The subsea umbilicals, risers, and flowlines (SURF) provide the critical link between the subsea production and processing equipment on the seafloor and the floating production installation or fixed platform. SURF products help in transmission of hydrocarbons, control fluids, hydraulic fluids, and chemicals from the subsea installation to the host facility, thereby enabling communication and control between the installation and the host facility.
The global SURF market is estimated to be valued at US$ 43.47 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The global SURF market is projected to witness significant growth, owing to increasing deepwater and ultra-deepwater exploration and production activities. Deepwater and ultra-deepwater exploration provides access to unexplored oil and gas reserves present in deeper offshore areas. According to the BP Statistical Review of World Energy 2020, around 28% of global crude oil production comes from offshore fields. Thus, growing deepwater and ultra-deepwater projects are expected to drive the demand forumbilicals, risers, and flowlines over the forecast period. For instance, in September 2021, BP initiated production from the Seagull project in the Gulf of Mexico, which is located at a water depth of approximately 5,000 feet.
Increasing deepwater and ultra-deepwater exploration and production activities will require effective subsea production systems and infrastructure comprising SURF products like umbilicals, flowlines, and risers. This is expected to significantly drive the growth of the global SURF market during the forecast period.
Strength: The SURF market has been experiencing strong demand from oil and gas companies globally. Rising offshore oil and gas exploration and production activities are driving increased adoption of subsea umbilicals, risers, and flowlines. Manufacturers are also developing advanced products with improved fatigue resistance and corrosion protection to increase operational life. Growing spending on digital technologies and integrated solutions is another plus.
Weakness: High initial investments and long lead times associated with SURF systems can pose challenges. Unfavourable changes in crude oil prices may also impact near-term demand. Declining investments in conventional offshore projects in mature oilfields can act as a constraint.
Opportunity: Growth opportunities exist in deeper waters and remote ultra-deepwater fields. Rising emphasis on digital technologies for real-time monitoring and predictive maintenance provides scope for innovation. Expanding worldwide refining capacity is augmenting requirements for offshore infrastructure to boost crude transportation. Developing markets in the Asia Pacific and Middle East regions offer potential for market expansion.
Threats: Stringent environmental norms and safety regulations associated with offshore projects require high compliance costs. Delays in offshore project sanctions amid uncertain energy market conditions pose risks. Intense competitive pressures from regional and global players can also impact profit margins.
The Global SURF (Subsea Umbilicals, Risers, And Flowlines) Market Demand is expected to witness high growth over the forecast period driven by rising deepwater and ultra-deepwater E&P activities globally. The global SURF market is estimated to be valued at US$ 43.47 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region currently accounts for around 25% of the global SURF market share and is projected to maintain its leading position during the forecast period. Countries such as India, Indonesia, Vietnam, Malaysia and Australia are investing heavily in offshore oil and gas production and related infrastructure development. Growing interconnectivity needs between offshore assets and land are also propelling regional demand.
Key players: Key players operating in the SURF market are Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, Alibaba Group Holding Limited, Tesco PLC, Rakuten, Inc., and Flipkart Internet Private Limited. The market is quite consolidated with top players accounting for over 60% of the global share. Key strategies by major companies include new product development, mergers and acquisitions to enhance technological capabilities and geographical presence.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it