At 5.9% CAGR, the North America FPSO market is projected to be worth US$ 2,477.67 million by 2028, says Business Market Insights

According to Business Market Insights’ research, the North America FPSO market was valued at US$ 1,658.80 million in 2021 and is expected to reach US$ 2,477.67 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.    

Over the last few decades, offshore oil and gas exploration and production have increased significantly. Further, the discoveries of new oil and gas reserves are growing exponentially across the region. Moreover, there is an increasing presence of major oil and gas extractions companies, such as Petrobras, in offshore exploration and production activities. In Petrobras, most of the oil reserves are in offshore fields, which has led the drilling activities to reach ever-greater depths. In addition, over the next five years, the company expects more than ten new production systems to come on stream, which will ensure a 5% growth in production by 2023. Moreover, the increasing number of exploitations of marginal oil reserves in remote offshore areas, along with the flexibility of FPSOs to operate without the support of a fixed structure, boosts the market growth. Thus, due to rising number of offshore exploration and development activities and advancements in deepwater technology, The FPSO market is growing rapidly.

On the contrary, various challenges faced in FPSO implementation hurdles the growth of North America FPSO market.

Based on water depth, the North America 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 40.1% with a revenue of US$ 664.85 million. It is further projected reach US$ 1,009.68 million at 6.2% CAGR during 2021-2028.

Based on hull, the North America FPSO market is bifurcated into single hull and double hull. The former held 53.7% market share in 2021, amassing US$ 891.11 million. It is projected to garner US$ 1,389.65 million by 2028 to expand at 6.6% CAGR during 2021–2028.  

Based on mooring, the North America FPSO market is segmented as spread mooring and disconnectable mooring. With a share of 54.6%, spread mooring segment held the largest market share in 2021. Further, in 2021 it held US$ 906.04 million and is forecasted to reach at US$ 1,353.72 million by 2028 at a decent CAGR of 5.9%.

By construction, the North America FPSO market is fragmented into newly built and converted. With 59.0% share of the domain, the converted segment dominated the market in 2021. It accrued US$ 978.36 million in 2021 and is estimated to generate US$ 1,510.36 million by 2028 to grow at a CAGR of 6.4% over the forecast period.

Our regional analysis states that US captured 48.0% market share in 2021. It was assessed at US$ 796.22 million in 2021 and is likely to hit US$ 1,197.83 million by 2028, exhibiting a CAGR of 6.0% during the forecast period.

Key players dominating the North America FPSO market are 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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