Transparency Market Research has published a new report "Floating Production Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019" to its report store.
Albany, NY -- (SBWIRE) -- 07/14/2016 -- The floating production system (FPS) market is oligopolistic in nature. The market requires supreme expertise and thus has only a few players. The leading players are focused on research and development activities, enabling them to extract larger quantities of natural gas and crude oil by making use of floating production system technology. The leading players in the market are Mitsubishi Heavy Industries Limited, Worley Parsons Limited, Technip S.A, and Hyundai Heavy Industries Corporation Limited. Competition among the players is expected to rise, suggests a new report by Transparency Market Research.
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The lower number of suppliers and the high costs of FPS components are increasing the bargaining power of suppliers. This is expected to change in the course of time as advanced manufacturing technologies will help reduce the production cost of these FPS components. "The bargaining power of suppliers is thus expected to become moderate over the coming years," states a TMR analyst.
Increasing Demand for Crude Oil Induces Exploration and Production Companies to Drill in Offshore Regions
There has been a huge demand for crude oil in countries such as China, India, and Brazil owing to rapid industrialization. This has propelled the exploration and production (E&P) companies to extensively carry out drilling activities in the offshore regions. Drilling in offshore regions, necessitates for companies to have advanced technologies and strong capital support. This has accelerated the demand for floating production systems, which help the E&P companies to drill the wells in shallow, deep, and even ultra-deep water, with ease.
While currently only 9% of the total crude oil comes from the subsea sector, this is expected to change in the coming years, and by 2020, the subsea sector is expected to account for around 20% of the total crude oil production. This will further increase the demand for FPS and benefit the market.
Problems Relating to Complexity and High Cost Need Attention of Market Players
FPS projects have expanded in terms of complexity. Moreover, it is not uncommon for FPS projects to become billion-dollar projects, as deep water drilling projects are challenging and require large floating production systems. The procurement of large FPS systems needs huge capital, which in turn increases the cost of the project. Further, there are challenges such as inability to deliver FPS on time, or prolonged delays in the sanctioning of the project.
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However, the untapped reserves of crude oil and natural gas will open doors of growth opportunities in the floating productions systems market. The recent discovery of offshore reserves in the French Guiana is one such a growth opportunity, which is expected to fuel the demand for FPS.
Demand for FPSO to Rise owing to Multiple Tasks Performance Ability
According to TMR, floating production storage and offloading (FPSO) was the leading product segment in 2012, accounting for 64.7% of the global FPS market. The FPSO segment is expected to retain its leading position in the coming years. The high demand for FPSO in offshore drilling activities is majorly due to the multiple tasks it can perform such as floating, production, storage, and offloading. High demand for FPSO from major petroleum companies will also drive this segment to its leading position.
In terms of geography, the global floating production systems market is expected to be led by the Rest of the World. It is expected that over 100 new offshore projects will spring up in the Rest of the World, thus driving the demand for FPS.
According to the report, the global market opportunity in FPS will rise from US$12,616 mn in 2012 to US$38,752.7 mn by 2019, expanding at a 17.20% CAGR from 2013 to 2019.
The information is based on the findings of a report published by Transparency Market Research titled "Floating Production Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019."
The global floating production systems market is segmented into:
Rest of the World (RoW)
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