How big is the FPSO Market?

The FPSO Market size is expected to reach USD 12.04 billion in 2024 and grow at a CAGR of 8.51% to reach USD 18.11 billion by 2029. Read More

What is the current FPSO Market size?

In 2024, the FPSO Market size is expected to reach USD 12.04 billion. Read More

Who are the key players in FPSO Market?

CNOOC Ltd., Petroleo Brasileiro SA (Petrobras), Shell Plc., Exxon Mobil Corp and TotalEnergies SE are the major companies operating in the FPSO Market. Read More

Which is the fastest growing region in FPSO Market?

South America is estimated to grow at the highest CAGR over the forecast period (2024-2029). Read More

Which region has the biggest share in FPSO Market?

In 2024, the South America accounts for the largest market share in FPSO Market. Read More

What years does this FPSO Market cover, and what was the market size in 2023?

In 2023, the FPSO Market size was estimated at USD 11.02 billion. The report covers the FPSO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the FPSO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

Which segment dominates the FPSO Market in terms of operator ownership?

Major National Oil Companies (NOCs) dominate the FPSO Market in terms of operator ownership. Read More

FPSO Market Trends

Market Trends of FPSO Industry

The Contractor-owned Segment is Expected to Dominate the Market

There are three primary methods for procuring FPSOs: new build, conversion of an existing vessel, and redeployment of an existing unit. Among these options, redeployment poses several challenges due to the highly customized nature of the FPSO for a specific field. As a result, operators have predominantly favored the new build and conversion approaches, often relying on third-party contractors with specialized expertise for these services over the past two decades.
Contractor-owned FPSOs offer cost advantages over operator-owned FPSOs or fixed platforms. Contractors specializing in designing, constructing, and operating FPSOs can achieve economies of scale and optimize their fleet utilization, reducing operator costs. This makes contractor-owned FPSOs an attractive option for operators seeking cost-effective solutions.
Contractor-owned FPSOs are typically available for lease, providing operators greater flexibility in field development. Leasing allows operators to access and deploy FPSOs with minimal upfront capital investments, benefiting smaller operators or projects with uncertain production profiles.
With increasing offshore activities, the cost of exploration and production activities is increasing, and FPSO-related activities are being outsourced to contractors. This allows operators to allocate their resources and attention to areas where they can create the most value, leaving the FPSO operations to specialized contractors.
For instance, according to Baker Hughes Rig Count, at the end of 2023, there were around 246 offshore rigs, which witnessed about 6.4% compared to the previous year, signifying an increase in offshore exploration and production activities, consequently driving the demand for FPSOs.
In May 2023, MODEC, a Japanese FPSO supplier, secured a contract from Equinor to supply an FPSO vessel for the BM-C-33 block in the Campos Basin offshore Brazil. In addition to delivering the FPSO, which is expected to be completed by 2027, MODEC will provide Equinor with operations and maintenance services for the first year of the FPSO's oil production. Subsequently, Equinor plans to take over the operational responsibilities of the FPSO.
There are several untapped offshore reserves globally that have not been discovered yet or are in the process of exploration. As oil and gas companies are focusing on discovering these untapped oil and gas reserves in the future, the demand for FPSO is expected to increase.
With increasing demand for FPSO and its advantages over other types of FPSO, the Contractor-owned FPSO is expected to dominate the market during the forecast period.

FPSO Market: Number of Offshore Oil Rigs, in Units, Global, 2010 - 2023

Understand The Key Trends Shaping This Market

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South America is Expected to Dominate the Market

South America is anticipated to exert the highest influence on the global FPSO market. Particularly, Brazil and Guyana have emerged as key players in this market, experiencing a significant surge in demand for FPSOs in recent years.
South America has significant offshore oil and gas reserves, particularly in Brazil and Guyana. These reserves are located in deepwater and ultra-deepwater areas, requiring FPSOs for efficient production, storage, and offloading. The potential for large-scale discoveries and production in these regions drives the demand for FPSOs.
For instance, in January 2024, Offshore Frontier Solution Pte Ltd awarded a contract for an electrical system and associated digital solutions on an ExxonMobil floating production storage and offloading (FPSO) vessel for the South American Uaru oil field. The unit will perform operations approximately 200 kilometers off the coast of Guyana.
Moreover, South America has extensive pre-salt reserves, especially in Brazil's Santos and Campos Basins. These reserves are located beneath thick layers of salt, presenting technical challenges for exploration and production. FPSOs are well-suited for these challenging environments, as they can safely operate in deepwater and handle the complex processing requirements of pre-salt fields. Thus, in the future, with the upcoming deep and ultra-deep oil and gas projects' exploration and production in the region, demand for the FPSO is expected to grow.
Therefore, as per the above points, South America is expected to dominate the FPSO market during the forecast period.