FPSO Market Size – By Product, By Water Depth, Analysis, Share, Growth Forecast, 2025 - 2034

FPSO Market Size

The global FPSO market was valued at USD 4.3 billion in 2024 and is estimated to grow at a CAGR of 12.5% from 2025 to 2034. Increasing investments in offshore exploration and development activities, coupled with advancements in deepwater technologies is complementing the business landscape. The depletion of onshore oil reserves and the high costs associated with developing onshore infrastructure together with the capability of FPSOs to operate without fixed structural support are driving the product adoption.
 

The ability of these units to accelerate oil and gas production economically along with increasing discovery and exploitation of marginal oil reserves in remote offshore locations, will positively influence the business dynamics. For instance, in October 2024, Petrobras has launched operations of a new ultra-deepwater FPSO unit in Brazil's Santos Basin. The FPSO Marechal Duque de Caxias, deployed in the Mero field, can produce 180,000 barrels of oil and process 12 million cubic meters of gas daily. This addition increases the field's total production capacity to 590,000 barrels per day, up from 410,000.
 

FPSO Market Trends

The FPSO industry is anticipated to witness significant growth owing to ongoing exploration of oil & gas reserves across deep and ultra deep-water bodies coupled with increasing energy demand across various sectors. The depletion of onshore oil reserves, the expansion of offshore exploration activities and focus of companies toward adoption of advanced units for offshore operations are expected to drive the product adoption.
 

FPSO Market Analysis

The converted segment is anticipated to cross over USD 3 billion by 2034. The market for Floating Production Storage and Offloading (FPSO) vessels is experiencing growth due to the advantages of vessel conversion. This approach offers reduced capital costs, faster deployment, and greater operational flexibility compared to new builds. The availability of retired FPSOs and oil tankers further supports this trend. Converted FPSOs typically require only one-third of the capital investment needed for a new vessel with similar capabilities, making them an attractive option for operators in the offshore oil and gas industry.
 

The ultra deep segment is anticipated to witness a CAGR of over 7% through 2034. The proximity to onshore support facilities and the ease of transferring processed hydrocarbons are propelling the product adoption. Paradigm shift towards ultra-deep exploration activities coupled with advancements in seismic and drilling technologies, as well as the presence of larger oil reserves in deeper basins will complement the industry landscape.
 

Brazil FPSO market is likely to exceed over USD 2.5 billion by 2034. The discovery of vast oil reserves coupled with favorable government policies and increasing investments toward oil & gas exploration, is set to boost the industry landscape. Stringent mandates toward emission reduction targets and the growing importance of diversifying energy supplies, is complementing the business outlook.
 

For instance, in May 2024, MODEC in association with JGC Corporation reported to finish its projected to evaluate & quantify GHG and methane emissions from two FPSOs deployed in offshore Brazil. The project included a measurement of the amount of GHG constituents including hydrofluorocarbons, nitrous oxide, and methane, from active vessels in line with the framework recognized by the international methane emission reduction initiative called Oil & Gas Methane Partnership 2.0 (OGMP 2.0).
 

FPSO Market Share

Major companies in the FPSO industry are employing diverse strategies to maintain their competitive advantage. These include improving distribution networks, developing new financing options for offshore projects, along with strategic collaborations, joint ventures, and mergers and acquisitions, with an aim to strengthen market position and driving the industry growth.
 

FPSO Market Companies

Major players operating across the industry include:

• Bumi Armada
• BW Offshore
• CNOOC
• DNV
• Hanwha
• Hyundai Heavy Industries
• KBR
• MODEC
• Petrobras
• Saipem
• SBM Offshore
• Shell
• SHI-MCI
• TechnipFMC
• Woodside
• Yinson
   

FPSO Industry News

• In December 2024, Petrobras has announced a fresh contracting initiative for its SEAP or Sergipe Deep Waters project. The company seeks to construct up to two Floating Production Storage and Offloading (FPSO) units in the Sergipe-Alagoas Basin. Using the Build, Operate and Transfer model, Petrobras will outsource the design, construction, and initial operation of these units. The primary FPSO for SEAP 2 is set to start operations in 2030, with an option for a second unit potentially for SEAP 1. Each unit will have the capacity to process 120,000 barrels of oil and 12 million cubic meters of gas daily, with the gas ready for direct sale without further onshore processing.
   
• In November 2024, TotalEnergies has contracted SBM Offshore and Technip Energies to deliver a floating production, storage and offloading vessel for its GranMorgu field off Suriname's coast. This decision follows completed engineering studies and project approval by the TotalEnergies-led joint venture. SBM Offshore is set to manage the FPSO's operations. As Suriname's first major deepwater development, the vessel will have the capacity to produce 220,000 oil barrels and process 500 million cubic feet of gas daily.
   

This FPSO market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units”, “’000 BOPD”, and “USD Million” from 2021 to 2034, for the following segments:

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Market, By Product

• Converted
• New built

Market, By Water Depth

• Shallow
• Deep
• Ultra-deep

The above information has been provided for the following countries:

• U.S.
• UK
• Norway
• China
• India
• Indonesia
• Australia
• Brazil
• Guyana
• Rest of the World