The global subsea control systems market is expected to grow at an estimated CAGR of over 8% on account of increasing demand from developed as well as developing countries. Increasing subsea drilling activities in various countries are expected to foster product demand over the forecast period. Increased petrochemical product consumption across various industries including plastics, energy, paints & coatings, transportation, and textiles is expected to augment crude oil exploration activities. Technological advancements coupled with financial back-up have increased deep and ultra-deep oil exploration activities.
Rapid depletion of onshore oil & gas resources has led to the increased exploration of offshore assets. This has increased subsea control equipment demand over the past. Increasing subsea wells installation in the recent period has also contributed towards the subsea control systems industry growth. This trend is expected to continue over the next seven years, thus augmenting the product demand. Difficulty in manufacturing and maintaining subsea equipment is expected to hamper the demand over the forecast period. Higher raw material costs in addition to expensive manufacturing technology result in costlier equipment. This is also anticipated to restrain demand over the next seven years.
Technological advancements have led to the rapid discovery of new reserves, resulting in increased opportunities. The increasing need for replacing existing oil & gas resources with new deepwater reserves is expected to provide new opportunities for the subsea control equipment market players. The market can be segmented on the basis of components, types, applications, and region. On the basis of components, it can be segmented as subsea control module (SCM), umbilical, umbilical termination assembly (Uta), master control system, sensors, and others. On the basis of type, it can further be segmented as topside control systems and underwater control systems. It can also be segmented on the basis of application as processing, production, and others.
In 2013, Europe dominated the global subsea control systems demand and held over 28% of the total share. Europe is expected to continue its dominance over the forecast period. The European subsea control systems market is expected to reach over USD 2.2 billion in 2022. Increasing deepwater drilling activities along with increasing spending for safety and security in Norway and the UK are expected to foster regional growth. These two countries account for over 95% of the total European demand in 2013. The regional demand is expected to grow at an estimated CAGR of over 7.5% over the next seven years. Europe was followed by Middle East & Africa (MEA) and Central & South America (CSA) respectively. MEA was valued at over USD 950 million in 2013 and is expected to grow at an estimated CAGR of over 9% from 2015 to 2022.
CSA is mainly characterized by increasing offshore drilling activities in Brazil. The country accounted for over 18% of the global subsea control systems demand in 2013 and is expected to retain its demand over the forecast period as well. CSA is expected to install over 450 new deepwater drilling systems, which is expected to be the key reason boosting the product demand in the region. Asia Pacific is expected to be the fastest-growing region over the forecast period. Increasing focus on exploration and utilization of deepwater oil & gas reserves in developing countries like India, Malaysia, Australia, etc. is expected to fuel market growth over the forecast period. APAC is expected to grow at an estimated CAGR of over 11% over the forecast period.
Agreements and contracts have been observed as the key strategies implemented by leading players in the subsea control equipment industry. These strategies help both the manufacturer as well as consumers of control systems to build long term relationships and increase market penetration. In the recent period, contracts and agreements have been the key to market development, and the trend is expected to continue over the forecast period as well. Key players operating in the global subsea control equipment market include Drill-Quip Inc., GE Oil & Gas, Aker Solutions, FMC Technologies Inc., OneSubsea, Weatherford International Ltd., and Halliburton.
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