FPSO Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 – 2034
The Global FPSO Market, valued at USD 4.3 billion in 2024, is projected to grow at a robust CAGR of 12.5% from 2025 to 2034. The key drivers of this growth include substantial investments in offshore exploration and the advancement of deepwater technologies. As onshore oil reserves decline and the costs associated with onshore infrastructure development rise, FPSOs are becoming increasingly favorable due to their ability to operate without the need for fixed structures. This flexibility in offshore operations is a significant factor in driving market expansion. Furthermore, FPSOs’ capacity to accelerate oil and gas production in a cost-effective manner and their increasing use in the exploration of marginal reserves in remote offshore areas are strengthening their adoption across the industry.
The market is also witnessing a surge in the demand for converted FPSOs, expected to surpass USD 3 billion by 2034. Converted units offer notable advantages over new builds, including reduced capital expenses, faster deployment, and enhanced operational flexibility. This segment benefits from the availability of retired FPSOs and oil tankers that can be repurposed, requiring only a fraction of the investment compared to newly constructed vessels with comparable features. As a result, operators are increasingly opting for converted FPSOs to reduce upfront costs and improve project timelines.
Additionally, the ultra-deepwater FPSO segment is anticipated to grow steadily, with a projected CAGR of over 7% through 2034. The shift toward ultra-deepwater exploration, combined with advances in seismic and drilling technologies, is boosting the adoption of FPSOs in deeper offshore basins. These regions, which often contain larger oil reserves, are becoming increasingly accessible thanks to improved exploration technologies, creating favorable conditions for FPSO deployment.
The FPSO market in Brazil is expected to exceed USD 2.5 billion by 2034. This growth is largely driven by the discovery of vast offshore oil reserves, supported by favorable government policies and significant investments in the oil and gas exploration sector. Additionally, the increasing focus on reducing emissions and diversifying energy sources is shaping the future of the FPSO market in the region as operators work to meet stringent environmental standards while maintaining efficient offshore operations.
The market is also witnessing a surge in the demand for converted FPSOs, expected to surpass USD 3 billion by 2034. Converted units offer notable advantages over new builds, including reduced capital expenses, faster deployment, and enhanced operational flexibility. This segment benefits from the availability of retired FPSOs and oil tankers that can be repurposed, requiring only a fraction of the investment compared to newly constructed vessels with comparable features. As a result, operators are increasingly opting for converted FPSOs to reduce upfront costs and improve project timelines.
Additionally, the ultra-deepwater FPSO segment is anticipated to grow steadily, with a projected CAGR of over 7% through 2034. The shift toward ultra-deepwater exploration, combined with advances in seismic and drilling technologies, is boosting the adoption of FPSOs in deeper offshore basins. These regions, which often contain larger oil reserves, are becoming increasingly accessible thanks to improved exploration technologies, creating favorable conditions for FPSO deployment.
The FPSO market in Brazil is expected to exceed USD 2.5 billion by 2034. This growth is largely driven by the discovery of vast offshore oil reserves, supported by favorable government policies and significant investments in the oil and gas exploration sector. Additionally, the increasing focus on reducing emissions and diversifying energy sources is shaping the future of the FPSO market in the region as operators work to meet stringent environmental standards while maintaining efficient offshore operations.
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Market definitions
1.2 Base estimates & calculations
1.3 Forecast calculation
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid
1.4.2.2 Public
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry synopsis, 2021 - 2034
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.2 Regulatory landscape
3.3 Industry impact forces
3.3.1 Growth drivers
3.3.2 Industry pitfalls & challenges
3.4 Growth potential analysis
3.5 Porter's analysis
3.5.1 Bargaining power of suppliers
3.5.2 Bargaining power of buyers
3.5.3 Threat of new entrants
3.5.4 Threat of substitutes
3.6 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Strategic dashboard
4.3 Innovation & sustainability landscape
CHAPTER 5 MARKET SIZE AND FORECAST, BY PRODUCT, 2021 – 2034 (USD MILLION, UNITS, ‘000 BOPD)
5.1 Key trends
5.2 Converted
5.3 New built
CHAPTER 6 MARKET SIZE AND FORECAST, BY WATER DEPTH, 2021 – 2034 (USD MILLION, UNITS, ‘000 BOPD)
6.1 Key trends
6.2 Shallow
6.3 Deep
6.4 Ultra-deep
CHAPTER 7 MARKET SIZE AND FORECAST, BY COUNTRY, 2021 – 2034 (USD MILLION, UNITS, ‘000 BOPD)
7.1 Key trends
7.2 U.S.
7.3 UK
7.4 Norway
7.5 China
7.6 India
7.7 Indonesia
7.8 Australia
7.9 Brazil
7.10 Guyana
7.11 Rest of the World
CHAPTER 8 COMPANY PROFILES
8.1 Bumi Armada
8.2 BW Offshore
8.3 CNOOC
8.4 DNV
8.5 Hanwha
8.6 Hyundai Heavy Industries
8.7 KBR
8.8 MODEC
8.9 Petrobras
8.10 Saipem
8.11 SBM Offshore
8.12 Shell
8.13 SHI-MCI
8.14 TechnipFMC
8.15 Woodside
8.16 Yinson
1.1 Market definitions
1.2 Base estimates & calculations
1.3 Forecast calculation
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid
1.4.2.2 Public
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry synopsis, 2021 - 2034
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.2 Regulatory landscape
3.3 Industry impact forces
3.3.1 Growth drivers
3.3.2 Industry pitfalls & challenges
3.4 Growth potential analysis
3.5 Porter's analysis
3.5.1 Bargaining power of suppliers
3.5.2 Bargaining power of buyers
3.5.3 Threat of new entrants
3.5.4 Threat of substitutes
3.6 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Strategic dashboard
4.3 Innovation & sustainability landscape
CHAPTER 5 MARKET SIZE AND FORECAST, BY PRODUCT, 2021 – 2034 (USD MILLION, UNITS, ‘000 BOPD)
5.1 Key trends
5.2 Converted
5.3 New built
CHAPTER 6 MARKET SIZE AND FORECAST, BY WATER DEPTH, 2021 – 2034 (USD MILLION, UNITS, ‘000 BOPD)
6.1 Key trends
6.2 Shallow
6.3 Deep
6.4 Ultra-deep
CHAPTER 7 MARKET SIZE AND FORECAST, BY COUNTRY, 2021 – 2034 (USD MILLION, UNITS, ‘000 BOPD)
7.1 Key trends
7.2 U.S.
7.3 UK
7.4 Norway
7.5 China
7.6 India
7.7 Indonesia
7.8 Australia
7.9 Brazil
7.10 Guyana
7.11 Rest of the World
CHAPTER 8 COMPANY PROFILES
8.1 Bumi Armada
8.2 BW Offshore
8.3 CNOOC
8.4 DNV
8.5 Hanwha
8.6 Hyundai Heavy Industries
8.7 KBR
8.8 MODEC
8.9 Petrobras
8.10 Saipem
8.11 SBM Offshore
8.12 Shell
8.13 SHI-MCI
8.14 TechnipFMC
8.15 Woodside
8.16 Yinson
