The increasing demand for oil and gas and growing focus on discovering new offshore reserves is driving the global FPSO market, are expected to drive market expansion in the near future at a CAGR of 4.7% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global FPSO Market” that contains information from 2019 to 2035.

The Global FPSO Market is estimated to register a CAGR of 4.7% during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global FPSO Market— include Yinson Holdings BERHAD, MODEC, Inc, Misc Group, Bumi Armada BERHAD, BW Offshore Limited, Petrovietnam Technical Services Corporation (PTSC), Altera Infrastructure, Bluewater Energy Services, Hyundai Heavy Industries, SBM Offshore and among others.

Market Highlights

The Global FPSO Market is estimated to register a CAGR of 4.7% during the forecast period and is estimated to reach USD 11.29 Billion by 2035.

The increasing global demand for oil and gas is one of the primary drivers of growth in the Floating Production Storage and Offloading (FPSO) market. As global energy consumption continues to rise, driven by industrialization, urbanization, and population growth, the need for efficient and reliable offshore production solutions becomes more pressing. FPSOs are well-suited to meet these growing demands, particularly in deepwater and ultra-deepwater offshore fields, where traditional fixed platforms are not viable. FPSOs are particularly useful in these deepwater fields because they offer a more cost-effective and flexible alternative to traditional fixed platforms, which are often not feasible in ultra-deepwater or remote locations. The ability of FPSOs to produce, process, and store oil at sea, without the need for expensive and complex infrastructure, makes them the preferred option for operators in these challenging environments.

One of the prime examples of the rising demand for oil and gas driving the FPSO market is the development of offshore oil fields in Brazil. Brazil’s pre-salt oil fields, located deep beneath the ocean floor, have attracted significant investment due to their vast potential for oil production. These fields are located offshore in deepwater and ultra-deepwater zones, making FPSOs the ideal solution for extraction. According to a report from Wood Mackenzie, Brazil's Lula and Búzios fields are among the world’s largest oil fields under development, and FPSOs are crucial in ensuring that Brazil can meet its production goals while complying with environmental and operational regulations.

In addition to Brazil, countries like Nigeria and Angola in Africa have also seen a significant uptake of FPSOs as the demand for oil in these regions rises. In Angola, for instance, the Kaombo FPSO, one of the largest in Africa, is expected to produce up to 230,000 barrels of oil per day. This FPSO’s deployment is a direct response to the increased oil production targets in the region, driven by global market dynamics.

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Segment Analysis

The Global FPSO Market has been segmented based on By Water Depth, By Construction Type, By Hull Type, By Propulsion

Based on Water Depth, the FPSO market is segmented into: Shallow water, Deep water, Ultra-deep water. The Deep-water segment dominated the global market in 2024, while the Shallow water segment is projected to be the fastest–growing segment during the forecast period.

The deep-water segment of the global FPSO market encompasses offshore oil and gas fields located at water depths ranging from 400 meters to 1,500 meters. These FPSOs are designed to operate in more challenging environments compared to shallow water FPSOs, as they are exposed to stronger currents, harsher weather conditions, and greater technical challenges in terms of construction, installation, and maintenance. Due to the higher cost of operations and advanced technology required, deep water FPSOs tend to be larger, more complex, and technologically sophisticated. They often feature enhanced systems for subsea production and storage and are deployed in regions with significant reserves but no immediate access to land-based facilities. The deep water FPSO segment is a key driver of growth in offshore oil and gas production, with countries like Brazil, the Gulf of Mexico, and parts of West Africa representing major hubs for such developments.

Based on Construction Type, the FPSO market is segmented into: Converted, New build, Redeployed. The Converted segment dominated the global market in 2024, while the New build segment is projected to be the fastest–growing segment during the forecast period.

Converted Floating Production Storage and Offloading (FPSO) units refer to existing ships or tankers that are retrofitted for use as offshore production facilities. Typically, these conversions are performed on decommissioned oil tankers or cargo ships, which are repurposed to produce, process, and store oil and gas extracted from offshore fields. The conversion process involves significant modifications, including the installation of production equipment, living quarters, and other systems needed for offshore operations. Converted FPSOs are often more cost-effective compared to building new units, as they utilize existing structures. This segment of the FPSO market is particularly popular in regions where oil companies need to reduce upfront costs or where there is a shortage of specialized shipyards for new builds.

Based on Hull Type, the FPSO market is segmented into: Single hull, Double hull. The Single hull segment dominated the global market in 2024, while the Single hull segment is projected to be the fastest–growing segment during the forecast period.

A Single Hull FPSO (Floating Production, Storage, and Offloading unit) is a traditional design, consisting of a single hull structure where production facilities are located on the deck, and storage tanks are integrated within the hull. This type of FPSO is typically more vulnerable to environmental risks, such as oil spills and ship collisions, due to the lack of a second protective layer. Single hull FPSOs are more cost-effective in terms of construction and maintenance compared to double hull units, making them attractive for projects in less demanding environments. However, many single hull FPSOs are being phased out due to stricter environmental regulations and a growing emphasis on safety and sustainability in offshore oil and gas operations. As a result, the demand for single hull FPSOs is decreasing in favor of double hull designs.

Based on Propulsion, the FPSO market is segmented into: Self-propelled, Towed. The Self-propelled segment dominated the global market in 2024, while the Towed segment is projected to be the fastest–growing segment during the forecast period.

Self-propelled Floating Production Storage and Offloading (FPSO) units are designed to be able to move under their own power, without relying on tugboats or external assistance. These FPSOs are equipped with engines, thrusters, and a dynamic positioning system (DPS) that allows them to maintain their position while in operation, and sometimes even to reposition themselves in response to changing conditions or requirements. This capability makes them highly versatile, especially for projects in deepwater or remote offshore locations where tethering to fixed platforms is not feasible. Self-propelled FPSOs are particularly useful in fields with short-to-medium life spans or in regions where relocating the unit might be necessary for exploration or production optimization.

Regional Analysis

Based on the Region, the global FPSO is segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia-Pacific dominated the global market in 2024, while the South America is projected to be the fastest–growing segment during the forecast period.

Major demand factors driving the Asia Pacific market are the Asia Pacific region is witnessing rapid growth in the FPSO market, driven by increasing offshore exploration and production activities in countries like China, India, Malaysia, Indonesia, and Australia. Asia's offshore oil and gas reserves are vast, and the demand for FPSO units is fueled by the region's shift toward deepwater exploration, particularly in countries like Malaysia and Indonesia, where deepwater fields are abundant. Australia, with its major gas and oil projects in the Timor Sea and offshore Western Australia, is a significant contributor to the region's FPSO market. Moreover, Asia Pacific is seeing a rise in offshore gas developments, which are expected to further drive FPSO adoption for liquefied natural gas (LNG) production. The region's growing energy demand and investment in offshore infrastructure are pivotal in the expansion of the FPSO market.

Key Findings of the Study

• The Global FPSO Market is expected to reach USD 11.29 Billion by 2035, at a CAGR of 4.7% during the forecast period.


• The Asia Pacific region accounted for the fastest growing in the global market.


• Based on Construction Type, the Converted segment was attributed to holding the largest market in 2024.


• Yinson Holdings BERHAD, MODEC, Inc, Misc Group, Bumi Armada BERHAD, BW Offshore Limited, Petrovietnam Technical Services Corporation (PTSC), Altera Infrastructure, Bluewater Energy Services, Hyundai Heavy Industries, SBM Offshore and among others are the key market players.