market comprehensively analyzes the global floating production system market and provides deep insight into the current and future state of the industry.
The study examines the market dynamics, and regional trends influencing global floating production systems market growth.
The report also addresses present and future market opportunities, market trends developments, and the impact of COVID-19 on the global floating production systems market, important commercial developments, trends, regions, and segments poised for fastest growth, the competitive landscape, and the market share of key players.
Further, the report will also provide global floating production systems market size, demand forecast, and growth rates.
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.
This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.
This section provides an assessment of COVID-19's impact on global floating production systems market demand.
The report provides global floating production systems market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.
The report examines the critical elements of the global floating production systems industry supply chain, its structure, and participants.
Using Porter's five forces framework, the report covers the assessment of the global floating production systems industry's state of competition and profitability.
The report dissects the global floating production systems market into various segments based on water depth (Shallow Water, Deep Water), and by type.
A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
Further, market size will be presented, along with various drivers and barriers for individual market segments during the forecast period.
Effective market segmentation enables you to identify emerging trends and growth opportunities over the forecast period. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies and regulations, and market outlook.
In addition, market size, demand forecasts, and growth rates will be provided for all regions.
Following are the notable countries covered under each region.
North America: United States, Canada, Mexico, and the Rest of North America
Europe: Germany, France, the United Kingdom (UK), Russia, and the Rest of Europe
Asia-Pacific: China, India, Japan, South Korea, Australia, and the Rest of APAC
South America: Brazil, Guyana, etc.
Middle East and Africa
This report presents detailed profiles of key companies in the global floating production systems industry, such as Bumi Armada Berhad, SBM Offshore NV, etc. In general, each company profile includes - overview of the company, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the FPS market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
Executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an executive summary chapter and ends with Conclusions and Recommendations.
Get a free sample copy of the Global Floating Production Systems Market report by clicking the "Download a Free Sample Now!" button at the top of the page.
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
More than 70% of our clients seek customized reports. Reach us out to get yours today!