Market Summary
Global Subsea System Market Overview:
Subsea System Market Size was valued at USD 13.2 Billion in 2023. The Subsea System market industry is projected to grow from USD 13.97 Billion in 2024 to USD 20.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.04% during the forecast period (2024 - 2032). Increasing activities associated with deep water drilling, along with increasing investments in oil and gas industries, are the key market drivers enhancing the growth of market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Subsea System Market Trends
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The growing need for deep-water oil and gas production and exploration activities is driving the market growth
Market CAGR for Subsea Systems is being driven by the growing need for deep-water oil and gas production and exploration activities. The requirement for energy results in the increase of exploration & production activities in deep-water and ultra-deep-water. The rapid advancement in sub-sea technology with the operational reduction in operational cost is aimed to help the Subsea System to grow. Subsea Systems provide ideal solutions for great oil recovery in maturing offshore wells by offering cost-effective and maintaining the stability of offshore basins.
Research and manufacturing companies are greatly investing in offshore development projects. Projects are mostly beyond 190-250 meters of water depths and elevate hydrocarbons to the surface by using sub-sea production and processing systems. Investment in sub-sea production and processing systems is anticipated to increase in the future years as most of the oil and gas stock is from deep water levels.
Oil and gas operators discovered reserves in deeper water regions where sub-sea development is very important to make a recovery economically affordable; the offshore oil and gas market has risen at a significant rate. As a result, the sub-sea production and processing systems are anticipated to be a crucial part of the future of the offshore oil and gas market to support and innovate production. Sub-sea processing has transformed offshore oil and gas production by utilizing sub-sea pumping and separation technologies.
The increased petrochemical consumption across various industries, including paints and coatings, energy, transportation, textiles, and plastic, is predicted to grow oil exploration activities, driving the subsystem market during the forecast years. The technological advancements and firm financial breakups have increased ultra-deep, and deep oil exploration boosts the subsystems market.
The fast depletion of onshore oil and gas resources has resulted in the increased oil and gas exploration of offshore assets. Digital advancement has helped in efficient production, enlarging the portfolio, effective operational maintenance, and sales monitoring. The post-pandemic economic comeback has fueled energy consumption, and automotive, industrial, and consumer goods sales have boosted market growth. Thus, driving the Subsea System market revenue.
Sub-sea processing system reduces the dependence on costly topside facilities for offshore operations and is attaining significance for companies looking to cut costs in low oil price conditions. The low price of crude oil internationally is a drawback for the Subsea System market. The subsequent downturn in oil prices has caused large-scale cutbacks in exploration and production spending by the main oil scenario.
Subsea System Market Segment Insights:
Subsea System Type Insights
The Subsea System market segmentation, based on type, includes subsea production and subsea processing. The subsea production segment dominated the market, accounting for the largest market revenue. It is further divided into technology and process. The technology is important for reducing development cost, improving reservoir productivity, and improving subsea system reliability.
Figure 1: Subsea System Market, by Type, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Subsea System Component Insights
The Subsea System market segmentation, based on components, includes SURF, Subsea Trees, Subsea Control Systems, and Subsea Manifolds. The SURF segment is projected to dominate the market of subsea systems. Subsea Umbilical Risers and Flowlines (SURF) play an important role in subsea production systems. The Umbilical system is a packaged course of action of the channel, tubing, and electrical conductors that are restricted in the heavily clad sheath; it is utilized to screen pressure and infuse the liquid
Subsea System Regional Insights
By region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Subsea System market area dominates this market, owing to an increase in deep water drilling activities with rising spending for safety and security and increasing investment in the oil production system.
Further, the main countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, South Korea, Japan, India, Australia, and Brazil.
Figure 2: Subsea System Market Share By Region 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe's Subsea System market accounts for the second-largest market share due to the increased investment in oil and gas production and rising deep-water drilling exploration. Further, the Norway Subsea System market held the largest market share, and the UK Subsea System market was the rapid-growing market in the European region.
The Asia-Pacific Subsea System Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because of the growing demand for energy and rising deep-water drilling exploration. Moreover, China’s Subsea System market held the largest market share, and the Indian Subsea System market was the rapid-growing market in the Asia-Pacific region.
Subsea System Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Subsea System market grow even more. Market participants are also undertaking a various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Subsea System industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Subsea System industry to benefit clients and increase the market sector. In recent years, the Subsea System industry has offered some of the most significant advantages to oil and gas industry.
Major players in the Subsea System market, including EniSpa, Norwegian Innova, OneSubsea Schlumberger, Subsea7, Aker Solutions ASA, Siemens AG, Nexans S.A., National Oilwell Varco, Inc., Baker Hughes Company, Oceaneering International, Inc., Vallource S.A., General Electric Company, and others, are attempting to increase market demand by investing in research and development operations.
Subsea7, headquartered in London, is a leader in providing offshore projects and services for the energy industry. They provide fully integrated offshore products and services for inspection, maintenance, and repair of existing offshore infrastructure and also provide installation of offshore wind turbines, structures, and substations. In December 2018, the company came up with the contract for the SURF system from BP for the Manuel Project in the US Gulf of Mexico.
The project will be executed by Subsea Integration Alliance, which is a partnership between Subsea7 and OneSubsea Schlumberger, providing fully integrated solutions. The contract's worth was between $50 million to $150 million. In May, They secured three contracts with Woodside. The contract is for engineering studies and provides an option for Woodside to forward the execution phase with an engineering, construction, procurement, and installation(EPCI) contract.
Norwegian Innova, established in 1997, is a leader in supplying services, equipment, and solutions to the international underwater industry. The company is in Norway, providing highly qualified personnel and advanced design tools. In February 2022, the contract was signed by the comapany with the US Teledyne Energy System to demonstrate the utilization of hydrogen for local power of subsea control systems.
The companies took the confirmation test at the Norwegian Center for Offshore Education, Tau Autonomy Center in Tau, Norway; this consisted of a well intervention simulation in which the Subsea Supercharger powered a subsea hydraulic pumping unit developed by Innova.
Key Companies in the Subsea System market include
- EniSpa
- Norwegian Innova
- OneSubsea Schlumberger
- Aker Solutions ASA
- Siemens AG
- Nexans S.A.
- National Oilwell Varco, Inc.
- Baker Hughes Company
- Oceaneering International, Inc.
- Vallource S.A.
- General Electric Company
Subsea System Industry Developments
February 2022: EniSpa, an Italian oil and gas company, launched its first exploration well in offshore areas of Abu Dhabi. The company also had achieved positive outcomes from its first exploration well, XF-002, at present under drilling in offshore Block 2Abu Dhabi at 115 feet of water depth.
January 2022: Solace Nutrition, a US-based medical nutrition company, bought R-Kane Nutritionals' assets for an unknown sum. This asset acquisition enables Solace Nutrition to develop synergy between both brands, accelerate growth, and establish a position in an adjacent nutrition sector. R-Kane Nutritionals is a firm established in the United States that specializes in high-protein meal replacement products for weight loss.
February 2021: Hydroxycut's newest creation, CUT Energy, a delectable clean energy drink, was released. This powerful mix was carefully formulated for regular energy drink consumers, exercise enthusiasts, and dieters looking to lose weight.
The Transocean-owned rig helped Equinor make a new commercial oil and gas discovery in the North Sea off Norway in February 2023. The discovery was made after the drilling of a wildcat well (31/1-3 S) and an appraisal well (31/1-3 A) in production license 923 ended.
There was a partnership between Norwegian Innova and United States Teledyne Energy System to showcase hydrogen as a means of locally powering subsea control systems in February 2022. This included a well-intervention simulation at the Norwegian Center for Offshore Education, Tau Autonomy Center located at Tau, Norway, where a Subsea Supercharger powered an sHPU developed by Innova.
Agung l and Agung ll were the two offshore exploration blocks won by British oil & gas company BP PLC in Indonesia for instance, March 2022, which was part of the government’s second round of the 2021 Oil & Gas Working Area (WK) Bid Round.
In October 2023, the OneSubsea joint venture was completed by SLB, Aker Solutions, and Subsea7.
Chevron Australia signed a 20-year frame agreement with TechnipFMC in June 2023.
For example, EniSpA announced its first exploration well in Abu Dhabi in February 2022. Also, it has been revealed that at present, its first exploration well, called XF-002, is under drilling through offshore Block 2 Abu Dhabi (UAE) at 115 feet of water depth with positive results, according to reports from the company itself.
That is when ONGC Videsh Ltd (OVL) planned to spend USD one billion in the acquisition of a Brazilian offshore hydrocarbon block, as reported in October 2022.
BP PLC won two offshore exploration blocks - Agung l and Agung ll –for example March 2022, amongst others, as part of the Government’s second round for Oil & Gas Working Area (WK) Bid Round 2021.
Schlumberger in August 2022, announced its plan to enter into a joint venture with Aker Solutions and Subsea 7 for driving innovation and efficiency in subsea production through unlocking customers’ reserves as well as reducing cycle time. Its main goal is to provide an amalgamation of a portfolio of disruptive technologies, which include subsea gas compression, all-electric subsea production systems and other electrification capabilities that help customers meet their decarbonization goals.
Subsea System Market Segmentation
Subsea System Type Outlook
- Subsea Production
- Subsea Processing
Subsea System Components Outlook
- SURF
- Subsea Trees
- Subsea Control Systems
- Subsea Manifolds
Subsea System Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
Market Size & Forecast
| Attribute/Metric | Details |
| Market Size 2023 | USD 13.2 Billion |
| Market Size 2024 | USD 13.97 Billion |
| Market Size 2032 | USD 20.7 Billion |
| Compound Annual Growth Rate (CAGR) | 5.04% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Components, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, South Korea, Japan, India, Australia, and Brazil |
| Key Companies Profiled | EniSpa, Norwegian Innova, OneSubsea Schlumberger, Subsea7, Aker Solutions ASA, Siemens AG, Nexans S.A., National Oilwell Varco, Inc., Baker Hughes Company, Oceaneering International, Inc., Vallource S.A., General Electric Company |
| Key Market Opportunities | · Rise in new product developments and research and development done by the major market players. |
| Key Market Dynamics | · Increase in deep water drilling activities. |
Major Players
Subsea System Market Segmentation
Subsea System Type Outlook (USD Billion, 2018-2032)
Subsea Production
Subsea Processing
Subsea System Components Outlook (USD Billion, 2018-2032)
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Subsea System Regional Outlook (USD Billion, 2018-2032)
North America Outlook (USD Billion, 2018-2032)
North America Subsea System by Type
Subsea Production
Subsea Processing
North America Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
US Outlook (USD Billion, 2018-2032)
US Subsea System by Type
Subsea Production
Subsea Processing
US Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
CANADA Outlook (USD Billion, 2018-2032)
CANADA Subsea System by Type
Subsea Production
Subsea Processing
CANADA Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Europe Outlook (USD Billion, 2018-2032)
Europe Subsea System by Type
Subsea Production
Subsea Processing
Europe Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Germany Outlook (USD Billion, 2018-2032)
Germany Subsea System by Type
Subsea Production
Subsea Processing
Germany Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
France Outlook (USD Billion, 2018-2032)
France Subsea System by Type
Subsea Production
Subsea Processing
France Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
UK Outlook (USD Billion, 2018-2032)
UK Subsea System by Type
Subsea Production
Subsea Processing
UK Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
ITALY Outlook (USD Billion, 2018-2032)
ITALY Subsea System by Type
Subsea Production
Subsea Processing
ITALY Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
SPAIN Outlook (USD Billion, 2018-2032)
Spain Subsea System by Type
Subsea Production
Subsea Processing
Spain Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Rest Of Europe Outlook (USD Billion, 2018-2032)
Rest Of Europe Subsea System by Type
Subsea Production
Subsea Processing
REST OF EUROPE Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Asia-Pacific Outlook (USD Billion, 2018-2032)
Asia-Pacific Subsea System by Type
Subsea Production
Subsea Processing
Asia-Pacific Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
China Outlook (USD Billion, 2018-2032)
China Subsea System by Type
Subsea Production
Subsea Processing
China Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Japan Outlook (USD Billion, 2018-2032)
Japan Subsea System by Type
Subsea Production
Subsea Processing
Japan Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
India Outlook (USD Billion, 2018-2032)
India Subsea System by Type
Subsea Production
Subsea Processing
India Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Australia Outlook (USD Billion, 2018-2032)
Australia Subsea System by Type
Subsea Production
Subsea Processing
Australia Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)
Rest of Asia-Pacific Subsea System by Type
Subsea Production
Subsea Processing
Rest of Asia-Pacific Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Rest of the World Outlook (USD Billion, 2018-2032)
Rest of the World Subsea System by Type
Subsea Production
Subsea Processing
Rest of the World Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Middle East Outlook (USD Billion, 2018-2032)
Middle East Subsea System by Type
Subsea Production
Subsea Processing
Middle East Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Africa Outlook (USD Billion, 2018-2032)
Africa Subsea System by Type
Subsea Production
Subsea Processing
Africa Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
Latin America Outlook (USD Billion, 2018-2032)
Latin America Subsea System by Type
Subsea Production
Subsea Processing
Latin America Subsea System by Components
SURF
Subsea Trees
Subsea Control Systems
Subsea Manifolds
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