Subsea Umbilicals, Risers and Flowlines (SURF) Market Size - By Water Depth (Shallow, Deep), By Product (Umbilicals, Risers {SCR, Flexible, Others}, Flowlines), Regional Outlook & Forecast, 2024 - 2032

Subsea Umbilicals, Risers and Flowlines Market Size

Subsea Umbilicals, Risers and Flowlines Market was valued at over USD 4.8 billion in 2023 and is set to grow at a CAGR of over 7% between 2024 and 2032. Subsea umbilicals, risers, and flowlines form an integrated system that enables the extraction, transportation, and processing of oil and gas resources from subsea fields to the surface facilities. They are crucial for the efficient and safe production of hydrocarbons in offshore environments. The SURF industry is set to grow owing to the industry's growing focus towards exploring and operating in deeper offshore fields along with decline in number of easily accessible oil reserves. Cost effectiveness, robust design and high reliability are some of the prominent factors positively influencing the industry growth as companies seek efficient and dependable solutions for subsea oil and gas production.

The subsea umbilicals, risers and flowlines market is anticipated to observe a significant growth owing to the rising demand for energy-efficient systems that can be able transport crude oil & gas to processing plants. These systems play a crucial role in connecting subsea production to surface facilities, thereby improving production rates and making them a preferred choice. Moreover, increasing investments in subsea projects along with growing installation of floating rigs and the escalating energy demand will further stimulate the industry outlook.

COVID-19 Impact

The COVID-19 pandemic has had an unprecedented impact on the global trade and economy, causing significant disruptions to the SURF industry. The manufacturing and consumption sectors have scaled back worldwide, leading to a decrease in demand for SURF components. Strict lockdown measures implemented by several countries have severely affected the supply chain and demand. The pandemic has led to a decline in capital expenditures across the oil and gas industry as a result, companies reduced their investments in new projects, including offshore developments that require SURF systems. However, as the global economy recovers and oil prices stabilizes, investments in offshore projects and the demand for SURF systems are expected to rebound and will offset the restraining factors over the forecast period.

Subsea Umbilicals, Risers and Flowlines Market Trends

The SURF industry is witnessing a significant growth on account of advancements in technology focused at improving the performance and reliability of these systems. This includes the development of new materials, coatings, corrosion protection techniques, and the integration of digital solutions for real-time monitoring & predictive maintenance. For instance, in October 2021, Saipem and TechnipFMC have joined forces to explore joint project opportunities in global subsea umbilicals, risers, and flowlines (SURF) projects. Through this collaboration, they aim to optimize project economics, mitigate risks, and deliver improved outcomes for stakeholders. Both companies can provide operational flexibility and optimize project execution strategies, benefiting the engineering, procurement, construction, and installation (EPCI) and integrated EPCI project models. Moreover, growing emphasis on cost-effective solutions, manufacturers are exploring innovative designs and production processes to reduce the overall cost of SURF systems without compromising safety or performance further complementing the business dynamics.

The cost-effective development of smaller, satellite fields by utilizing existing infrastructure and reducing the need for new installations along with the depletion of easily accessible oil and gas reserves, and paradigm shift towards exploring and producing hydrocarbons from deepwater and ultra-deepwater fields is complementing the industry landscape. Growing adoption of standardized components, modular designs, and improved installation and maintenance techniques will influence the business dynamics. In addition, increasing focus on sustainability and minimizing the environmental impact including the development of environmentally friendly coatings, the adoption of energy-efficient designs, and integration of renewable energy sources for subsea operations will further augment the industry outlook.

Subsea Umbilicals, Risers and Flowlines Market Analysis

The shallow subsea umbilicals, risers and flowlines market accounted for the leading position across the industry and is anticipated to witness substantial growth owing to accelerating capital expenditure in exploration and production activities. The increasing demand for oil and gas from several industries including refineries and petrochemical will further drive the industry growth. For instance, as per the CEIC, the oil consumption in the U.S. grew to 19.14 million barrels per day in 2022 from 18.78 million barrels per day in December 2021. Moreover, growing number of discoveries and exploration of marginal oil reserves along with technological enhancement in system design to increase the operational efficiency will propel the industry landscape.

The deep-water SURF market is set to observe significant momentum owing to the presence of oil fields, production of natural gas and oil along with rising investments in deep and ultra-deep hydrocarbon fields. For instance, according to the U.S. Energy Information Administration (EIA), the U.S. accounted for approximately 15% of the overall crude oil production and around 2% of total dry natural gas production in 2021 were derived from offshore oil and natural gas production in the Federal Gulf of Mexico. Moreover, growing investments across ultra-deep offshore oil fields together with increasing focus to limit dependency on imported energy resources are some of the prominent factors creating favorable outlook for the deep-water SURF market.

The umbilical SURF industry is set to witness substantial growth owing to the positive outlook for deepwater and ultra-deepwater drilling activities and the ability of these systems to offer cost-effectiveness, reliability, and the capability to transmit chemical fluids and electric signals. For instance, in September 2022, Saipem secured two contracts worth approximately USD 1.07 billion or EUR 1 billion for the Baleine Phase 1 Project in the Ivory Coast. The project involves developing an offshore oil and gas field at a water depth of 1,200 meters. The contracts encompass EPCI activities for SURF along with the construction of an onshore gas pipeline for distribution grid connection. The company’s flagship vessel FDS2 will be responsible for the offshore installation of flexible risers, lines, and umbilicals. Moreover, the implementation of stringent government regulations aimed at ensuring safety during deep-sea underwater operations will further contribute to the growth of the industry.

Middle East & Africa subsea umbilicals, risers and flowlines market was estimated at over USD 2.1 billion in 2022 and is set to witness a significant momentum owing to the increasing investments in the exploitation of new crude oil discoveries and a positive outlook for the development of unconventional reserves. Growing emphasis on digitalization and automation of drilling operations aimed at enhancing crude oil production rates, introduction of government policies and regulations, and the accelerating demand for energy resources will positively influence fuel the industry growth. The region's extensive offshore oil and gas reserves, ongoing exploration and production activities, and the presence of established oil and gas companies will further proliferate the business dynamics.

Subsea Umbilicals, Risers and Flowlines Market Share

Various players operating across the subsea umbilicals, risers and flowlines market at the are focusing on creating strong partnerships and collaborations for new projects along with introducing advance technologies to enhance their market presence. The ongoing initiatives including mergers & acquisitions along with expansion of manufacturing facilities by the major industry participants will play a vital role in shaping the industry dynamics over the forecast period. Major industry players operating across the industry consist of :

• Schlumberger Limited
• TechnipFMC plc
• Halliburton
• VALLOUREC
• Aker Solutions
• Oceaneering International Inc.
• Tenaris
• Saipem
• John Wood Group PLC
• Prysmian Group
• ArcelorMittal Downstream Solutions
• SUBSEA7
• Dril-Quip Inc.
• Baker Hughes Company
• DeRegt Cables
   

Subsea Umbilicals, Risers and Flowlines Industry News

• In May 2023, Equinor announced that it has awarded a contract for subsea umbilicals, risers, & flowlines to TechnipFMC. In addition, Equinor has entered into a sales and purchase agreement with MODEC for the delivery of a floating production, storage, and offloading (FPSO) unit. These contracts were awarded for a project in which Equinor made its final investment decision. The project encompasses the Gavea fields and Pao de Acucar, Seat located in the BM-C-33 block, Campos offshore Basin, Brazil. This project enhanced the company’s market position and will strengthen its presence across the SURF industry.
   
• In January 2023, Saipem has secured two offshore contracts with a combined value of approximately USD 900 million. The first contract was awarded by the Total Energies, in collaboration with Aker Solutions for the LAPA Southwest Development Project. This project involves a deep-water oil field located in the Santos Basin, situated in the South Atlantic, around 270 kms off the coast of São Paulo, Brazil. The scope of work for this contract includes Engineering, Procurement, Construction, and Installation (EPCI) activities for SURF coupled with a subsea production system. The second contract comprises of EPC and commissioning activities for the refurbishment of Firenze, a FPSO vessel, along with operations & and maintenance services of the vessel for a period of 10 years.
   

The subsea umbilicals, risers and flowlines market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Feet” & “USD Million” from 2019 to 2032 for the following segments:

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By Water Depth

• Shallow
• Umbilicals
• Risers
  • SCR
  • Flexible
  • Others
• Flowlines 
• Deep
• Umbilicals
• Risers
  • SCR
  • Flexible
  • Others
• Flowlines
• Ultra Deep
• Umbilicals
• Risers
  • SCR
  • Flexible
  • Others
• Flowlines

By Product

• Umbilicals
• Risers
• SCR
• Flexible
• Others
• Flowlines

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Norway
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Indonesia
  • Malaysia
  • Thailand
  • Australia
• Middle East & Africa
  • Angola
  • Nigeria
  • Egypt
  • Qatar
  • Saudi Arabia
  • UAE
• Latin America
  • Brazil