Floating Production Systems Market Size, Share, Growth, and Industry Analysis, By Type (Shallow Water, Deepwater, and Ultra-deepwater), By Application (Oil Industry, Natural Gas Industry, Material Transportation, and Other), Regional Insights, and Forecast To 2031

Updated On: 29 April 2024

Floating Production Systems Market REPORT OVERVIEW

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The global floating production systems market size was 58970 million in 2022 and market is projected to touch USD 230966 million by 2031, at a CAGR of 16.4% during the forecast period.

The COVID-19 pandemic has been unprecedented and staggering, with floating production systems experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Floating production systems (FPS) refer to offshore facilities that are used for the production, processing, storage, and offloading of oil and gas resources. These systems are deployed in deepwater or remote offshore locations where fixed structures like oil platforms are not feasible or economical. FPS can be categorized into different types based on their design and purpose.

A floating production, storage, and offloading is a versatile vessel that combines production, storage, and offloading capabilities. It is equipped with processing facilities to separate and treat oil, gas, and water produced from subsea wells. The oil is stored in onboard tanks, and when the storage capacity is reached, it is offloaded to shuttle tankers or pipelines for transportation to onshore facilities.

COVID-19 IMPACT: Operational Challenges to Hamper Demand Significantly

COVID-19 had a life changing impact globally. The floating production systems market was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for floating production systems experienced a reduced demand.

The pandemic introduced significant uncertainty into the oil and gas market. Volatile oil prices, shifting demand patterns, and ongoing travel restrictions created challenges in planning and decision-making for FPS operators. Companies had to adjust production levels and adapt to changing market dynamics, impacting long-term investment decisions.

FPS operations were impacted by the pandemic as companies had to implement strict health and safety protocols to protect the workforce on board. Social distancing measures, quarantine requirements, and testing procedures added complexity to crew rotations and maintenance activities. These measures aimed to minimize the risk of COVID-19 transmission and maintain safe operations. The market is anticipated to boost the floating production systems market share following the pandemic.

LATEST TRENDS

"Digitalization and Automation to Broaden Market Growth"

FPS operators are increasingly adopting digital technologies and automation to enhance operational efficiency, improve safety, and reduce costs. Advanced data analytics, Internet of Things (IoT) sensors, and machine learning algorithms are being used to optimize maintenance scheduling, monitor equipment performance, and detect potential issues in real-time. Floating Liquefied Natural Gas (FLNG) projects have gained traction in recent years. These FPS units enable the production, liquefaction, and storage of natural gas at offshore locations, eliminating the need for onshore infrastructure. FLNG projects offer flexibility in terms of gas field development and can tap into remote and stranded offshore reserves.

Offloading systems for FPSO and FSO units have seen advancements to improve efficiency and safety. Developments include the use of tandem offloading systems, single-point mooring systems, and innovative offloading methods such as subsea offloading and offshore loading arms. These enhancements facilitate the efficient transfer of oil or gas from FPS units to shuttle tankers or pipelines. These latest developments are anticipated to boost the floating production systems market share.

Floating Production Systems Market SEGMENTATION

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• By Type

Based on type, the market is divided into shallow water, deepwater, and ultra-deepwater.

Shallow water holds a major share of the global market.

• By Application

Based on application, the market is bifurcated into oil industry, natural gas industry, material transportation, and other.

Oil industry as application holds a major share of the global market.

DRIVING FACTORS

"Production Efficiency and Flexibility to Boost Market Share"

FPS systems offer flexibility in terms of field development and production. They can be deployed relatively quickly compared to fixed platforms, allowing for accelerated time to first production. FPS units can also be easily relocated or repurposed to new fields or assets, offering operational flexibility and cost-effectiveness. FPS units are designed with environmental considerations in mind. They offer a reduced environmental footprint compared to fixed platforms, as they have a smaller seabed footprint and can be relocated or removed at the end of field life.

"Technological Advancements to Boost Market Size"

Advances in engineering, design, and offshore technologies have made FPS systems more feasible and economically viable. Innovations in mooring systems, riser designs, production and processing equipment, and safety systems have improved the efficiency and reliability of FPS units. These advancements have expanded the possibilities for FPS deployment in various offshore environments. These factors are anticipated to drive the floating production systems market share.

RESTRAINING FACTORS

"Environmental and Regulatory Compliance to Hamper Market Share"

FPS units must comply with stringent environmental and regulatory requirements, which vary across regions and jurisdictions. Compliance with regulations related to safety, environmental impact assessments, emissions, and decommissioning can add complexity and cost to FPS projects. Meeting these requirements often involves comprehensive planning, monitoring, and adherence to industry standards and best practices. The factors are anticipated to hinder the growth of the floating production systems market share.

Floating Production Systems Market REGIONAL INSIGHTS

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"North Sea Region Dominates the Floating Production Systems Market "

North Sea Region is the major shareholder for the floating production systems market share. The region has been a significant hub for FPS activities. The region has a long history of offshore oil and gas production and has witnessed the deployment of numerous FPS units, including FPSOs and other floating production facilities. The region has offshore oil and gas fields that require FPS solutions for production and processing. The region's proximity to key oil and gas markets and the presence of established operators and contractors contribute to its significance in the FPS sector. South America is the major shareholder for the floating production system production systems market share.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• GE (Baker Hughes) [U.S.]
• Schlumberger [U.S.]
• Halliburton [U.S.]
• Nabors [Bermuda]
• Weatherford [U.S.]
• Bumi Armada Berhad [Malaysia]
• Daewoo Shipbuilding & Marine Engineering [South Korea]
• Keppel Offshore and Marine [Singapore]
• Mitsubishi Heavy Industries [Japan]
• SBM Offshore [Netherlands]
• Technip [France]
• Teekay [Bermuda]
• MHB (Malaysia Marine and Heavy Engineering Holdings Berhad) [Malaysia]
• Samsung Heavy Industries [South Korea]
• Reliance Naval and Engineering [India]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.