Floating Production System (FPS) Market Size, Share, and Growth Analysis, By Type (FPSO, Tension Leg Platform, Spar, and Barge), By Application (Shallow Water, Deepwater, and Ultra-Deepwater), Regional Forecast By 2031

Updated On: 01 April 2024

Floating Production System (FPS) Market Report Overview

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The global floating production system (FPS) market size was USD 16020 million in the year 2022 and is expected to reach USD 41318.19 million by 2031 exhibiting a CAGR of 11.1%.

 The global COVID-19 pandemic has been unprecedented and staggering, with floating production systems (FPS) experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic ends.

A floating production system (FPS) is an offshore platform used in the oil and gas industry to produce, store, and transfer hydrocarbons from offshore oil and gas fields to onshore facilities. FPSs are typically used in deep water locations where traditional fixed platforms are not feasible due to water depth, ocean currents, or other environmental factors.

There are several types of FPSs, including floating production, storage, and offloading vessels (FPSOs), floating production systems (FPS), and floating liquefied natural gas (FLNG) facilities. FPSOs are the most common type of FPS and are large ships moored to the seabed with flexible risers connecting the subsea wells to the FPSO.

The FPSO has onboard processing facilities that separate the oil, gas, and water and store the oil in tanks for offloading to shuttle tankers or pipelines. FPSs and FLNGs are similar to FPSOs in terms of their operational function, but they are designed for specific purposes, such as gas processing and liquefaction.

COVID-19 Impact: Ban On Transportation Hampered Market Expansion

The COVID-19 pandemic has significantly impacted the oil and gas industry, and floating production systems (FPSs) have not been immune to these effects. Some of the ways in which the pandemic has impacted FPS operations include the following. The pandemic has sharply declined global oil demand, decreasing production and reducing FPS utilization rates. Restrictions on travel and movement of goods have disrupted supply chains, making obtaining equipment and supplies necessary for FPS maintenance and operation more difficult. Travel restrictions and quarantine measures have made finding and transporting qualified personnel to FPS sites more difficult, leading to crew shortages and potential operational issues.

LATEST TRENDS

"Cost-Effectiveness of The Solution to Surging Market Growth"

growing demand for floating liquefied natural gas (FLNG) facilities, which offer a more flexible and cost-effective solution for natural gas production and transportation. FLNGs can be moved to different locations and process and store natural gas on board, reducing the need for dedicated onshore infrastructure. The FPS industry is increasingly adopting digital technologies and automation to improve operational efficiency and reduce costs. This includes using sensors, data analytics, and artificial intelligence to optimize FPS performance and maintenance.

Floating Production System (FPS) Market Segmentation

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• By Type Analysis

By type, the market is segmented into FPSO, tension leg platform, SPAR, and barge.

• By Application Analysis

Based on application, the market is classified into shallow water, deep-water, and ultra-deep-water.

DRIVING FACTORS

"Rising Demand for Solution from The Oil and Gas Industry to Augment Product Demand"

increasing demand for oil and gas, cost-effectiveness, flexibility, technological advancements, and increasing offshore exploration and production. These drivers lead to the continued growth and adoption of FPSs as a viable solution for accessing offshore reserves, particularly in deep-water locations. With technological advances and increasing demand for oil and gas, the FPS market is expected to continue to grow and evolve in the coming years.

"Growing Consumption of Gas to Surge Market Growth"

The driving factor for the floating production system (FPS) market is the increasing demand for offshore oil and gas production, particularly in deep water locations. As onshore reserves become depleted, companies are turning to offshore exploration and production to meet the growing global demand for oil and gas. FPSs provide a cost-effective and flexible solution for accessing offshore reserves, located in deeper waters and further offshore. The development of new technologies, such as subsea equipment, sensors, and automation, has improved the efficiency and reliability of FPSs, making them an attractive option for oil and gas companies. 

RESTRAINING FACTORS

"High Cost of the Product May Restrict the Market Growth"

The floating production system (FPS) solutions are expensive, which is estimated to be a major restraining factor in the market growth. The high cost of the product resists small businesses from adopting these solutions. These factors are estimated to hinder market growth in the future. 

Floating Production System (FPS) Market Regional Insights

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"North America to Lead the Market Due to the Growing Demand for Oil and Gas"

North America is anticipated to hold dominating part of the floating production system (FPS) market share owing to the rising demand for oil and gas, which boosts the demand for FPS in the region.

Latin America is expected to show tremendous growth owing to the rising offshore E&P activities coupled with deep water and ultra-deep water production activities in Brazil. 

KEY INDUSTRY PLAYERS

"Key Companies to Emphasis On the Development of Advanced Technology"

Key market players are focused on strengthening their presence by adopting advanced technologies. The competitors are adopting strategies to gain mergers and acquisitions in the global market. Major players of the market are emphasizing gaining collaborations, mergers, and acquisitions is increasing among leading players. The major market players strive to maintain partnerships with other key players in the same industry. Gaining partnerships with other companies will develop a strong consumer base in the global market. The key competitors are adopting organic and inorganic growth strategies to surge their market share in the global market. 

List of Market Players Profiled

• BUMI Armada Berhad (Malaysia)
• Daewoo Shipbuilding & Marine Engineering (South Korea)
• Hyundai Heavy Industries (Hyundai)
• Keppel Offshore and Marine (Singapore)
• Malaysia Marine and Heavy Engineering (Malaysia)
• Mitsubishi Heavy Industries (Japan)
• Pipavav Defence and Offshore Engineering (India)
• Samsung Heavy Industries (South Korea)
• SBM Offshore (Netherlands)
• Technip (France)
• Teekay (Bermuda)

REPORT COVERAGE

The market research study offers thorough information on numerous market aspects. The growth drivers, restraints, geographical analysis, competitive environment, and challenges are a few of them. Additionally, it provides an analytical analysis of market trends and projections for various factors to show potential investment areas. From 2021 through 2027, the market is objectively assessed to determine its financial viability. The report's data was compiled using a variety of primary and secondary sources.