Risers Market size is expected to grow commendably over 2021-2027. This growth is driven by the strong focus on integrating advanced riser systems across industries to reduce rig time and ensure significant cost savings. Likewise, the development of drill riser buoyancy systems for deep-sea mining applications will also add impetus to the industry demand over the foreseeable future.
A riser refers to a specially constructed pipe that moves fluid between the subsea equipment and surface bodies including platforms, FPSOs (floating production storage and offloading vessels), and drill platforms.
Growing investment interest towards offshore oil and gas exploration activities worldwide is one of the key trends characterizing the overall risers market dynamics over 2021-2027. In June 2021, the Australian government opened the bidding for over 21 exploration blocks across Carnarvon and other basins to promote offshore oil and gas exploration in the region. Furthermore, the increasing number of deepwater upstream projects, particularly in Southeast Asia, to meet the robust demand for oil and gas, will also proliferate the need for gas pipe risers over the forthcoming years. However, the implementation of strict norms to halt the issuance of deep seabed mining contracts by regulatory bodies across the globe may impede the adoption of risers for mining in the years ahead.
Steel catenary rising systems (SCRs) are poised to emerge as a prominent segment for the risers market trends by 2027, on account of their rising popularity for use in deepwater applications. Growth from this segment will further be escalated by the significant usage advantages of SCRs in terms of cost, weight, and induced environment loading, as compared to hybrid or flexible risers.
On the regional front, the North America risers industry is anticipated to amass considerable profits by 2027, which is attributable to the growing number of deepwater projects across the region. In 2019, Total announced the FID (final investment decision) to establish the Anchor oil field, along with the commencement of FEED (front-end engineering and design) for the North Platte discovery. Both these projects are located in the U.S. Gulf of Mexico, off the Louisiana coast.
The competitive landscape of the global risers market consists of companies such as Subsea 7, Saipem (Eni), BHGE, Vallourec, Claxton Engineering, National Oilwell Varco, DNV-GL, TechnipFMC, and Aker Solutions, among others. These firms are implementing strategies such as new product launches, collaborations, and acquisitions to gain a competitive advantage over rivals across the global market. For instance, in June 2021, Subsea 7 announced a major contract awarded to Subsea Integration Alliance by Equinor to develop the Bacalhau field, located 185 km from the costs of São Paulo, Brazil. This project includes 140 km of rigid risers and flowlines, among other subsea equipment, for efficient deepwater developments in the region.
Reduced demand for crude oil and the production imbalance in the wake of the coronavirus pandemic has resulted in a price crash. Various companies across the oil and gas sector have initiated a spate of delays as well as postponements of maintenance campaigns as a part of their cost-cutting strategy. Factors such as these could result in the declining offshore oil and gas exploration activities and in turn, impede the risers industry outlook over the projected timeframe.
However, the gradual revival of offshore drilling activity may aid in the industry recovery over the forthcoming years. According to Baker Hughes, the number of oil-directed rigs increased by 7 in September 2021. Moreover, the rising consumption of natural gas, driven by the growth of the electric power sector, will also boost exploration activities and subsequently contribute to the deployment of riser systems worldwide.