Subsea Systems Market Size
| Study Period: | 2018- 2028 |
| Fastest Growing Market: | South America |
| Largest Market: | North America |
| CAGR: | > 6.1 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Subsea Systems Market Analysis
The global subsea systems market is expected to register a CAGR of more than 6.1% throughout the forecast period.
The market was negatively impacted by the outbreak of COVID-19, the crash in the price of crude oil, and delays in ongoing projects. Currently, the market has rebounded to pre-pandemic levels.
- Factors such as the increase in oil prices after the downturn period and growing investments in the offshore oil and gas sector are expected to be major drivers for the offshore oil and gas equipment and services market and, in turn, the subsea systems market during the forecast period. Moreover, the improving viability of offshore projects and rising activity in deepwater and ultra-deepwater reserves are likely to boost the market.
- However, the high installation cost of subsea equipment and risks associated with offshore drilling and production are expected to hinder the growth of the subsea systems market.
- Increasing deepwater activities in countries like Brazil, Egypt, the United States, Iran, and Qatar is likely to create several opportunities for the players in the subsea systems market.
- South America is expected to be the fastest-growing market for subsea systems. The majority of the demand comes from Brazil due to its recent activities in deepwater and ultra-deepwater and several upcoming projects.
Subsea Systems Industry Segmentation
Subsea systems are fully submerged ocean equipment, operations, or applications, especially when some distance offshore, in deep ocean waters, or on the seabed. The term is frequently used in connection with oceanography, marine or ocean engineering, ocean exploration, remotely operated vehicles (ROVs), autonomous underwater vehicles (AUVs), submarine communications or power cables, seafloor mineral mining, oil and gas, and offshore wind power.
The subsea systems market is segmented by type, component, and region. By type, the market is segmented into subsea production systems and subsea processing systems. By components, the market is segmented into subsea umbilical risers and flowlines (SURF), trees, wellheads, manifolds, and other components. The report also covers the market size and forecasts for the subsea systems market across major regions. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Type | |
| Subsea Production Systems | |
| Subsea Processing Systems |
| Component | |
| Subsea Umbical Riser and Flowlines (SURF) | |
| Trees | |
| Wellhead | |
| Manifolds | |
| Other Components |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Subsea Systems Market Trends
Subsea Production Segment to Dominate the Market
- With the rising number of maturing onshore oilfields in recent years, there has been growth in offshore exploration and production (E&P) activities. For instance, in the Permian Basin, the most critical basin in terms of crude oil production, the production from old wells has started to decline, and there is little scope for discovery in these areas.
- Global conventional resource discoveries and exploration spending as a percentage of total upstream investment reached 10% in 2021. It decreased in recent years, but exploration spending is expected to grow significantly as more offshore discoveries are made.
- For instance, in February 2022, EniSpA announced its first exploration well in Abu Dhabi. The company also revealed that it had recorded positive results from its first exploration well, XF-002, currently under drilling in offshore Block 2 Abu Dhabi (UAE) at 115 feet of water depth.
- With the increasing deepwater and ultra-deepwater activities in the South American, North American, and European regions, the deepwater fields' production is expected to reach 7.6 million barrels per day by 2025 and 9 million barrels per day by 2040. Hence, the demand for subsea production systems is expected to increase and further drive the market.
- Therefore, the oil and gas industry is shifting toward deeper regions to search for oil and gas to meet the increasing demand. Hence, the subsea production systems share is expected to be the largest among subsea system segments and drive the market.
To understand key trends, Download Sample Report
South America to Dominate the Market Growth
- As the energy demand increases rapidly, various countries, major companies, and investors are shifting their interest toward deep water, as it holds the potential for a guaranteed supply of oil and gas for a few decades. However, this requires employing technology to produce oil and gas reserves buried thousands of meters deep in the ocean floor. This has increased the need for subsea systems to improve recovery and reduce overall costs.
- In 2021, Brazil produced an average of 2.99 million barrels per day of crude oil and condensate, representing an increase of more than 150,000 barrels per day on average compared with 2019. According to the EIA, Brazil is a global leader in the development of deep-water and ultra-deep-water projects. In recent years, the change in government policies, such as liberalization in the oil and gas sector, has attracted foreign investment.
- The Libra oil field in the Santos Basin in Brazil is an ultra-deep-water basin and the largest oil field in Brazil. It was completed in 2021. Such projects are likely to positively impact the subsea systems market during the forecast period.
- Similarly, Argentina's state-backed energy company YPF expects its first offshore project to produce up to 200,000 barrels per day, which would drive the demand for subsea systems in the country as production resumes.
- Hence, the upcoming projects in deep-water and ultra-deep-water are likely to drive the growth of the subsea systems market during the forecast period in the South American region.
To understand geography trends, Download Sample Report
Subsea Systems Industry Overview
The subsea systems market is moderately consolidated. Some of the key players in the market (in no particular order) include Subsea 7 SA, TechnipFMC PLC, Akastor ASA, National-Oilwell Varco Inc., and Baker Hughes Co.
Subsea Systems Market Leaders
Subsea 7 SA
TechnipFMC PLC
Akastor ASA
National-Oilwell Varco Inc
Baker Hughes Co.
*Disclaimer: Major Players sorted in no particular order
Subsea Systems Market News
- February 2022: Norwegian Innova and the US Teledyne Energy System partnered to demonstrate the use of hydrogen for local power in subsea control systems. The companies took the validation test at the Norwegian Center for Offshore Education, Tau Autonomy Center in Tau, Norway, which included a well intervention simulation in which the Subsea Supercharger powered a subsea hydraulic pumping unit (sHPU) developed by Innova.
- February 2023: Equinor made a new commercial oil and gas discovery in the North Sea off Norway using a Transocean-owned rig. The discovery was made after the conclusion of the drilling of a wildcat well (31/1-3 S) and an appraisal well (31/1-3 A) in production license 923.
Subsea Systems Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Historic and Demand Forecast of Offshore CAPEX in billions, by Water Depth, 2019-2028
4.4 Historic and Demand Forecast of Offshore CAPEX in billions, by Region, 2019-2028
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Subsea Production Systems
5.1.2 Subsea Processing Systems
5.2 Component
5.2.1 Subsea Umbical Riser and Flowlines (SURF)
5.2.2 Trees
5.2.3 Wellhead
5.2.4 Manifolds
5.2.5 Other Components
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Akastor ASA
6.3.2 Subsea 7 SA
6.3.3 TechnipFMC PLC
6.3.4 National-Oilwell Varco Inc.
6.3.5 Baker Hughes Co.
6.3.6 Schlumberger Ltd.
6.3.7 Halliburton Co.
6.3.8 Oceaneering International
6.3.9 Kerui Group Co. Ltd.
6.3.10 Dril-Quip Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Subsea Systems Market Research FAQs
What is the study period of this market?
The Subsea Systems Market is studied from 2018 - 2028.
What is the growth rate of Subsea Systems Market?
The Subsea Systems Market is growing at a CAGR of >6.1% over the next 5 years.
Which region has highest growth rate in Subsea Systems Market?
South America is growing at the highest CAGR over 2021 - 2026.
Which region has largest share in Subsea Systems Market?
North America holds highest share in 2022.
Who are the key players in Subsea Systems Market?
Subsea 7 SA, TechnipFMC PLC, Akastor ASA, National-Oilwell Varco Inc, Baker Hughes Co. are the major companies operating in Subsea Systems Market.
Subsea Systems Industry Report
Statistics for the 2023 Subsea Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Subsea Systems analysis includes a market forecast outlook to for 2023 to 2028) and historical overview. Get a sample of this industry analysis as a free report PDF download.
Subsea Systems Report Snapshots
