High Demand for Petroleum Products to Boost Installation of Subsea Manifolds, reports TMR
The global subsea manifolds market is marked by the presence of a few major players. There is fierce competition in the market with regard to both technology and pricing. Advanced technologies play a crucial role in the industry and thus, leading players are investing heavily in R&D. The degree of competition is expected to remain medium in the coming years, states a new report by Transparency Market Research (TMR). The threat of new entrants will be low as they face problems such as lack of high capital and advanced technical expertise requirements. Uncertainty in crude oil prices and locational advantage of major players are other factors making it difficult for new players to enter in the market.
Companies operating in the global subsea manifolds market include ABB Limited, Aker Solutions ASA, Baker Hughes Incorporated, and Dril-Quip Inc. The majority of these companies are adopting strategies of expanding their geographical presence and product portfolio. A case in point would be ABB Limited. The company launched the world’s most powerful underground and subsea power transmission cable system in August 2014.
According to the report, the global market opportunity in subsea manifolds is expected to rise from US$2.83 bn in 2015 to US$3.71 bn by 2020. By application, the production manifold segment is expected to lead and account for 61.14% of the market by 2020. Europe, followed by the Middle East and Africa, is expected to lead the market by 2020.
Reduction in Capital Expenditure and Production Loss due to Subsea Manifolds to Fuel their Demand
Subsea manifolds are utilized in offshore hydrocarbon production activities. They form an essential part of subsea production systems as they enable operators to adapt to changing operating conditions. Subsea manifolds have the benefit of being flexibly designed. They can be customized as per the requirements of offshore operating companies.
Installment of subsea manifolds brings about significant reduction in capital expenditure and they also reduce the number of flowlines and umbilical used in offshore production activities. The number of risers is also reduced by making use of subsea manifolds, which in turn reduces the weight of floating production platforms. Subsea manifolds also reduce the impact of subsea interventions, thus reducing production loss.
The demand for subsea manifolds is high in the North Sea, West African Coast, Brazil offshore basins and the Gulf of Mexico, as these areas have an established offshore oil and gas industry. This is propelling the subsea manifolds market.
Fluctuating Crude Oil Prices Impact Subsea Manifolds Market
Fluctuations in crude oil prices cause E&P companies to vary their production accordingly. An increase in the price of crude oil enables E&P companies to increase their profit margins and vice-versa. The degree of risk and uncertainty regarding the returns increase with the uncertainty of crude oil prices. This impacts drilling activities and subsequently the subsea manifolds market.
Rise in Demand for Petroleum Products to Boost Investments in Offshore Hydrocarbon Reserves
“The demand for liquefied natural gas (LNG) and liquefied petroleum gas (LPG) is expected to rise in the coming years,” states a TMR analyst. This will increase the investments of players in the offshore hydrocarbon reserves and boost the demand for subsea manifolds. The demand for oil and gas is growing, particularly in countries such as Brazil, China, and India, which will further push drilling activities in the coming years. Thus, the future for the subsea manifolds market looks bright.
This information is based on the findings of a report published by Transparency Market Research titled “Subsea Manifolds Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2020.”
The global subsea manifolds market is segmented as follows:
- Production Manifolds
- Injection Manifolds
- North America
- Asia Pacific
- Middle East & Africa
- Latin America
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.
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