SURF (Subsea Umbilicals, Risers, and Flowlines) products refer to various equipment that are essential components for subsea oil and gas production and operation. They include steel tubes, hoses, electrical cables and hydraulic lines that are used for carrying hydrocarbon fluids, electrical power and control signals between the subsea wellheads and the offshore platform or onshore facilities. SURF products play a vital role in enabling offshore oil and gas production from deepwater reservoirs located at depths between 600 to 3000 meters below sea level. With the depletion of shallow water reserves, oil and gas companies are increasingly tapping into deepwater reserves to meet growing energy demand. Advances in drilling and production technologies have made deepwater exploration and production more viable and economical. As a result, investments in deepwater and ultra-deepwater projects have been on the rise, driving the demand for SURF products.
The global SURF (Subsea Umbilicals, Risers, and Flowlines) 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.
Market key trends:
One of the major trends driving the SURF market growth is the increased focus on developing cost-effective and efficient deepwater technologies. As deepwater resources are challenging and capital intensive to develop, oil and gas companies are consistently working on innovations to optimize production from such reservoirs. This involves the development of lighter and more durable materials for SURF products that can withstand high pressures and temperatures at extreme offshore depths. Technological advancements like the adoption of synthetic materials and composite lining are helping to improve the performance of SURF products. Their enhanced designs enable longer service life and reduce maintenance costs. This is positively impacting the SURF market revenues over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirement and established brands make it difficult for new companies to enter the market.
Bargaining power of buyers: Large buyers have significant influence on suppliers due to their high demand and ability to compare offers from various suppliers.
Bargaining power of suppliers: Suppliers have moderate to high bargaining power because of stringent manufacturing standards and not many suppliers able to fulfill demand.
Threat of new substitutes: Limited threat as SURF products have no close substitutes and require customized engineering solutions.
Competitive rivalry: Intense competition among existing major players like Amazon, MercadoLibre, and Wal-Mart to capture more market share.
Key Takeaways
The global SURF market demand is expected to witness high growth. Global SURF (Subsea Umbilicals, Risers, And Flowlines) Market Demand 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.
The market in Asia Pacific region is expected to grow at fastest rate during the forecast period. The region accounts for around 35% of global oil production and increasing offshore oil & gas production projects will drive the demand for SURF systems in the region.
North America region currently dominates the global market due to large number of exploration and production activities in Gulf of Mexico. Countries like US and Canada are focusing on development of their unconventional reserves which will require subsea tie-backs that utilize SURF systems. This is expected to drive the growth of the regional market during forecast period.
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. Major players are focusing on diversifying their product portfolio and targeting high growth markets to gain higher revenue shares. They are also offering customized solutions to clients operating in variable water depths and geographies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it