The 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 10 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The SURF (Subsea Umbilicals, Risers, and Flowlines) Market is vital for offshore oil and gas operations as it provides the crucial link between subsea production systems and topside/onshore facilities. SURF products transport production fluids, hydrate control chemicals, electrical power and telecom signals between subsea systems and platforms or onshore facilities. They help transport hydrocarbons securely over long distances and enable efficient recovery from reservoirs located deep underwater or remotely from shore.
Market Overview:
SURF products include umbilicals, risers and flowlines. Umbilicals provide power and communication cables to subsea wells. Risers offer the link between subsea infrastructure and floating production platforms, transporting production fluids from the seafloor. Flowlines are pipelines that link Subsea Trees to manifolds or directly to fixed or floating platforms for production. SURF products enable cost-effective development and production from mature and deepwater fields.
Market key trends:
One of the key trends driving growth in the SURF market is increasing investment in offshore oil and gas projects globally. With depleting reserves and higher recovery rates from offshore and deepwater fields, oil companies are investing more aggressively in offshore exploration and production activities. This is generating significant demand for SURF systems to enable subsea development of new fields and tie-backs to existing infrastructure. Furthermore, with the increasing technical capabilities, SURF systems are being deployed in deeper waters and more complex field designs, thereby expanding the scope of their application. Major SURF contractors are developing new product and technology solutions to capitalize on rising investments in offshore E&P globally over the coming years.
Porter’s Analysis
Threat of new entrants: The SURF market requires high capital investment for equipment and infrastructure development. This poses significant entry barriers for new players.
Bargaining power of buyers: The global demand for SURF units is rising significantly driven by increasing deepwater and ultra-deepwater exploration. This gives buyers moderate bargaining power.
Bargaining power of suppliers: A few major companies dominate the supply of key materials like steel tube and composite hoses. This gives them strong bargaining power over smaller buyers.
Threat of new substitutes: No direct substitutes exist for SURF since it facilitates production from offshore oil and gas fields located far from shore.
Competitive rivalry: Intense competition exists among existing players to gain new projects and market share.
SWOT Analysis
Strengths: Established base of operations, technical expertise and patents provide an advantage over new entrants.
Weaknesses: Heavy capital investment requirements and long project cycles expose players to risks of delays and budget overruns. Dependence on oil prices poses business risks.
Opportunities: Growing deepwater and ultra-deepwater exploration worldwide presents significant project opportunities. Advancing technology is opening up harder-to-reach reserves.
Threats: Stringent government regulations around offshore infrastructure installation. Vulnerability to geopolitical issues in key markets like the Middle East.
Key Takeaways
The global SURF market is expected to witness high growth at a CAGR of 10% over the forecast period, due to increasing deep and ultra-deepwater development activities globally. The Asia Pacific region is projected to observe the fastest growth in demand for SURF products supported by rising offshore projects in countries like India and China.
The North American region currently dominates the global market owing to extensive deepwater oil & gas reserves and ongoing project developments in the Gulf of Mexico. Meanwhile, Brazil and Africa are also emerging as high potential markets.
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. These companies are focusing on technological innovations and global fleet expansion to strengthen their positions.
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https://www.ukwebwire.com/surf-market-size-share-growth-outlook-2023/
