Global Floating Production System (FPS) Market Highlights Over 2022 - 2031
The global floating production system (FPS) market is estimated to garner a large amount of revenue by growing at a CAGR of ~10% over the forecast period, i.e., 2022 – 2031. Rising energy demand to carry out deep water exploration activities efficiently, and growing investments to effectively store and offload oil are expected to drive market growth in the upcoming years. Furthermore, upsurge in the capital expenditure in the exploration & production industry, and high emphasis of companies on new product launches are projected to offer abundant growth opportunities to the market in the near future.
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Along with these, the growth of the market can also be attributed to the increasing offshore exploration activities, and high demand for crude oil across the globe. According to the International Energy Agency, the total oil demand worldwide reached a value of 4,456 million tons in 2019, up from 4,428 million tons and 4,408 million tons in 2018 and 2017 respectively.
The market is segmented by type into FPSO, TLP, SPAR, and barge, out of which, the FPSO segment is anticipated to hold the largest share in the global floating production system (FPS) market. This can be accounted to the high popularity of this FPS as a result of its additional feature of storing and offloading produced crude oil. Apart from this, high deployment of FPSOs globally ascribing to their capability of long distances movement is also expected to bolster the growth of the market segment in the future. Additionally, on the basis of water depth, the deep and ultra-deep water segment is assessed to grab the largest share during the forecast period owing to the high investments by operators for carrying out deep and ultra-deep water exploration activities, especially in Gulf of Mexico and Western Africa.
Major Macro-Economic Indicators Impacting the Market Growth
In 2019, the world’s total energy supply was 606EJ, wherein the highest share in terms of source was captured by oil, accounting for 30.9%, followed by coal (26.8%), natural gas (23.2%), biofuels and waste (9.4%), nuclear (5.0%), hydro (2.5%), and other (2.2%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 1% due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Global Floating Production System (FPS) Market Regional Synopsis
Regionally, the global floating production system (FPS) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Latin America is estimated to acquire the largest share and witness noteworthy growth over the forecast period on the back of the increasing investments for offshore projects, especially in Brazil. In addition, growing oil and gas production and expenditure, and rising development of shale plays are also expected to boost the market growth in the region in the coming years. In December 2020, the crude oil production in Brazil was reported at approximately 3,000 barrel/day, up from about 2,700 barrel/day in the same month last year, i.e., 2019. Moreover, the market in the Middle East & Africa is also projected to occupy a notable share during the forecast period, which can be credited primarily to the escalating number of deep and ultra-deep water activities in Africa.
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The global floating production system (FPS) market is further classified on the basis of region as follows:
Our in-depth analysis of the global floating production system (FPS) market includes the following segments:
By Water Depth
Top Featured Companies Dominating the Market
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are increasing number of offshore exploration activities, and high demand for crude oil across the globe.
The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2022-2031.
Latin America will provide more business opportunities for market growth owing to the increasing investments for offshore projects, especially in Brazil.
The major players in the market are Mitsubishi Heavy Industries Ltd., TechnipFMC PLC, Hyundai Heavy Industries Co. Ltd, Keppel Offshore & Marine Ltd., and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, water depth, build, and by region.
The FPSO segment is anticipated to hold largest market size in value and is estimated grow at a notable CAGR over the forecast period and display significant growth opportunities.
High cost of floating production systems is estimated to hamper the market growth.
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