Subsea Boosting Systems Market

Global Subsea Boosting Systems Market: Snapshot

The global market for subsea boosting systems is dominated by three players, namely FMC Technologies, OneSubsea, and GE Oil & Gas. Together they accounted for a mammoth share of 78% in the market in 2014. Competition among them is intense too as they try to outsell one another through pricing strategies intended to lure more consumers. Other prominent names in the market are Aker Solutions, Baker Hughes Incorporated, Flowserve Corporation, Inc., Framo AS, General Electric Company, ITT Bornemann GmbH, Sulzer Ltd, and Leistritz Advanced Technologies Corp.

At present, the global market for subsea boosting systems is being driven by the burgeoning demand for fossil fuels and petroleum products and their effectiveness in improving production from developed reservoirs. However, the frontrunner among growth drivers is the technological progress in the field of deepwater and remote applications. Uncovering of offshore oil and gas fields in countries such as Angola, Gabon, Tanzania, Nigeria, and Mozambique have also presented an opportunity to companies in the market. One factor countering the growth is the volatile crude oil prices that pose a challenge to companies wanting to maintain consistent production costs.

A report by Transparency Market Research forecasts the global subsea boosting systems market to expand at a healthy CAGR of 9.7% from 2015 to 2023. The market was worth US$1.46 bn in 2015 and is estimated to reach US$3.07 bn by the end of 2023.

Heavy Investments in Shallow Water Oil Drilling to Propel Sales Dramatically

Depending upon the depth of water, the global market for subsea boosting systems can be segmented into shallow water and deep water. The recent spate of investments in shallow water oil drilling will likely increase the revenue generated in the market dramatically. The usage of helicoaxial pumps with more effective subsea boosting systems is also anticipated to foster growth.

Based on applications again, the global market for subsea boosting systems can be further classified into oil and gas. With companies increasingly expending energy on discovery of oil fields, the oil field subsea boosting application segment is expected to grow its share in revenue to a substantial 67.7% by 2023.

The nations of China, the U.S., North Sea, Brazil, Gulf of Mexico, and Western Africa are key regions in the global oilfields subsea boosting systems market. Exploration of oil fields in water depths and tie-back distances is anticipated to generate the demand for subsea boosting systems in these regions.

Densely Populated Asia Pacific Stokes Demand   

From a geographical standpoint, Asia Pacific is the leading market for subsea boosting systems because of the burgeoning population in the region. This has generated need for energy procured from different sources and has in turn bolstered demand for subsea boosting systems. Hotbeds of subsea activities in the region are China, Vietnam, Australia, Indonesia, and Malaysia. However, the main drivers of the market in the region are Australia and China on account of being potential markets for the offshore drilling industry. Going forward, Asia Pacific is forecasted to gain a share 23.9% in revenue in the overall market.

Europe is another key region in the global market for subsea boosting. The rise in deepwater drilling activities in the continent is predicted to foster growth in the market in the foreseeable future. The Middle East will likely outpace all other regions in terms of growth rate owing to ongoing large-scale drilling activities in Saudi Arabia and U.A.E. It is also a mature market for shallow water exploration activities.

Massive Energy Consumption Levels to Increase the Demand across the Subsea Boosting System Market

The subsea boosting system market is prognosticated to witness immense growth across the assessment period of 2015-2023 on the back of the rising demand for fossil fuels and petroleum products around the world. Population density is growing thicker and it has increased the energy consumption levels to a considerable extent, eventually increasing the growth prospects of the subsea boosting system market.

• Subsea boosting systems are used for enabling production from offshore wells without the necessity of surface production facilities. Enhanced oil and gas recovery, reduced surface production unit costs, expanding Net Present Value (NPV), and others are some of the benefits that bode well for the growth of the subsea boosting system market.
• Thriving investments from various firms and conglomerates are estimated to have a positive impact on the growth of the subsea boosting system market. Investors are eyeing the subsea boosting system market due to the projections of a bright future owing to the increasing oil and gas exploration activities.
• Research and development activities are an integral part of the growth of the subsea boosting system market. The players invest heftily in these activities. The activities help in developing novel formulations and insights that contribute to the expansion of the revenues, ultimately having a large effect on the growth of the subsea boosting system market.
• Strategic collaborations also play an important role. Mergers, acquisitions, joint ventures, and partnerships help in strengthening the foothold of the players in the subsea boosting system market, eventually influencing the growth rate of the subsea boosting system market.
• The COVID-19 pandemic has dented the growth prospects of many industries and sectors. The subsea boosting system market is no stranger to this loss. The growing prevalence of the virus forced many countries to enforce strict lockdowns. During this period, manufacturing facilities and production units were shut.
• In addition, oil and gas exploration activities were also halted. This aspect had a negative impact on the growth of the subsea boosting system market. However, the relaxations in lockdown will bring relief to the players in the subsea boosting system market.