Global outlook of the floating production system market
Technavio’s market research analysts have predicted that the global floating production system market will grow steadily during the predicted period and will post a CAGR of almost 18% by 2020. The use of FPSOvessels is effective in remote or deep water locations since the incorporation of seabed pipelines in such locations incurs massive costs. Also, FPSO eliminates the requirement for long-distance pipelines from the oil well to onshore terminals. They prove to be more economical in smaller oil fields and marginal fields since these oil fields deplete in a few years and installing a fixed platform solution is not cost-efficient. Moreover, the FPSO unit can be moved to a new location once the field depletes and can also operate in harsh environments. The floating units can also navigate to safety during emergency situations, where the FPSO turret sinks beneath waves and can be reconnected later.
This market research and analysis estimates that the rise in deep water and ultra-deep water exploration will be one of the major trends to gain traction in the market in the next four years. New reservoirs are being discovered to meet the demand and supply of petroleum products. The recent discovery of a massive oil reserve in Golan Heights by an Israeli company and the discovery of a reservoir by BP will induce several other organizations to accelerate their exploration activities, in turn, driving the growth of the floating production system market.
Competitive landscape and key vendors
Characterized by the presence of several large international FPSO companies across the globe, the market appears to be highly fragmented. As all players equally compete to gain a better revenue share, the market is highly competitive. Intense competition, rapid advancements in technology, and the exponentially changing dynamics in the market are the key factors that drive the competition among vendors. An increase in product extensions and technological innovations is likely to intensify the competitive environment in the market. The coming years will also witness a number of mergers and acquisitions that will result in market consolidation.
The leading vendors in the market are -
The other prominent vendors in the market are Golar LNG, Petronas, MODEC, SBM Offshore, TOTAL, and BP.
Segmentation by equipment type and analysis of the floating production system market
FPSO (Floating Production Storage and Offloading)
TLP (Tension Leg Platforms)
During 2015, the FPSO market segment accounted for about 62% of the total market share and dominated the market. FPSOs are mainly used by companies to extract crude oil through offshore drilling activities, It has a field storage capability and can be used in locations where there is no accessibility to pipeline infrastructure. Eliminating the requirement for pipeline infrastructure, FPSOs reduce operational costs for transporting crude oil.
Geographical segmentation and analysis of the floating production system market
According to this market study, the Americas will account for about 59% of the total market share by 2020 and will also dominate the floating production system market throughout the predicted period. This region hosts plenty of oil and gas reserves and is a major contributor to the FPSO market. New discoveries in the Latin American countries, such as Brazil, Mexico and Venezuela, shale gas discoveries in the US, and ultra-deep water discoveries in Latin America will drive the demand for floating production systems in this region.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the global floating production system market?
What are the key market trends impacting the growth of the global floating production system market?
What are the challenges to market growth?
Who are the key vendors in the global floating production system market?
What are the market opportunities and threats faced by the vendors in the global floating production system market?
Trending factors influencing the market shares of the Americas, APAC, and EMEA.
What are the key outcomes of the five forces analysis of the global floating production system market?
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