The latest forecast shows that from 2016 to 2026, the global FPSO will grow strongly at the rate of 11.8%, and the global FPSO market revenue is expected to reach US $8.3 billion by the end of 2026.
A report from transparency market research market (TMR) points out that due to the continuous depletion of existing oil reserves, the demand for alternative oil sources is growing, which promotes the development of global FPSO market.
Geographically, Latin America had a large share of the FPSO market until 2016. Brazil is still expected to have a significant share of the global FPSO market in the next few years, and the growth in this region is due to the huge investment in the deep water region.
In terms of ship types, the global FPSO market can be divided into refitting, new construction and redeployment. However, in the forecast period from 2016 to 2026, the modified FPSO will occupy a leading position in the global FPSO market.
TMR believes that due to the deepening of global modernization and industrialization, the demand for reliable power is also growing, which promotes the growth of the global FPSO market. In addition, the increase of investment in deepwater, ultra deepwater and other fields has promoted the increase of offshore activities in these fields and stimulated the rapid growth of FPSO market. At the same time, the increase of oil and gas consumption will also promote the development of oil and gas fields, thus driving the global FPSO market to strengthen.
On the other hand, FPSO can avoid emergencies such as hurricanes, typhoons and icebergs by repositioning to safer areas, and can extract hydrocarbons from the seabed for further treatment. These advantages become the catalyst for the expansion of global FPSO market.
TMR said that the FPSO market is large and wide, and the installation of FPSO devices requires a lot of capital investment and financing. In addition, additional costs such as testing, operation and deployment also need a lot of capital, and the increase of labor cost and raw material cost also makes FPSO cost increase.
However, with the increase of cost, the return on investment of FPSO is low. Production infrastructure in remote areas is challenging and expensive, and these factors may limit the development of FPSO market in the next few years.