July 19, 2024

Global Subsea Umbilicals, Risers, and Flowlines (SURF) Market Is Estimated To Witness High Growth Owing To Increasing Offshore Exploration and Production Activities

The global subsea umbilicals, risers, and flowlines (SURF) market is estimated to be valued at US$34.1 billion in 2021 and is expected to exhibit a CAGR of 12.9% over the forecast period of 2022 to 2030, according to a new report published by Coherent Market Insights.

  1. A) Market Overview:

The SURF market comprises subsea umbilicals, risers, and flowlines, which play a crucial role in offshore oil and gas exploration and production activities. Subsea umbilicals are used to provide power, control, and communication signals between various subsea equipment and the platform.

Risers are used to transport produced fluids from the seabed to the platform, while flowlines are used to transport these fluids to the surface. These products are essential for the successful operation of offshore facilities.

  1. B) Market Dynamics:

The SURF (Subsea Umbilicals, Risers, and Flowlines) Market  is driven by two main factors. Firstly, the increasing demand for oil and gas, coupled with the depletion of onshore reserves, has led to a shift towards offshore exploration and production activities. This has resulted in a growing need for subsea umbilicals, risers, and flowlines.

Additionally, technological advancements have made it possible to explore and produce oil and gas from deepwater and ultra-deepwater reserves. This has further boosted the demand for SURF products, as they are essential for extracting resources from these challenging environments.

For example, the development of floating production systems, such as floating production storage and offloading (FPSO) vessels, has opened up new opportunities for offshore oil and gas production. These systems require the installation of subsea umbilicals, risers, and flowlines for efficient operations.

  1. C) SWOT Analysis:

Strength:

  1. Technological advancements: Constant innovations in subsea technology have led to the development of more efficient and reliable SURF products.
  2. Growing offshore exploration and production activities: The increasing demand for oil and gas has resulted in a surge in offshore exploration and production, driving the demand for SURF products.

Weakness:

  1. High installation and maintenance costs: The installation and maintenance of subsea umbilicals, risers, and flowlines can be costly, which may deter some companies from investing in these products.
  2. Environmental concerns: Offshore oil and gas operations pose environmental risks, such as oil spills, which can impact the reputation of companies involved in such activities and potentially lead to stricter regulations.

Opportunity:

  1. Expansion into emerging markets: The growing energy demand in emerging markets presents opportunities for companies to expand their SURF operations in regions such as Asia-Pacific and Latin America.
  2. Adoption of renewable energy: The increasing focus on renewable energy sources, such as offshore wind farms, provides new avenues for SURF companies to diversify their offerings.

Threats:

  1. Volatility in oil and gas prices: Fluctuations in oil and gas prices can impact investments in offshore exploration and production, which can directly affect the demand for SURF products.
  2. Competition from alternative energy sources: The shift towards renewable energy sources could potentially reduce the long-term demand for oil and gas, impacting the SURF market.
  3. D) Key Takeaways:

The global SURF market is expected to witness high growth, exhibiting a CAGR of 12.9% over the forecast period. This growth is driven by increasing offshore exploration and production activities, as companies look to tap into offshore reserves to meet the rising demand for oil and gas.

In terms of regional analysis, the Asia-Pacific region is anticipated to be the fastest-growing and dominating region in the SURF market. The region is witnessing significant investments in offshore exploration and production activities, particularly in countries like China, India, and Australia.

Key players operating in the global SURF market include Prysmian Group, Aker Solutions, TechnipFMC plc, Subsea 7, Saipem S.p.A., McDermott International, Ltd., DeepOcean Group Holding BV, Schlumberger, Halliburton, NOV Inc., Vallourec, Oceaneering International, and Siemens