Subsea Production Systems Market by Equipment Type and Geography - Forecast and Analysis 2021-2025

The subsea production systems market share is expected to increase by USD 967.58 million from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 2.96%.

This subsea production systems market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers subsea production systems market segmentations by equipment type (SURF, pressure control system, subsea trees, and manifold) and geography (Europe, APAC, North America, MEA, and South America). The subsea production systems market report also offers information on several market vendors, including Aker Solutions ASA, Dril-Quip Inc., General Electric Co., Halliburton Co., Nexans SA, NOV Inc., Prysmian Spa, Schlumberger Ltd., Siemens AG, and TechnipFMC Plc among others.

What will the Subsea Production Systems Market Size be During the Forecast Period?

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Subsea Production Systems Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The rising deep and ultra- deepwater drilling projects is notably driving the subsea production systems market growth, although factors such as fluctuations in oil and gas prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the subsea production systems industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Subsea Production Systems Market Driver

One of the key factors driving the subsea production systems market growth is the rising deep and ultra- deepwater drilling projects. Oil and gas upstream companies have been extracting oil and natural gas from onshore wells for many years. In offshore drilling, oil and gas companies are shifting their focus from shallow waters to deepwater and ultra-deepwater resources due to large untapped reserves. Drilling in offshore locations is more challenging than drilling in onshore locations owing to the harsh environment. The depletion of easy-to-extract oil has resulted in an increase in the cost of hydrocarbon acquisition, along with the displacement of drilling operations geographically. Thus, with the depletion of resources in easily accessible locations, such as onshore wells, companies are looking for less explored areas. As a result, the number of offshore drilling projects is increasing. The rise in oil and gas drilling activities in offshore deepwater and ultra-deepwater oil and gas wells will increase the demand for subsea production and processing activities, which, in turn, will support the market in focus during the forecast period.

Key Subsea Production Systems Market Trend

ERD technology is the major trend influencing subsea production systems market growth. Extended reach drilling (ERD) well is defined as the well with a step-out to TVD (True vertical depth) ratio of 2:1 or higher. There are several other factors taken into consideration, such as key drilling challenges, water depth, and rig capabilities. Though the use of ERD technology in the current oil and gas market is not feasible, it is expected to be used in time, as using this technology is about the economics and demand in the market. Over the past two years of low crude oil prices, the operators have adopted this technology, which made the overall project commercially viable. Some ERD development projects in this scenario include BP Wytch Farm in Poole Harbour, a land to offshore project on the South Coast of the UK, and Santa Barbara Channel, an offshore project in California. An increase in the use of this technology for reducing the cost of offshore infrastructure while mitigating the environmental impacts associated with a smaller drilling footprint will impact the market of subsea production systems positively.

Key Subsea Production Systems Market Challenge

Fluctuations in oil and gas prices is one of the key challenges hindering the subsea production systems market growth. During 2012-2014, the US produced plenty of shale oil, which increased the global crude oil supply and reduced US crude oil imports. From 2013 to 2014, crude oil prices fell by 47.85%. According to the IEA, the volume-weighted average crude oil import cost for Germany, France, Spain, Italy, Japan, the UK, the US, and Canada in 2012 was $107.78 per barrel. The falling crude oil and natural gas prices had a negative impact on the oil and gas upstream sector. Upstream companies are affected adversely when crude oil prices fluctuate, as the price at which the crude oil is sold is determined by the market, but the production costs are mostly fixed. Thus, expensive and capital-intensive E&P operations witness a decline in investments and profits. A delay or cancellation of oil and gas drilling activities because of fluctuating crude oil prices ultimately reduces crude oil production. Hence, crude oil price fluctuations challenge the growth of the global subsea production systems market.

This subsea production systems market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global subsea production systems market as a part of the global oil and gas equipment and services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the subsea production systems market during the forecast period.

Who are the Major Subsea Production Systems Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Aker Solutions ASA
• Dril-Quip Inc.
• General Electric Co.
• Halliburton Co.
• Nexans SA
• NOV Inc.
• Prysmian Spa
• Schlumberger Ltd.
• Siemens AG
• TechnipFMC Plc

This statistical study of the subsea production systems market encompasses successful business strategies deployed by the key vendors. The subsea production systems market is fragmented and the vendors are deploying organic and inorganic strategies growth strategies to compete in the market.

Product Insights and News

• Aker Solutions ASA - The company offers subsea production system components such as subsea trees, subsea structures, wellheads and more.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The subsea production systems market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Subsea Production Systems Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the subsea production systems market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Subsea Production Systems Market?

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29% of the market's growth will originate from Europe during the forecast period. Norway and UK are the key markets for subsea production systems in Europe. Market growth in this region will be slower than the growth of the market in MEA regions.

The market in Europe is expected to witness steady growth during the forecast period, owing to significant resource richness and offshore activities in the region. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 disrupted the subsea production systems market in Europe. Several countries in the region were adversely affected by the pandemic. Owing to the severity of the outbreak, governments of various countries across the region imposed nationwide lockdowns and travel restrictions during the first half of 2020. Some offshore projects were delayed due to the lockdowns and limited workforce availability, as workers faced travel restrictions. However, by the end of 2020 and during the first half of 2021, lockdowns were lifted, which allowed major subsea production system companies to resume their operations while following strict social distancing norms. Subsea production systems activities in the region increased in 2021 with the recovery in global crude oil prices. Such recovery can be attributed to large-scale vaccination programs in the region. Thus, the regional demand for subsea production systems is anticipated to grow during the forecast period.

What are the Revenue-generating Equipment Type Segments in the Subsea Production Systems Market?

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The subsea production systems market share growth by the SURF will be significant during the forecast period. The production fluids from deepwater and ultra-deepwater completions are sent to a processing facility by means of a subsea production system. Subsea Umbilicals, Risers, and Flowlines (SURF) play a major role during the production of crude oil. The equipment needs to be safeguarded from extreme environmental conditions to ensure a continuous supply of crude oil or natural gas from the subsea well. Thus, the market for the SURF segment is likely to maintain steady growth momentum during the forecast period.

Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the subsea production systems market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Subsea Production Systems Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive subsea production systems market growth during the next five years
• Precise estimation of the subsea production systems market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the subsea production systems industry across Europe, APAC, North America, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of subsea production systems market vendors

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