The FPSO market in Asia Pacific is expected to grow from US$ 2,169.20 million in 2021 to US$ 3,575.27 million by 2028; it is estimated to register a CAGR of 7.4% from 2021 to 2028.
APAC is the major continent globally and is well-known for technological innovations taking place in countries such as India, China, Japan, and South Korea. Rapid technological developments, government initiatives, digitalization of economies, and a rise in disposable income of the middle-income class group are among the factors propelling the region's overall economic growth and driving it from a developing to developed phase. In Asia-Pacific, demand for natural gas has increased due to the increased use of gas in various industries and eventually increased the FPSO demand in the region to extract oil and gas from offshore and onshore sites.
As per the outlook magazine, the COVID-19 pandemic has led to a decline in oil demand. However, it is expected that the demand for energy will witness constant growth in the mid-term and long-term period, rising by a noteworthy 25% by 2045. Furthermore, oil is anticipated to become the largest contributor to the energy mix market, which will contribute 27% share by 2045. In the coming years, APAC is anticipated to witness high demand for natural gas owing to the rising use of natural gas in diverse industrial sectors. As per the BP Statistical Review of World Energy 2020, an increase in natural gas consumption averaged 2% in 2019, while in APAC, the natural gas consumption showed 4.7% Y-o-Y growth in 2019. Additionally, the interregional trade of gas increased by 4.9%, representing over double growth in the 10-year average. Thus, the growing demand for natural gas and crude oil is expected to offer lucrative opportunities for the Asia Pacific FPSO market growth during the forecast period.
With new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the Asia Pacific FPSO market at a notable CAGR during the forecast period.
The Asia Pacific FPSO market is segmented into water-depth, hull, mooring, construction, and country. Based on water depth, the market is segmented into shallow water, deep water, and ultra-deep water. The ultra-deep water segment held the largest market share in 2021. Based on hull, the market is bifurcated into single hull and double hull. The double hill segment held a larger market share in 2021. Based on mooring, the market is divided into spread mooring and disconnectable mooring. The disconnectable spread mooring segment held a larger market share in 2021. Based on construction, the market is bifurcated into newly built and converted. The converted segment held a larger market share in 2021. Based on country, the Asia Pacific FPSO market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Further, China held the largest market share in 2021.
Bumi Armada Berhad; BW Offshore; CNOOC Limited; Energies; Equinor ASA; Exxon Mobil Corporation; MODEC, Inc; Petrobras; SBM Offshore; and Shell Plc are among the leading companies operating in the Asia Pacific FPSO market.