Subsea Production and Processing System Market - Growth, Trends, and Forecast (2020-2025)

The market is segmented by Production System Component (Subsea Trees, Subsea Umbilicals, Risers, & Flowlines, Subsea Wellhead and Others), Processing System Type (Boosting, Separation, Injection and Gas Compression), Water Depth (Shallow Water and Deep and Ultra-Deepwater), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

Market Snapshot

Study Period:


Base Year:


Fastest Growing Market:

Middle-East and Africa

Largest Market:

North America


2 %

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Market Overview

The subsea production and processing system market is expected to grow at a CAGR of over 2% during the period of 2020-2025. The increasing drilling and completion activities, globally, has been driving the demand for the subsea production and processing system market over the study period. However, the volatile oil prices over the recent period, owing to the supply-demand gap, geopolitics and several other factors has been restraining the growth in the demand for subsea production and processing systems. 

  • Deepwater and ultra-deepwater to dominate the subsea production and processing system market in 2019, owing to the increasing deepwater explotation and production activities, globally.
  • The increasing oil and gas discoveries coupled with the liberalization in the industry globally, has been leading to creation of new opportunities for the players to invest in. The new emerging markets are several developing nations of Middle East and Africa, Asia-Pacific and South America.
  • North America is estimated to have the maximum share of the subsea production and processing system market, in 2018. Additionally, the growth rate of the South America region is expected to be the highest during the forecast period, primarily due to the rapidly increasing oil and gas activities in the region, over the forecast period.

Scope of the report

The subsea production and processing system market report include:

Production System Component
Subsea Trees
Subsea Umbilicals, Risers, & Flowlines
Subsea Wellhead
Processing System Type
Gas Compression
Water Depth
Shallow Water
Deepwater and Ultra-Deepwater
North America
South America
Middle-East and Africa

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Key Market Trends

Deepwater and Ultra-Deepwater to Dominate the Market

  • The deep-water and ultra-deep-water activities directly influence the subsea production and processing system market in the offshore. After oil prices fall in 2014 many countries shifted towards onshore projects, but it turned out that return of investment period of onshore projects are 10 to 15 years, so the countries like Brazil, the United States, and Egypt started deep-water and ultra-deep-water explorations which have a return period of 5 to 6 years, are more profitable and are likely to drive the subsea production and processing system market in the forecast period.
  • After 2015 the offshore rig count of the world increased significantly and is likely to have a positive impact on subsea production and processing system as they are used in offshore.
  • In December 2019, Chevron Corporation announced to develop the Anchor Project in the Gulf of Mexico, which will be the first deep-water and high-pressure project of the oil and gas industry. This project will be needing advancement in the subsea production and processing system for the high-pressure environment and is expected to drive the subsea production and processing system market in the forecast period.
  • The West Delta Deep Marine project in Egypt is in its development phase. Royal Dutch Shell announced in 2019 to do drilling at Montu well, which will be the deepest well in Egypt. This opens various opportunities in Egypt for the subsea production and processing system market in the forecast period.
  • Therefore, with the increase in the deep-water and ultra-deep-water exploration and production activities the subsea production and processing system is likely to witness a significant demand during the forecast period.

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North America to Dominate the Market

  • North America is expected to dominate the subsea production and processing system market and to grow at a significant rate over the forecast period. 
  • The United States, as of 2019, is the largest producer of oil and gas. In the US, there are more than 900,000 active oil and gas wells, and more than 130,000 have been drilled since 2010.
  • In 2018, the United States has witnessed three significant oil discoveries, including two in the Gulf of Mexico, at Ballymore (545 Mb) at a depth of 2,000 m underwater, and at Appomattox (140 Mb) under 2,300 m of water. 
  • According to Canadian government report published in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020, and production is expected to increase from an offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas. 
  • The annual oil output of Mexico has been dropping, over the years, as the giant Cantrell field in the shallow waters of the Gulf of Mexico drying up. However, the Mexican government is trying to increase private investments in its controlled areas of the Gulf of Mexico.
  • Therefore, increasing oil and gas activities in the region are expected to increase the demand for subsea production and processing system market over the forecast period in North America region. 

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Competitive Landscape

The subsea production and processing system market is partially consolidated, due to the small number of companies operating in the industry. Some of the key players in this market include Schlumberger Limited, Halliburton Company, China Oilfield Services Limited, Weatherford International Plc. and Baker Hughes Company.

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Table Of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 4.3 Major Upcoming Upstream Projects

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry


    1. 5.1 Production System Component

      1. 5.1.1 Subsea Trees

      2. 5.1.2 Subsea Umbilicals, Risers, & Flowlines

      3. 5.1.3 Subsea Wellhead

      4. 5.1.4 Others

    2. 5.2 Processing System Type

      1. 5.2.1 Boosting

      2. 5.2.2 Separation

      3. 5.2.3 Injection

      4. 5.2.4 Gas Compression

    3. 5.3 Water Depth

      1. 5.3.1 Shallow Water

      2. 5.3.2 Deepwater and Ultra-Deepwater

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 South America

      5. 5.4.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Aker Solutions ASA

      2. 6.3.2 Baker Hughes Company

      3. 6.3.3 China Oilfield Services Limited

      4. 6.3.4 Halliburton Company

      5. 6.3.5 Kerui Group Co. Ltd

      6. 6.3.6 National-Oilwell Varco, Inc.

      7. 6.3.7 Oceaneering International

      8. 6.3.8 Schlumberger Limited

      9. 6.3.9 TechnipFMC PLC

      10. 6.3.10 Weatherford International PLC

  7. *List Not Exhaustive

** Subject to Availability

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