Report : Europe FPSO Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Water Depth (Shallow Water, Deep Water, and Ultra-Deep Water), Hull (Single Hull and Double Hull), Mooring (Spread Mooring and Disconnectable Mooring), and Construction (Newly Built and Converted)
At 6.7% CAGR, the Europe FPSO market is speculated to be worth US$ 3,013.50 million by 2028, says Business Market Insights
According to Business Market Insights’ research, the Europe FPSO market was valued at US$ 1,914.00 million in 2021 and is expected to reach US$ 3,013.50 million by 2028, registering an annual growth rate of 5.9% from 2021 to 2028. Significant increase oil and gas production in deep and ultra-deepwater and increasing number of offshore exploration and production activities are the critical factors attributed to the market expansion.
The industrialization of deep sea is expanding across the world. Deepwater areas are one of the most important fields for increasing oil and gas reserves and production. Hence, they are emerging as a hotspot for oil and gas exploration due to the depletion of easily accessible oil and gas resources and technological improvements. The FPSO market is stimulated by an expansion in offshore operations in deepwaters and ultra-deep seas due to increased investments in this area. Since the last decade, the share of crude oil output from deepwater or ultra-deepwater developments has been growing in these countries.
The oil and gas exploration companies, such as Equinor ASA, increasingly focus on deepwater and ultra-deepwater oil and gas extraction. Thus, increasing oil and gas production in deepwater and ultra-deepwater drives the demand for the integration of FPSOs into the ships used to explore oil and gas, which fuels the growth of the EPSO market.
On the contrary, various challenges faced in FPSO implementation hurdles the growth of Europe FPSO market.
Based on water depth, the Europe FPSO market is segmented as shallow water, deep water, and ultra-deep water. Shallow water segment held the largest market share in 2021 which accounted for 49.8% with a revenue of US$ 954.11 million. It is further projected reach US$ 1,474.81 million at 6.4% CAGR during 2021-2028.
Based on hull, the Europe FPSO market is bifurcated into single hull and double hull. The double hull segment held 57.9% market share in 2021, amassing US$ 1,107.71 million. It is projected to garner US$ 1,769.65 million by 2028 to expand at 6.9% CAGR during 2021–2028.
Based on mooring, the Europe FPSO market is segmented as spread mooring and disconnectable mooring. With a share of 51.3%, disconnectable mooring segment held the largest market share in 2021. Further, in 2021 it held US$ 982.59 million and is forecasted to reach at US$ 1,474.95 million by 2028 at a decent CAGR of 6.0%.
By construction, the Europe FPSO market is fragmented into newly built and converted. With 69.7% share of the domain, the converted segment dominated the market in 2021. It accrued US$ 1,334.15 million in 2021 and is estimated to generate US$ 2,138.68 million by 2028 to grow at a CAGR of 7.0% over the forecast period.
Our regional analysis states that Germany captured 25.0% market share in 2021. It was assessed at US$ 478.60 million in 2021 and is likely to hit US$ 840.64 million by 2028, exhibiting a CAGR of 8.4% during the forecast period.
Key players dominating the Europe FPSO market are Bumi Armada Berhad; BW Offshore; CNOOC Limited; Energies; Equinor ASA; Exxon Mobil Corporation; MODEC, Inc; Petrobras; SBM Offshore; and Shell Plc .
The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market such as:
- In 2020, MODEC, Inc. has announced the approval by the American Bureau of Shipping for the new offshore repair method which has been developed jointly with Toray Industries, Inc. for hull structures of floating oil and gas production facilities such as FPSO vessels as an original standard repair method.
- In 2020, The Shell plc. is the fourth production system to be deployed in the Mero field. The final investment decisions were previously taken for the Mero 1, Mero 2, and Mero 3 FPSOs. Each unit has a daily operational capacity rate of 180,000 barrels of oil/day. The Pineiro de Libra FPSO has been producing at Mero since 2017 and is a key source of information for the Libra consortium to aid further development and optimize the productivity of the field, reservoir, and wells.
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