The SURF (Subsea Umbilicals, Risers, and Flowlines) industry comprises products such as umbilicals, flowlines, and risers that are used for offshore oil and gas projects. Umbilicals are flexible pipes that provide hydraulic, chemical, and electrical services between offshore rigs or platforms and subsea infrastructure. Flowlines transport hydrocarbons from the wellheads to risers or other platforms. Risers connect offshore equipment to platforms or rigs and enable hydrocarbons and other fluids to be transported between subsea and offshore facilities. The demand for these products is driven by the need for efficient production from deep and ultra-deepwater reserves.
The Global SURF Market is estimated to be valued at US$ 50.08 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2030.
Key Takeaways
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. These players are focusing on contracts and agreements to strengthen their positions in the market. For instance, in 2022, McKee International announced it had been awarded a large contract by Aker BP for the comprehensive supply of up to 55 flex-lay risers for the NOAKA field development offshore Norway.
The growing demand for energy is a key driving factor for the global SURF market. Deep and ultra-deepwater reserves are increasingly important sources of oil and gas due to declining production from conventional reserves. SURF infrastructure is critical for efficient production and transportation of hydrocarbons from such reserves.
The market is also witnessing increasing globalization with major players establishing manufacturing and production facilities across different regions. For example, in 2022, McDermott commenced fabrication of Pipe-in-Pipe risers at its new offshore facility in Batam, Indonesia to support Subsea 7’s major UK North Sea project. Such expansion allows companies to offer standardized as well as customized solutions and strengthen their positions in both domestic and international markets.
Market Key Trends
One of the key trends in the SURF Market is the increasing utilization of advanced materials to enable operations in deeper waters. Materials such as high-density polyesters, titanium, and nickel-based alloys provide greater strength and resistance to corrosion and pressure. They allow SURF infrastructure to withstand pressures and temperatures encountered at water depths of over 3,000 meters. Ongoing research and development of newer advanced materials is expanding the limits of deepwater drilling and production activities.
Porter’s Analysis
Threat of new entrants: Moderate barriers for setting up a manufacturing unit.
Bargaining power of buyers: Large buyers have negotiating power over pricing and delivery.
Bargaining power of suppliers: Limited suppliers for raw materials increase their bargaining power.
Threat of new substitutes: Moderate threat from substitutes like rigid pipes and flexible pipes.
Competitive rivalry: Intense competition between international and domestic players.
The North Sea region accounts for the largest market share in terms of value as it is one of the most productive offshore oil and gas areas. Major developments in this region include Johan Sverdrup field in Norway and Culzean gas field in UK. The Asia Pacific region is expected to witness the fastest growth during the forecast period supported by upcoming developments in offshore oil and gas fields of Vietnam, Indonesia, China, India and Malaysia. Countries like China and India are investing heavily in offshore oil and gas exploration and production activities to meet their growing energy demand. In addition, upcoming LNG liquefaction terminals will also drive demand for SURF products in Asia Pacific region.
Geographical Regions
The Middle East region is currently valued at US$ 12.5 Bn in 2024 attributed to massive offshore production from fields such as Zakum in UAE, Marjan and Berri in Saudi Arabia. Going forward, upcoming oil and gas developments in countries like Oman, Qatar and Iraq are expected to sustain demand for SURF products in Middle East region. Africa is poised to emerge as another lucrative market supported by large untapped reserves in East and West coasts of Africa. Major projects driving demand include offshore developments of Total, Eni and Shell in Angola, Nigeria, Egypt and Mozambique.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it