Floating Production Systems (Fps) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Floating Production Systems (Fps) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The floating production systems market is expected to register a CAGR of over 10% during the forecast period of 2020-2025. Factors, such as increased offshore exploration activity and focus on development of offshore oil and gas production, are expected to drive the market for floating production systems. However, high cost of FPS systems, combined with volatile nature of oil prices, are expected to hamper the market’s growth.

Floating production, storage, and offloading (FPSO) accounts for the largest share of the floating production systems market, due to its additional function of storage of produced oil. FPSO dominates the market, with over 60% of the market share, globally.

· South America is anticipated to dominate the market’s growth due to widespread development of offshore exploration fields in countries, such as Brazil, with future investments in shale play exploration in Argentina.

· The demand for oil and gas production has always been on rise, which led to increased exploration activities in offshore. This, in turn, is expected to act as an opportunity for the market over the forecast period.

Floating Production Systems market TrendsFloating Production, Storage, and Offloading (FPSO) to Dominate the Market

· FPSO are the most popular floating production systems due to their additional feature of storing and offloading of produced crude oil. This led FPSO’s to account for over 60% of the market share, which is expected to increase over the forecasted period.

· FPSO provides the capability of long distances movement, which provides the operator a chance of using it over different regions and fields over its life.

· Brazil deployed the maximum number of FPSOs, and it is expected to continue to do so, with almost 20 expected new deployments by 2025.

· The increasing energy demand is expected to drive the floating production systems market during the coming decade, as the new exploration activity is at an all-time high and the operators are often forced to work in much deeper waters, which require sophisticated technology and equipment. Furthermore, they require the capability of storage and offloading oil. Such factors are expected to drive the FPSO market’s growth.

South America to Dominate the Market Growth

· The offshore oil and gas industry is expected to witness massive investments between 2016-2025. The total global investments in offshore projects is expected to cross USD 800 billion by 2025.

· The two offshore projects in Brazil, namely, Libra and Itapu, are expected to get USD 15.8 billion worth of investments, with USD 2.2 billion as signing bonuses in 16th Bidding Round held in October 2019, providing a way to increase in wireline and perforating services.

· In Brazil, the offshore pre-salt layer production reached over 1.5 million bpd in 2018, with pre-salt production contributing over 55% to the country’s total oil production. The pre-salt oil is produced from wells drilled during the last decade.

· Petrobras is expected to deploy up to 20 planned and announced FPSO’s over the forecast period, for the purpose of increasing its offshore oil production by 1.5 million barrel per day.

· Therefore, factors, such as rising oil and gas investments, along with development of shale plays and pre-salt layers in the region, are expected to drive the floating production systems market’s growth over the forecast period.

Floating Production Systems market Competitive Analysis

The floating production systems (FPS) market is consolidated, with some of the top players accounting for a major part of the market. The key players are Bumi Armada Berhad, Hyundai Heavy Industries Co. Ltd, Keppel Offshore & Marine Ltd, Malaysia Marine and Heavy Engineering Berhad, Mitsubishi Heavy Industries Ltd, and Samsung Heavy Industries Co. Ltd, among others.

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