“Global Floating Production Storage and Offloading (FPSO) Market to reach a market value of 38.89 Billion by 2031 growing at a CAGR of 6.7%”
The Global Floating Production Storage and Offloading (FPSO) Market size is expected to reach $38.89 billion by 2031, rising at a market growth of 6.7% CAGR during the forecast period.
North America’s dominance in the market is primarily driven by the strong offshore oil and gas industry in the Gulf of Mexico. The region’s extensive oil and gas reserves and advancements in FPSO technology have made it a key player in the global market. North America has a well-established infrastructure and regulatory environment that supports the deployment of FPSOs in both deepwater and ultra-deepwater fields. The need for cost-effective and flexible offshore production solutions drives the demand for FPSOs in this region. Thus, the North America region witnessed 38% revenue share in the market in 2023.
The increasing global energy demand is one of the most significant drivers for the market. As industrialization and urbanization continue worldwide, the demand for oil and gas as primary energy sources continues to grow. This increase is particularly evident in developing regions with rising energy consumption due to expanding economies.
Additionally, as onshore oil and gas reserves become increasingly depleted, the oil and gas industry is shifting its focus to offshore exploration. With a substantial portion of the world’s untapped offshore reserves, companies want to explore and develop these resources to meet the growing global energy demand.
However, one of the major restraints for the market is the high initial capital investment required to build, deploy, and maintain FPSOs. The design and construction of FPSOs involve significant upfront costs, as they are complex, large-scale units that require extensive engineering, specialized materials, and advanced technologies. Therefore, high initial capital investment and operating costs hinder the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on type, the market is divided into converted and new builds. The new builds segment held 35% revenue share in the market in 2023. New build FPSOs are purpose-built vessels for oil and gas production, storage, and offloading. These units are constructed from scratch, incorporating the latest technologies and designs to enhance efficiency, safety, and operational capabilities.
On the basis of propulsion, the market is segmented into self-propelled and towed. The self-propelled segment recorded 68% revenue share in the market in 2023. Self-propelled FPSOs have propulsion systems, allowing them to move independently and navigate to various offshore locations without needing external tugboats or support vessels.
Based on hull, the market is categorized into single hull and double hull. In 2023, the single hull segment registered 27% revenue share in the market. This design is typically favored for its simplicity and cost-effectiveness. Single hull FPSOs are particularly well-suited for shallow waters or operations where cost considerations outweigh the need for advanced safety features.
By application, the market is divided into shallow water, deepwater, and ultra-deepwater. The shallow water segment procured 43% revenue share in the market in 2023. These units are less complex and costly than their deepwater counterparts, making them an attractive choice for many operators, particularly in mature fields or areas where reserves are more accessible.
Free Valuable Insights: Global Floating Production Storage and Offloading (FPSO) Market size to reach USD 38.89 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 27% revenue share in the market in 2023. Asia Pacific is home to several growing offshore markets, including countries like China, India, and Australia, with significant demand for FPSOs to support oil and gas exploration in offshore fields.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 23.67 Billion |
| Market size forecast in 2031 | USD 38.89 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 6.7% from 2024 to 2031 |
| Number of Pages | 262 |
| Tables | 410 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Propulsion, Application, Hull Type, Region |
| Country scope |
|
| Companies Included | ABB Group, Exxon Mobil Corporation, Emerson Electric Co., TotalEnergies SE, Kongsberg Group, McDermott International, Ltd., MODEC, Inc., Bluewater Energy Services B.V., SBM Offshore N.V. and Shell plc |
By Type
By Propulsion
By Application
By Hull Type
By Geography
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 