Subsea Equipment Market Size, Regional Outlook, Growth Potential, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3514
Subsea Equipment Market size will show considerable growth from 2021-2027 on account of the soaring deepwater production and exploration activities coupled with the higher recovery of oil prices. The rising depletion of the conventional onshore petroleum reserves has prompted the surging demand for energy. In addition, the upsurge in the number of investments will play an important role in the market expansion.
With respect to component, the subsea equipment market size from the subsea umbical riser and flowlines (SURF) segment will expand with the mount in offshore oil extraction activities. On account of their optimum resistance to mechanical and chemical stresses, these components are largely deployed to offer a consistent and reliable supply of services across harsh environments below the sea. Rising utility to cater to the growing offshore deep and ultra-deepwater needs will foster the product penetration.
Based on type, the subsea equipment industry is segmented into subsea production and subsea processing. Among these, the subsea processing segment is likely to account for a substantial revenue share due to the growing focus on improving the recovery rate across the shallow water fields. These systems are increasingly adopted to enhance the production of hydrocarbon in a cost-optimized approach in new field developments, and the existing facilities. Higher utility in oil-water and gas-liquid separation, as well as gas-liquid-multiphase boosting, will additionally anchor the product demand.
The subsea production equipment market will attain a positive impetus owing to the mounting number of maturing onshore oilfields. The rise in the instances of deepwater and ultra-deepwater activities, mainly across Europe and South America will favor the market dynamics.
Regionally, the North America subsea equipment market is set to witness notable proceeds through 2027 driven by the growing investments across the top-most oil-producing countries. It has been estimated that the capital investment for conventional oil and natural gas in Canada reached $17.2 billion in 2020 and is expected to record $20 billion in 2021.
Demand for subsea equipment in South America will grow with the influx of upcoming projects in deepwater and ultra-deepwater coupled with the multiple investments and the escalating energy demand in the region. The increasing government support and the liberalization of the oil & gas sector, along with the emergence of various cutting-edge technologies will add positive impetus to the market progression.
With respect to competitive dynamics, Aker Solutions (Aker ASA, Aker Holding), Siemens, BHGE, FMC technologies (TechnipFMC), National Oil Varco, Nexans, Schlumberger, Oceaneering International, Dril-Quip Inc., Transocean (Transocean Ltd.), and Technip are some of the prominent subsea equipment market participants.
Strategic partnerships, mergers, and acquisitions, together with novel product developments, investments, and contracts are actively undertaken by these companies to reinforce their competitive footprint in the business landscape.
For instance, in July 2021, Aker Solutions joined forces with Subsea 7 to secure the subsea scope contracts with Aker BP to supply subsea production systems for the KEG (Kobra East & Gekko) development project, located in the Alvheim area of the North Sea.
Similarly, in June 2021, OneSubsea contracted the subsea electrical equipment from Siemens to deliver a turnkey package for the Bacalhau oil field development, located in the presalt Santos basin offshore Brazil.
In another instance, in September 2019, Aker Solutions unveiled Intelligent Subsea, its latest offering crafted to accelerate field development and provide maximum performance.
Impact of the COVID-19 crisis on the subsea equipment market trends
The COVID-19 outbreak posed numerous challenges for various businesses ascribing to the enforcement of the nationwide lockdowns and social distancing policies. It also caused major ructions for the demand and utility of subsea equipment considering the delay in the offshore projects, which gave rise to substantial difficulties in the supply chain to various companies. The increasing degrees of efforts undertaken by numerous government and regulatory authorities are expected to drive market growth in the post-pandemic era.
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