Floating Production Storage and Offloading Market

The global Floating Production Storage and Offloading Market is valued at USD 23.02 Billion in 2022 and is projected to reach a value of USD 37.33 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.2% between 2023 and 2030.

Premium Insights

The growth of the Floating Production Storage and Offloading market is driven by the increasing demand for oil and gas, especially in regions that have significant offshore reserves. To meet this demand, FPSOs are crucial as they provide a cost-effective and adaptable solution for offshore oil and gas production. The versatility of FPSOs is exemplified by their ability to operate in deepwater and ultra-deepwater conditions, which has contributed to their widespread adoption. Furthermore, the emphasis on safety and environmental compliance within the oil and gas industry leads to a greater demand for FPSOs, as they are perceived as safer and more environmentally friendly alternatives.

• By leveraging enhanced processing capabilities and digitalization, the integration of technological advancements in FPSO plays a pivotal role in driving the continuous growth of the Floating Production Storage and Offloading market. These advancements lead to improved operational efficiency and enable informed decision-making based on data analysis.
• North America generated more than 39.8% of revenue share in 2022
• Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
• Converted segment accounted for the largest market growth. It contributed over 42.2% of the total revenue share in 2022
• Self-Propelled segment revealed the most significant market growth, contributing more than 55.5% of the total revenue share in 2022
• Double Hull segment accounts for largest revenue of 60.6% in 2022
• Shallow Water will account for largest share of 47.5% in 2022

Economic Insights

The trajectory of the Floating Production Storage and Offloading market is shaped by a combination of factors in the economic landscape. The cost-effectiveness of FPSOs make them a viable option for offshore oil and gas production, offering flexibility and efficiency. The FPSO market also plays a crucial role in generating employment, fostering innovation, and contributing to the economic development of regions involved in offshore oil and gas exploration. Moreover, FPSOs are important in prolonging the life of mature oil fields and enabling the development of smaller, economically feasible reserves.

Top Market Trends

• Technological advancements in FPSO design and construction: Technology improvement is resulting in the creation of more economical and efficient FPSO vessels. In order to operate in more difficult environmental circumstances and to simultaneously produce oil and gas from several fields, new FPSO designs are being created.
• Rising focus on safety and environmental compliance: Compliance with environmental regulations and safety are increasingly important to the sector. New technologies and practices are being used as a result of this focus in order to enhance the safety and environmental performance of FPSO vessels.
• Growing demand for FPSO vessels for floating LNG production: For floating LNG production, there is an increasing need for FPSO vessels. On a floating vessel, liquefied natural gas (LNG) is produced by a process known as floating LNG production.
• Focus on Cost Efficiency: Operators in the oil and gas sector are becoming more and more interested in low-cost options. FPSOs offer a more affordable option to conventional fixed platforms, particularly in far-flung and deepwater offshore sites.
• Increased Demand for Small and Mid-sized FPSOs:Smaller and mid-sized FPSOs are in greater demand, particularly in marginal fields and areas with lesser reserves. These FPSOs provide an economically sound way to develop such areas.

Market Segmentation

Floating Production Storage and Offloading {{Segmentation_Ext}}

Based on Type

Converted holds the largest share

The converted segment is expected to dominate the Floating Production Storage and Offloading market by type due to its robust growth is its cost-effectiveness. Converted FPSO vessels are more economically viable to build as they repurpose existing vessels, including oil tankers. Additionally, the shorter construction time of converted FPSO vessels further contributes to their popularity. By utilizing existing vessel structures, the construction process is expedited, resulting in a timely and cost-efficient solution. Another important factor is the increasing demand for FPSO vessels in deepwater and ultra-deepwater oil and gas fields.

Based on Propulsion

Self-Propelled will dominate the market during Forecast Period

The propulsion of self-propelled FPSO vessels is expected to dominate the Floating Production Storage and Offloading market. Self-propelled vessels have the advantage of being able to navigate on their own, which gives them increased maneuverability and precise positioning capabilities. This makes them less vulnerable to damage caused by adverse weather and sea conditions. The growing demand for FPSO vessels in deepwater and ultra-deepwater oil and gas fields is a major driver for the self-propelled segment.

Based on Hull Type

Double Hull lead the market

Double hull has dominated the Floating Production Storage and Offloading market due the safety, as the additional layer of protection reduces the likelihood of ruptures in the event of collisions or grounding, ensuring the safety of the oil and gas storage. Furthermore, the environmental impact of double hull FPSOs is noteworthy as the double hull serves as a barrier, reducing the chances of oil spills into the ocean in case of accidents.

Based on Usage

Shallow Water will account for largest market share

The shallow water segment of the Floating Production Storage and Offloading market is expected to dominate in terms of usage. Shallow water FPSO vessels are specifically designed for depths of 500 meters or less and offer a more cost-effective and compact solution compared to deepwater options. This makes them highly attractive for developing smaller oil and gas fields. The growth of the shallow water segment is driven by factors such as the increased discovery of oil and gas reserves in shallow water areas. These reserves are becoming increasingly important in meeting global energy demands, especially as deepwater and ultra-deepwater reserves continue to deplete.

Based on Region

North America will lead the market

North America is expected to dominate the market for Floating Production Storage and Offloading due to its abundant oil and gas fields, especially in the Gulf of Mexico. FPSO vessels are widely deployed in this region due to their efficient operation in deepwater and ultra-deepwater conditions. Additionally, the North American FPSO market is gaining momentum as the oil and gas industry places a greater emphasis on safety and environmental compliance. FPSO vessels are considered a safer and more environmentally friendly option compared to traditional fixed platforms.

Competitive Landscape

The Floating Production Storage and Offloading market is a dynamic and fiercely competitive industry, characterized by companies striving for market dominance and technological breakthroughs. Key players, alongside other participants, actively engage in strategic initiatives like mergers, acquisitions, and collaborations to expand their global reach and enhance their technological capabilities. Companies now focus on cost-effectiveness, safety, and environmental compliance to gain a competitive edge.

The players in the global Floating Production Storage and Offloading market include Bumi Armada among others.

Recent Market Developments

• September 2022: In a successful bid, Keppel Offshore & Marine has secured a USD 2.8 billion contract from Petrobras for the construction of the P-83 FPSO. The delivery of the FPSO is expected to take place in the first half of 2027.
• November 2022: SBM Offshore and Exxon Mobil Corp. have recently joined forces to construct another floating production storage and offloading (FPSO) vessel in Guyana. An agreement was reached between the two entities, resulting in the signing of a Memorandum of Understanding (MoU) for the FPSOs development and deployment.

Segmentation of the Global Floating Production Storage and Offloading Market