According to Transparency Market Research, the competitive landscape in the global floating, production, storage, and offloading vessels is expected to grow stronger over the coming years. Mergers and acquisitions are among the more common consolidation strategies being carried out in the market. The market was led in 2015 by players such as Bumi Armada Berhad, Bluewater Energy Services B.V., and BW Offshore.
The TMR research report reveals that the global FPSO market is expected to reach US$43.4 bn by the end of 2021. The market is expected to expand at a whopping CAGR of 16.2% within a forecast period from 2015 to 2021, while being evaluated at US$15.9 bn in 2015.
Americas Investment in FPSO to Surge
From a regional perspective, the global FPSO market was led by the Americas in 2015. It is likely that this region holds the lead in the market over the coming years. The countries in the Americas have so far shown a significant rate of investment in FPSO vessels and the continued high rate of investments made by nations such as Brazil in this market are likely to drive it in the near future. The rate of exploration activities is also set to increase in this region, further bolstering its position in the global FPSO market over the coming years.
Based on types of FPSO vessels, the market is likely to be propelled by the increasing use of converted FPSO systems. A large number of players in the oil and gas industry are beginning to undertake cost cutting measures in the light of the extremely volatile nature of the market, thereby significantly reducing the overall demand for new-build FPSO systems.
Capital Investments Low, Promote New Entrants
“One of the key factors driving the global FPSO market at the moment, is the influx of new players, due to the increasing demand for converted FPSO systems over new-build vessels. This majority client preference has strongly boosted the entry of new players into the global FPSO market, as the lower investments required and increasing demand puts them in a highly favorable position,” states a TMR analyst. Additionally, the global FPSO market is likely to be boosted by the growing demand for redeployed FPSO systems. At the moment, the overall market for redeployed FPSO systems is relatively small as it is a new field. Over the course of time, the demand for these systems is likely to increase steadily, thereby creating massive opportunities for players.
Environmental Concerns Stifle Growth Rate
Among the several factors currently restricting the overall growth rate of the global FPSO market, the growing concern over environmental damage and the conservation of materials and fuels is the leading one. This is creating a significant dent in the production rates of new-build FPSO systems, while promoting the use of redeployed FPSO systems. Other factors restraining the growth rate of the global FPSO market are the legal hassles involved in the taking of proposed fields, and the time taken to meet content requirements according to regions laws, causing delays in the execution of projects as well as causing overruns in costs.
The future of the global FPSO market is expected to lie in increasing the rate of investments in deepwater FPSO systems. This was the dominant segment in the global FPSO market for 2014, in terms of water depth, and is likely to remain the leading one over the coming years.
The information presented in this review is based on a Transparency Market Research report, titled, “FPSO Market (Type - Converted, New-build, and Redeployed; Water Depth -Shallow water, Deepwater, and Ultra-deepwater) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021.”
Key segments of the Global FPSO Market
Global FPSO Market: By Type
Global FPSO Market: By Water Depth
- Shallow water
Global FPSO Market: By Geography
- Southeast Asia
- West Africa
- Rest of Africa
- New Zealand
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement.
US Office Contact
90 State Street, Suite 700
Albany, NY 12207
USA - Canada Toll Free: 866-552-3453
7 of 10 large enterprizes view our ToC to take the right decision.View Report ToC