Subsea The Global Subsea Market reached USD 17 billion in 2022 and is expected to reach USD 20.2 billion by 2031 growing with a CAGR of 2.2% during the forecast period (2024-2031). The global subsea market is mainly driven by rising global energy demand, which is pushing energy companies to explore and exploit new offshore reserves of oil and gas.
South America, Europe, the Middle East, and Africa are some of the key regions driving the growth of the global subsea market.
The global drive towards the adoption of renewable energy is another major factor in the global market growth. The ongoing construction of new offshore wind farms, especially in North America and Europe is expected to significantly boost the demand for subsea engineering services. In May 2023, the city of New Bedford, Massachusetts, U.S. commenced the construction of an offshore wind farm, which is expected to generate 1600 MW energy by 2027.
Market Dynamics
Rising Global Energy Demand
As the global population grows and developing economies become industrialized, the cumulative global energy demand rises significantly. The rising global demand for energy, coupled with the depletion of onshore oil and gas reserves, has led to a significant shift towards offshore exploration and production activities Offshore reserves often hold substantial amounts of untapped hydrocarbon resources and subsea systems are vital for extracting these resources from underwater fields.
The demand for energy is particularly driving the growth of deepwater and ultra-deepwater projects. Deepwater and ultra-deepwater projects require advanced subsea infrastructure, including subsea production systems, pipelines, and umbilicals, to extract resources from extreme water depths. As oil and gas companies seek to access deeper waters, challenging environments and untapped reserves, the demand for subsea equipment, technologies, and services continues to rise to support these offshore operations. Rising global energy demand is a key driver for global subsea market growth.
High Initial Investment and Project Complexity
Subsea projects involve substantial upfront capital investment due to the complex nature of underwater operations. The manufacturing and deployment of subsea infrastructure, including pipelines, risers and other production systems, requires significant technical expertise, thereby making them highly capital-intensive.
The high initial investment, combined with the technical challenges and project complexities associated with underwater operations, can deter small and medium companies from engaging in challenging subsea projects. The high costs involved in subsea projects present a challenge to the growth of the global subsea market.
Market Segment Analysis
The global market is segmented based on equipment, platform, service, application, and region.
Continued Exploitation of New Offshore Reserves Is A Major Factor In Augmenting Crude Oil Production
Crude oil has a market share of approximately 69% in the application segment. Crude oil reserves have historically been more abundant and widely distributed in offshore regions compared to natural gas reserves. Major offshore oil fields are found in regions like the Gulf of Mexico, North Sea, Brazil's pre-salt fields and offshore West Africa. The significant presence of these reserves necessitates extensive subsea infrastructure for oil extraction and production.
The offshore oil industry has been well-established for several decades, with a robust infrastructure and proven operational expertise. The industry's maturity has led to the development of advanced subsea technologies, equipment and services tailored specifically for crude oil applications. The extensive experience and knowledge base in offshore oil operations has further solidified crude oil's leading position within the subsea market.
Market Geographical Share
Increase in Offshore Oil and Gas Operations Combined With Ongoing Construction of Offshore Wind Farms, Makes North America A Key Region
North America accounts for a share of nearly 25% of the global subsea market. The Gulf of Mexico is renowned for its abundant offshore oil and gas reserves. It is one of the most productive offshore regions globally, with vast hydrocarbon resources located in both shallow and deepwater areas. The region has witnessed significant exploration and production activities as energy companies are seeking to increase production.
The U.S. is undertaking a major push in increasing renewable energy production, with wind energy set to be a critical part of the energy mix. Numerous offshore wind farms are currently under construction, mainly off the U.S. eastern coast in the Atlantic Ocean. The ongoing construction of offshore wind farms is expected to greatly augment the growth of the North American subsea market.
With aging infrastructure and maturing fields, decommissioning activities are gaining importance in the North America subsea market. As offshore facilities reach the end of their productive life, operators are focused on safe and efficient decommissioning and abandonment operations. The decommissioning market provides opportunities for companies specializing in subsea well plugging and abandonment, subsea structure removal and environmental remediation.
Companies and Competitive Landscape
The major global players include TechnipFMC plc, Subsea 7 S.A., Aker Solutions, Dril-Quip, Inc, Schlumberger Limited, One Subsea, Balmoral Offshore Engineering, Delta Subsea LLC, Baker Hughes, and Allseas Group S.A.
COVID-19 Impact on Market
The pandemic led to a decline in global economic activity, reduced offshore investments, and delayed or canceled projects. The subsea market heavily relies on oil and gas exploration, which experienced a severe downturn due to decreased demand and low oil prices. It resulted in a decrease in new subsea installations and maintenance activities, impacting the market's growth. However, the global subsea market is recovering and gaining momentum in the aftermath of the pandemic.
AI Impact
AI technologies such as machine learning, data analytics and automation have the potential to enhance operational efficiency, improve decision-making and reduce costs in subsea operations. AI-enabled solutions can optimize maintenance and inspection activities, enabling predictive maintenance and reducing downtime. Intelligent data analysis can provide valuable insights for asset management and help in identifying potential risks or anomalies in real-time. AI-powered robotics and autonomous underwater vehicles (AUVs) can perform complex tasks, such as subsea inspections or pipeline repairs, with increased precision and efficiency.
Ukraine-Russia War Impact
The ongoing war between Russia and Ukraine has affected the global subsea market to a significant degree. At the immediate beginning of the war, the European Union (EU) and the U.S. imposed sanctions on Russia, which cut-off investment in the Russian oil and gas industry. The sanctions halted the development of new offshore oil and gas fields in the Russian Arctic. The potential loss of Russian reserves has led global energy companies to increase exploration of offshore reserves elsewhere, particularly in South America and Africa.
Key Developments
• On May 23, 2023, AquaTerra Energy, a UK-based provider of offshore engineering solutions, won a contract from the multinational oil and gas giant BP to construct a subsea riser for a new offshore energy development project in Trinidad and Tobago in the Caribbean.
• On May 19, 2023, Aker Solutions, a Norwegian offshore engineering and construction company, won a contract from the U.S.-based multinational energy company Exxon Mobil Corporation to supply static and dynamic subsea umbilicals for the Uaru offshore oil and gas project near Guyana in South America.
• On May 12, 2023, Subsea7, a Luxembourg-domiciled company specializing in subsea engineering, announced that it won two engineering, procurement and construction (EPC) contracts worth a total of USD 750 million for a two-phase subsea development project. The company has not disclosed the client or project name due to contractual obligations.
Why Purchase the Report?
• To visualize the global subsea market segmentation based on equipment, platform, service, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of subsea market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Platform mapping available as Excel consisting of key products of all the major players.
The global subsea market report would provide approximately 64 tables, 75 figures and 204 Pages.
Target Audience 2024
• Oil and Gas Companies
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies
- 1. Methodology and Scope
- 1.1. Research Methodology
- 1.2. Research Objective and Scope of the Report
- 2. Definition and Overview
- 3. Executive Summary
- 3.1. Snippet by Equipment
- 3.2. Snippet by Platform
- 3.3. Snippet by Service
- 3.4. Snippet by Application
- 3.5. Snippet by Region
- 4. Dynamics
- 4.1. Impacting Factors
- 4.1.1. Drivers
- 4.1.1.1. Rising global energy demand
- 4.1.2. Restraints
- 4.1.2.1. High initial investment and project complexity
- 4.1.3. Opportunity
- 4.1.4. Impact Analysis
- 5. Industry Analysis
- 5.1. Porter's Five Force Analysis
- 5.2. Supply Chain Analysis
- 5.3. Pricing Analysis
- 5.4. Regulatory Analysis
- 6. COVID-19 Analysis
- 6.1. Analysis of COVID-19
- 6.1.1. Scenario Before COVID
- 6.1.2. Scenario During COVID
- 6.1.3. Scenario Post COVID
- 6.2. Pricing Dynamics Amid COVID-19
- 6.3. Demand-Supply Spectrum
- 6.4. Government Initiatives Related to the Market During Pandemic
- 6.5. Manufacturers Strategic Initiatives
- 6.6. Conclusion
- 7. By Equipment
- 7.1. Introduction
- 7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Equipment
- 7.1.2. Market Attractiveness Index, By Equipment
- 7.2. Wellheads*
- 7.2.1. Introduction
- 7.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 7.3. Subsea trees
- 7.4. Manifolds
- 7.5. Flowline connectors
- 7.6. Control systems
- 7.7. Others
- 8. By Platform
- 8.1. Introduction
- 8.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Platform
- 8.1.2. Market Attractiveness Index, By Platform
- 8.2. Fixed Platform*
- 8.2.1. Introduction
- 8.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 8.3. Multi-Purpose Service Vessel (MSV)
- 8.4. Tension Leg Platform (TLP)
- 8.5. Floating, Production and Offloading Vessel (FPSO)
- 9. By Service
- 9.1. Introduction
- 9.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Service
- 9.1.2. Market Attractiveness Index, By Service
- 9.2. Installation*
- 9.2.1. Introduction
- 9.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 9.3. Asset management
- 9.4. Product optimization
- 9.5. Inspection
- 9.6. Maintenance
- 9.7. Repair Services
- 9.8. Others
- 10. By Application
- 10.1. Introduction
- 10.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 10.1.2. Market Attractiveness Index, By Application
- 10.2. Crude Oil*
- 10.2.1. Introduction
- 10.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 10.3. Natural Gas
- 10.4. Wind Farm
- 11. By Region
- 11.1. Introduction
- 11.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
- 11.1.2. Market Attractiveness Index, By Region
- 11.2. North America
- 11.2.1. Introduction
- 11.2.2. Key Region-Specific Dynamics
- 11.2.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Equipment
- 11.2.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Platform
- 11.2.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Service
- 11.2.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 11.2.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.2.7.1. The U.S.
- 11.2.7.2. Canada
- 11.2.7.3. Mexico
- 11.3. Europe
- 11.3.1. Introduction
- 11.3.2. Key Region-Specific Dynamics
- 11.3.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Equipment
- 11.3.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Platform
- 11.3.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Service
- 11.3.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 11.3.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.3.7.1. Germany
- 11.3.7.2. The U.K.
- 11.3.7.3. France
- 11.3.7.4. Italy
- 11.3.7.5. Spain
- 11.3.7.6. Rest of Europe
- 11.4. South America
- 11.4.1. Introduction
- 11.4.2. Key Region-Specific Dynamics
- 11.4.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Equipment
- 11.4.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Platform
- 11.4.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Service
- 11.4.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 11.4.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.4.7.1. Brazil
- 11.4.7.2. Argentina
- 11.4.7.3. Rest of South America
- 11.5. Asia-Pacific
- 11.5.1. Introduction
- 11.5.2. Key Region-Specific Dynamics
- 11.5.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Equipment
- 11.5.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Platform
- 11.5.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Service
- 11.5.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 11.5.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.5.7.1. China
- 11.5.7.2. India
- 11.5.7.3. Japan
- 11.5.7.4. Australia
- 11.5.7.5. Rest of Asia-Pacific
- 11.6. Middle East and Africa
- 11.6.1. Introduction
- 11.6.2. Key Region-Specific Dynamics
- 11.6.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Equipment
- 11.6.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Platform
- 11.6.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Service
- 11.6.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 12. Competitive Landscape
- 12.1. Competitive Scenario
- 12.2. Market Positioning/Share Analysis
- 12.3. Mergers and Acquisitions Analysis
- 13. Company Profiles
- 13.1. TechnipFMC plc*
- 13.1.1. Company Overview
- 13.1.2. Platform Portfolio and Description
- 13.1.3. Financial Overview
- 13.1.4. Key Developments
- 13.2. Subsea 7 S.A.
- 13.3. Aker Solutions
- 13.4. Dril-Quip, Inc
- 13.5. Schlumberger Limited
- 13.6. One Subsea
- 13.7. Balmoral Offshore Engineering
- 13.8. Delta Subsea LLC
- 13.9. Baker Hughes
- 13.10. Allseas Group S.A.(*LIST NOT EXHAUSTIVE)
- 14. Appendix
- 14.1. About Us and Services
- 14.2. Contact Us
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