The Floating Production Storage and Offloading (FPSO) Market to Reach Valuation of USD 33.61 Billion by 2028; Increasing Demand for Smart Cities to Drive the Market

Vantage Market Research

Dec 03, 2021

In terms of revenue, the {global floating production storage and offloading (FPSO) marketis expected to reach USD 33.61 Billion by 2028, growing at a CAGR of 6.29% from 2021 to 2028. The increasing demand for extracting and exploring oil, gas, and other crude oil products from deep seawater and ultra-deep seawater is expected to drive the floating production and offloading (FPSO) market. Also, rising technological advancements in floating production and offloading systems with modern topside production facilities are expected to boost the market in the coming years.

Key Findings

  • Under the type segment, the new-built sub-segment is anticipated to dominate the segment for floating production storage and offloading market owing to an increase in the demand in the ultra-deep sea exploration.
  • The double-Hull sub-segment is expected to grow at the highest CADR of 5.21%. This is attributed due to double hull FPSOs having two or double outer watertight layer, which covers the entire structure of the vessel, as they protect the vessel from marine pollution and water ingression. These factors are projected to contribute to the growth of the double hull segment in the market during the forecast period.
  • However, the high cost of the FPSO is anticipated to hinder the market growth over the forecast period.

Some of the key players in the floating production storage and offloading market include Bumi Armada, Shell, BP, ExxonMobil, Petrobras, Chevron, MODEC, Teekay, SBM Offshore, and BW Offshore. Shell is an oil & gas company famous for exploration, production, development, refining, and marketing. The company provides FPSO and also has its own FPSO systems.

The floating production storage and the offloading market is driven by increasing demand for extracting and exploring oil, gas, and other crude oil products from deep seawater and ultra-deep seawater. Floating production storage and offloading (FPSO) is a ship-shaped vessel used for producing hydrocarbons and storing crude oil. An FPSO vessel is designed to receive hydrocarbons produced from its wells, nearby platforms, or subsea equipment. It has equipment on deck to process the hydrocarbons. It also stores the oil until it can be offloaded onto a shuttle tanker or, less frequently, transported through an export pipeline. FPSOs are often the preferred concept for frontier regions where there is no local pipeline infrastructure to export oil.

The emerging economies of the Asia Pacific such as India, China, Indonesia, and Thailand among others are expected to fuel the growth of the floating production storage and offloading market. Increasing demand for extraction of crude oil products such as fuel, oil, and gas are expected to have a huge demand over the coming years. This is due to the growing population in these countries. India and China are investing huge amounts of funds for developing FPSO as these countries are among the ones that have the longest seashores. This becomes easy for the operations and extraction process using FPSO’s. Middle Eastern Countries such as Dubai, Qatar, Saudi Arabia, and various others are also investing huge amounts of funds in FPSO infrastructure to gain the maximum advantage of crude oil extraction.

In 2020, North America grew at the highest CAGR of XX% but in coming years this graph will be constant due to less requirement for crude oil products. This is attributed due to the high dependency on sustainable energy such as EV vehicles, Solar Energy, Bio Gas, and others. Europe will also have slow growth in the coming years.