Floating Production System (FPS) Sector: Growth Drivers and Challenges
Growth Drivers
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Growth in Offshore Drilling & Exploration Activity – With the rising demand for oil and other petroleum products and the enlarging development of countries to become energy independent, the exploration of potential oil reserves is on the rise. As per a report of 2021, worldwide there were 1.73 trillion barrels of oil reserves. This is projected to bring in numerous growth opportunities for the floating production system market in the coming decade.
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Increasing Investment & Development in Energy Industry – for instance, ExxonMobil Guyana (ExxonMobil Corporation) finalized an additional investment decision of about USD 12.7 billion for the offshore Uaru development augmenting Guyana’s energy industry. The project ascertained all government and regulatory approvals and is expected to start in 2026, adding a daily production capacity of around 250,000 barrels.
Challenges
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Cost Involved to Develop FPS Systems is High - Most floating production units require a substantial upfront investment for installation, and regular maintenance raises overall operating costs, slowing market growth.
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High Maintenance & Operational Cost
- Emerging Offshore Engineering Regulations & Maritime Codes
Floating Production System (FPS) Market
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.6% |
|
Base Year Market Size (2024) |
USD 11.31 billion |
|
Forecast Year Market Size (2037) |
USD 37.24 billion |
|
Regional Scope |
|
