FPSO Market is predicted to reach USD 13.8 billion at a CAGR of 12.50% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global FPSO Market”.

The FPSO Market is estimated to register a CAGR of 12.50% during the forecast period of 2023 to 2032.

MRFR recognizes the following companies as the key players in the global FPSO Market— MODEC Inc, Bluewater Energy Services B.V., Malaysia International Shipping Corporation Berhad, 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 Market Highlights

The global FPSO Market is accounted to register a CAGR of 12.50% during the forecast period and is estimated to reach USD 13.8 billion by 2032.

The market for floating production systems is anticipated to experience growth due to factors such as heightened offshore exploration activities and a strategic emphasis on the development of offshore oil and gas production.

Segment Analysis

The global FPSO Market has been segmented based on the Type, Operator, Application, Hull, and Propulsion.

Based on the Type, the market is segmented into Converted, New Build, and Redeployed. The converted segment was attributed to holding the largest market share in 2022.  FPSOs, which undergo conversion, are floating production, storage, and offloading vessels created by modifying existing transportation ships, typically tankers used for crude oil transportation. The conversion process typically takes several weeks. In contrast, the construction of new-build FPSOs requires several years.

Based on the Operator, the FPSO Market has been segmented into Small Independent, Large Independent, Leased Operator, and Major National Oil Companies (NOCs). The major national oil companies (NOCs) segment was expected to hold the largest market share in 2022. National oil companies (NOCs) are responsible for approximately 50% of the world's oil and gas production, holding a crucial position in the global economy. Despite their significant role, these entities are not thoroughly comprehended. Their diverse responsibilities encompass revenue generation, safeguarding national resources, and ensuring energy security.

Based on the Application, the FPSO Market has been segmented into Shallow Water, Deep Water, and Ultra-deep Water. The shallow water segment was expected to hold the largest market share in 2022. FPSO systems designed for shallow water have been created with various vessel-mooring configurations, which are chosen based on specific site conditions and project needs. Common configurations involve mooring to a CALM buoy using hawsers or hard yokes, spread mooring, internal or external turret catenary mooring systems, and mechanical mooring systems such as tower yoke moorings.

Based on the Hull, the FPSO Market has been segmented into Single Hull, and Double Hull. The double hull segment was expected to hold the largest market share in 2022. This can be attributed to the unique characteristic of the double-hull design, offering a dedicated containment space and a reduced risk of oil spills.

FPSOs with a double hull have multiple outer waterproof layers, providing comprehensive protection against moisture, water ingress, and marine pollution. In response to increasing concerns about water contamination resulting from tanker leaks of chemicals and oil into the ocean, significant players in the market are increasingly allocating investments toward double hull designs.

Based on the Propulsion, the FPSO Market has been segmented into Self-propelled and Towed. The self-propelled segment was expected to hold the largest market share in 2022. Self-propelled products and solutions provide superior mobility and flexibility compared to their non-self-propelled counterparts. Equipped with their propulsion systems, they can operate independently without relying on external power sources or towing. This autonomy facilitates efficient operations, reduces dependence on external resources, and enhances maneuverability, making self-propelled solutions highly desirable.

Regional Analysis

The global FPSO Market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The European FPSO Market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The FPSO Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World FPSO Market comprises of Middle East, Africa, and Latin America.

The largest market share for the FPSO Market was maintained by the North American regional sector. FPSOs are frequently employed in deepwater exploration and production endeavors, with heightened interest in deepwater reserves observed in the Gulf of Mexico for specific projects. Notably, the US Energy Information Administration reports a substantial upswing in offshore production in the Gulf of Mexico, recording a 6.5% increase from 2005 to 2015. Projections indicate a further surge in output of approximately 0.1 million barrels per day (b/d) in 2016 and an additional 0.2 million b/d in 2017, attributed to the completion of significant projects during these years.

Moreover, the Europe market has been persistently growing over the forecast period. The growth of the FPSO market in Europe is primarily propelled by the increasing activities in offshore exploration and production. Over the past few decades, there has been a substantial rise in offshore oil and gas exploration and production. Additionally, the discovery of new oil and gas reserves in the region is experiencing exponential growth. For instance, in September 2020, Equinor disclosed the discovery of new oil and gas fields at the Swisher prospect. The company also confirmed the identification of two oil fields in the Flemish Pass basin offshore Newfoundland.

As of July 1, 2018, China boasts the largest FPSO fleet in the Asia-Pacific region, with 13 in operation and 3 under construction. Australia follows in second place with 9 operating FPSOs and 2 under construction. The growing energy demand is anticipated to be a significant driver for the floating production systems market in the coming decade. The surge in exploration activities, reaching unprecedented levels, compels operators to work in deeper waters, necessitating advanced technology and equipment. Additionally, the capacity for oil storage and offloading is crucial, further fueling the expansion of the FPSO market.

Furthermore, the rest of the world's FPSO Market is divided into the Middle East, Africa, and Latin America.  South America possesses substantial offshore oil and gas reserves, particularly notable in Brazil and Guyana. These reserves are situated in deepwater and ultra-deepwater regions, necessitating the use of FPSOs for efficient production, storage, and offloading. The potential for significant discoveries and production in these areas is a key driver for the demand for FPSOs.

A notable example is in November 2022 when Diamond Offshore secured a drilling program contract from Petrobras in Brazil for its ultra-deepwater semi-submersible rig, Ocean Courage. The contract spans four years, with an option to extend for an additional four years. The firm term of the contract is estimated to be valued at around USD 429 million, inclusive of a mobilization fee and service provisions.

Key Findings of the Study

• The global FPSO Market is expected to reach USD 13.8 billion by 2032, at a CAGR of 12.50% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market because of factors such as rising oil and gas investments along with the development and exploration of new plays and projects in the region.


• Based on type, the converted segment was attributed to holding the largest market in 2022, with an approximate market share of 55–60%.


• 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