Report : Middle East & Africa 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 8.3% CAGR, the Middle East & Africa FPSO market is speculated to be worth US$ 4,682.18 million by 2028, says Business Market Insights
According to Business Market Insights’ research, the Middle East & Africa FPSO market was valued at US$ 2,169.20 million in 2021 and is expected to reach US$ 4,682.18 million by 2028, registering an annual growth rate of 8.3% from 2021 to 2028. Surging demand for natural gas and crude oil Demand Surging including significant advancements in subsea technologies are the critical factors attributed to the market expansion.
The demand for natural gas and crude oil is increasing constantly across the world. For instance, in 2018, the oil demand increased by 1.3%, which fueled the growth of the oil industry. According to the International Energy Agency forecasts, in Q3 2019, the oil demand rose by 1.1 million barrels (mb)/day, signifying more than double growth compared to the previous quarter.
Moreover, the Organization of the Petroleum Exporting Countries (OPEC) launched ‘The 2020 OPEC World Oil Outlook’ in October 2020. As per the outlook, the COVID-19 outbreak pandemic has led to a downturn in oil demand. However, it is expected that energy demand would witness constant growth in the mid-term and long-term period, rising by a noteworthy 25% by 2045. As per the outlook, oil is anticipated become the largest contributor to the energy mix market, which will contribute 27% share in 2045.
The demand for oil is estimated to rise at ~47 mb/day during 2022–2025 in Organization for Economic Co-operation and Development (OECD) countries, according to Organization of the Petroleum Exporting Countries (OPEC). However, the demand in non-OECD countries is projected to increase by 22.5 mb/day during the forecast period to 2045. The OPEC report stated that natural gas is expected to be the fastest-growing fossil fuel and would be the second-largest contributor to the energy mix, which is expected to hold 25% share in 2045. Additionally, the interregional trade of gas increased at 4.9%, representing over double growth in the 10-year average. Thus, the rising demand for natural gas and crude oil across the world is expected to offer lucrative opportunities for The FPSO market growth during the forecast period.
On the contrary, various challenges faced in FPSO implementation hurdles the growth of Middle East & Africa FPSO market.
Based on water depth, the Middle East & Africa FPSO market is segmented as shallow water, deep water, and ultra-deep water. Deep water segment held the largest market share in 2021 which accounted for 39.0% with a revenue of US$ 1,045.07 million. It is further projected reach US$ 1,940.68 million at 9.2% CAGR during 2021-2028.
Based on hull, the Middle East & Africa FPSO market is bifurcated into single hull and double hull. The double hull segment held 57.2% market share in 2021, amassing US$ 1,533.39 million. It is projected to garner US$ 2,566.40 million by 2028 to expand at 7.6% CAGR during 2021–2028.
Based on mooring, the Middle East & Africa FPSO market is segmented as spread mooring and disconnectable mooring. With a share of 59.1%, spread mooring segment held the largest market share in 2021. Further, in 2021 it held US$ 1,582.65 million and is forecasted to reach at US$ 2,963.93 million by 2028 at a decent CAGR of 9.4%.
By construction, the Middle East & Africa FPSO market is fragmented into newly built and converted. With 69.7% share of the domain, the newly built segment dominated the market in 2021. It accrued US$ 1,868.10 million in 2021 and is estimated to generate US$ 3,295.05 million by 2028 to grow at a CAGR of 8.4% over the forecast period.
Our regional analysis states that the Rest of MEA captured 32.0% market share in 2021. It was assessed at US$ 857.47 million in 2021 and is likely to hit US$ 1,367.40 million by 2028, exhibiting a CAGR of 6.9% during the forecast period.
Key players dominating the Middle East & Africa 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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