The global SUB (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 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview
SUB systems are used in offshore oil and gas fields for transporting hydrocarbons, control lines, chemicals, and power lines from the well-heads located subsea and to the floating production storage and offloading (FPSO) vessels or platforms located above water. SUB systems include high pressure flexible pipes, umbilicals, rigid flowlines, and flexible flowlines. Umbilicals are used to monitor wells and control subsea production equipment such as subsea manifold valves, while risers provide the connection between the subsea system and the floating production installation above the water. The demand for subsea production systems is rising rapidly as oil & gas companies are developing fields located deeper waters and adopting innovative offshore production technologies.
Market Key Trends
Use of artificial intelligence (AI) and machine learning (ML) technologies is gaining rapid traction in the global SUB systems market. Oil & gas companies are using AI systems to monitor SUB infrastructure and predict its performance and maintenance needs. AI enabled sensors and Edge computing capabilities are being deployed along SUB systems to gather operational data. Advanced ML algorithms analyze this data to detect anomalies and failures, allowing pre-emptive maintenance and reducing downtime. Key players are also developing AI-controlled unmanned vessels to conduct underwater inspections of SUB equipment without risking human lives. Growing focus on digitalization of offshore infrastructure with technologies like Industrial IoT, robotics, and AI is expected to transform SUB system operations over the coming decade.
Porter’s Analysis
Threat of new entrants: Low barriers to entry as subsea oilfield service vendors require specialized equipment and technology to develop and install subsea infrastructure. However, initial capital investment is significant.
Bargaining power of buyers: Moderate as majority buyers in the market are large oil & gas operators. Buyers can negotiate on price and quality factors.
Bargaining power of suppliers: Moderate as suppliers have to compete intensely on technology, quality, and pricing to get contracts from global EPC companies and operators.
Threat of new substitutes: Low as there are limited alternatives to subsea infrastructure for offshore oil and gas production and transportation.
Competitive rivalry: High as market has key global players competing on technology, innovation, and price to gain projects. Focus on digitalization and reducing installation time.
Key Takeaways
The global SURF market is expected to witness high growth, exhibiting 10% CAGR over the forecast period, due to increasing deepwater and ultra-deepwater E&P activities. Rising demand for fossil fuels globally despite energy transition is also driving market growth.
Regionally, North America dominated the global market in 2023 led by deepwater projects in the Gulf of Mexico. Europe and Asia Pacific are also significant markets owing to increasing subsea developments in offshore fields. Countries like Brazil, Norway, Malaysia, and Australia are expected to boost regional growth during the forecast period.
Key players operating in the SURF market are 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. Major players are focusing on technological advancements, reducing installation time through intelligent solutions, and expanding global footprint through partnerships and mergers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
