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FPSO Market Research Report Information By Type (Converted, New Build, and Redeployed), By Operator (Small Independent, Large Independent, Leased Operator, and Major National Oil Companies (NOCs)), By Application (Shallow Water, Deep Water, and Ultra-deep Water), By Hull (Single Hull, and Double Hull), By Propulsion (Self-propelled and Towed), And By Region (North America, Europe, Asia-Pacific, And Rest of The World) โ€“Market Forecast Till 2032


ID: MRFR/E&P/14554-HCR | 128 Pages | Author: Rahul Gotadki| December 2024

Global FPSO Market Overview


FPSO market size was valued at USD 4.8 Billion in 2022. The FPSO Market industry is projected to grow from USD 5.4 Billion in 2023 to USD 13.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.50% during the forecast period (2024 - 2032). The rise in exploration activities brought on by the depletion of resources and the growth in deepwater and ultra-deepwater drilling necessitates the usage of FPSO to lower operating costs. are expected to be a significant market driver for the FPSO Market.


FPSO Market Overview


In April 2024, after receiving necessary government and bureaucratic approvals, ExxonMobil made the last investment for the construction of the Whiptail development located off the coast of Guyana.


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


FPSO Market Trends




  • Increasing offshore oil & gas exploration and production and increasing Investments is driving the market growth




Market CAGR for FPSO is being driven by the increasing offshore oil & gas exploration and production and increasing investments. The surge in offshore resource exploration and development, particularly in deepwater and ultra-deepwater regions, is gaining momentum as conventional onshore assets pose increasing challenges. As indicated by oilfield technology company SLB, investment in offshore oil and gas exploration is projected to rise by more than 20 percent in 2023. SLB notes that there are currently over 400 operational offshore rigs, and forecasts anticipate a "low to mid-teens" increase in 2023, followed by "further double-digit growth" in 2024. The outlook remains positive beyond 2024, with SLB predicting that over 30 countries will collectively generate more than $500 billion in final investment decisions (FIDs) from 2022 to 2025, with over $200 billion attributed to deepwater exploration.


The escalating demand for Floating Production Storage and Offloading (FPSO) units is a direct result of increased investments in offshore oil and gas exploration, particularly in deepwater and ultra-deepwater locations, propelling the market forward. The depletion of existing onshore oil and gas fields is a key driver for the uptick in exploration activities in offshore deepwater areas. Noteworthy offshore fields like those in the North Sea, Brazil, and West Africa are presenting significant opportunities for stakeholders in the FPSO market. As a result, it is anticipated that throughout the projection period, demand for the FPSO Market will increase due to the Increasing offshore oil & gas exploration and production and increasing Investments. Thus, driving the FPSO Market revenue.


FPSO Market Segment Insights


FPSO Market Type Insights


The FPSO Market segmentation, based on Type includes Converted, New Build, and Redeployed. The converted segment dominated the market, accounting for 58% of market revenue. Transforming existing assets, like ships or vessels, into new applications offers a cost-effective and time-saving solution. The conversion of existing structures allows for resource repurposing, minimizing the necessity for extensive construction. This aspect contributes significantly to the market share of the converted segment. Furthermore, the conversion process facilitates the customization of assets to meet specific requirements, catering to diverse applications and operational needs. The adaptability and flexibility of the converted segment make it highly appealing to industries seeking tailored solutions.


Figure 1: FPSO Market, by Type, 2023 & 2032 (USD Billion)


FPSO Market, by Type, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


FPSO Market Operator Insights


The FPSO Market segmentation, based on End-User includes Small Independent, Large Independent, Leased Operator, and Major National Oil Companies (NOCs). The major national oil companies (NOCs) segment dominated the market, accounting for 58% of market revenue. National oil companies have a distinctive role in the energy system, and navigating the transition away from fossil fuels requires addressing the impact of these entities and their influence on states dependent on oil and gas. Regarding energy security, the majority of NOCs are tasked with protecting and efficiently producing national oil and gas resources in alignment with government priorities. These companies epitomize the objective of asserting national control over a vital economic resource, as opposed to entrusting the industry to private companies with potentially conflicting interests.


FPSO Market Application Insights


The FPSO Market segmentation, based on Application includes Shallow Water, Deep Water, and Ultra-deep Water. The direct sales segment dominated the market, accounting for 60% of market revenue. The installation and mooring of FPSOs in shallow waters are characterized by lower technical complexity compared to deepwater environments. The stability and shallowness of the seabed in these areas facilitate more straightforward installation procedures, leading to a reduction in both time and costs associated with deploying FPSO systems.


FPSO Market Hull Insights


The FPSO Market segmentation, based on Hull includes Single Hull and Double Hull. The double hull segment dominated the market, accounting for 60% of market revenue. FPSO hulls usually feature a double-hulled design, offering increased safeguarding against potential oil spills and ensuring environmental safety. Engineers meticulously optimize the shape and size of the hull to maintain optimal stability while accommodating diverse production equipment and storage tanks.


FPSO Market Propulsion Insights


The FPSO Market segmentation, based on Propulsion includes Self-propelled and Towed. The self-propelled segment dominated the market, accounting for 60% of market revenue. The versatility and adaptability of self-propelled equipment make them suitable for a wide range of applications across different terrains and environments. Their ability to navigate challenging or remote locations adds to their market appeal. Furthermore, advancements in technology and engineering have led to the creation of highly efficient and reliable self-propelled solutions, further solidifying their position in the market.


FPSO Market Regional Insights


By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the FPSO market in North America can be attributed to several key factors. U.S. onshore output experienced a decline of 0.3 million b/d in 2017 and 0.8 million b/d in 2016. While deepwater projects are gaining popularity, the majority of offshore production still takes place in shallow seas due to their lower costs and technical complexity. The exploration of deeper waters is deemed more expensive and challenging for companies, but advancements in technology and the exhaustion of shallower possibilities have led to an increased focus on progressively deeper seas, particularly in regions such as Brazil and the Gulf of Mexico.


Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: FPSO MARKET SHARE BY REGION 2023 (USD Billion)


FPSO MARKET SHARE BY REGION 2022


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe FPSO Market accounts for the second-largest market share as Prominent oil and gas extraction firms like Petrobras are expanding their offshore exploration and production endeavors. Petrobras, in particular, holds a majority of its oil reserves in offshore fields, prompting an increase in drilling activities at progressively greater depths. Additionally, the company anticipates the deployment of over 10 new production systems in the next five years, contributing to a projected 5% growth in production by 2023. The swift growth of the FPSO market can be attributed to the escalating number of offshore exploration and development initiatives and advancements in deepwater technology. Further, the German FPSO Market held the largest market share, and the UK FPSO Market was the fastest-growing market in the European region


The Asia-Pacific FPSO Market is expected to grow at the fastest CAGR from 2024 to 2032. Significant investments are anticipated in the offshore oil and gas industry from 2020 to 2025. In 2019, the China National Offshore Oil Corporation (CNOOC) committed a substantial USD 11.46 billion, and projections indicate an expected investment ranging from USD 12.34 billion to USD 13.79 billion in 2020. CNOOC anticipates oil production from offshore fields to exceed 555 million BOE in 2021 and reach 590 million BOE in 2022, reflecting the evident expansion of the floating production system in the country. Moreover, China’s FPSO Market held the largest market share, and the Indian FPSO Market was the fastest-growing market in the Asia-Pacific region.


FPSO Market Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development to expand their product lines, which will help the FPSO market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the FPSO industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the FPSO industry to benefit clients and increase the market sector. In recent years, the FPSO industry has offered some of the most significant advantages to the offshore oil and gas sector. Major players in the FPSO Market, including MODEC Inc, Bluewater Energy Services B.V., Malaysia International Shipping Corporation Berhe, Mitsui Engineering and Shipbuilding, MOL Group, Marubeni Corporation, Aker Floating Production Group, BW Offshore, Maersk, Bumi Armada Berhad, Yinson Holdings Berhad, SBM Offshore N.V., Petrofac, Teekay Corporation are attempting to increase market demand by investing in research and development operations.


Modec Inc., a subsidiary of Mitsui Engineering & Shipbuilding Co Ltd, serves as a comprehensive contractor specializing in the engineering, procurement, construction, and installation of floating production systems. The company globally provides floating production storage and offloading (FPSO) vessels, floating storage and offloading (FSO) vessels, tension leg platforms (TLPs), production semi-submersibles, and mobile offshore production units (MOPUs) for oil and gas companies. Modec extends its services to include floating production system operation and maintenance, as well as the application of new technologies for various gas production floaters and offshore wind power projects. Operating across Asia, the North Sea, the Gulf of Mexico, Brazil, West Africa, and Oceania, Modec is headquartered in Chuo-ku, Tokyo, Japan. In May 2023, MODEC, a Japanese FPSO supplier, secured a contract from Equinor to provide an FPSO vessel for the BM-C-33 block in the Campos Basin offshore Brazil. Alongside delivering the FPSO, expected to be completed by 2027, MODEC will also furnish Equinor with operations and maintenance services for the initial year of the FPSO's oil production.


MOL Group is an integrated oil and gas company engaged in the exploration, development, and production of crude oil, natural gas, and condensate. The company also has refining, transportation, and storage facilities for crude oil, and it markets crude oil products on both wholesale and retail levels. Additionally, MOL produces and sells petrochemicals. With exploration and production operations in various regions, including the Kurdistan region of Iraq, Russia, Kazakhstan, Pakistan, Egypt, Central-Eastern Europe, and Africa, MOL operates crude oil refineries and petrochemical plants in Hungary, Slovakia, and Croatia. MOL provides diverse services, encompassing natural gas transmission and storage, fleet management, oilfield services, car sharing, mobility solutions, rental services, real estate management, and maintenance services. The company also owns a network of service stations located in Central and South-Eastern Europe. MOL is headquartered in Budapest, Hungary.


Key companies in the FPSO Market include



  • MODEC Inc

  • Bluewater Energy Services B.V.

  • Malaysia International Shipping Corporation Berhe

  • Mitsui Engineering and Shipbuilding

  • MOL Group

  • Marubeni Corporation

  • Aker Floating Production Group

  • BW Offshore

  • Maersk

  • Bumi Armada Berhad

  • Yinson Holdings Berhad

  • SBM Offshore N.V.

  • Petrofac

  • Teekay Corporation


FPSO Industry Developments


May 2023:In May 2023, SBM Offshore and Esso Exploration & Production Guyana entered into a 10-year Operations and Maintenance Enabling Agreement, wherein SBM Offshore will oversee the operations and maintenance of four FPSOs: Liza Destiny, Liza Unity, Prosperity, and ONE GUYANA


April 2023:In April 2023, Houston-based KBR made an unexpected acquisition of an engineering contract for Equinor's Bay du Nord project, located in the offshore eastern region of Canada and valued at USD 9.4 billion. The contract includes the potential provision of detailed design and procurement management services for the FPSO unit until its completion.


April 2023: Shell recommenced operations at the UK Central North Sea Pierce field which was largely offline due to works carried out on the field to assist gas production. The floating production storage and offloading (FPSO) vessel, Haewene Brim, that was employed for hydrocarbon production at the Pierce field, underwent major changes. Further, a new subsea gas export line reaching the SEGAL grid, which conveys gas to the St Fergus facility to the north of Aberdeen, was also laid to enhance the facility. This allows extraction of gas from the Pierce field, which had earlier been limited to oil production.


FPSO Market Segmentation


FPSO Market Type Outlook



  • Converted

  • New Build

  • Redeployed


FPSO Market Operator Outlook



  • Small Independent

  • Large Independent

  • Leased Operator

  • Major National Oil Companies (NOCs)


FPSO Market Application Outlook



  • Shallow Water

  • Deep Water

  • Ultra-deep Water


FPSO Market Hull Outlook



  • Single Hull

  • Double Hull


FPSO Market Propulsion Outlook



  •  Self-propelled

  •  Towed


FPSO Market Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Attribute/Metric Details
Market Size 2022 USD 4.8 Billion
Market Size 2023 USD 5.4 Billion
Market Size 2032 USD 13.8 Billion
Compound Annual Growth Rate (CAGR) 12.50% (2024-2032)
Base Year 2023
Market Forecast Period 2024-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Operator, Application, Hull, Propulsion, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled MODEC Inc, Bluewater Energy Services B.V., Malaysia International Shipping Corporation Berhe, Mitsui Engineering and Shipbuilding, MOL Group, Marubeni Corporation, Aker Floating Production Group, BW Offshore, Maersk, Bumi Armada Berhad, Yinson Holdings Berhad, SBM Offshore N.V., Petrofac, Teekay Corporation
Key Market Opportunities The technological advancements and innovation in FPSO systems
Key Market Dynamics The growing demand for offshore hydrocarbon reserves, coupled with the advantages offered by FPSOs


Frequently Asked Questions (FAQ) :

The FPSO Market size was valued at USD 4.8 Billion in 2022.

The FPSO Market is projected to grow at a CAGR of 12.50% during the forecast period, 2024-2032.

North America had the largest share of the market

The key players in the market are MODEC Inc, Bluewater Energy Services B.V., Malaysia International Shipping Corporation Berhe, Mitsui Engineering and Shipbuilding, MOL Group, Marubeni Corporation, Aker Floating Production Group, BW Offshore, Maersk, Bumi Armada Berhad, Yinson Holdings Berhad, SBM Offshore N.V., Petrofac, Teekay Corporation

The Converted segment dominated the market in 2022.

The Shallow Water segment had the largest share in the market.

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